Furore
2022-03-16

For $Tesla Motors(TSLA)$vs China tech stocks,  personally I would prefer buying something that I understand. So my preference would be Tesla.

China Tech stocks may seem very cheap now after the big drop on price. However, I'll not buy them based on 2 reasons.

Firstly, I don't use those services and products and news generally do not seem so much focused on stocks from China. Hence, I don't really have the experience and well understanding of those China tech companies.

Secondly, China has not openly announced in not supporting Russia. There is weak confidence in China's stocks due to this uncertainty and hence they may drop further. If China were to announce or to be found supporting Russia, the US listed China ADRs could be entirely banned from trading on the US markets. Even if still trading in the HK stock exchange, US-based brokers may not allow trades in HK stock exchange.

Although I believe that those well established China Tech giants will eventually pull through with their share prices going back up again, I rather not take this chance and avoid all the possible hassles.

I don't drive a Tesla but I've been reading up quite a lot on Tesla, so I'm more comfortable with investing in Tesla and currently vested. 

However, I am not bullish on Tesla anytime soon. Given the rising inflation, more rate hikes, a lot of raw material shortages and likely increase in prices, I feel that Tesla will either be slightly bearish or stagnant at best. There are many raw materials crucial to Tesla, such as nickel and steel. And Russia is among the largest exporter of such raw materials. Hence, my guess is that Tesla may only start getting bullish towards the end of the year. 

In the meantime, I aim to buy Tesla when it dips and hold them for long. May also consider shorting or selling and then buying back during these dips.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • tanks77
    2022-03-16
    tanks77
    not only Chinese stock , in my opinion when trade US market try to buy US company stock the safest , any country which not in line with US government their stock will suffer there
    • tanks77Replydallanube: 
      yes they can ask any big whales in wall Street to write article to downgrade any stock price to create panic ,I agreed with you their market there games
    • dallanube: 
      US market, US game's rule
    • cheong6265: 
      😁
  • Aivern
    2022-03-16
    Aivern
    the other problem with chinese stocks is that the political risk is inconsistent af. one min the govt is all in to grow their tech industry, nxt minute they want to reign them in.
  • PatrickPatterson
    2022-03-16
    PatrickPatterson
    If this is the case, what you said has a certain truth. For me, I prefer to diversify into these companies because they are excellent.
  • Brrrrrrrrrrr
    2022-03-16
    Brrrrrrrrrrr
    Have you wondered what happens if Elon gets assassinated or commit suicide?
    • Aivern: 
      have you ever wondered what would happen if you get hit by a meteor while typing ur reply? you account for the possibilities that make sense. the rest is just luck.
  • HilaryWilde
    2022-03-16
    HilaryWilde
    Invest cautiously in Chinese concept stocks before the situation is clear.
  • Nylegnave
    2022-03-17
    Nylegnave
    A lot of uncertainty with chinese stocks, such as delisting and now the worry about the relationship that they have with russia. Definitely will be detrimental if news were to reveal that.
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