CNBC Pro

'Don't rely on China' as a top reason to buy Tesla shares, Morgan Stanley's Adam Jonas says

Tesla boss Elon Musk (L) walks with Shanghai Mayor Ying Yong during the ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. - Musk presided over the ground-breaking for a Shanghai factory that will allow the electric-car manufacturer to dodge the China-US tariff crossfire and sell directly to the world's biggest market for 'green' vehicles.
Getty Images

Morgan Stanley auto analyst Adam Jonas had a warning Thursday for Tesla shareholders who are betting on the Elon Musk-led electric vehicle maker dominating in China.

"We encourage investors to say, don't rely on China, for example, as your No. 1 reason why you own Tesla," Jonas said in an interview on CNBC's "Squawk on the Street."

"I talk to some investors that think Tesla will have 50% market share of like AI, robotaxi or something in China." he argued. "To us, that would be equivalent to a U.S. telecom company operating in China. It's just not where the market is going."

More In CNBC TV Picks

CNBC ProMohamed El-Erian says Fed should keep focus on inflation even with economy 'weakening really fast'
CNBC ProDan Niles dumps internet stocks ahead of an 'ugly' week of earnings
CNBC ProMarket bottom is coming later this year, Interactive Brokers' Peterffy says