Apple, Tesla 'Most Likely To Be Affected' If China Claps Back After TikTok Crackdown, Says Expert: 'I Think For Sure There Would Be Retaliation'
Portfolio Pulse from Benzinga Neuro
The TikTok crackdown bill, approved by the House and heading to the Senate, could lead to China retaliating against U.S. companies, notably Apple Inc (AAPL) and Tesla Inc (TSLA), as per Eric Jackson of EMJCapital. The bill aims to force TikTok's Chinese owners to sell the app or face a U.S. ban, raising concerns about potential impacts on Apple and Tesla's operations in China.
March 14, 2024 | 2:12 am
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NEGATIVE IMPACT
Apple Inc could face retaliation from China if the TikTok crackdown bill passes, potentially impacting its operations and sales in the Chinese market.
Given Apple's significant market presence in China, any retaliatory measures by the Chinese government, such as divestiture demands, could negatively affect Apple's sales and operations in the region, leading to a potential short-term negative impact on its stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Tesla Inc may also be targeted by China in retaliation to the TikTok crackdown bill, potentially affecting its manufacturing and sales within China.
Tesla's significant investments in manufacturing and sales in China make it vulnerable to retaliatory actions by the Chinese government. Such actions could disrupt Tesla's operations and negatively impact its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90