The outlets cited anonymous sources. Tesla did not immediately respond Monday to requests for comment from CNN Business.
China’s Ministry of Foreign Affairs said in response to questions from CNN Business that it was not aware of the specifics of the Tesla case.
“But any enterprise operating and investing overseas must comply with the laws and regulations of the host country. As long as foreign enterprises come to China to operate and invest in accordance with the law and regulations, China takes a welcoming and open attitude and is dedicated to creating a better business environment for enterprises of all countries,” the ministry said.
“The United States wanted to shut down TikTok. Luckily, it did not happen,” Musk said. “Many people were concerned about TikTok. But I think this kind of concern is unnecessary, and we should learn lessons from it.”
China is critical to Tesla’s global strategy, and “remains the linchpin” that justifies a higher stock price for Tesla in the coming years, according to Dan Ives, managing director of equity research at Wedbush Securities.
That’s why over the last few days, Wall Street has been “laser focused on any actions from Tesla [or] Musk in response to this poker move,” Ives wrote in a note to clients Sunday.
“We believe this statement … was important for Tesla and Musk to make directly to the Chinese and the government in Beijing given the strategic importance of its [electric vehicle] ambitions within China,” he added.
“With a brewing Cold Tech War between the US and China” he said that Tesla and others “remain caught in the crossfire and ultimately Musk needed to draw a clear line in the sand.”
— Shanshan Wang and Shawn Deng contributed to this report.