Despite earnings win, revenue worries causes major slide
â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â Tesla MISSED revenue expectations and TSLA was down big in after-hours. That's going to make things complicated for Elon Musk's Twitter takeover bid, as he's almost certainly going to have to sell Tesla stock in order to make it happen. That could also explain why Musk was desperately trying to talk up Tesla during the earnings call. Considering all the incoming fire he's taking, the last thing he needs is a stock plunge. Still, we need to be fair about this. I feel like the big story being missed here is that Tesla actually beat expectations when it comes to earnings per share.
Musk also isn't just making excuses when he said that "China is experiencing a recession of sorts" due to its chaotic property markets and Europe is suffering the same because of energy. This is also a classic case where the strong dollar is actually hurting American companies by making it harder to get sales in foreign markets. Musk has a history of making big claims that he doesn't quite meet.
While he gets big results, it's a mistake to hold him to deadlines.
Still, I don't think it's all bluster when he talks about TSLA's future, and the market may be overreacting to what is, after all, a win on earnings. That said, there's a bigger problem that Musk, and really all of corporate America, needs to deal with.
The links between the Chinese economy and ours are far more substantial than that between America's and Russia's - and look at the chaos locking out Russia has unleashed. The Biden Administration is taking strong action to prevent the sale of advanced technology to China - in truth, stronger action than anything even the "America First" Trump Administration did. For a company like Tesla or Apple, there's a real possibility of being split down the middle. They can't overcome an economic decoupling - even a small one - between America and China. (And let's be honest, a lot of the companies who are very happy to beat their chest about Ukraine get very quiet about human rights abuses in China).
That's one of the big geopolitical fault lines that lies in the future - and it's a danger that not enough people are taking seriously.
There are some powerful people who are planning on changing the world in terrifying ways. [Don't miss Mr. X on the political philosophy that's driving Russian policy today.](
Keep Moving, WORD ON THE STREET TSLA Down, Kashkari Voice of Doom, IBM Beats Expectations - Musk Puts Brave Face On Earnings - Tesla was down over 6% in after-hours trading after it missed on revenue amid worries about overseas sales. Elon Musk nonetheless was rapturous about his company's future, saying that he thought it was feasible that TSLA would eventually overcome Apple in market cap.  - IBM Crushes The Doubters - It may have the reputation of an old-fashioned company, but IBM stunned analysts with a blistering earnings report. Revenue is up about 6.5% year-over-year and the company beat expectations on both earnings and revenue.  Best of all, IBM raised its growth projection for the full year - Kashkari Finds Dead Horse, Shoots It In The Head Anyway - Minneapolis Fed President Neel Kashkari may be the most aggressive hawk among all the Federal Reserve's leaders. Bloomberg reports that he said the Fed can't ease up on its interest rate hikes even if the benchmark hits 4.5% or 4.75%. It all depends on "underlying" inflation, particularly core inflation, which excludes food and energy.  Again, the Fed is not going to pivot. They can't put it any clearer. - Conservative Justice Asked To Block Student Debt Relief - The Biden Administration's student debt relief program may be about to hit a snag. The Brown County Taxpayers Association in Wisconsin filed a request to block the plan directed at conservative justice Amy Coney Barrett. The Department of Education has already begun a beta test for accepting applications, so the justice will need to act fast if she wants to pause the program. That could make it a potent issue for the midterms.  "3-Pillar" strategy spots a 108% surge in just 4 days... RapidFire is on fire â with new trades are on the verge of exploding soon! [Click here to learn more](. HOT SPOTS: What's Going on in Geopolitics - Russia Declares Martial Law In Certain Territories - Russia declared martial law in the occupied territories of Kherson, Donetsk, Luhansk, and Zaporizhzhia. Sabotage and assassinations have plagued the Russian occupation, as the Russian military prepares to defend the key city of Kherson in what will probably be the largest battle of the war so far. Civilians, with Russian encouragement, are already fleeing the city.  - Iran Denies Supplying Weapons â At the United Nations, Iran's representative made a frankly unbelievable claim that Iran is not supplying Russia with drones. "Iran has consistently advocated for peace and the immediate end to the conflict in Ukraine," said Ambassador Amir Saeid Iravani. Iran's Shahed-136 drones have proven to be a cost-effective and devastating weapon for Russia, which is using them to take out far more expensive weapons systems. - Yen, Yuan Hit Lows Against The Dollar - The Chinese yuan and the Japanese yen hit record lows against the American dollar in overnight trading. The dollar is so strong that it is presenting problems for American companies, which are seeing difficulty in maintaining sales overseas. CUTTING EDGE: What[']( Happening In Tech - TikTok Raising Minimum Age For Livestreaming - In response to a BBC investigation that found children from Syrian refugee camps were begging for donations, TikTok is raising the minimum age for livestreaming from 16 to 18. The BBC revealed that TikTok was reportedly taking as much as 70% of the amounts donated. It's unknown how TikTok will be able to enforce this new policy.  - Jeff Bezos Joins Doomer Ranks â Amazon founder Jeff Bezos is the latest figure in tech who is warning of big problems for the larger economy. "The probabilities in this economy tell you batten down the hatches," he tweeted. He made the comment in response to Goldman Sachs CEO David Solomon saying there's a good chance of a recession. - White House Awards $2.8 BILLION In EV Grants - President Joe Biden is giving 20 companies a total of $2.8 billion in grants to expand domestic battery production for electric vehicles. President Biden emphasized the "America First" aspect of these grants while speaking to reporters. "This is critically important because the future of vehicles is electric," the president said, "but the battery is a key part of that electric vehicle and right now 75% of that battery manufacturing is done in China." President Biden wants half of all vehicles
produced in the United States to be electric by 2030 FOR YOUR CONSIDERATION "Who rules East Europe commands the Heartland."
"Who rules the Heartland commands the World-Island."
"Who rules the World-Island commands the World." Good news everyone! Geopolitical theories that helped drive the last apocalyptic world wars are back in circulation among the powerful. Ok, that's actually terrible news. But it's reality... and it's something a lot of American investors want to just wish away. The truth is that the conflicts we see today have deep roots and policymakers are being driven by ideas not so distant from those that animated British and German military leaders in the twentieth century. Without sensationalism and without clickbait exaggeration, Mr. X breaks down what you really need to know about the geopolitical "heartland," the theory of war behind the Russian invasion of Ukraine, and the man some call Russia's modern Rasputin, Alexander Dugin. [EURASIANISM, DUGIN, AND THE BATTLE FOR THE WORLD-ISLAND]( Enjoying Dawn Report? Learn something, made some money?
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