Trump Musk Spat & Fallout (Patreon)

I have been in the market for 35 years, so this is one of the weirdest episodes I’ve ever lived through today. It all kicked off after Elon ceased to become useful for Trump. Things wouldn’t be as close, but then Elon unleashed on the beautiful bill—which, let’s be honest, is a piece of garbage—and the US president did not like that one bit. These two are like two parents fighting, with the rest of us just looking on, shaking our heads.

The Good news from Charles.... fingers Xd he is right!

Key Events:

• Trigger: Elon Musk criticized Trump's "One Big Beautiful Bill," Trump said Elon was upset because of reduction of electric vehicle tax credits. For years Elon wanted them gone as when they do Tesla will own the market as they are the only co on Earth that can make EVs profitably.

• Escalation: Trump responded by threatening to sever federal contracts with Musk's companies. Musk retaliated by accusing Trump of being implicated in the Epstein files and called for his impeachment.

• Market Reaction: Tesla's stock plummeted by approximately 14%, erasing over $150 billion in market value.

• Recovering in after hours

  

Investor Sentiment:

The feud has introduced significant uncertainty, with investors expressing concerns over potential regulatory repercussions and the impact on Tesla's government contracts. Literally there are no worries there. For me it is too late to hedge or sell. And remember, we were at $220 a few weeks ago. $106 2 years ago.

Strange Theories

Some believe this is all staged to fix teh spending bill, and just drama, but I dont buy into that theory.

Conclusion:

While Tesla's long-term prospects remain tied to its innovation and market position, the current political turmoil presents short-term risks. I plan on closely monitoring developments between Musk and the Trump administration before making significant investment decisions.

Anyway, it has caused Tesla to have its 10th worst day in history, down $47, though it’s bouncing a bit after hours. I’m going to get the lay of the land tonight and figure out if this is a buying opportunity or not. As you know, I’ve been very gradually rotating—half of one percent, one percent, etc.—of my strategy into TSLA. I may hit the pause button on that.

Words of wisdom from my friend Cern

I’m still heavy on MicroStrategy, but I’ll see where this plays out tomorrow and decide what to do. I might even rotate into more Nvidia.

I’m sorry about what transpired today. This was not on my bingo card, and there’s a reason I hate politics.

As usual I will share all I do openly and transparently in real time.... stay healthy my friends.