Are Things *Finally* Looking Up for Tesla?

|April 24, 2024
Tesla logo on screen and Elon Musk in a background.

Thanks, Elon!

Tesla (TSLA) shareholders had a little extra pep in their step this morning after the company announced it would begin production on a more affordable EV in early 2025.

The stock jumped 13%.

It was a welcome sight. Tesla has been in freefall since December – dropping 40% YTD.

Shah discussed the rally with Charles Payne on Fox Business yesterday.

Shah on Fox Business

As Shah noted in his Monday Takeaways, things would’ve only gotten worse for the embattled company if Mr. Musk didn’t bring some “insane forward guidance” to yesterday’s earnings call.

Well, the notion of an affordable Tesla does sound insane, as anyone who’s shopped for an EV in 2024 can tell you.

Here’s hoping the company can parlay this burst of momentum into something that lasts.

Otherwise, Tesla’s ultra-cheap Chinese competitor – BYD Co. (BYDDY) – could eat its lunch.

(Related: Here’s a link to Shah’s piece from March about Tesla’s woes and why BYD is rapidly gaining market share.)

The Clock Is Ticking for TikTok

Of course, things aren’t looking so hot for China right now, either. At least not after the Senate passed legislation yesterday that would force it to unload TikTok… or face having the app banned in the United States.

TikTok has 1.5 billion monthly users and generated $16.1 billion in revenue last year for its Beijing-based parent company, ByteDance.

Quarterly revenues have grown steadily since the app launched in the U.S. in 2017.

Now the clock is ticking for ByteDance (and China) to make its move.

Sell… or be banned?

A ban would not just quell the company’s rapid growth… it would take a huge bite out of the multibillion-dollar cottage industry that has sprung up around the influencers who blew up on the platform.

TikTok has created bonafide celebrities and brand ambassadors – some now worth tens of millions of dollars.

On the bright side… those folks could move over to Meta (META)’s Instagram app… or X (formerly known as Twitter)… or – why not? – Trump Media (DJT).

Those social media platforms would eagerly accept the influencers’ many followers. And they would surely be far more cautious with all that valuable user data…

More Insanity

Speaking of both caution and value… have you seen gold prices recently?

Gold Prices

The spot price of everyone’s favorite crisis hedge was recently up near $2,400 per ounce.

Gold has broken record after record over the past 12 months. Buyers are acting as if there were multiple global conflicts happening… or a divisive election approaching…

Or as if our entire economic system were propped up by a debt bubble that could easily burst

But the idea of all those things happening at once is insane… right?

As insane as an affordable Tesla, perhaps.

Nevertheless, we invited our friend Rich Checkan to share his very informed opinion on what’s happening with gold right now.

You can give that a read here.

For everything else we’ve published so far this week, keep scrolling. And stay tuned on Saturday for a special essay from libertarian icon Joel Salatin in lieu of our usual End-of-Week Bulletin.

Alex Moschina
Alex Moschina

Alex Moschina is the associate publisher of Manward Press. A gifted writer, editor and financial researcher, Alex’s career in publishing began more than a decade ago when he worked at one of the world’s leading providers of academic research and reference materials. Alex first cut his teeth in the realm of investing when he joined the team at White Cap Research in 2010. There he was charged with covering emerging market trends and investment opportunities. A stint as senior managing editor and editorial director at the prestigious Oxford Club followed. A frequent speaker at conferences and events, Alex has led educational workshops across the U.S. and Canada.