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Musk Could Prove China’s Ace in Dealing With Trump

The Information · Steve LeVine · last updated

Donald Trump’s election could put Tesla CEO Elon Musk in a tough spot, caught between his support for the president-elect and Trump’s tough stance toward China, Tesla’s second-biggest market. But Musk could instead thrive by proving a valuable bridge between Trump and Chinese leader Xi Jinping.

Here’s why: Tesla’s electric vehicle sales in China have slipped over the past year even as EVs and plug-in hybrids have soared to more than half of new car sales in the country. Tesla’s problem: Its models are outdated and outstripped by zippy, tech-filled competition from Chinese rivals like Byd and Nio.