Tesla Stock Surges After Meeting

TECH
Tesla Stock Surges After Meeting

Tesla CEO Elon Musk is back in the spotlight—and this time, investors are responding positively. After months of stock declines and controversy, Tesla rebounded Monday with a 12% surge, its best day since the 2020 election, closing at $278.39. By Tuesday, shares climbed further to $286. The shift came after Musk held a rare all-hands meeting, urging employees not to sell their stock and promising a bright future.

“Musk stepped up,” said Wedbush analyst Dan Ives, noting the meeting reassured both employees and investors. “The stock was way oversold and is bouncing as Musk is back in charge.”

With Tesla facing stiff competition from Chinese rival BYD and backlash over Musk’s political activity, some investors, including Ross Gerber, had recently questioned Musk’s commitment. But Ives now believes Musk is shifting focus away from political distractions—including his involvement with the Department of Government Efficiency (DOGE)—and returning his attention to Tesla.

Musk’s re-engagement comes as Tesla grapples with declining sales, rising competition, and brand damage from political protests and vandalism. In response, the FBI has launched a task force to investigate coordinated acts against Tesla property.

Despite these challenges, Ives sees renewed optimism: “There’s still a brand crisis, but support for Musk is building.” With Musk visibly reasserting leadership and reaffirming Tesla’s ambitious vision, sentiment may finally be turning. For investors, the message is clear: Musk is back—and Tesla’s future remains very much in play.

TECH
China Bets Big on AI

For Chinese companies bracing for a potential second term under President Donald Trump—and the return of tougher U.S. tariffs—there’s one major new factor at play: generative artificial intelligence.

Over the past two weeks, nearly every day has brought announcements from Chinese firms unveiling new AI products or monetization breakthroughs. Video platform Kuaishou revealed that its AI video generator, Kling, has earned over $13 million since its summer 2023 launch. Tencent upgraded its 3D AI model and integrated its Hunyuan T1 reasoning engine with its chatbot app Yuanbao, whose daily users have surged 20x in a month. Farmers are even using the app to assess soil conditions.

Baidu launched AI tools for website and game creation, while Kunlun Tech enhanced its AI music platform, Mureka. Autonomous driving startup DeepRoute.ai is developing a voice-command delivery system expected to roll out next year.

Experts say China’s manufacturing scale gives it an edge in “physical AI,” collecting industrial data to train advanced models. Analysts now see AI as a vital tool to boost corporate earnings and counter economic pressure from tariffs. China Asset Management’s Ding Wenjie noted AI could offset some of the expected 5% earnings hit from a proposed 20% U.S. tariff increase, according to Goldman Sachs.

New York Times columnist Thomas Friedman argues the real issue between the U.S. and China isn’t tariffs or Taiwan—but managing AI’s rapid advancement. He likens a potential AI agreement to Cold War-era nuclear arms control—a sign of how seriously both nations should take the AI race.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.