Are You One of the 84% Who've Made Crypto Decisions Due to FOMO? Go Beyond the Fear of Missing Out and Build a Balanced Portfolio With These Tips.

Cryptocurrency

Summary:

84% of crypto investors admit making FOMO-driven decisions. To avoid emotional pitfalls, focus on research, long-term strategy, ignoring hype, and patience—key habits to build a balanced, informed, and resilient crypto portfolio.

A recent survey by the Kraken crypto exchange shows that a whopping 84% of crypto investors have made investment choices due to FOMO -- fear of missing out. It's a common response, especially in the speculative and volatile world of cryptocurrencies, where assets can rally significantly in a matter of days.

Unfortunately, FOMO-based choices often lead to regret. Almost two-thirds of the crypto holders surveyed said those emotional decisions had hit their portfolios hard.

FOMO can cause people to buy a cryptocurrency shortly before it hits an all-time high and then lose money when the price drops. It can also mean buying into pump-and-dump schemes that play on people's emotions.

Here are four tips you can follow to avoid letting fear cloud your judgment.

Research... and research some more

Another popular crypto acronym is DYOR -- do your own research. Don't take other people's word for it -- dig into the details of any project before you make the decision to buy. Cryptocurrencies don't have balance sheets and regulatory reporting systems, but there's still a lot of information you can use.

Read the white paper: This document should tell you what the project hopes to achieve, how the technology works, who's involved, and more. If you're looking for long-term value, real-world utility and security are key considerations.

Understand how coins and tokens are issued: Pay attention to how many coins or tokens the project will mint -- particularly whether there's a capped or unlimited supply. This can have a big impact on value. Look at the coins' distribution, any vesting (where coins are gradually released to stakeholders), and whether a small number of people own a large portion of the total supply.

Check out the leadership: Look for teams with solid crypto experience and knowledge. The number of developers involved in the project can also be a good sign. If it is a decentralized entity like Bitcoin (CRYPTO: BTC), pay attention to governance protocols and stakeholders.

Look at the market cap and liquidity: Cryptocurrencies with higher market caps may be more established and can carry less risk. Trading volume can be a good indicator of liquidity as it shows there are a lot of people buying and selling.

Research is one of the best antidotes to FOMO because it helps you make a decision that's based on information rather than emotion.

Be clear about why you're making an investment

Think about how this purchase fits in with your investment strategy and your finances, and be aware of emotional drivers. If you're feeling anxious or worried that you have to buy before the price changes dramatically, this may be a sign you're about to FOMO in or out of an asset. Similarly, if you're using money you need in the short term to buy crypto, take it as a FOMO warning sign.

You might even write down your investment thesis so that you can come back to it in the future. Keep your other investments in mind and be aware of how much exposure you have to risky assets like crypto, compared with other assets, such as stocks, bonds, and real estate.

Consider dollar-cost-averaging -- making regular investments at set intervals, rather than a lump sum -- to even out short-term volatility. This can help if a crypto is rapidly gaining in value and you're worried it might peak and fall again. It's also good to ask yourself what you hope the coin or token will be worth in five years' time.

Avoid decisions based on social media

Kraken's research shows that 85% of people who relied on social media for information also felt emotional decisions had hurt their portfolios. The emotionally charged and fast-paced nature of social media platforms can fuel FOMO.

You might get ideas from social media, but use other sources to verify what you find. Try to think about who's posting and what their agenda might be. That's particularly true on social media but also the case for articles, podcasts, and other investment information sources.

Take a beat

There are many great long-term investment opportunities out there, and it's almost impossible to time the market and buy at the lowest point. If it's a good investment today, it should still be a good investment in a week or a month after you've had time to think about it.

For example, let's say you wanted to invest in Bitcoin a few years ago. It's September 2021, and the price is about $46,000. The price is rising quickly, and you're scared it's going to the moon without you.

You wait a month, and by October, a single Bitcoin costs $56,000. It feels expensive, but you go ahead and buy because you've done your research and believe this is a solid long-term investment. Today, your investment would have gained more than 85%. And if Bitcoin continues to gain, the different entry points will become even less important.

