Forced Sale Or Ban’ On TikTok Will Impact Apple, Tesla Operations In China, Says Top Analyst Gene Munster: ‘Will Argue US Tech Companies Are Using Their Products To Spy’
Deepwater Asset Management’s managing partner Gene Munster has raised concerns about potential Chinese retaliation against U.S. tech companies, including Apple Inc. (NASDAQ: AAPL) and Tesla Inc. (NASDAQ: TSLA) if TikTok is banned or sold in the U.S.
What Happened: On Friday, Munster took to X, formerly Twitter, to express his views on the potential consequences of the ongoing TikTok saga. He also reiterated his earlier estimates saying, “I have the odds at 50% nothing happens to TikTok, 25% sale and 25% ban.”
Munster believes that if TikTok is forced to sell or banned, the Chinese government could accuse U.S. tech companies of using their products for espionage. “I believe if there is a forced sale or ban of TikTok, Chinese leadership will argue US tech companies are using their products to spy on the Chinese.”
The managing partner then pointed out the significant revenue that U.S. tech companies generate from China, with Tesla accounting for about 23%, Apple at 18%, and NVIDIA Corporation (NASDAQ:NVDA) at 8%.
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He concluded by saying that despite being caught in U.S.-China tensions, Apple has historically received significant support from Chinese leadership. However, if the TikTok divestiture becomes law, it could potentially impact iPhone and Tesla sales in China.
