The Tesla Inc. Gigafactory stands in Shanghai, China, on Friday, Nov. 1, 2019.
Qilai Shen | Bloomberg | Getty Images
Tesla CEO Elon Musk mentioned Tuesday that folks should be frightened about stress between the U.S. and China.
The feedback come a yr after President Joe Biden mentioned the U.S. could be ready to defend Taiwan if the Asian island off the Chinese coast have been to be attacked. China believes Taiwan is a part of its territory.
In an interview Tuesday following Tesla’s annual shareholder assembly, CNBC’s David Faber requested Musk if he was involved about “the growing belligerence” between the U.S. and China.
“I think that should be a concern for everyone,” replied Musk, who was born in South Africa and have become a U.S. citizen in 2002.
Faber requested Musk if China will make a transfer to take management of Taiwan. “The official policy of China is that Taiwan should be integrated,” Musk mentioned. “One does not need to read between the lines.”
When requested if China transferring to manage Taiwan could be unhealthy for Tesla, or different corporations, Musk mentioned: “The Chinese economy and the rest of the global economy are like conjoined twins. It would be like trying to separate conjoined twins. That’s the severity of the situation. And it’s actually worse for a lot of other companies that it is for Tesla. I mean, I’m not sure where you’re going to get an iPhone, for example.”
Apple introduced in September that it had begun assembling the iPhone 14 in India because it sought to cut back manufacturing reliance on China. Tesla manufactures automobiles in Shanghai, and it operates different factories in California, Texas and Germany.
“There are some constraints on our ability to expand in China, and so we’re making as many cars as we can,” Musk mentioned. “It’s not a demand issue.”
He mentioned Tesla rely on Taiwan Semiconductor to supply processors. Apple does as nicely.
Faber requested Musk if he thinks it is inevitable that China would search to take management of Taiwan.
“That is their policy, and I think you should take their word seriously,” Musk mentioned.
WATCH: Tesla CEO Elon Musk on U.S.-China tensions: There is a few ‘inevitability’ to Taiwan scenario
Source: www.cnbc.com”