Mohacsy's Safe Portfolio Member Forum

[DewDiligence]

The “KFC Call” is the moniker I use to describe China’s squeezing a foreign company by taking an action that quashes demand for the company’s product or service and thereby benefits the company’s Chinese competitors. In 2012, China spread “news” that KFC’s chicken was contaminated, which nearly put KFC’s parent company, YUM out of business. (YUM later spun off its China restaurants into a separate company.)

A more recent instance: In 2021, China refused to authorize BNTX’s COVID vaccine, despite that vaccine’s being manifestly better than China’s own COVID vaccines, alleging that the BNTX vials had cracks and stains (#msg-162756733).

TSLA, in particular, has large exposure to the KFC Call. Is it realistic to think that TSLA can dodge this bullet indefinitely?