Musk's $2.6 billion award cheered by big Tesla shareholders

Musk's $2.6 billion award cheered by big Tesla shareholders

Musk's $2.6 billion award cheered by big Tesla shareholders

Frustrated by this imbalance, Musk asked Trump for "equal & fair rules for cars". "Meaning, same import duties, ownership constraints & other factors", Musk replied, before describing China's import tariff, factory ownership policies, and their effect on Tesla.

Although Trump did not reply to Musk's comments online, he did address it at a press conference later on Thursday, called to announce new tariffs on imported steel aluminium, repoted Bloomberg.

He added: "For example, an American vehicle going to China pays 25% import duty, but a Chinese auto coming to the USA only pays 2.5%, a tenfold difference". It´s like competing in an Olympic race wearing lead shoes'.

The Trump administration has also asked Beijing for a $100 billion reduction in the US trade deficit with the Asian country, The Wall Street Journal reported Thursday, citing people familiar with the talks. Some speculate that the allegiance China's vehicle companies have with the central government puts the fate of the USA companies in political hands. Tesla began selling cars in China in 2014 and sold $1 billion worth of cars to the country in 2016, despite the 25 percent import tariff, helping earn it a spot on the Fortune 500. The company's latest annual report has flagged tariffs as one of the biggest threats plaguing its global operations.

Musk, whose separate SpaceX reusable rocket venture is widely followed in China, made the unusually blunt comments on his Twitter account, against a broader backdrop of rising trade tensions between the world's two largest economies. China is also reportedly already prepping for a trade war, investigating the possibility of restricting USA grain imports.

Musk continued to push the car-tariff issue via Twitter on Thursday. While Tesla wants complete ownership of its factory, China's central government requires that Chinese companies have at least a 50% ownership stake in auto factories built by foreign companies.

Then he added that his company had brought the matter up with the administration of former President Barack Obama and "nothing happened". All Tesla wanted was a fair outcome, "ideally where tariffs/rules are equally moderate". "Nothing more. Hope this does not seem unreasonable", Musk tweeted. But when Trump read Musk's tweets during a press event, he said that "at some point", the President was likely to enforce what he called a "reciprocal or mirror tax", where he would match the tariffs China has put on United States imports.

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