Mixing politics with business does not work. Markets started the week of March 9 with Tesla (TSLA) losing 15.43% to close at $222.15. At this rate, TSLA stock could re-test the August to October 2024 trading range at around $180. CEO Elon Musk’s involvement in cutting government costs through DOGE) is hurting Tesla’s brand value.
Customers are increasing their efforts in boycotting Tesla vehicles. Stock markets are pricing in a sharp deceleration in sales.
Nvidia (NVDA) is the other firm to lead the Magnificent 7 companies lower. Shares dropped by 5.07% to close at $106.98. Although gaming GPU sales accounted for only 10% of revenue last quarter, the RTX 50 launch is a concern. The firm launched the card starting at $1,999 in limited supplies in January. This created a shortage, pushing prices higher to benefit scalpers.
Apple (AAPL) and Alphabet (GOOG) both fell by nearly 5%. In sympathy with Nvidia’s decline, Broadcom (AVGO) dropped despite posting strong quarterly results recently. Intel (INTC) closed below $20.
Risks
Ongoing threats of tariffs will rattle the economy. Corporations will need to start cutting expenses on projects that do not pay off. Microsoft (MSFT), Amazon (AMZN), and Alphabet may trim their purchases of AI-related server hardware. That would hurt semiconductor stocks the most.
