Who would possibly want to be a billionaire? Hated by the mob, a victim of evil governments holding you back with tax threats while denying your basic human rights – like a platinum gold bank account! Give me poverty anytime…

It hurts to admit, but Elon Musk played a blinder during the US election. Just how much more could he deliver to the US economy as part of the Trump administration? Disrupting entrenched US bureaucracies and the military-industrial complex could be transformational. I have a great business idea for him!

Tesla’s spectacular rally this week shows why it’s the stock to short if you think Harris will win. As the world becomes less stable, Deftech is the next new thing. But, the adoption of new battlespace tech is being slowed by bureaucracy, Primes and dumb thinking – factors common to every government and business.  

There was a Judder Moment in AI last night. Microsoft’s numbers confirm the hype is played out - the reality is the AI everything rally is bleeding revenues and momentum. AI could see a cascading failure event bringing down startups, and triggering a reassessment of AI linked firms. Tesla – as the most hollow set of undelivered promises - is set to feel most pain.

Every corporate has its own distinct life-cycle. The Concept and Foundation are stage one. Firms evolve. Bad Management lies at the core of bad companies. Some firms become defined by it. Some firms survive and thrive. Many don’t. Few get second chances.

Discuss in terms of Tesla and Boeing.

Blain’s Morning Porridge June 14th 2024: Musk Promises us Replicants! [...]

This week will be about US bonds – watch carefully how the arguments develop as we sit at a new cusp for markets. In stocks it’s about narrative and I can’t help but wonder if we’re about to see a corporate denouement as Tesla does a “deal” to map China to boost its FSD ambitions.

It’s been an interesting week – book-ended by Israel-Iran conflict. But we’ve seen yet more let-downs in politics, bonds, interest-rates and markets, and perhaps more nails driven into the myth that is Tesla. Sometimes it just takes one waverer to trigger a rout. In the vacuum of markets, no one can hear you scream.

Nvidia? Meta? Apple? and Tesla? Time for a rethink on when it comes to global stocks. The Magnificent Seven is now the Fab Four… Telsa is definately out the Game. I wonder who will eventually buy it?

Confidence is critical in any financial decision. Markets rise or fall based on the confidence in the narrative; be it companies, sovereign bonds, or disruptive tech, but sometimes it becomes too exhausting to keep fooling ourselves.