Tesla Tanks $150 Billion in a Day, Is Musk’s Feud with Trump the Tipping Point?

Hello, Market Reader’s

In a high-stakes diplomatic reboot, former President Trump and Chinese leader Xi Jinping broke months of radio silence to discuss trade and tech tensions two pressure points shaping the global chessboard. While details were scarce, the conversation signals both caution and calculation ahead of potential policy shifts.

Today’s Global Menu

• Focal Point

• World Markets

• Frontier News

• Crypto World

Focal Point

Tesla’s $140 Billion Market Cap Meltdown: Just a Speed Bump or a Sign of Detour?

In just a few weeks, Tesla has shed nearly $140 billion in market value equivalent to the entire GDP of Hungary. While Elon Musk’s recent retreat from Dogecoin-related hype raised eyebrows, the real storm clouds are forming elsewhere:

📉 Slowing EV demand in key markets
💸 Shrinking margins amid fierce pricing wars
🤖 Growing concern that Musk’s AI focus may be distracting from Tesla’s core

Analysts warn this trifecta could be more than a temporary dip it might signal a strategic identity crisis. Is Tesla an automaker, an AI leader, a robotics firm… or all of the above?

With competition heating up and investor patience thinning, Tesla’s next move may define its trajectory for the rest of the decade.

World Markets

🚀 Uprising: Perplexity AI is blazing through growth charts, positioning itself as the browser of choice for users disillusioned with “legacy” platforms. CEO Aravind Srinivas says the web is ripe for reinvention and users are voting with clicks.

⚠️ Backlash: Tesla shares nosedived 14% after Trump blasted Musk and hinted at pulling federal subsidies and contracts tied to his companies. The political whiplash adds yet another twist to Tesla’s volatile narrative.

🔄 Realignment: Amazon’s latest job cuts impacting its Alexa and AWS divisions underscore a deeper pivot toward generative AI and core profitability. As innovation reshapes internal priorities, is Amazon quietly preparing for the next tech arms race?

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FRONTIER NEWS

1. Ratequake: In a surprise move, India’s central bank cut its key rate by 50 basis points twice what markets expected. The aim? Supercharge growth while inflation stays tame. With global investors watching closely.

2. Downsize: Amazon is back in layoff mode, cutting hundreds more jobs this time in cloud and Alexa teams. As generative AI takes center stage, Amazon appears to be reshuffling talent to stay in the innovation race.

3. Showdown: The Trump-Musk bromance just hit turbulence. After Musk took a swing at Trump’s tax policy, the former president fired back with signature ferocity, questioning the Tesla CEO’s loyalty and motives.

4. Hesitation: BofA is keeping its bullish rating on Nvidia, but there’s a catch Chinese firms are reportedly hesitant on AI chip deals post-regulatory pressure. Despite the headwinds, Nvidia’s grip on the AI gold rush remains strong.

Crypto World

🧵 Unraveling: Crypto is booming in developing countries but the IMF's Gita Gopinath isn’t buying the hype just yet. Citing capital flight and currency volatility, she urges cautious regulation.

💥 Whiplash: Over $1 billion in crypto positions just got liquidated, sending shockwaves through Bitcoin markets ahead of a double-whammy: jobs data and options expiry. Traders are bracing will it be a bounce or a breakdown?

⚡ Tension: XRP surged to $2.80, but technical suggest a retest of key support may be near. With Ripple's legal clarity boosting momentum, is this pullback just a pit stop or the start of something shakier?

🛡️ Shielded: OpenAI has launched a team to tackle AI agent risks raising eyebrows in the crypto community. As AI tokens surge, this move could redefine security and trust in decentralized ecosystems.

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