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.