You can take FOMO out of your crypto investments

There are several strategies to reduce FOMO in your investments, but the biggest one is awareness. If you catch yourself thinking you have to buy something today or miss out, that's a sign your emotions may be in the driver's seat. It happens all too easily in the heady world of crypto, so try to counter that sense of panic by imagining how you'd feel if you lost everything you're about to invest.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $410,385!*

Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,857!*

Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $695,481!*

Source: finance.yahoo

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Adam

Economic

Tesla (TSLA) stock has been under pressure this year, but one analyst is telling investors to take a deep breath.

Despite mounting headwinds and technical signals flashing red, RBC Capital Markets analyst Tom Narayan said the recent Tesla sell-off has gone too far. In a new note to clients, Narayan reiterated his Outperform rating and raised his price target to $319, up from $307. That implies about 7% upside from current levels.

"We believe there is strong demand for Tesla products even in the face of more EV competition," Narayan wrote. "Tesla's lead, profits, cash generation, and currency are a major advantage that helps it to fund growth."

RBC values Tesla's core car business at 1x sales but gives premium weight to its long-term plays like Megapack energy storage systems, autonomous driving, and AI. The firm applies a 15x multiple to 2040 estimated EBITDA for Megapacks and a 10x revenue multiple to Tesla's future robotaxi and humanoid robot operations.

The long-term picture, Narayan argued, justifies holding through the current rough patch. But not everyone is buying it.

Tesla's stock has dropped over 20% year over year. According to Adam Turnquist, LPL Financial's chief technical strategist, short-term technical indicators suggest further dips for the stock. The stock is also underperforming compared to "Magnificent Seven" peers like Nvidia (NVDA) and Meta (META), which are up 16% and 20%, respectively.

Tesla's recent financials haven't helped sentiment. Tesla reported in Q2 that it sold 384,122 cars, a 13.5% drop year over year. Declining EV demand and CEO Elon Musk's political foray have led to boycotts and protests, making some analysts skeptical of a near-term rebound for the company.

Even so, Narayan sees opportunity. RBC projects Tesla's revenue will rebound to $111 billion by 2026, up from an estimated $93.5 billion this year. Adjusted earnings per share (EPS) are expected to rise in that period from $1.99 in 2025 to $2.99 in 2026. Those gains would be fueled by expanding production, new product launches, and higher-margin growth from non-automotive businesses.

Narayan also pointed to a potential boost from Tesla's robotaxi, which could reinvigorate investor enthusiasm around its full self-driving ambitions. "Tesla is EV's poster child,” RBC argued. Piper Sandler analysts recently called the company the "most transformative company in autos," noting that in the long run, it "will likely win."

Still, RBC flags several risks, including volatile earnings, cost inflation, and supply chain hiccups. The firm also notes that Tesla's business is "cyclical" and vulnerable to broader economic slowdowns, especially if rising interest rates or geopolitical shocks weigh on consumer spending.

And, of course, there's Elon Musk. The Tesla CEO has drawn fresh scrutiny from posting political and divisive comments online, raising questions about the company's governance and long-term brand strength. That unpredictability continues to be a wild card for investors. For now, RBC is holding firm.

"Company and quarterly results may be lumpy due to timing and a variety of manufacturing issues, which could cause stock price volatility," Narayan noted. However, "Tesla is a growth company."

source : finance.yahoo

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Adam

Economic

Apple shares are languishing this year. As we share below, the stock is down over 16% year-to-date and significantly lags all of the Magnificent Seven stocks except Tesla . While weak revenue growth and relatively few new products are culprits, it’s also worth noting that Apple is considerably behind in AI development.

Some Apple employees, as we share below, courtesy of a Bloomberg article, think their AI development is in a “crisis.”

“This is a crisis,” says a senior member of Apple’s AI team. A different team member compares the effort to a foundering ship: “It’s been sinking for a long time.” According to internal data described to Bloomberg Businessweek, the company’s technology remains years behind the competition’s.

The Bloomberg article describes the crisis driven by missteps in keeping up with its competitors. Here are a few takeaways from the article:

Apple’s failure to keep pace in generative AI risks is undermining the iPhone’s market dominance. Furthermore, it could hinder the development of future products, such as robots and augmented reality devices.

Siri is quickly losing its advantages versus its competitors as it isn’t keeping up in the AI race.

