Elon Musk’s China dream has become a reality ahead of schedule. His company Tesla now claims a fifth of all electric car sales there, selling more than 21,000 vehicles in November. The US group delivered its first locally-produced Model 3 just over a year ago. Growing scale will reduce costs. But it increases the risk of regulatory intervention.

Relations are cordial for the moment. “China rocks,” according to Mr Musk, who has been praised in state media. Setting up in China has saved Tesla shipping costs and tariff uncertainty.

The group’s pricing strategy is expansionary. In China, a basic, locally-made Model 3 sedan costs about $37,000 after subsidies, about a third less than one shipped from the US. That makes it an affordable alternative to European petrol models.