Tesla can be especially burned by American-Chinese trade war

The news affected some companies more than others, and perhaps Tesla more than most. The electric car company has seen China, and the growing EV market, as one of the most important strategic focuses in the medium term to increase sales. Much of this strategy is a new Gigafactory in Shanghai, but the timeline of the building that actually knocks out cars is at best unclear. China is the key to all car manufacturers, but Tesla especially needs it.

Investors are worried about a company deeply linked to China at this point, and they expressed their concerns with Tesla in yesterday's market. Here's Bloomberg:

Tesla doubled as much as 6.3% to $ 224.50, the lowest intraday since January 2017, after China's defiance of US President Donald Trump by announcing plans to raise $ 60 billion in duties US import values ​​from June 1.

It is not so much that the existing tariffs affect Tesla more than anyone else – from now on, motor vehicles are not really on the list of goods to be hit with the higher rates, but considering hardheadedness on both sides, expect no trade war to de-escalate, and many fear cars could be next.

Nevertheless, Tesla is far from the only car manufacturer working on the tariff problem. Bloomberg notes that BMW and Daimler are the largest importers of US-built vehicles in China, and their shares fell by 1.2 and 3.3 percent, respectively. But investors are probably less concerned about how the tariffs will affect their much larger businesses that have not shunned quarterly deliveries.

Anyway, a generation genius like Elon Musk can at least overcome a single trade crisis in his quest for the world domina-I mean, making a quality electric car at a reasonable price.

2. Gear: Electric cars not only grow on trees

It is true that much of the automotive industry is working to varying degrees towards more EV production. It is also true that very few countries today are capable of mass-producing electric motors. The United States is not one of them. But a new Reuters report describes how Congress is trying to change it.

One of the problems is that no one really knows the extent of the country's metal reserves we need to mine:

But how much cobalt and other minerals used to make EV is actually in the United States there is some guesswork, as the nation has done little a national survey.

Current estimates from U.S. Pat. The Geological Survey is based on annual reports, historical data from the US Bureau of Mines and other sources, according to US Demos spokesman Alex Demas.

Finding out the mineral composition in a particular region requires sending staffs into the field to take rock samples, a timely and costly effort. Murkowski's legislation will require a nationwide reserve analysis for all minerals used to create EV.

This is why Lisa Murkowski, Republican Senator from Alaska, is working on the law to address this:

The United States. Senator Lisa Murkowski, head of the Senate's Energy and Natural Resources Committee, earlier this month introduced the US Mineral Security Act to help streamline and allow for the development of mines for lithium, graphite and other EV minerals.

The two-tier legislation, which partly seeks to codify a late 2017 announcement of US mineral development by President Donald Trump, gets its first hearing before the Murkowski Committee on Tuesday.

"We have an opportunity to move from this situation of vulnerability to trusting others for our minerals, our EV supply chain," said Murkowski, a republican in Alaska.

Of course, this whole question is closely related to the entire China trade, as they currently dominate the EV production market. Again from Reuters:

"China has a big start," said Gavin Montgomery, a battery and mining analyst at the Wood Mackenzie consulting firm. "They have just been on this much longer than the rest of the world."

If you are tired of this, you will always come back to China because it will be much more where it came from.

3. Gear: Uber Stocks Falling, Falling, Falling (No, this is not like Amazon)

Investors continue to be suuuper unimpressed by Uber, as the stock fell again on its second day of trading. Almost all business publications covered this in some form or fashion, but here is the Wall Street Journal report:

Uber's share was $ 4.47 or 11% to $ 37.10 on its second day as a public corporation, and placed it 18% below the giant giant's original $ 45 offer price. It was after Uber's valuation expectations were called back in recent weeks, and the company conservatively priced conservatively in its opinion.

The opening was poor enough that Uber's CEO Dara Khosrowshahi sent an email to employees confirming the rough start, including this bit:

Remember that Facebook and Amazon post-IPO trading were incredibly difficult for those companies . And look at how they have delivered the page.

It's a little ironic that Uber, the company that created a whole lifecycle of "Uber but for" jokes, now makes use of comparing itself to other tech darlings.

Of course, Khosrowshahi's comparison is as unfortunate as any Uber Men Fors. There is a little difference between Uber-a company that has never made money and no one understands how it could without a magical savior like autonomous vehicles – with Facebook, which made hundreds of millions of dollars a quarter when it was IPO & # 39; 2012.