Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has been accused of Rosa DeLauro of pressuring Republicans to abandon key US-China investment restrictions to safeguard the EV giant’s business interests in China.
What happened: In a letter on Friday, DeLauro, the top Democrat on the House Appropriations Committee, said Musk used his influence to get Republicans to drop provisions aimed at regulating U.S. investments in China, Reuters reported.
She pointed to Musk’s “extensive investments in China in key sectors” and alleged ties to the leadership of the Chinese Communist Party, or CCP.
Don’t miss:
The controversy centers on Tesla’s gigafactory in Shanghai, which produces about 50% of Tesla’s global car output.
DeLauro argued that Musk’s actions jeopardized crucial legislation to protect U.S. supply chains and national security, accusing him of “bullying Republicans into going back on their words.”
Musk, in turn, criticized DeLauro Xearlier Tweetcalling for her expulsion from Congress.
Why it’s important: Tesla has seen robust sales in China, supported by strong demand for it Model Y And Model 3 vehicles. In November, Tesla’s retail sales in China reached 73,490 units, showing a significant recovery from previous challenges in 2024.
The EV giant also faces stiff competition from local players BYD Co.that leads the market, but Tesla’s steady increase in weekly insurance registrations (21,900 units in early December) signals growing momentum.
Tesla reported third-quarter revenue of $25.18 billion, representing 8% year-over-year growth. Although the company missed Wall Street’s estimates, auto revenues were $20 billion, up 2% year over year.
Popular: Deloitte’s Fastest Growing Software Company Partners with Amazon, Walmart & Target – Last chance to get 4,000 pre-IPO shares for just $0.26/share!
DeLauro’s accusations highlight broader concerns about the risks of U.S. investment in Chinese technology sectors. The October rules finalized by the Treasury Department aim to limit such investments in critical areas such as artificial intelligence to protect national security.
However, removing provisions for screening outward investments could leave gaps in the protection of U.S. interests.
Price promotion: Shares of Tesla fell 3.46% on Friday, ending the session at $421.06. Despite this decline, the company’s shares are up 69.5% since the beginning of the year, which is significantly better than the Nasdaq 100 index, which is up 28.68% over the same period, according to data from Benzinga Pro .
The latest ratings from Baird, Mizuho and Goldman Sachs set an average price target of $446.67, suggesting 5.53% upside potential.
Read next:
Photo courtesy: Shutterstock
Next: Transform your trading with Benzinga Edge’s unique market trading ideas and tools. Click now to access unique insights which can give you an edge in today’s competitive market.
Want the latest stock analysis from Benzinga?
This article Elon Musk Accused of Bullying Republicans to Cut US-China Investment Guarantees to Protect Tesla’s Interests originally appeared on Benzinga.com