Apple’s AI setbacks stem from internal issues, including organizational silos, resource constraints, and a cautious approach to data privacy that limits innovation. Moreover, 2018 hiring of Google’s AI chief, John Giannandrea, is not yielding the benefits they had hoped for.

The massive AI investments from competitors like Meta , Google , and Amazon exacerbate the Apple AI crisis.

Source: investing

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Devin

Economic

Trump has said trade talks with China and the EU were going 'very well'

The European Union said Wednesday it could strike an outline trade deal with the United States within days — just as US President Donald Trump ramped up threats of new tariffs.

Trump, widening a trade war that has unsettled the global economy, announced a day earlier he would slap a 50% tariff on imported copper and soon roll out long-threatened levies on semiconductors and pharmaceuticals.

What is Trump threatening now?

Trump issued a fresh round of tariff letters targeting six countries, the White House confirmed Wednesday.

The letters call for tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines.

The US president had said that "a minimum of seven" new tariff notices would land Wednesday morning, with more to follow.

The latest threat comes a day after he sent tariff letters to 14 trading partners — including major trading partners South Korea and Japan — warning of 25% and higher duties from August 1.

Trump said trade talks with China and the EU were going "very well" and promised to reveal the EU's new export rates "probably" within two days.

"They treated us very badly until recently, and now they're treating us very nicely. It's like a different world, actually," he said on Tuesday.

What is the EU expecting?

EU trade chief Maros Sefcovic told lawmakers good progress had been made on a framework agreement and a deal might be possible within days.

He told EU lawmakers he hoped that EU negotiators could finalize their work soon, with additional time now after the US deadline was extended from July 9 to August 1.

"I hope to reach a satisfactory conclusion, potentially even in the coming days," Sefcovic said.

However, Italian Economy Minister Giancarlo Giorgetti cautioned that talks remain "very complicated" and could drag on until the last moment.

If the new measures go ahead, they would push US tariffs to their highest levels since 1934. Markets shrugged off Trump's latest salvo, while the yen weakened further after Japan was hit with new tariff threats.

Source: DW

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Dark Current

Commodity

Economic

Oil fluctuated as traders weighed a large gain in US crude stockpiles against fresh US efforts to crimp Iranian crude exports.

West Texas Intermediate swung between gains and losses to trade above $68 a barrel, following two days of advances. US crude stockpiles rose 7.1 million barrels last week, the biggest gain since January, the Energy Information Administration said Wednesday. At the same time, the US Treasury Department sanctioned 22 foreign entities for their roles in facilitating the sale of Iranian oil.

“Despite a material drop in imports week-on-week, a tick lower in refining activity and subdued exports have encouraged a sizeable crude inventory build,” said Matt Smith, Americas lead oil analyst at Kpler.

The sanctions helped to soothe investors’ uncertainty surrounding US policy on Iranian exports, just weeks after US President Donald Trump baffled markets by encouraging China to carry on buying Tehran’s crude. Those surprise remarks represented a reversal of years of US sanctions and briefly allayed concerns that the Israel-Iran conflict would severely disrupt supplies.

Still, sanctions news will have limited upside until the market sees a material loss of barrels, said Joe DeLaura, global energy strategist at Rabobank.

“It’s all kayfabe,” he said. “By the end of the week, all those sanctioned companies will exist under new names in new locations, and the oil will flow.”

Renewed Houthi attacks on cargo ships in the Red Sea — a key trade route for oil — have also notably failed to inject a risk premium into oil prices. The attacks have so far killed at least three crew members and sank two vessels.

“Most ships are already avoiding the Red Sea,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. The developments “indicate some escalation, but do not really change the supply-demand picture.”

Oil surged during the Israel-Iran conflict, with Brent topping $80 a barrel, but prices have since retreated sharply. Attention has now shifted to OPEC+ supply and US trade policy, with multiple analysts highlighting near-term market tightness.

The EIA data somewhat undermined earlier comments by UAE Energy Minister Suhail Al Mazrouei’s comments that a lack of major inventory buildups shows the market needs the production that OPEC+ is reviving, while Saudi Aramco sees healthy global demand despite trade challenges and tariffs.

