'Hey @elonmusk, I'm being told by contacts that China has rejected $TSLA's application to build the "Model 2" in Shanghai out of fears it would challenge local leader $BYD in the low-priced $25K category...' -Gordon Jonson Tweet
Portfolio Pulse from Benzinga Newsdesk
China has reportedly rejected Tesla's application to build the 'Model 2' in Shanghai due to concerns it would challenge local leader BYD in the low-priced $25K category, according to a tweet by Gordon Johnson.
May 19, 2023 | 6:28 pm
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NEGATIVE IMPACT
Tesla's application to build the 'Model 2' in Shanghai has been rejected by China, potentially impacting the company's expansion plans in the country.
The rejection of Tesla's application to build the 'Model 2' in Shanghai could hinder the company's expansion plans in China, which is a key market for electric vehicles. This may negatively impact Tesla's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
China's rejection of Tesla's 'Model 2' application may benefit local leader BYD by reducing competition in the low-priced $25K category.
With China rejecting Tesla's application to build the 'Model 2' in Shanghai, BYD may face less competition in the low-priced $25K category. This could positively impact BYD's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100