Mike Gallagher is the leader of the US House Committee made for China. On Monday, he raised concerns about Tesla's dependency on China for manufacturing, spare parts, & other needs.
These fears come after Tesla unveiled plans to open a new megapack battery factory in China! The announcement was made by the Chinese state media and Tesla Inc.
As per the reports, around 1000 battery units will be produced at the Tesla Megapack factory. That's equal to energy storage of 40 gigawatt-hours and also complements the existing EV plant.
According to Mike Gallagher he wants additional information on how Elon Musk plans to balance the company's operations in China and the support provided by the US government.
He made it clear that Tesla's dependency on China has made him concerned. He said this when the press asked him about Tesla's new battery factory in China.
Gallagher said that Tesla seems to rely heavily on support from the federal government in the form of tax breaks. However, Tesla's deals in China are a source of concern for us!
He expressed his curiosity about how Elon Musk will find a balance between the two countries. While expressing his concerns, he also applauded Elon Musk's SpaceX and even called it a massive success story.
After these comments, Elon Musk also responded by going to Twitter, a social platform he owns! According to Elon Musk, the Tesla company plans to increase production in Nevada, Texas, and California.
But despite increasing the production in USA plants, there's no doubt that more than 50% of the EV production is coming from China.
From China alone, Tesla earned a revenue of $18.15 billion which is almost 20% of the company's total revenue.
And recently, Tesla unveiled its plans to open another factory in China that will produce megapack batteries. This comes at a time when the US and China relations are not ideal amid growing tensions between the two countries.