Source: Yahoo Finance

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Adam

Commodity

Copper is one of the most important metals in the world. Approximately 50% of all copper in the world is consumed in China, mainly in the construction sector, but at the same time, the entire electronics sector would not exist without this metal. What is more, with the current development of artificial intelligence and green energy, the demand for copper will grow even stronger, and in the near future, this sector will be key in terms of overall demand. Therefore, President Donald Trump's introduction of a 50% tariff on copper imports into the United States marks a turning point for the global market for this strategic metal. Although at first glance this decision seems puzzling, it is aimed at rebuilding the American copper industry and ensuring security of supply for key sectors of the economy.

Why does Donald Trump want 50% tariffs on copper?

National security strategy

The main motivation for introducing tariffs on copper is to revive the US copper industry and ensure the security of supply of this critical material. Copper is one of the most important metals in the world, used in a wide range of applications, from electrical cables and pipes to electric vehicles and energy systems.

US government officials argue that dumping and overproduction in the global market have weakened domestic copper production, leaving America dependent on foreign sources of the metal for key industries such as weapons manufacturing. While the US has significant mines, producing approximately 1.1 million tons of copper in 2024 (and refining less at 890,000 tons), consumption of refined metal reached 1.6 million tons, meaning that imports are necessary to fill the gap.

The world's largest copper producers. The key countries in terms of production are Chile, Peru, Congo, and China. The United States ranks only fifth in terms of production. Source: USGS, XTB

Chile is the largest supplier of copper to the US, but Canada, Peru, and Mexico are also significant players. Source: Bloomberg Finance Lp

A sharp decline in production capacity in the US

Access to cheap copper from South America, Africa, or China has made copper production in the US less profitable. As a result, we have seen a decline in US copper processing capacity over the years. As Trump's February executive order points out, the US “has abundant copper reserves, but our smelting and refining capacity lags far behind our global competitors.” The country had several operating smelters in the late 1990s, but today only two are active – one in Arizona and the other in Utah. This decline occurred as China built more and more smelters. Currently, China is the absolute world leader in refining, with production at 12 million tons. Only two countries exceeded 1 million tons of production in 2024. These were Chile, with production of 1.9 million tons, and Japan, with 1.6 million tons. Copper reserves ready for extraction are currently estimated at 47 million tons in the US, which is not the largest amount in the world, but is higher than in China (41 million tons).

Why the difference in prices on the LME and COMEX?

Strong increase in the spread between the LME and COMEX

The announcement of tariffs caused an unprecedented increase in the price difference between the US COMEX exchange and the London LME. The spread between these markets rose from around $300 per ton at the beginning of 2025 to over $2,500 per ton after the announcement of 50% tariffs. What's more, the one-day increase in copper prices on COMEX was the largest in decades.

The difference between the COMEX and LME prices rose to an extremely high level of $2,500 per ton. Potentially, this could mean a divergence in the future that will be closed. It is also worth noting that the difference is not only due to the increase in prices on COMEX, but also to the decline in prices on LME. Source: Bloomberg Finance LP

The double-digit price increase on COMEX during the July 8 session was the largest since 1990. Source: Bloomberg Finance LP

The annual price increase on COMEX is over 70%, while on LME we see a sideways trend. The biggest differences appeared in January and only briefly in April, when Trump announced the suspension of tariffs, did the difference decrease significantly. Source: Bloomberg Finance LP

Reasons for the decline in prices on LME

Copper prices on the London Metal Exchange (LME) are falling for several key reasons:

Redirection of supplies to the US

The announcement of tariffs caused a massive redirection of copper supplies to US ports before the tariffs came into effect. According to estimates by Mercuria Energy Group, at the end of March, approximately 500,000 tons of copper were on their way to the US, compared to normal monthly volumes of approximately 70,000 tons. Of course, this has also led to a shortage of copper on other exchanges recently, which has led to a rise in the spot market.

End of trade arbitrage

As Shanghai Metals Market analyst Michael Wu notes, “there are few buyers in Asia willing to ship copper to the US, given the short time remaining before the tariffs take effect.” This marks the end of a long-running trade arbitrage that has been pulling metal out of global markets.

Release of supply outside the US

Copper in the US must currently be more than 50% higher if it is to remain profitable to continue to ship copper to that market, hence the very large increase on COMEX. At the same time, prices are not that high, and the US could potentially achieve independence from suppliers in the coming years. Countries such as Peru, Chile, and Congo will have to find other markets for ore shipments. The same applies to refined copper, primarily from China.

