Eddie Donmez’s Post

In Case You Missed It: Elon Musk's Tesla Has Won Preliminary Approval To Roll Out 'Fully Self Driving' Technology In China 🤯 After a surprise visit to Beijing, Musk has reportedly received a big green light from Chinese officials. This clears a significant regulatory hurdle in Tesla's second most important market behind the U.S. Why is this a big deal? Despite an extremely challenging start to the year (shares down ~30% YTD). The mass adoption of FSD represents the next big opportunity (and challenge) for the long-term Tesla growth story. Mass adoption of FSD would enable Tesla to capture software-like margins (vs the current 17-20% gross margins on vehicles). This could be achieved via purchases of FSD within Tesla vehicles. Or licensing the software to other automakers. *Or via a potential 'robo-taxi' fleet in the future* And they are making progress... Tesla recently surpassed 1 billion miles driven using FSD. Quite remarkably, this figure was at ~700,000 just ~6 months ago. Clearly a big growth metric that they are focusing on. Musk claims that Tesla will spend as much as $10 billion on AI this year to power this technology. Tesla shares are up ~10% in pre-market on this news. Catalyst. Creative Capital

Insane: U.S. Interest Payments Will Hit $1.7 TRILLION By April 2025 🤯 Interest payments on the US’s $34 trillion debt are already above $1 trillion today. But assuming rates stay where they are, this figure will hit $1.7 trillion by next April. Parabolic.

Ouch: Analysing Tesla Stock In Seconds Using Artificial Intelligence 🤯 Tesla has had a horrible year but how bad has it been? And how does its performance compare to the rest of its Magnificent 7 peers? Head to SigTech AI and enter the following prompts: 1) Prompt: "Show me the performance of Tesla this year with a chart." Performance Metrics: Annualized Excess Return: -38.43% Annualized Volatility: 46.63% Sharpe Ratio: -3.30 Sortino Ratio: -4.61 Max Drawdown: -37.44% Total Return: -37.44% Additional Statistics: Max Drawdown Start Date: 2024-01-02 Max Drawdown End Date: 2024-04-18 Mean Positive Return: 1.80% Mean Negative Return: -2.51% Proportion Positive Returns: 44.59% Return over the last 5 days: -10.98% Return over the last 20 days: -11.51% 2) "How does this compare to the rest of the magnificent 7?" Amazon, Meta, Microsoft, Google, NVIDIA, Apple. Company | Annualized Excess Return Tesla | -38.43% Amazon | +19.02%    Meta  | +40.61%        Microsoft | +9.50% Google | +10.69% NVIDIA | +71.75% Apple | -10.81%  Observations: - Tesla has experienced a significant downturn this year with the highest volatility and drawdown among the group. - Nvidia shows an exceptional performance with the highest returns and a relatively high volatility. - Meta also presents strong returns with substantial volatility but less severe drawdowns compared to Tesla and Nvidia. - Amazon, Microsoft, and Google show positive yet moderate returns with lower volatilities and minimal drawdowns. - Apple, similar to Tesla, indicates a negative return, albeit with less volatility and drawdown. Now let's extend the timeframe to get a better gauge. 3) Prompt: "How does this compare over the past year?" Company | Annualized Excess Return Tesla | -18.38% Amazon | +64.84% Meta | +117.50% Microsoft | +36.48% Google | +41.84% Nvidia | +185.49% Apple | -4.45% Observations: - Tesla has shown negative returns over the last year with the largest max drawdown among the group, indicating significant price volatility and declines. - Nvidia and Meta have exhibited exceptionally high returns, with Nvidia achieving the highest total return and annualized excess return. - Amazon, Microsoft, and Google also showed strong positive returns, with less volatility compared to Nvidia and Meta. - Apple showed a relatively stable performance with a slight positive return and the lowest volatility among the tech giants. Looking at the performance of Apple & Tesla. It looks like the Magnificent 7 may soon become the Fantastic 5. AI.

Wall Street’s Top Investment Banks For Trading 🤯 Here are the latest rankings based on their Q1 2024 earnings reports: 1) J.P. Morgan - $9.2 billion (bn) 2) Goldman Sachs - $7.6bn 3) Citi - $5.4bn 4) Morgan Stanley - $5.3bn 5) Bank of America - $5.1bn Creative Capital