MARKETS ALL OVER THE PLACE 

The market has been on an upward trajectory since the beginning of the previous week, with the S&P rising by +1.48% 
 https://img.leopedia.io/DQmbEFKwrCyEHwVzAU62CZR92AsmwiF1meS9aVcLnHg5Upf/image.png 

This was mainly due to Trump’s statements that he will be more lenient with the tariffs set to begin on April 2nd 

The Magnificent 7 have made a strong comeback, somewhat easing last month’s losses.

 https://img.leopedia.io/DQmSL6HB4TzMB2TeiDoPt4PJxqP9pkKuJjUcsrP6BpjRNKD/image.png 

A few moments later

MARKETS IN FREEFALL 

We saw a significant drop in the markets on Friday, with the S&P falling by 2% and the Nasdaq by 2.6% 

And yes, this decline started on Wednesday night with Trump’s new tariffs 

However, Friday's drop was triggered by inflation and consumer confidence 

A. The core PCE came in at 2.8%, while expectations were at 2.7% 

 https://img.leopedia.io/DQmd4mJE3YvDnAjRvyBoxB76oVP4WWGxDhLgbVhHynHWY3q/image.png 


B. Consumer confidence dropped to just 57 – the lowest level we've seen since 2022 

 https://img.leopedia.io/DQmWKjrkgrSgr47PZyAWgdJ1DsDHhfnB4P4FUt6uUzTSq6t/image.png 


In other words, investors are worried about both inflation and the consumer’s wallet 
That said, we saw some high-quality stocks trading at much better prices after a long time.

WHAT'S GOING ON WITH TESLA? 

Throughout March, many stocks have seen significant declines from their all-time highs 
But the one that seems to be suffering the most is Tesla, which is down -31.4% YTD 

On Friday, we saw that the short interest in Tesla (the percentage of shares that have been shorted) stands at 2.1%, meaning 81 million shares are being bet against 
Short sellers have already made $10 billion since the beginning of the year 

As you can imagine, there’s massive pessimism surrounding the stock 
A large part of this negativity is tied directly to CEO Elon Musk’s antics 
But the company’s fundamentals aren’t helping either, with revenue growth stalling and profit margins shrinking 
 https://img.leopedia.io/DQmaKkvcBD6d29qZqT5YFPb4kjvZE2Qx7hSr9AwwU2CVps9/image.png 

Of course, this isn’t the first time Tesla has gone through such a rough patch. It has faced worse before, and the stock has skyrocketed 

What’s your investment outlook on Tesla?

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