Tesla’s Big Day Go 💥

The cost of materials + Inflation = HeadWinds

Like most manufacturers, Tesla is facing the cost of goods issue. Material cost, cost of financing continue to be a issue for the EV manufacturer.

Year over Year GAAP gross margins drop from 29.1% to 19.3%. Total Gross Profit down 17%…much of Tesla earnings can be contributed to inflation and the Fed.

This morning, Tesla is trading down -6.88%. Is this a good time to buy? I believe there is more headwinds for the economy, the consumer that equals more headwinds for Tesla and other manufacturers.

Yield Curve

Yield Curve is trading at -.64% this morning. I continue to focus on the curve because it is giving up insight to where money is flowing, long duration vs short duration bonds and as it continues to head south the amount of pressure that is being put on the banking system.

My conclusion is that as the Fed continues to raise rates and as we get further into the year unemployment numbers will head higher, equity markets will head south. This is why I like the following categories. Precious metals, long duration bonds, defensive stocks and short high Beta companies. I break down the exact positions in the subscription version of this newsletter. Presently the cost is $11.99 a month. I update the asset allocation model regularly. This profile is a core portfolio that adjusts with economic conditions. You can cover this with Best of US Investors Platinum Swing Trading program to create alpha. Subscribe today to QQQTRADES.CLUB. I appreciate the support.