Price outlook

Goldman Sachs analysts predict that the COMEX-LME spread could reach 25-35% of the LME price, or $2,300-3,300 per ton, compared to earlier forecasts of 15-20%. At the same time, they forecast that LME prices will peak at around $10,050 per ton in August 2025. Citi, on the other hand, indicates that LME prices may fall below $9,000 per ton, specifically to $8,800 per ton. This will be due to the fact that the large US market will not be reporting demand at this point, given the high inventories built up in recent months.

At the same time, however, it is not known what the specific shape of copper tariffs will be. Will it apply equally to ore or only to copper products? If tariffs are limited, this may lead to a reduction in the difference between COMEX and LME prices, although primarily in the form of a decline in prices in the US.

Impact on copper companies

KGHM – between benefits and challenges

For the Polish copper giant KGHM, the situation is twofold. On the one hand, the company can currently benefit from higher global copper prices and the potential redirection of supplies from the US to other markets. KGHM shares are currently up by about 5% since the beginning of Trump's term, while since the April low, the company's shares have risen by as much as 30%. However, the company remains well below the recent local price peaks of 2024 or the historical peaks of 2021 above PLN 200 per share.

KGHM, as the eighth largest copper producer in the world with a production of 730,000 tons in 2024, may benefit from:

The potential for price increases in global markets in the event of a smaller impact of US tariffs

The United States was the fifth largest market for KGHM, which is one of the leaders in the European copper market. KGHM may potentially focus on Asian countries.

KGHM is present in the US through two mines: Robinson in Nevada and Carlota in Arizona. Local price increases on the market work to KGHM's advantage.

The current situation may favor a potential reduction in the copper tax in Poland.

The United States is of limited importance to KGHM's results, although the company itself is also present in that market locally. Source: Bloomberg Finance LP

Even with limited increases in LME copper prices, KGHM's prices performed slightly worse, which can be partly attributed to the overly strong Polish zloty. Source: xStation5

US producers - the main beneficiaries

Freeport-McMoRan is one of the companies that stands to gain significantly from the tariffs. The company, which accounts for about 70% of processed copper in the US, could benefit from a premium of about $800 million per year with a spread of 13%. Freeport-McMoRan shares rose 2.5% after the tariffs were announced.

Southern Copper Corporation may also benefit from its US operations, despite potential export problems from Mexico and Peru. However, the company lost nearly 1.5% in value on the day the tariffs were announced.

Global players - mixed outlook

For global leaders such as BHP, Codelco, and Glencore, the situation is more complicated. While they may benefit from potentially higher global copper prices, they are losing access to the lucrative US market. Codelco, the largest exporter of copper to the US, has already expressed concern about the announcement of tariffs. However, the company is a Chilean state-owned company and is not listed on the stock exchange. BHP and Glencore shares have lost value.

Freeport-McMoran shares have recently performed significantly better than KGHM or BHP shares. Source: xStation5

Long-term outlook for the copper market

The International Copper Study Group (ICSG) forecasts that the global copper deficit will reach 289,000 tons in 2025, more than double the 138,000 tons in 2024. At the same time, demand for copper is expected to grow by over 40% by 2040, requiring the launch of around 80 new mines and investments of $250 billion by 2030. The main driver of the copper market is expected to be the new technology sector. The expected significant increase in demand prices with limited production prospects may mean that in the long term, copper prices can be expected to be significantly higher than at present.

Conclusions – opportunity or threat?

For copper companies, copper tariffs represent both an opportunity and a threat. Donald Trump's actions show how important and strategic copper may be in the near future. The price increase on the US COMEX shows how strong the long-term prospects are for the global copper market if there is no growth in supply in the near future. At the same time, the enormous uncertainty associated with tariffs will not encourage global companies to invest.

Source: xtb

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Adam

Economic

Tesla shares fell nearly 8% on Monday, shaken by Elon Musk's announcement of the creation of a new US political party called the "America Party." This controversial initiative, launched after a public standoff with President Donald Trump, is fueling doubts about the billionaire's commitment to his company, which is already weakened by a steady decline in sales.

