China Unlikely to Let Tesla Beat Domestic Competitors

01/18/19 01:10PM EST

https://youtu.be/Tn5V1ePRWi0

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

© 2019 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.