China planning to jolt Tesla Motors over planned investment in India

Beijing: – Tesla CEO Elon Musk announced, ‘If our cars are being used for espionage in China or any other country, Tesla Motors will close its business.’ China had accused that this company’s cars were used for espionage in the country. China instructed its officials not to use Tesla cars, forwarding this reason. This is the reaction given by Musk over it. But the talk is that this action taken by China, against Tesla Motors is a punishment for the company’s decision to invest in India.

Tesla Motors, manufacturing super-advanced electric cars, has sold nearly 150,000 cars in China. Despite the huge market in China, Tesla has focused on India as an emerging market. Tesla cars will be manufactured in India and it has been clarified that it will start in the next few months. Chinese media had started throwing tantrums over this. Chinese government media had remarked that the Indians did not have the capacity to buy these expensive Tesla cars.

Campaigns were also started in the government-controlled social media sites to appeal to people not to buy Tesla cars. Thereafter, the Chinese military ordered its officials not to bring Tesla cars to military establishments. The Chinese military accused that these cars were used for espionage. The reaction has been received from the CEO of Tesla Motors. Musk has answered the Chinese allegations saying that if it were exposed that the company’s cars were being used for espionage, Tesla Motors would close its business in China or any other country.

The matter once again exposes the Chinese restlessness to the world. China became an object of abhorrence for the world, following the Coronavirus pandemic. Simultaneously, the global industry sector has realised that China, knows as the ‘Factory of the World’, cannot be trusted for manufacturing in the future. Therefore, many multinational companies are leaving China and some of these companies have started investing in India. These companies include global leaders like Apple and Tesla.

Discussions have started on the international level that India is a good alternative to China for manufacture and supply. Countries like Japan and Australia are assisting India on this front. This has resulted in a rapid increase in foreign investments in India. Even when the Coronavirus pandemic was at its peak, the quantum of direct foreign investments in India was at record levels. This has not gone down well with China. Therefore, China is warning companies like Apple and Tesla Motors. But these warnings and threats by China are not likely to affect these companies’ plans.