1️⃣ Musk-Trump feud rattles markets — and hits Tesla hard
2️⃣ Portfolio underperforms as U.S. political risk resurfaces
3️⃣ Our strategy: lean into volatility hedges and China tech for stability and growth
1️⃣ Market Recap: Musk and Trump Break Up
The biggest headline last week was definitely Elon Musk and Donald Trump’s very public feud.
Last Thursday, the two clashed over a proposed tax and spending bill, sending shockwaves through the market. The hardest-hit? No surprise — Tesla🚗. The EV giant saw $152 billion in market value wiped out in a single day, one of the biggest one-day plunges since its IPO.📉
But Tesla did what Tesla does — bounce. By Friday, the stock rebounded 7% intraday and closed up 3.67% at $295.14. Friday’s rebound likely reflected hopes that tensions between Musk and Trump might ease.🕊️
Elsewhere in markets, it was actually a solid week — if you could ignore the Musk-Trump fireworks. The May jobs report crushed expectations, giving the economy a boost and investors something to cheer for.
S&P 500: +2.1%, reclaiming the 6000 level
Nasdaq: +2.6%
Dow Jones: +1.2%
Russell 2000: +4.1%
2️⃣ Portfolio Performance: Political Risk Bites
While markets climbed, our portfolio slipped 1.06%, underperforming the S&P 500’s gain. The biggest mover is Tesla, no surprise.
The bright spots? Nvidia and KWEB (KraneShares CSI China Internet ETF) delivered 3–5% gains. Nvidia crushed expectations in its Q1 fiscal 2026 report, and KWEB continues to offer a stable, attractively valued China tech play. Together, these two helped offset some of the drag from Tesla.
3️⃣ Tesla Breakdown: Billionaire Drama Meets Market Reality
Tesla was our biggest mover — and not in a good way. The stock fell 14% last week.
⚡️ What Happened?
💥June 5:
The Trump administration proposed canceling EV tax credits — a major profit lever for Tesla.
Musk fired back, calling the bill “disgusting” and accusing Trump of not consulting in advance.
Trump responded by calling Musk “crazy” and threatening to cut off government contracts with SpaceX.
Musk escalated further, claiming “Trump can’t win without me,” and even hinted at ties between Trump and the Epstein case.
The fallout spread quickly: Dogecoin dropped 10%, SpaceX-linked ETFs fell 13%, leveraged Musk-themed funds plunged over 25%, and even Trump Media took a hit. It was a full-on meltdown across the “Musk ecosystem.”
🐦June 6: Signs of a Truce
After the heated clash, tensions appeared to ease. On June 6, Musk deleted several posts targeting Trump. By Sunday evening (June 8), he reposted two of Trump’s comments about the LA immigration protests — marking their first public interaction since the feud.
Market sentiment improved as well: Tesla (NASDAQ: TSLA) rose 3.67% at the June 6 close, partially rebounding from the prior day’s sharp sell-off.
📈Still, it’s not all doom and gloom. Analysts note that Tesla's core growth drivers remain intact — including AI leadership, autonomy/robotics, supply chain control, and infrastructure plays.
In other words, the stock may be bruised, but it’s not broken.
4️⃣ Looking Ahead: Volatility Is Back. So Are We.
So, where do we go from here?
🧠 Our Strategy: Stay long VIX and KWEB (China Internet ETF).
With U.S. political risks mounting, volatility is your friend. Our long position in the VIX remains a hedge against surprise tweetstorms and policy pivots.
In China, we continue to see strength in structural growth names, especially in the tech and EV sectors, which remain insulated from Western political drama.
When billionaires brawl, portfolios feel the bruises.
But as always — we stay diversified, stay informed, and stay focused on long-term value.
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This information is for guidance purposes and may become out of date at any given time. It is not investment advice. Investments can rise and fall in value. Genuine Impact won’t make any assessment of whether the investments you choose are appropriate or suitable for you. If you are unsure of the suitability of any investment, investment service or strategy, you should seek independent financial advice. Past performance does not indicate future results. Your capital is at risk.
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