Cybersecurity
Tesla's China Profit Potential Doubted by Morgan Stanley
- Adam Jonas says investors should keep expectations ‘very low’
- Tesla’s China risks include Cfius worries, tech-transfer woes
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Investors should temper expectations that Tesla Inc. will earn profits in China, Morgan Stanley analyst Adam Jonas wrote, adding that he’s cautious about the role the country will play in the carmaker’s long-term strategy and fundamental value.
Jonas cited Chinese authorities’ decision to suspend customs clearance for Model 3 sedans, an issue that’s been the subject of ongoing local media reports this week. Flawed labels have held up the cars at ports and highlighted “the risks inherent in U.S. auto/tech firms conducting business in the PRC,” Jonas wrote, noting the sensitivity of data privacy, cybersecurity, robotics and artificial intelligence.