Michael Burry, a smart money investor known for his successful stock purchases, discusses his bet against the stock market. The podcast also explores topics such as Berkshire Hathaway's trade in Activision Blizzard, VINFAST's remarkable IPO debut, Tesla's price cuts in China, and the Dunning-Kruger effect in stock analysis.
The Biden administration signed an executive order restricting US investments in Chinese technology due to concerns over national security and China's advancements in semiconductors, quantum computing, and artificial intelligence.
Apple supplier Foxconn has begun production of the iPhone 15 in India as part of its plan to diversify manufacturing and reduce reliance on China, helping mitigate potential risks in the US-China relationship.
Deep dives
US restricts private equity and venture capital investments in Chinese tech
The Biden administration signed an executive order restricting US private equity and venture capital investments in Chinese technology. The order targets investments in technologies like semiconductors, quantum computing, and artificial intelligence, citing concerns over China's advancements in these areas and potential implications for US national security. Private equity and venture capital investments in China had already fallen in 2022, primarily due to geopolitical concerns and China's weakening economy. The executive order indicates a potential for further bans and wider restrictions in the future.
Apple supplier Foxconn begins production of iPhone 15 in India
In a move to diversify its manufacturing, Apple supplier Foxconn has started production of the iPhone 15 in India. The shift away from China comes as Apple aims to mitigate potential risks and tensions in the US-China relationship. Apple has been planning to move more of its manufacturing out of China and into India for several years, seeking to reduce reliance on a single country for production. Diversifying its supply chain helps Apple navigate potential trade wars and economic conflicts, ensuring a more stable production network.
Vietnamese EV maker VINFAST debuts on NASDAQ with remarkable start
VINFAST, a Vietnamese EV maker, debuted on the NASDAQ via a merger with Special Purpose Acquisition Company (SPAC) Black Spade Acquisition. Its shares skyrocketed 68% on the first day, giving it a valuation of $86 billion, higher than Ford, GM, and Stellantis. However, the company's fundamentals indicate costly ambitions that far outweigh revenue. VINFAST plans to enter the US market by building an EV factory in North Carolina and opening showrooms in California and other states. Although investor interest in the search for the next Tesla fuels the excitement, the company's volatility and its unproven portfolio of EVs could present challenges in the years to come.
Tesla cuts prices in China, intensifying competition
Tesla has once again cut prices in China, sparking a price war among automotive companies as they seek to boost sales in a market with weaker demand. The price cuts affected Tesla's Model Y and Model 3, with discounts up to 14,000 yuan ($2,000). This move not only puts pressure on competitors, but also highlights Tesla's ability to run an EV program profitably, unlike most other manufacturers. By making EVs more affordable for consumers, Tesla aims to gain a larger market share and potentially weaken its competitors' margins, further solidifying its position in the industry.