ARK Invest founder Cathie Wood expressed her views this week on the tensions between Musk and Trump during a live YouTube broadcast on the ITK show. She also further discussed the policy challenges facing the U.S. tech industry, the development prospects of autonomous ride-hailing, and the overall economic trends. She pointed out that Musk is currently at a crucial crossroads, where he must reassess his future relationship with Trump, which not only affects him personally but will also impact the future development of the companies he leads.
Musk faces setbacks due to the regulatory policies for self-driving taxis in the United States.
Wood pointed out that Musk hopes to break free from the governance framework of the U.S. government, but his companies, including Space X, Tesla, and Neuralink, are all subject to policy restrictions. SpaceX has up to $22 billion in government contracts, and the deployment of self-driving taxis is also limited by the contradiction between state and federal government governance. Regulatory policies will impact the transportation industry. Wood's Ark Investment hopes that the self-driving taxi platform can be regulated at the federal level rather than the state level, and she calls on the U.S. federal government to accelerate the push for unified policies to regulate self-driving cars to facilitate their development. Wood revealed that Musk originally seemed to be preparing to retire, but he changed his mind after successfully bringing astronauts back to Earth. Musk's goal has always been to send humans to settle on Mars.
Trump brings down Tesla
Wood believes that Tesla's recent performance has been affected by the conflict arising from Musk's relationship with Trump. According to her analysis, this drama stems from Musk's desire to avoid being caught in the political storm of US-China tensions. Tesla's market decline in China is somewhat related to Musk being a friend of Trump, which positions him as an enemy in the same camp as Trump in the eyes of China.
The Trump administration adopted a tough trade stance against China, implementing sanctions policies targeting rare earths and the electric vehicle supply chain, which are particularly unfavorable to Tesla. Recently, China announced the resumption of rare earth trade with the three major American automakers (excluding Tesla), making the situation even more complicated.
ARK sold 500 million Tesla shares; June 12 is an important observation date.
Despite facing many challenges, Musk's confidence in the upcoming autonomous taxi remains undiminished. June 12 will be an important time to observe whether self-driving technology can truly take off. ARK Invest has long bet on Tesla, but recently has net sold about $500 million in stocks, partly due to frequent political variables. Wood pointed out that Tesla's competitive advantage is shifting from electric vehicles to autonomous taxis and humanoid robots, which will be the focus of the next wave of news attention.
Economic and Market Outlook: The Rolling Recession Is Not Yet Over
Cathie Wood also commented on the U.S. economy during the live broadcast, stating that it is currently at the tail end of a rolling recession, with corporate capital expenditures slowing down, a decline in the labor force participation rate, and soft consumer prices, leading to inflation pressures being lower than expected. She cited employment data indicating that while new job numbers appear strong, they are actually influenced by the business birth/death model, raising questions about the true employment growth rate. Wood warned that if the tax legislation fails to pass before August, companies will face the risk of tax increases, which will impact capital expenditures and investment decisions.
Rising deflation risk and strong US dollar
Wood pointed out that if the risk of deflation becomes a reality, it will pose serious challenges to debt repayment and corporate profitability. She mentioned that low-priced exports of Chinese cars, such as those from BYD, are a sign of global deflation being exported, even though the market is generally concerned about the weakness of the dollar. Historically speaking, the dollar is actually at a high point, and inflation has not fully heated up.
Cathie Wood's perspective shows that the development of technology is closely related to Trump's policies. The conflict between Musk and Trump is not just a personal feud but also reflects how politics is precisely pulling the fate of the tech industry.
This article expresses Cathie Wood's views on the rift between Musk and Trump, indicating that the American technology industry is facing challenges from Trump's policies. It first appeared in Chain News ABMedia.
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Cathie Wood commented on the rift between Musk and Trump, stating that the American tech industry is facing challenges from Trump’s policies.
ARK Invest founder Cathie Wood expressed her views this week on the tensions between Musk and Trump during a live YouTube broadcast on the ITK show. She also further discussed the policy challenges facing the U.S. tech industry, the development prospects of autonomous ride-hailing, and the overall economic trends. She pointed out that Musk is currently at a crucial crossroads, where he must reassess his future relationship with Trump, which not only affects him personally but will also impact the future development of the companies he leads.
Musk faces setbacks due to the regulatory policies for self-driving taxis in the United States.
Wood pointed out that Musk hopes to break free from the governance framework of the U.S. government, but his companies, including Space X, Tesla, and Neuralink, are all subject to policy restrictions. SpaceX has up to $22 billion in government contracts, and the deployment of self-driving taxis is also limited by the contradiction between state and federal government governance. Regulatory policies will impact the transportation industry. Wood's Ark Investment hopes that the self-driving taxi platform can be regulated at the federal level rather than the state level, and she calls on the U.S. federal government to accelerate the push for unified policies to regulate self-driving cars to facilitate their development. Wood revealed that Musk originally seemed to be preparing to retire, but he changed his mind after successfully bringing astronauts back to Earth. Musk's goal has always been to send humans to settle on Mars.
Trump brings down Tesla
Wood believes that Tesla's recent performance has been affected by the conflict arising from Musk's relationship with Trump. According to her analysis, this drama stems from Musk's desire to avoid being caught in the political storm of US-China tensions. Tesla's market decline in China is somewhat related to Musk being a friend of Trump, which positions him as an enemy in the same camp as Trump in the eyes of China.
The Trump administration adopted a tough trade stance against China, implementing sanctions policies targeting rare earths and the electric vehicle supply chain, which are particularly unfavorable to Tesla. Recently, China announced the resumption of rare earth trade with the three major American automakers (excluding Tesla), making the situation even more complicated.
ARK sold 500 million Tesla shares; June 12 is an important observation date.
Despite facing many challenges, Musk's confidence in the upcoming autonomous taxi remains undiminished. June 12 will be an important time to observe whether self-driving technology can truly take off. ARK Invest has long bet on Tesla, but recently has net sold about $500 million in stocks, partly due to frequent political variables. Wood pointed out that Tesla's competitive advantage is shifting from electric vehicles to autonomous taxis and humanoid robots, which will be the focus of the next wave of news attention.
Economic and Market Outlook: The Rolling Recession Is Not Yet Over
Cathie Wood also commented on the U.S. economy during the live broadcast, stating that it is currently at the tail end of a rolling recession, with corporate capital expenditures slowing down, a decline in the labor force participation rate, and soft consumer prices, leading to inflation pressures being lower than expected. She cited employment data indicating that while new job numbers appear strong, they are actually influenced by the business birth/death model, raising questions about the true employment growth rate. Wood warned that if the tax legislation fails to pass before August, companies will face the risk of tax increases, which will impact capital expenditures and investment decisions.
Rising deflation risk and strong US dollar
Wood pointed out that if the risk of deflation becomes a reality, it will pose serious challenges to debt repayment and corporate profitability. She mentioned that low-priced exports of Chinese cars, such as those from BYD, are a sign of global deflation being exported, even though the market is generally concerned about the weakness of the dollar. Historically speaking, the dollar is actually at a high point, and inflation has not fully heated up.
Cathie Wood's perspective shows that the development of technology is closely related to Trump's policies. The conflict between Musk and Trump is not just a personal feud but also reflects how politics is precisely pulling the fate of the tech industry.
This article expresses Cathie Wood's views on the rift between Musk and Trump, indicating that the American technology industry is facing challenges from Trump's policies. It first appeared in Chain News ABMedia.