GET READY: Tesla Stock Investors..

Summary

Highlights

• Positive tariff news could boost Tesla and other companies with operations in China 🚗
• Upcoming earnings reports are significant, with a keen focus on Tesla and tech stocks 📊
• Michael highlights unusual bond market activities and their potential implications 📉
• Jerome Powell's comments on Wednesday are expected to influence the markets 🗣️
• Tesla needs to break past a key stock price threshold to trigger a potential rally 🚀

Key Takeaways

• Tesla could benefit greatly from positive tariff negotiations with China 📈
• Earnings reports this week could have a huge impact on market sentiment, especially for tech stocks 💼
• The bond market's current dynamics are unusual and worth keeping an eye on 👀
• Jerome Powell's statements this week could be pivotal for market trends 📣
• Tesla's performance could surge if it breaks above the 200-day moving average 📊

Overview

Chapters

• 00:00 - 00:30: Positive Tariff News Impact on Wall Street The chapter discusses recent positive news concerning tariffs, specifically related to China, which has had a favorable impact on Wall Street. In the past 24 hours, significant developments have occurred, indicating that many critical items for Wall Street, including electronics, semiconductors, and hard drives, such as those used by Apple, will be excluded from China's tariffs. This exclusion is seen as beneficial for businesses like Apple.
• 00:30 - 01:00: China's Request to Cancel Tariffs The chapter discusses a recent request from China for the United States to completely cancel tariffs. This development is considered to be positive news at the beginning of the week. The speaker indicates that the issue of China tariffs appears to be unrelated to other matters, specifically mentioning TikTok and Trump.
• 01:00 - 01:30: Negotiations with China and Impacts on Tesla The chapter discusses the topic of negotiations with China, highlighting the main focus as being on technology and crucial industries, rather than on everyday consumer goods. It suggests that the aim of the US tariffs is to encourage the return of key industries, like pharmaceuticals and semiconductors, back to the United States, rather than simply imposing blanket tariffs on all goods.
• 01:30 - 02:00: Tesla's Position in China The chapter titled 'Tesla's Position in China' discusses the strategic importance of self-sufficiency for Tesla amidst geopolitical tensions. It highlights the implications of potential conflicts, such as a war with China, on the company's operations. The narrative suggests that current developments indicate the beginning of diplomatic negotiations with China, a factor anticipated to positively influence financial markets, particularly on Wall Street. This situation is seen as beneficial at least for the immediate future.
• 02:00 - 03:00: Impact on Apple and Economic Outlook The chapter discusses the significance of China as a critical market for Tesla, highlighting that for the past two years, China has consistently sold more Tesla vehicles than the US. This underscores China's importance to Tesla as an American-based company with significant business operations in China, akin to other major American companies like Nike.
• 03:00 - 04:00: Bond Market and Tariff Negotiations The chapter discusses the impact of the bond market and tariff negotiations on various companies doing business in China. It highlights that while several companies like Starbucks and Apple have roles in China, Tesla might benefit more from recent developments. Apple is expected to be the biggest beneficiary due to its extensive manufacturing operations in China. The chapter anticipates positive outcomes for Apple in the near future.
• 04:00 - 05:00: Upcoming Major Economic Events The chapter discusses the initiation of negotiations with China focusing on TikTok and other manufacturing concerns such as pharmaceuticals and semiconductors. It acknowledges that these changes won't happen overnight, contrary to the expectations of immediate results like those of Trump. The overall sentiment suggests that the day will be positive despite the gradual nature of these economic adjustments.
• 05:00 - 06:00: Retail Sales and Jerome Powell's Influence The chapter discusses the implications of recent tariffs in their current form and their role in potentially delaying certain economic outcomes. It also examines the bond market, noting that the long duration yields, specifically the 10-year Treasury, have been significantly increasing, exceeding 4.5%. This situation is identified as a major problem due to its rapid occurrence alongside a stock market selloff, which is portrayed as an unusual event.
