Normals don't update with non uniform scale

When I apply a non uniform scale to geometry, it’s normals don’t seem to update and shading becomes incorrect. Is this a bug or an optimization?

Richard,

It looks like this is a known issue.
Here’s an answerhub question with a very similar question: Non-uniform scaling produces incorrect vertex normals.

Unfortunately, it does not look like this has been fixed just yet. Here’s a JIRA that you can follow that tracks the issue: UE-8751

Thanks,
Jon N.