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Elon Musk Looking To Fix U.S.-Russia Relations As Tesla’s Chinese Business Struggles

Elon Musk Looking To Fix U.S.-Russia Relations As Tesla’s Chinese Business Struggles

Elon Musk Looking To Fix U.S.-Russia Relations As Tesla’s Chinese Business Struggles









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Elon Musk Looking To Fix U.S.-Russia Relations As Tesla's Chinese Business Struggles

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Tesla Inc Chief Executive Officer Elon Musk called for dialogue between Washington and Moscow.


This comes at a time when relations as bad as they have been since the Cold War-era.


“There is a lot of talent and energy in Russia and I think there should be more dialogue and communictaion between Russia and the United States,” Musk said via video link at a forum on Russian education in Moscow.


Musk said that a potential part of the world where Tesla could open production sites is Russia.


He said that the company already had production sites in China and the United States, but was looking at opening production facilities in other parts of the world.


And one could potentially consider that Musk is in a peacemaking mood and is attempting to mend fences between the rivals, and that would be entirely false.


This is, very obviously, a simple business maneuver.


In China, Tesla is struggling.


Tesla Inc.’s growth in China slowed precipitously last month, adding to the company’s headaches after an embarrassing protest at the Shanghai auto show and several headline-generating crashes involving its electric vehicles.


Tesla has attracted unwanted publicity lately, with a disgruntled owner climbing atop one of Tesla’s display vehicles at last month’s auto show and shouting that her car’s brakes had failed, causing a crash.


That was quickly followed by two rebukes from government entities that said the EV maker should respect Chinese consumers and comply with local laws.


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On May 17th, a traffic policeman was killed and another injured in a crash involving a Tesla. Another incident earlier this month is also still under investigation after a Tesla rear-ended a truck, killing the driver of the EV, according to a Global Times report. The cause of that crash isn’t yet clear.


Tesla said that it will fully cooperate with the relevant authorities in the investigation after a Tesla vehicle reportedly ran into two traffic police who were on duty in Taizhou, leading to the injuries of two traffic police, with one in severe condition and later died. The driver of the vehicle has been kept under police supervision.


This came after a Tesla rear-ended a truck in Shaoguan, South China’s Guangdong Province, on May 7th, killing the driver of the electric car, media reports said. The cause of the accident is still under investigation.


Demand of Tesla is plunging in China, and government has its sights set on Musk’s business.


Meanwhile, ever since March Chinese military have been absolutely banned the use of Tesla vehicles by staff and employees.


Tesla cars are prohibited from entering People’s Liberation Army facilities and housing complexes. The government is concerned that the omnidirectional cameras and ultrasound sensors on installed in the cars can lead to security leaks, according to the sources.


Chinese authorities, including the State Administration for Market Regulation, said it investigated two Tesla subsidiaries in February. In addition to safety issues, such as rapid acceleration and battery fires, the authorities asked the Tesla side about the suspicion that the automaker is taking user data out of the country.


Chinese regulations mandate so-called new-energy vehicles, including electric and plug-in hybrid cars, to offer real-time driving data, such as vehicle location and battery usage, to authorities. Suspicion has been raised that Tesla has not followed this requirement.


Most recently, on May 20th, Staff at some Chinese government offices have been told not to park their Tesla Inc (TSLA.O) cars inside government compounds due to security concerns over cameras installed on the vehicles, two people with knowledge of the matter told Reuters.


As such, Tesla’s business in China is struggling, as it appears that even copious amounts of money aren’t enough to overcome Beijing’s legislation, which according to the West, of course is incredibly corrupt and turns the other way when it comes to various atrocities.


As such, Musk is now looking for ways to diversify its business and produce cars at locations that would cost less than establishing more factories in the US.


Russia would do well to learn from China’s example in dealing with the situation.


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