- Bull Street
- Posts
- 📈 Tesla's Wild 38% Ride
📈 Tesla's Wild 38% Ride
Apple flying phones to India to avoid tariff, BlackRock largest investor in Adani bond, CarMax stock tumbles, Novartis unveils $23B US investment, Tesla shares retreat following rally
Evelio Silvera
April 11, 2025
Good morning.
⚡ The Fast Five → Apple flying phones to India to avoid tariff, BlackRock largest investor in Adani bond, CarMax stock tumbles, Novartis unveils $23B US investment, Tesla shares retreat following rally
🔎 Market Trends → Wall St ends sharply lower as tariff risks send investors fleeing; US Futures Lower After Historic Rally
And now…
⏱️ Your 5-minute briefing for Friday, April 11, 2025:
MARKET BRIEF
Before the Open
As of market close 04/10/2025.
Pre-Market
| 
|
Fear & Greed
Markets in Review
Markets Dip, but Tariff Relief and Cooling Inflation Offer Long-Term Tailwinds
The Nasdaq dropped 4.3% to 16,387.3, the S&P 500 fell 3.5% to 5,268.1, and the Dow declined 2.5% to 39,593.7. Consumer staples were the only sector to post gains, while energy led losses as oil prices tumbled.
The Big Picture:
Markets retraced some of Wednesday’s tariff-fueled gains, but beneath the surface, signals of economic durability remain. President Trump’s decision to pause some tariffs continues to buy time for diplomacy, while the EU’s 90-day tariff freeze signals a possible shift back toward negotiation.
Even amid market jitters, a surprise monthly decline in consumer inflation—the first since May 2020—is a reminder that price pressures may be cooling faster than feared. And while trade tensions linger, the pullback in energy prices could give the Fed breathing room.
Oil fell 3.3% to $60.29/barrel, driven by recession fears. Gold jumped 3.7% to $3,193.90, and silver gained 2.5%, reflecting a flight to quality amid macro uncertainty.
Market Movers:
CarMax (KMX) plunged 17% after missing earnings expectations and suspending long-term guidance due to macro headwinds.
Warner Bros. Discovery (WBD) fell 12.5%, and Disney (DIS) slid 6.8% after China announced restrictions on US film imports in response to tariffs.
Verizon (VZ) inched up 1.7% after a Deutsche Bank price target upgrade—a modest but telling move in a down session.
What They’re Saying:
"The March CPI brought encouraging news on inflation… but the boost to prices from tariffs is coming," noted Oxford Economics.
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Consumer Price Index (CPI) m/m, Producer Price Index (PPI) m/m - 8:30am
Why You Should Care: It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.
Today: University of Michigan - Prelim UoM Consumer Sentiment- 10:00am
Why You Should Care: Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
Today: University of Michigan - Prelim UoM Inflation Expectations- 10:00am
Why You Should Care: Expectations of future inflation can manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise.
Earnings Reports
Today: J.P. Morgan Chase, Wells Fargo, Progressive, BlackRock
Monday: Goldman Sachs, M&T Bank, FB Financial (FirstBank), Pinnacle Financial Partners
MARKET BRIEF
Leading News
Tesla's Wild Ride: Buying Opportunity Emerges Amid Tariff Turbulence
Photo Credit: Austin Ramsey
Why it matters:
The 7.3% pullback in Tesla (TSLA) following its historic 23% single-day rally offers contrarian investors a potential entry point amid market overreaction to temporary trade tensions.
Zoom Out:
After experiencing its second-largest single-day gain since 2013, Tesla shares retreated Thursday as part of a broader market selloff. The company's 38% year-to-date decline stands in stark contrast to other megacap tech names, creating what value-conscious investors might recognize as the asymmetrical risk-reward scenario that often precedes significant recoveries.
The volatility stems from President Trump's evolving tariff policies, with Wednesday's announced 90-day pause on most new tariffs triggering the initial surge, followed by Thursday's clarification that China's rate now stands at 145%.
Key Insights:
Short-term pain, long-term gain: While UBS, Goldman Sachs, and Mizuho analysts lowered price targets citing margin concerns, they may be overlooking Tesla's history of manufacturing innovation to reduce costs during challenging periods. The company that revolutionized automotive production isn't likely to accept margin compression without creative countermeasures.
Global diversification provides buffer: Despite European sales challenges and increased competition, Tesla's expanding global footprint positions it to navigate regional trade disputes more effectively than pure-play domestic manufacturers. The company's energy storage business also offers revenue diversification rarely factored into bearish analyses.
Technical indicators flashing opportunity: With 19 days of 5%+ price movements this year, Tesla's volatility index suggests emotional rather than fundamental selling - historically a precursor to mean reversion for quality companies.
Market Pulse:
"When the market perceives maximum uncertainty, patient investors typically find their most attractive entry points," notes market strategist Jim Paulsen. "Tesla's dramatic swings exemplify emotion-driven pricing rather than fundamental valuation."
Bull’s Take:
Smart investors recognize that short-term noise creates long-term opportunity. For those with appropriately sized positions and reasonable time horizons, Tesla's current weakness offers a chance to accumulate shares in an innovative company still revolutionizing multiple industries.
Headlines
Apple said to be flying iPhones from India to US to avoid Trump tariffs (link)
BlackRock emerges as largest investor in Adani's $750 mn bond issue (link)
Amazon CEO: AI is Key to Staying ‘Competitive’ as Company Takes On Nvidia (link)
Nvidia and AMD Push Forward With AI Chip Strategies Amid Tariff Relief, Stock Volatility (link)
Following pledges from Lilly and J&J, Novartis unveils $23B US investment to beef up manufacturing, R&D (link)
Why CarMax’s stock tumbled, even as used-car prices rose for first time in 2 years (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to HumansNoContext