Finimize - 👀 Musk's late night mesage

What’s going on here?

Elon Musk sent out an urgent “u up?” message to Tesla staff, desperate to lovebomb them into keeping Tesla’s stock from flopping completely.

What does this mean?

It’s been a while since Tesla employees could complain about a boring day in the office. Musk’s been spending more time in the White House than his businesses’ boardrooms, leaving the EV company to try and steer itself – which, in fairness, is bang on-brand. But his political affiliations and controversial actions have turned much of the world against him. Case in point: not only have Tesla’s new car sales dropped off but trade-ins have increased, while cars and dealerships have been attacked by criminals. With Tesla’s stock now down 40% this year and on track for its ninth weekly decline in a row, Musk called an impromptu meeting to encourage workers to hold on to their shares. Because it wasn’t enough for staff to – presumably – reject LinkedIn recruiters and deal with friends judging their nine-to-fives.

Why should I care?

Zooming in: Musk needs a GoFundMe.

Musk is the richest man on Earth, so you might think that even a disastrous stock performance would result in little more than a shrug. Problem is, he used Tesla stock as collateral to fund his other investments – including social media platform X. So the more the shares struggle, the more likely it is that banks demand billions of dollars from him. And sure, Musk is worth $300 billion, but that’s not exactly hidden under his bed: most of it’s tied up in far-flung projects like Starlink and SpaceX.

The bigger picture: The price isn’t right… yet.

Tesla’s stock might be a lot cheaper than Musk would like, but that doesn’t mean it’s cheap. Yet, anyway. See, companies like Tesla trade for eye-watering prices – and with little margin for error, investors won’t hesitate to cut their losses if the warning signs keep coming. And of course, if banks enforce a “margin call” to claim cash by liquidating Tesla stock, the share price could tank. Then you might be looking at a bargain.

What’s going on here?

The US president signed an executive order on Thursday, determined to light a fire under American mining companies and mineral producers by giving them some tender, loving care.

What does this mean?

China produces 70% of the world’s rare earth materials, which are essential for everything from batteries to defense systems. That means a supply chain disruption or political pullback could stop US industries in their tracks. (And that’s not unlikely: China’s currently tightening exports of certain metals.) So the president is using the Defense Production Act to push mineral producers into overdrive. In practice, that means the US government will provide financial support while streamlining mining permits and plans on government-owned land.

Why should I care?

For markets: Money isn’t everything.

The promise of government handouts and attention could tempt you into stateside mining stocks. Just bear in mind that the sector could become more volatile during the transition – especially if China ramps up export restrictions before the US is ready to make up the difference. And don’t forget that the mining industry doesn’t exactly have the best reputation. The government could easily come under fire from eco-minded regulators and communities, which could slow things down at best and shut things down at worst.

Zooming out: The US is planning, but China’s doing.

China’s been hoarding a ton of crucial industrial and electrical minerals while simultaneously locking in deals with resource-rich regions from Africa to Latin America. And the country’s expanding its own capacity for processing and refining materials too. So even if it sources the raw stuff from further afield, final production will stay local. The result: China has greater control over its supply chain, potentially protecting its industries from the shocks that could shake America’s.