• 06:00 - 07:00: Earnings and Market Sentiment The chapter discusses the unusual market behavior where, despite a 20% sell-off in stocks, Treasury bonds (TLT) are not being bought, as typically expected. Instead, bonds are being sold, possibly by countries like China or Japan. The chapter speculates that ongoing tariff negotiations might include stipulations for countries like China or Japan to purchase US bonds as a condition.
• 07:00 - 08:00: Positive Developments for Tesla The chapter discusses potential positive shifts for Tesla, focusing on international negotiations, particularly between China and other countries, and their implications for the market. The dialogue suggests optimism as China begins to engage in conversations, which could favorably impact the markets. Upcoming events, like significant earnings reports, could also influence Tesla’s outlook.
• 08:00 - 09:00: Tesla's Stock Performance and Predictions The chapter discusses Tesla's stock performance in the context of a broader market event. The speaker notes that Tesla, similar to Apple, might not provide guidance, which isn't necessarily negative. The absence of guidance isn't always viewed negatively as it avoids the potential pitfalls of setting expectations that might not be met. This perspective is illustrated by Apple's longstanding practice of not offering guidance, which hasn't negatively impacted investor expectations. The upcoming significant event for Tesla's market performance is also highlighted, scheduled for Wednesday.
• 09:00 - 10:00: Tariff Strategy and Economic Self-sufficiency The transcript discusses economic indicators relevant to the chapter titled 'Tariff Strategy and Economic Self-sufficiency.' It reviews retail sales numbers and GDP tracking, noting a decline of 0.3%, or 2.4% when including gold imports. The results of these figures, especially in the context of retail sales due out on Wednesday, will either confirm a negative GDP report for Q1 or present a more optimistic economic outlook. The retail sales report is emphasized as a significant factor in understanding these economic trends and their implications on the broader strategy of self-sufficiency and tariffs.
• 10:00 - 11:00: Potential Outcomes of Tariff Negotiations This chapter focuses on the potential outcomes of tariff negotiations. It starts with expectations of a strong positive growth figure, following a slight growth last month. A significant event highlighted is the speech by Federal Reserve Chairman Jerome Powell, scheduled for Wednesday at 1:30 p.m. The chapter emphasizes the importance of this event, particularly for the bond market, where decisions such as the purchase of bonds are anticipated.
• 11:00 - 12:00: Market Reactions and Investor Confidence The chapter titled 'Market Reactions and Investor Confidence' discusses the influence of recent statements by Fed Collins on market performance. Despite the bond market facing a downturn, Collins' comments provided reassurance, helping the markets perform well. The chapter highlights the concern that ongoing issues in the bond market could threaten financial institutions and the broader economy, which is a scenario the Fed aims to prevent. Thus, the audience can expect optimistic communication from the Fed to bolster market confidence.
• 12:00 - 13:00: Tesla's Future Earnings and Production The upcoming week's economic and financial events are outlined. Jerome Powell's dovish comments are highlighted as significant, with Wednesday being a key day for his remarks. Thursday presents essential economic indicators such as building permits, initial jobless claims, Philadelphia Fed manufacturing data, prices paid, new orders, and employment figures. Earnings reports also play a crucial role on Thursday. On Friday, the focus shifts to a speech by Fed Daily. Overall, Wednesday and Thursday are important days for economic and earnings-related activities.
• 13:00 - 15:00: Outlook for the Upcoming Week The chapter titled 'Outlook for the Upcoming Week' focuses on the significance of TSMC's report as a major indicator for the semiconductor industry's demand trends. It highlights that semiconductors have been a primary driver of capital expenditures (capex) recently. The upcoming data will reveal whether the momentum in capex for semiconductors is slowing down or if it continues to grow.

GET READY: Tesla Stock Investors.. Transcription

• 00:00 - 00:30 ladies and gentlemen as we talked about in the last video there was some pretty positive uh tariff headlines in specific regards to China over the past 24 hours or so It looks like a large chunk of what is important to Wall Street electronics semiconductors uh hard drives things like that important things like Apple their whole business essentially is going to be excluded from the tariffs out of China
• 00:30 - 01:00 Now this is probably going to be positive news starting off the week Now there's one more headline that we got today that I think is also pretty good China calls on the United States to quote completely cancel tariffs Now let me give you the rundown here The whole China tariff thing I don't think it has anything to to do with anything besides Tik Tok Trump
• 01:00 - 01:30 wants Tik Tok That's what this is about Now I I think ultimately these tariffs are about bringing important things back to the US medicines semiconductors right but it's not about tariffing you know a freaking plastic water bottle or clothes or or or just the blanket tariffs if you will that uh uh apply to everything okay uh coming
• 01:30 - 02:00 out of China and really other countries It's more about being self-sufficient to the extent of if we were to go to war with China we would be okay right so I think this is the rough start of negotiations with China and that's what Wall Street is going to love coming tomorrow and at least for the first half of this week Now that is especially good
• 02:00 - 02:30 news for Tesla because Tesla is I mean one of the the the big companies in China that is an Americanbased company that does a lot of business in China China is Tesla's most important market for the last almost two years now pretty consistently China sells more vehicles than the US which is crazy I mean Nike is pretty big in China
• 02:30 - 03:00 Starbucks has a role in China Apple has a role in China but there's not that many companies that do a lot of business in China So I think specifically Tesla actually could benefit from this more than some other companies Now Apple's going to be the biggest beneficiary because uh most of their manufacturing is done in China and in that general region and they're probably going to do very well coming tomorrow and I think
• 03:00 - 03:30 overall it's probably going to be a very good day and again I think this is the start of negotiations with China because again I think it's about Tik Tok and slowly it's not going to happen overnight like Trump wants getting you know pharmaceuticals semiconductors blah blah blah things to be manufactured in the US Trump knows that doesn't happen overnight Come on now He knows that It's not about destroying the economy and preventing
• 03:30 - 04:00 that from happening for longer right which is essentially what the tariffs in their current form were doing Now the other part of the pivot has to do with the bond market TLT long duration yields have been skyrocketing above 4.5% on the 10-year Treasury This is a major problem The velocity of this mixed with a stock selloff is crazy Normally this doesn't happen Normally
• 04:00 - 04:30 when stocks sell off 20% TLT goes up People actually buy the bonds But not this time somebody is selling the bonds China Japan someone And I actually wouldn't be surprised if with these tariff negotiations um maybe there's a stipulation that like China has to buy US bonds or Japan or
• 04:30 - 05:00 you know Japan is already the largest holder or some of these other countries Now again I think it's the start of negotiations with China We don't know what the details of that are going to look like and this is just my my opinion but China is finally starting to say some at least um having some dialogue here which I think the markets are going to like Now we do have major events coming this week Uh we have earnings We've talked about that in the you know prior videos earnings is going to be
• 05:00 - 05:30 weird because we're not going to get guidance which could actually be kind of positive Instead of companies giving you bad guidance not giving any guidance is probably a good thing Like Apple they haven't given guidance for years Nobody even cares Nobody expects guidance from Apple Okay that could actually be a positive The big event this week for Tesla for markets is actually on Wednesday
• 05:30 - 06:00 Retail sales number one for March Now we talked about this in the last video as well but GDP is tracking negative0.3% Excluding gold imports okay including gold imports you're down 2.4% on the quarter Depending on what retail sales look like on Wednesday you're either going to more so solidify a negative GDP report for Q1 or it could start to look more positive Retail sales is huge on Wednesday You're
• 06:00 - 06:30 expecting a really strong number of positive 1.3% Last month was positive0.2% What's also big on Wednesday is Fed Jerome Powell Fed Jerome Powell will speak at 1:30 p.m All eyes are going to be on Powell Okay specifically the bond market and potentially like starting to buy bonds
• 06:30 - 07:00 again Uh that's that's kind of what Fed Collins alluded to on Friday That was partially the reason why the markets did well because when you're when you're going through something like this where you know the bond market's getting wrecked and there's no end in sight that puts financial institutions at risk that puts uh systemic risk into the economy and I think that's the last thing the Fed wants to do So I think we're going to get some pretty bullish comments
• 07:00 - 07:30 dovish comments from Jerome Powell on Wednesday So Wednesday is the big day On Thursday building permits initial jobless claims Philadelphia Fed manufacturing data prices paid new orders employment all of that Um and then on Friday you you don't have anything You have a speech from Fed Daily the second half of this upcoming week not as important Now when it comes to earnings Thursday is the big day And just to give you a little bit of a
• 07:30 - 08:00 rundown again TSMC is going to be huge That's the big one because it's going to tell us what demand looks like for semiconductors right now with capex slowing down I mean semiconductors have been the biggest source of capex right companies have really upped their capex capital expenditures of semiconductors Does that pull back a little bit or does it I is it continuing okay that's going to tell
• 08:00 - 08:30 us a lot American Express is also pretty important on Thursday because of the state of the consumer How's the consumer doing if the consumer is doing well then maybe some of the recession fears are overblown especially retail sales If that comes out good on Wednesday mix that with American Express that has positive things to say TSMC that doesn't show a disaster coming for Nvidia earnings I could make a pretty good bull case for maybe even Thursday and Friday
• 08:30 - 09:00 Now the first half of this week of course is going to be dominated by tariff headlines but the fact that you're not seeing any escalation over this weekend is good news To a certain extent when markets are this fearful this washed out this scared no news is good news And you're kind of in a no news environment right now You didn't get much news besides the good news of the tariff exemptions and what looks like China starting to want to negotiate a bit Now again for Tesla
• 09:00 - 09:30 this is critical Now we're we're about two weeks roughly away from Tesla's earnings and there's been a lot of good news recently that people are really overlooking The Model Y is selling very well The political distractions are coming to an end from what I can tell It doesn't look like that is really hindering demand for Teslas at this point Um and I think a lot of the bears or really people in general are stuck in that that mentality of things are still
• 09:30 - 10:00 bad for Tesla In fact I don't think that's true Now even from a technical perspective you hit that low on April 7th even as the markets hit new lows on April 8th and April 9th Well what happened tesla did not That's what Funst strat Tom Lee said and we covered that in yesterday's video where it's actually a good sign what Tesla's doing right now that it's not flushing into new lows as Tesla is one of the biggest you know risk on long-term growth stocks that is
• 10:00 - 10:30 well known by everyone Now for things to look better from here you want to get above that 200 day moving average at about $258 per share you get above that and you could make a run to the 290s maybe even the 300s this week Again depending on negotiations this is a very newsdriven market and any headlines that we get have the potential to really move things Now keep in mind you have bounced quite a bit from the lows albeit we were only briefly at
• 10:30 - 11:00 those lows of you know 480 481 Like we were not there a long time let's be honest Uh but you're still down almost 13% from all-time highs there is still a considerable amount of room you could rise from here um before maybe you're too far done to the upside just to get back to the 300 day moving average would be upside of almost 3% from here to get back to the 200 day moving average at about 570 would be upside of about 7%
• 11:00 - 11:30 that's where I would see things getting a little bit overdone to the upside around that 200 day moving average at 570 that is a target range we could be looking with positive developments out of China negotiations And I think it's really in everyone's best interest at this point the US and China to start negotiating these things Now tariffs can work very well if they're done correctly Okay tariffs should in theory only be
• 11:30 - 12:00 used to protect important industries Okay now assuming you it it just feels like to me Trump wants America to be in a position where if we had to go to war with somebody we're totally self-sufficient to handle operations in the US That is medicine that is semiconductors that is you know military equipment right that's I think what he wants here with Tik Tok and maybe a 10% blanket tariff I don't think that's going away just to bring in some revenue
• 12:00 - 12:30 That's what I think he actually wants But you don't do these things overnight and it doesn't help your case if you nuke the economy at the same time I don't think that was ever the goal or the idea I think the idea was to rapidly bring countries to the negotiations table and in the meantime probably again work out some uh deals to buy treasuries things like that But in the in the tails right in the tail risks of how things could play
• 12:30 - 13:00 out the tails are always fatter than you think Okay I forget who says this Maybe it's Warren Buffett but if you're looking at a bell curve okay let me just demonstrate this A bell curve goes like this Flat goes up down flat again Right the tails are the flat side They are the extreme sides of outcomes Okay I believe it's Warren Buffett Double check me you know fact
• 13:00 - 13:30 check me down below in the comment section But the tales being fatter than you think actually just says that the extreme risks are larger than you think at any given time There is a risk out there that Trump has completely lost his mind and he gives a crap about the economy doesn't carry He's doing this just to do it and he's lost his marbles Okay that is a a risk in that scenario
• 13:30 - 14:00 Stocks are done Okay you're falling a lot more and you got to be prepared for that as a potential outcome There's also a potential outcome where all the other tariffs get dropped down to 10% baseline tariff with stairstepping of tariffs increasing on semiconductors or pharmaceuticals whatever it is Okay that's more of a positive potential outcome I think we're heading more towards a positive outcome here At least
• 14:00 - 14:30 it seems like it over this weekend some of the comments that we're we're getting out of China and out of Trump ex especially with the exclusions where I think investors are going to be a little bit more confident here to uh put some money to work Now the big question is is the damage already done okay it feels like it's been a long time but it's only been like 9 days roughly since the tariffs actually were announced So it hasn't been that much time fear really
• 14:30 - 15:00 skyrocketed And now if the economic data does not justify the level of fear the recession calls out there you're you're going to see people get bullish on markets again And I don't know if that's going to happen but I'm here to to warn you that that could happen Now if there's any stock in a positive scenario scenario to be bullish on I think Tesla is the standout here Now they report earnings in about 2 weeks Again it's all about the
• 15:00 - 15:30 lowerpriced you know Tesla that's supposed to be announced this quarter We'll see Who knows when it'll start production If that gets kicked down the line I think you're kind of price for that But again we'll see The robo taxi launch in Austin that is I well-known information at this point I don't know how much like that's actually being uh appreciated in the stock That's up for debate I I think the other question is how fast does that scale that's going to
• 15:30 - 16:00 be the next big question And those two answers whatever we hear on the earnings call could determine whether or not Tesla is going to stay in the 200s or get back into the 300s maybe the high 300s or even back into the 400s if you know a more positive outcome starts to arise from tariffs Now I don't know what's going to happen but I do think this week could be a good week as long as we don't get more bad news on the
• 16:00 - 16:30 tariffs And again if things go right this week you could find yourself in the 290s maybe even the the low 300s If things do not go well this week I think you're still kind of in no man's land You are above 250 That's a great sign But below 250 I mean you could be 250 to 215 Like that's kind of the range we've been in if you're below 250 Now last time we kind of broke above 250 like this we did rise to the 290s So we'll
• 16:30 - 17:00 see if that can happen again I do think the odds of that are probably higher this upcoming week I see positive things coming from Jerome Powell the lack of guidance we get from corporate America probably I mean I don't know how much of a positive it's going to be but I don't think it's going to be a huge negative because you're kind of up for interpretation at that point Retail sales are they going to be as good as expected probably not Are they going to be better than last month probably If we get like really bad data that would
• 17:00 - 17:30 definitely be a problem And then China tariffs It looks like things are moving in the right direction So as long as none of that is wildly off should be a good week this week for Tesla Let me know what you guys think about this down below in the comment section Have a fantastic rest of your day and I will see you in the next