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Twitter’s Free Speech Problem Is Tesla’s, Too

Car maker’s shareholders face risk that global operations could be held hostage to the social-media platform’s messy politics

Tesla’s Shanghai production plant is its largest manufacturing and export hub.Photo: Qilai Shen/Bloomberg News

Tesla already had a treacherous line to walk between China and the U.S. Chief Executive Elon Musk has made it worse by buying Twitter.

The electric-vehicle pioneer is hugely reliant on China. The world’s largest EV market accounted for about 24% of Tesla’s revenues in the first three quarters of this year, but the company’s bigger dependence is in production. The Shanghai plant is its largest manufacturing and export hub, with room to make more than 750,000 Model 3s or Model Ys—roughly two-fifths of its global capacity. Not coincidentally, the rise of this factory has mirrored the increase in Tesla’s margins over the past couple of years. The company also needs China’s battery materials: It gets lithium compounds from Chinese suppliers Ganfeng and Yahua, for example.

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