đȘ«đ Teslaâs Big DropâWhatâs Really Happening?
Happy Wednesday all,
I wish I had a great personal update for you, but really, Iâve just been focused on finding a 2nd editor, or perhaps even a short form editorâŠand trying to get my Facebook account unbanned (lol). For some reason, it got suspended a few weeks ago, and Meta is probably the worst company to try to get support from. You canât reach a human if your life depends on it! If you know any contacts at Meta and can put me in touch, feel free to email me back at this address.
We posted a Reddit reaction video on Monday to some of the worst financial advice people ever receivedâŠthatâs a fun and educational video up on YouTube now. Next week, we should be dissecting the car market for 2025 and explaining whatâs been going on with car prices (hint: itâs not pretty). Talk to you soon!
Enjoy this weekâs Hump Days!
- Humphrey & Rickie
đ Eye-Catching Headlines
United Airlines adds Thailand, Vietnam and Australia flights in latest expansion (CNBC)
UFC signs wide-ranging sponsorship deal with Meta, bringing Mark Zuckerberg closer to Dana White (CNBC)
Tesla reports 336,000 vehicle deliveries in first quarter, 13% drop from a year ago (CNBC)
Chinaâs Tariff-Dodging Move to Mexico Looks Doomed (WSJ)
Visa Offers Apple Roughly $100 Million to Take Over Credit Card From Mastercard (WSJ)
The Weekly Brief
Tesla Sales Slump to Lowest Since 2022 Amid Anti-Musk Backlash
Tesla's first-quarter vehicle deliveries fell 13% to 336,681 units, marking the lowest level since mid-2022 and significantly missing analysts' expectations of over 390,000.
The decline was attributed to disruptions from the global rollout of the redesigned Model Y, which temporarily slowed production, and a growing backlash against CEO Elon Musk's political stances.
Musk's outspoken support for far-right candidates and policies has alienated some customers, particularly in Europe and the US, where Tesla showrooms have faced protests and vandalism.
This political controversy has compounded challenges from intensifying competition in the electric vehicle market, especially in China and Europe.
Since hitting a record high in the weeks after Trumpâs election victory, Tesla stock has plunged 44%.
US Firms Add 155,000 Jobs in ADP Data, More Than Forecast
US hiring rebounded in March, with private-sector payrolls increasing by 155,000, according to the ADP Research Institute. This exceeded most economists' expectations and marked a recovery from February's weather-related slowdown.
Gains were led by professional and business services, financial activities, and manufacturing, with manufacturing posting its strongest growth since October 2022.
Hiring expanded across most regions except the West, while wage growth continued to moderateâjob changers saw a 6.5% pay increase, and those who stayed received a 4.6% raise.
Policymakers and investors will be awaiting the governmentâs March employment report on Friday for a fuller picture. Economists predict nonfarm payroll growth of 140,000 and an unchanged unemployment rate of 4.1%.
China Restricts Companies From Investing in US as Tensions Rise
According to Bloomberg, China has reportedly instructed its top economic planning agency, the National Development and Reform Commission (NDRC), to halt approvals for domestic firms seeking to invest in the US, signaling escalating tensions between the two nations.
This move comes as Beijing faces increasing trade barriers from the Trump administration, including reciprocal tariffs set to be announced this week.
While previous restrictions on outbound investments were tied to concerns over capital outflows and national security, this latest development appears to be a strategic response aimed at gaining leverage in trade negotiations.
Existing Chinese investments in the US, including financial holdings like Treasury securities, remain unaffected.
The restrictions add uncertainty for Chinese companies looking to bypass trade barriers by shifting production abroad, further complicating an already strained global trade environment.
Chinese outbound investment into the US fell 5.2% in 2023, even as overall foreign investments grew by 8.7%.