Investors will do well to remember past events. Now in particular is the recent story about the impact of Deep Seek and how it caused the tech stocks to have a deep shit. Why mention this ? Please note there was a WSJ report about Huawei producing their own high end chip. And also how Xi Jin Ping gave a mandate for China to step up on their counter to US and Western techs, chip in particular. Look at what BYD is doing to Tesla's sales now. Chips are next.
It is good to see techs up but time for extra caution is not over. As long as Donald Trump is president and is out of control, any business which relies on China for a substantial portion of their business is higher risk.
Afraid it will not be so easy to pivot away from a manufacturing centre which you have used for so long. Especially with high techs. To put plainly, it takes many years of training and infrastructure retooling to get one up to the standard you need. India is known for it's business thinking just as China is knowing for it's technology skilling. Either of them have the capability to grow each in each others strengths. But it takes time. Apple is stuck. As long as they have a craxy megalomaniac as President, it will be very hard to strive if you are based in the US.
Elon Musk announcement that he will exit the Trump program will not help Tesla. It is foolish to think that the people will so easily forgive and forget what he has done.
US$ Risk of plunge. China has just been reported as pushing state owned companies to not use US$ but use Yuan for payments instead. This should soon be followed by all other Chinese businesses. This will likely push Gold higher. And also may press US equities lower.
It's the calm before the storm. I feel there may be a deer-caught-in-the car lights moment and we may see a greater sell-off soon once the stunned effect wears out.
$Tesla Motors(TSLA)$ Tonight all will be revealed. Will Tesla recover higher or is it going down hard. All are expecting a really poor financial update. The vehicle sales and deliveries are already confirming this to be. But in the past, Elon Musk will camouflage this with promises of the future. This time around, I don't know if it will work. His own brand has taken a bad hit after the Trump election as well as his own behaviour. Also, his past promises have fallen flat. The previous one about Cybertruck has failed. Supercharger business also took a hit with his shutting down of the entire dedicated asupercharger team. Now, goong back to his stories of robots. Good luck everyone.
$Tesla Motors(TSLA)$ More than 6% down so far. Expectations are for bleak results but news about Tesla being accused of falsifying odometer readings are even more worrying. $220 is looking more and more likely today or tomorrow.