Two Of America's Biggest Companies Have Made A 'Massive Bet' On China: 'They Can't Just Abandon…' Says Wedbush's Dan Ives
Portfolio Pulse from Rounak Jain
Tesla Inc. (TSLA) and Apple Inc. (AAPL) are facing challenges in China due to an economic slowdown and growing competition from local companies like BYD Company Ltd. and Huawei Technologies. Despite these challenges, analyst Dan Ives believes both companies cannot abandon China, a crucial market for their growth. Tesla has seen some positive vehicle sales, while Apple's sales dropped 33% year-on-year in February. Both companies are advised to navigate through these challenges without abandoning the Chinese market.
April 12, 2024 | 2:04 pm
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Apple's sales in China fell 33% year-on-year in February amid economic slowdown, competition, and geopolitical issues. Despite challenges, the company is advised to stay committed to the Chinese market.
Apple's significant sales drop in China is attributed to not just competition and economic factors, but also geopolitical tensions. Staying in China is crucial for Apple, given the market's size and potential for future growth despite current setbacks.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 90
NEUTRAL IMPACT
Tesla is experiencing challenges in China due to economic slowdown and competition but sees a sliver of hope in vehicle sales. Analysts suggest the importance of the Chinese market for Tesla's growth.
Tesla's growth is significantly tied to the Chinese market, representing 35% to 40% of its demand. Despite current challenges, positive vehicle sales indicate potential for recovery, making it critical for Tesla to maintain its presence in China.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90