To The Moon

This really is Black Friday. China has struck back and I expect the market will open a tidal wave of selling. Pre-market sales are capped at the moment as many retail sellers with open positions are hoping for an opening rebound. I don't think we will see this happen this time around. Trump has set Rome on fire, and he has gone to Florida to play his harp.

China is showing they can go on their own. They did so for more than 2 millenium. With the action of restricting exports of rare earth to the US, they are also showing they can be very targetted. I will not be at all surprised if they close Tesla's business down in China. This because Elon Musk chose to be linked to Trump at the hip. Rule number one for businessmen, never get into politics.

$S&P 500(.SPX)$   Latest news. China strikes back. Imposing tariffs of 34% on all US imports plus banning all sales of rare earth to the US.  Tech stocks are going to bear the worst brunt. No rare earth! 

Not this time, Dan. Afraid the wizard of Spin has lost all credibility. He should have just stayed away from Trump.

The bad news just keeps rolling in. Where are the Elon bulls now?

It's going to be brutal. And the first sign has been just revealed with their delivery results for the month and quarter. The next will be seen on 22nd April when they make their financial announcement. 

With Tesla it is not just about the tariffs. It's more about their collapsing sales and brand erosion. I think this is more fundamentally damaging. Tariffs raises cost of goods. Brand erosion leads to loss of sales. Loss of busness.  All promises of robots will not help. That is too far down the line to matter. Cash is king. And with dropping sales, it means less cash for funding operations, which remains as costly as before the crash. Perhaps even more as Tesla had committed to mega factories that are now under utilised. This is terminal.

$S&P 500(.SPX)$  This is one of the worst collapse I have ever seen.  Ordinarily the speed of the fall would suggest some rebound. But this time, the amount of collapse will trigger foreign and local funds to cash out and liquidate their positions. Especially of that in the highly speculative tech stocks.   I feel we should do the same. Get out of all stocks that are being played with the AI, Quantum Computing, Crypto themes.  Even those in EV's.  Especially Tesla which has got so many things going against it now.

$NASDAQ(.IXIC)$  What a spectacular crash. And with all major indices too. Asia and Europe will open deeply in the red and this may add more fuel into the US markets as foreign funds liquidate their positions to preserve cash.  It is going to be a bloody end to the week. 

$Tesla Motors(TSLA)$  Mark your calendar. 22nd April, after market closes, Tesla releasese it's quarterly financial statement. We will see how much impact the delivery crash has on Tesla's financial position.  I think it will be a substantial loss. You can't cover up such a huge drop in sales, and with dminishing margins (Their margins have been eroding for the past two year) and still not be impacted fiscally. But let's see.