Ross Gerber, President and CEO of Gerber Kawasaki, shares his expertise on Tesla and the challenges it faces, including tariffs and a changing consumer base. Tony Roth, Chief Investment Officer at Wilmington Trust, discusses rising recession fears impacted by trade policies, warning of significant effects on small businesses. They delve into Boeing's asset sale strategy to improve financial health and examine the competitive electric vehicle landscape, particularly Tesla's struggles against BYD in Mexico City.
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insights INSIGHT
Tariffs Threaten Imminent Recession
The tariff policy is causing significant harm to supply chains and confidence, pushing the economy toward recession.
De-escalation with China by Memorial Day is critical to avoid irreversible economic downturn.
volunteer_activism ADVICE
Investment Strategy Amid Tariff Uncertainty
Investors should stay close to long-term goals and be ready to adjust risk based on market moves caused by tariff uncertainties.
Markets might fluctuate between 4,500 and 5,500 points until tariff issues clarify.
insights INSIGHT
Boeing Sells Crown Jewel Unit
Boeing is selling parts of its profitable digital aviation solutions to strengthen its balance sheet during tough times.
The sale shows a focus by CEO on conservatism and sticking to core aircraft and defense businesses.
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Tesla Inc. backed away from an earlier view for 2025 sales growth and pledged to revisit its outlook next quarter, a sign that tariffs, an aging vehicle lineup and the backlash against Chief Executive Officer Elon Musk are having an impact on the electric-vehicle maker.
The company on Tuesday reported adjusted earnings of 27 cents per share for the first quarter, below the average analyst estimate. Tesla omitted an earlier prediction that sales would return to growth for the full year, saying instead that it’s “making prudent investments that will set up” the vehicle business for growth. That will depend on factors including production increases and the “broader macroeconomic environment.” “It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” Tesla said.
The dimmer outlook for the year follows a tough 2024, when the carmaker missed its annual sales growth target for the first time in more than a decade. It also fell short of analysts’ expectations for first-quarter vehicle sales, which were released earlier this month.
President Donald Trump’s tariffs are compounding Tesla’s challenges, and threaten to upend automotive supply chains globally and drive up costs across the industry. While Tesla is expected to be relatively less affected than many carmakers due to its large plants in California and Texas, its vehicles nevertheless contain some non-US components, and the company has warned of a potential impact.
Today's show features:
Tony Roth, Chief Investment Officer of Wilmington Trust Investment Advisors
Bloomberg Businessweek