⚔️ Musk vs MAGA

What’s going on here?

President Trump and Elon Musk have been going down swingin’ – and Tesla’s stock has been taking the hits, falling 14% on Thursday alone.

What does this mean?

The pair’s very public dispute has upset the stock market more than anything else. On Thursday, the president threatened – via social media – to end the government contracts and subsidies benefiting all of Musk’s firms. That was enough of a warning for investors, who dumped Tesla’s shares in a hurry. The selloff left the stock down 41% from its December peak and stripped $153 billion from the firm’s market value – its worst one-day loss ever. The whole snafu is a good reminder of just how tightly Tesla’s valuation is tied to the personality and politics of its loved and loathed CEO.

Why should I care?

For markets: A demand problem wrapped in a reputation problem.

Tesla’s stock price has always been about more than EV sales: it’s ridden both the Musk mythos and a healthy flow of federal backing. Now, both are on unstable ground. Political risks are changing the calculations – as is having a CEO who now divides as much as he innovates. At the same time, Tesla’s grip on the market has been stalling: UK and German sales plunged last month, even as overall EV sales in both countries surged. Blame a product lull if you want, but drivers are clearly shifting away from Tesla.

The bigger picture: Political… capital.

The EV maker’s fall from grace shows just how much political turmoil feeds into investor returns. Forget earnings forecasts: markets these days are responding more to regulatory swings, political friendships, and where firms stand in the culture wars. With every headline that stirs uncertainty, “risk premiums” go up. Translation: investors will demand higher returns to stomach a bit of drama. And right now, Tesla’s got drama in spades.

What’s going on here?

India’s central bank cut its key interest rate by half a percentage point on Friday, in a bigger-than-expected move aimed at boosting consumer and business spending.

What does this mean?

The Reserve Bank of India (RBI) didn’t just trim the country’s benchmark lending rate to 5.5%: it also slashed the “cash reserve ratio” – the fraction of deposits that banks need to set aside – by a full percentage point. That’ll free up billions of rupees for banks to lend. The move comes at an interesting time: inflation has cooled and economic growth has gathered steam, but the global picture seems shakier by the day. That may be why the RBI took a more neutral tone on how things might go from here. The central bank’s message was less “cheap lending forever” and more “let’s play it by ear”.

Why should I care?

For markets: Mo’ credit, mo’ spending.

India’s economy expanded at a not-to-be-sneezed-at 7.4% last quarter. Now, this cut could keep that pace peppy – and maybe even push growth closer to the country’s 8% target. And on that point, stocks seemed hopeful. The Sensex – one of India’s main indexes – rose nearly 1% after the announcement, with banks leading the rally. Makes sense: cheaper credit means more spending by everyday folk and businesses alike, leading to higher economic growth. Or, that’s the idea at least.

Zooming in: Real estate could get real interesting.

Lower interest rates mean cheaper mortgages – a big win for potential homebuyers across India’s growing middle class. It’s also a win for the country’s property developers with places to sell. Put together with the cash reserve ratio cut, that’ll mean more funding for future real estate projects and the potential for quicker turnarounds. So you might be wise to keep an eye on India’s property sector.