One economist has suggested that cheap Chinese-made electric cars should be banned from the U.S. auto market due to “security risks,” a move that echoes Tesla's position in China several years ago. The situation is eerily similar.
“I think we should try to keep them out,” said Diana Furchtgott-Roth, an economist at the Heritage Foundation. Fox News.
Interestingly, a similar story has been circulating across China for several years. Tesla cars were considered potential spy devices for the US government, and government officials were discouraged from owning them.
Furchtgott-Roth added that the riots caused by Chinese reconnaissance balloons last year were minimal compared to those caused by cheap Chinese EVs.
There are other safety concerns, she said.
Additionally, automakers can now remotely disable vehicles,” she added. “What if we get caught up in a foreign relationship with China? And China decides to shut down all EVs in the United States? That's a security risk.”
Tesla CEO Elon Musk has regularly praised the Chinese automaker for developing EVs. The only reason it hasn't been able to take over more regions in terms of sales is because of trade barriers, Musk said during a Q4 2023 earnings call in late January.
Several domestic car companies have already announced that they will scale back EV development. Ford said on a conference call this week that it is doing this to eliminate some of the losses felt from making electric vehicles.
The Biden administration is focusing on promoting EV sales, and the US electric vehicle market share is at an all-time high. According to the report, EVs will capture a 7.6 share of the total U.S. market in 2023. Cox Automotive.
We would love to hear your thoughts. If you have any comments, concerns, or questions, please email us at joey@teslarati.com. You can also contact us on Twitter @KlenderJoeyor if you have a news tip, email us at tips@teslarati.com.
