Welcome to The Global Hustlr, your straight-shooting update on the major changes shaking up global markets. We highlight what matters, explain why it’s important, and outline what could be next for your investments.
☕️ Quick Brew: Here’s the latest we’re unpacking for you today.
This week, global markets were rocked by a convergence of political fireworks, escalating trade tensions, and flashing red lights in the labor market.
At the center: a high-profile feud between President Donald Trump and Tesla CEO Elon Musk, a dramatic shift in U.S.-China trade dynamics, and mounting evidence that the U.S. economic engine is sputtering.
The Big Stories
1. Trump vs. Musk: A Political Earthquake Hits Tesla
The relationship between Donald Trump and Elon Musk—once dubbed “First Buddy” by Musk himself—has imploded spectacularly.
The spark? Trump’s public threat to terminate government subsidies and contracts for Tesla, a move prompted by Musk’s vocal opposition to GOP budget provisions that would end electric vehicle (EV) tax credits.
Trump didn’t hold back, calling Musk “CRAZY” and accusing him of being ungrateful for past support. Musk fired back, claiming Trump “would have lost the election” without his backing and lambasting the tax bill as a “disgusting abomination” on X (formerly Twitter).
Market Impact:
- Tesla shares are down 13.98% this week
- $267 billion in market value wiped out since Musk’s exit from government advisory role
- Put-call ratio at its highest since April, signalling heavy hedging activity
Will Tesla’s Stock Recover After the 13.98% Drop This Week?
Tesla’s nearly 14% plunge this week, triggered by the public feud between Elon Musk and President Trump and the threat of losing government subsidies and contracts, has left investors questioning whether the stock can rebound in the near term
- Wall Street Consensus: The consensus 12-month price target for Tesla is $299.38, actually lower than the most recent closing price. However, some forecasts see the stock reaching $352.99 by year-end 2025. Longer-term projections are more bullish, with targets above $1,000 by 2030 if Tesla executes on its growth plans.
- Diverging Opinions:
- Some analysts and insiders are skeptical about a near-term recovery, pointing to recent insider sales, declining vehicle deliveries, and a premium valuation that may not be justified by current fundamentals.
- Others, including high-profile investors like Cathie Wood and analysts at Wedbush, see potential for a strong rebound if Tesla successfully launches its robotaxi service and delivers on AI-driven autonomous driving promises. Price targets from these bulls range from $384 to $500 in the coming months.
- Brand and Demand Headwinds: Tesla still faces falling sales in key markets, rising competition, and the likely loss of the $7,500 EV credit, which could further dampen demand
3. Labor Market: Warning Lights Flashing
The U.S. labor market, long a pillar of economic resilience, is now showing cracks.
Initial jobless claims surged to their highest level since October, and the four-week average of continuing claims hit a peak not seen since November 2021.
Unit labor costs spiked while productivity fell, creating a classic inflation-employment squeeze ahead of Friday’s crucial payrolls data.
Earlier in the week, the ADP National Employment Report showed private employers added just 37,000 jobs in May—missing estimates by 78,000 and marking the weakest reading in over two years.
The ISM services index also slipped below 50, signaling contraction for the first time since April. Respondents blamed tariff policies for the slowdown in new orders, production, and inventories.
White House Response:
President Trump wasted no time blaming Fed Chair Powell for being “Too Late” in responding to the softening data, ramping up pressure for monetary easing.
What to Watch:
- Persistent labor market weakness could force the Fed’s hand on rates, but with inflation still sticky, policymakers are in a bind.
4. U.S.-China: Rare Earths Deal Offers a Glimmer of Hope
Amid all the tension, there was one positive surprise: Trump’s 90-minute call with Chinese President Xi Jinping yielded a breakthrough on rare earth minerals.
Xi agreed to let rare earth minerals and magnets flow to the U.S., easing fears of a supply crunch for key industries.
China also issued temporary export licenses to rare earth suppliers for the big three U.S. automakers.
Senior U.S. and Chinese officials are set to meet in London for further talks, with both sides signaling progress on a broader trade deal.
Markets rallied on the news, but the underlying issues—tariffs, technology restrictions, and political distrust—remain unresolved.
What’s Next?
- Tesla’s Government Ties: Watch for announcements on which subsidies and contracts are at risk. SpaceX’s NASA and Defense contracts, and Tesla’s EV incentives, are all in the political crosshairs.
- Trade Talks: All eyes on the next round of U.S.-China negotiations in London. Any sign of progress—or setback—will move markets.
- Tariff Fallout: Companies with global supply chains are bracing for more shocks as the full impact of tariffs ripples through the economy.
The Bottom Line
This was a week where politics, policy, and macro data collided—leaving investors with more questions than answers.
The Trump-Musk feud has upended the EV landscape, trade tensions are reshaping global supply chains, and labor market jitters threaten to derail the recovery. Stay nimble, stay informed, and keep hustling.
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Every week, The Global Hustlr cuts through the noise to deliver the stories that move markets and shape the future.
We connect the dots—across AI, tech, geopolitics, and economics—so you can stay ahead of the curve, spot the risks, and seize the opportunities.
If you want to know not just what happened, but why it matters and what’s next, this is your edge.
Stay sharp. Stay global. Stay hustling.
See you next week,
The Global Hustlr Team
This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice