Asia wrap: Tesla's EV pothole denting sentiment?

Stephen Innes SPI Asset Management

Tesla, considered one of the 'Magnificent Seven' U.S. megacap stocks, encountered a significant EV pothole this week contrasting with signs of a stable economic outlook

As the U.S. corporate earnings season heats up, single stock movements are attracting attention. Positive updates from global chipmakers ASML and TSMC set an optimistic tone for Intel's forthcoming report, while streaming giant Netflix surged more than 10% to reach two-year highs on Wednesday following impressive subscriber numbers.

However, Tesla presented a different narrative with concerns over supply chain issues and increased competition from China, leading to an 12% drop in its stock price overnight as it cautioned about a significant sales slowdown this year.

Elon Musk, CEO of Tesla, remarked on the potential impact of trade barriers with China, expressing the view that Chinese automakers could dominate the global automotive market if no trade barriers were established.I'm sure former President Trump was all ears on this one.

Despite efforts by Chinese authorities to stabilize economic and investor sentiment, the ongoing U.S.-China political tensions and thoughts of heightened competition from China continue resonating among Wall Street investors.

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Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

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