China Unlikely to Let Tesla Beat Domestic Competitors

01/18/19 01:10PM EST

Tesla (TSLA) recently broke ground on a new plant in China and CEO Elon Musk received a rare “green card” for permanent residency from that country’s government. Bulls hail this move for the oft-scrutinized electric vehicle company as a win.

Hedgeye Industrials analyst Jay Van Sciver sees it differently: China is unlikely to let a foreign company beat out a domestic electronic vehicle competitor like NIO (which debuted on the NYSE in September).

“That’s how China works – they foster the development of their own companies. They don’t make an attractive market for Tesla,” Van Sciver explains in the clip above. “EV’s are a priority for [China] politically. Tesla has some good battery technology and I think they’d love to steal that.”

Watch the full clip above for more.

China Unlikely to Let Tesla Beat Domestic Competitors - real time alerts

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