$Tesla Motors(TSLA)$ Tesla's EV market is tumbling across all 3 major markets. China's throat cutting price wars; Europe's anti Musk sentiment and USA's impending consumer spending collapse means the current valuation is still over stretched. Another 50-70% downside risk while upside opportunity support is still too far away to save it.
$Tesla Motors(TSLA)$ someone who doesn't like Elon will surely not buy Tesla car. Someone who likes Elon may not buy Tesla car. I will not be surprised Europe sales to drop by 80% yoy In the next few months. China market is prolly decline in big double digit with the ongoing price war. US market is affected too as ev buyers are usually progressive. So all, the factory will come close to a big slow down.
$NVIDIA(NVDA)$ Blackwell is mainly for inference purpose. The gold rush moment getting GPUs for training purpose is over. Now tech companies have to scrutinise carefully the ROI on every infrastructure investment. Microsoft has been very careful now, they 80bil capital spending will be largely for long lived assets like land next year. To give a context, land and building are about 60% of AI investment, the rest goes to the chips and network. So near term, it may still go on a run but in a few months time, cracks will be telling!
$NVIDIA(NVDA)$ decrease in gross margin due to a transition to more complex and higher cost system within data centre.. sounds like a permanent slide and weakened pricing power. With more Blackwell sales taking over, the margin will slide further.
$NVIDIA(NVDA)$ Let's just say the initial gold rush moment for GPU training purpose is over? Inference needs are less time pressured and there are a few competitors out there. Margin will not reach 75% even with ramp up.
$Tesla Motors(TSLA)$ turbulent time for Tesla. Even with recent correction, it still stands at exorbitant PE with future products no longer providing competitive edge given the swamp of competitors.
$Tesla Motors(TSLA)$ Wall Street Analysts gave unrealistic targets and at the same time selling big time. Retail investors unfortunately are still in euphoric moment.