Best friends... but not forever

The businessman, who became the richest man in the world thanks to his companies Tesla and SpaceX, spent hundreds of millions of dollars on Donald Trump's re-election campaign and was appointed to his administration earlier this year to head the new Department of Government Efficiency, tasked with "cutting" federal spending.

But the once idyllic relationship between Donald Trump and Elon Musk turned sour when Musk threatened in early June to fund campaigns against Republican Congress members who would approve the US president's sweeping budget plan, which he called a "repugnant abomination."

This was followed by a heated exchange, during which the Tesla boss notably supported the impeachment of the US president. Donald Trump had already threatened to cut federal funding for Musk's companies.

After a few weeks of calm, the clash resumed with a vengeance last week. A few days before the tax bill was voted on, Elon Musk once again criticized the plan. In response, Donald Trump suggested that DOGE investigate the subsidies received by Musk's companies. "Maybe we should put DOGE on Elon (...) DOGE is the monster that could in turn eat Elon. Wouldn't that be great?"

In response, Elon Musk renewed his call for the creation of a new political party, arguing that "we live in a one-party country – the PIGGIE PARTY!!".

No threesome

At the weekend, Elon Musk made good on his threat: "Today, the America First Party is founded to give you back your freedom," the billionaire said in a post on his social network X, one day after asking his followers if a new American political party should be created.

It was an idea that Donald Trump immediately attacked. "I think it's ridiculous to want to create a third party," Donald Trump told reporters on Sunday before boarding Air Force One in Morristown, New Jersey. "Starting a third party just adds to the confusion... He can play with that idea, but in my opinion, it's ridiculous."

In American politics, the idea of creating a third party to compete with the Republican/Democrat duopoly is a recurring theme. So far, no one has succeeded in establishing a genuine third political force.

Donald Trump himself tried it with the Reform Party in 2000. At the time, he justified his candidacy with the opposite arguments, but with the same conclusion: "They don't want anyone to come in and take down the Democrats and Republicans, anyone to disrupt the rules they themselves have set up. It's ridiculous." The campaign ultimately ended after four months.

It therefore seems difficult to see the "America's Party" gaining traction. Nevertheless, Elon Musk could have significant disruptive power over the Republicans. With only a few candidates in the November 2026 midterms, he could cause the Republican Party to lose certain districts. A few seats could tip the balance of power in the House or Senate.

The CEO rather than the politician

What is certain is that shareholders did not appreciate this new foray into politics. On Monday on Wall Street, Tesla shares ended the day down 7%.

To fully understand Tesla's recent stockmarket performance, we need to go back a year. Elon Musk pledged his support for Donald Trump in the summer of 2024. This commitment benefited Tesla's stock during the end of the campaign and in the weeks following the election. At the time, investors were betting that Elon Musk's proximity to the president would lead to more favorable regulations to accelerate the rollout of autonomous driving, one of the main drivers of Tesla's narrative.

But little by little, Elon Musk's political involvement and controversial statements damaged the brand's image, particularly in Europe, where sales collapsed. As a result, the stock price plummeted. Since peaking in mid-December, Tesla has lost about a third of its value.

The current situation is perfectly summed up by Wedbush analyst Dan Ives: "The fact that Musk is becoming more involved in politics... is exactly the opposite direction Tesla investors and shareholders want him to take." Faced with the company's difficulties, investors would like the CEO to focus fully on turning it around rather than "spreading himself too thin" in politics.

This is especially true given that the brand is also struggling in China, where it faces stiff competition. And the rift with Donald Trump could further weaken its position in the country. However, as reported by the Wall Street Journal on Monday, the break between Elon Musk and Donald Trump limits Elon Musk's "value" in the eyes of the Chinese government.

In short, his proximity to the president made him a strategic asset for the Chinese authorities. In January, during a visit to Washington, Chinese Vice President Han Zheng reportedly told Musk that Beijing hoped he would play a "constructive role" in Sino-US relations. Now, the Tesla boss can clearly no longer play the go-between.

Elon Musk's political engagement has therefore come at a serious cost to Tesla's ambitions. A few months ago, he proudly held up a chainsaw in the air to illustrate his desire to reduce public spending, following the example of Argentine President Javier Milei. However, the only significant cut he ultimately made was to Tesla's market capitalization.