His nibs says, so it must be true. Of course…some have suggested the tariffs are nothing but another means to drain money out of the Proles, to cover another “JC” tax cut.
Steve
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Because taking money away from Proles, and giving it to “JCs” is good for “JCs”? Seems someone has been saying that around here.
Steve
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Because the NASDAQ index has little to do with tariffs, and is instead riding high on the AI boom.
Although it’s the Nasdaq 100, more than 60% of the index is made up of only seven companies: Nvidia, Microsoft, Apple, Amazon, Meta, Broadcomm, and Google. Of those, Nvidia, Apple and Amazon have real tariff exposure: but they’re huge enough that they are widely expected to be able to “solve” those problems. And the other four companies don’t deal much with imported goods.
The impact of the tariffs will be felt in other industries, and by consumers. Not the handful of mostly software and tech companies that make up the Nasdaq.
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To wit, the Dow Industrial and the Russel 2000 haven’t made new highs, although the Dow came close.
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You will have to ask the greater fools.
@albaby1 ….AI is falling apart. Tesla’s DoJo team was just disbanded for one.
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The DJIA is obsolete.
Why the Dow Jones Industrial Average (DJIA) is a Terrible Benchmark
It’s interesting because amongst the financial advisor community the S&P 500 is considered the premier US index.
Since I tend to invest in growth technology, my goto index is the “tech heavy” NASDAQ.
The Captain
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Which was a backstop in case Nvidia failed to keep advancing fast enough … but they did. Sounds like Dojo may get used for training.
One of “my" reasons to keep a TSLA position, is the AI and data center potential of Dojo.
I’m thinking that “reason” may no longer be reasonable.
Elon might well be setting up to declare Dojo obsolete, and decommission it.
Grok is under XAi. Which is not TSLA. Sure there’s some “connection”, but any “wealth created by AI” will accrue to XAi… not Tesla.
As for keeping a position in TSLA, that leaves:
1 Tesla Energy: power wall, energy arbitrage, n batteries, lithium.
2 FSD.
3 Robotaxi.
4 Optimus robot. Still a BIG IF.
Base income, which is a minor factor for me to maintain a TSLA position, remains:
Tesla EVs
Dojo … just became a “no”.
ralph
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It’s not much good according to the times…
Musk’s order marks a major shift for a program years in the making, with Dojo once positioned as central to Tesla’s multibillion-dollar effort to pull ahead in the artificial intelligence race. Tesla and Bannon didn’t respond to requests for comment.
After Bloomberg News first reported the developments, Musk confirmed Tesla’s change in approach, writing on X that the next-generation AI chips going into the company’s vehicles “will be excellent for inference and at least pretty good for training. All effort is focused on that.”
@Tamhas correct me if I am wrong inference is based on classical odds?
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All seven companies depend on electrical power from utilities, independent power generators, the source of fuel they use, the grid and the government regulations.
Many of these companies are signing contracts for new Nuclear, Natural Gas, Hydro, Solar and Wind power plants. So if we look closer we can see that this electrical power generation and the grid are going to be subject to many types of tariffs as shown below:
- Material imports from other countries for copper, aluminum, steel, lithium, cobalt, nickel, manganese, graphite, silver, chromium, titanium, indium, vanadium, lead and rare earths.
- Imports of oil and natural gas to fire power generation..
- Imports of enriched uranium, plutonium and uranium ores.
- Imports of mechanical equipment for electrical power generation, distribution and transmission include pressure vessels, condensers, heat exchangers, pumps, valves, piping, and turbine generators.
- Imports of electrical equipment for electrical power generation, distribution and transmission include transformers, circuit breakers, switchgear, voltage regulators, and transmission lines.
Thus the seven companies will be dependent on imports to maintain their businesses. The tariffs will be included in their bottom lines due to the higher costs of electricity.
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The extension appears to mean that headline rates agreed to in May of 30% on Chinese imports and 10% on American goods will continue for the immediate future and avoid a snap-back to previous triple-digit levels.
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That would be the long way of spelling TACO.
Steve
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