Tesla's continued 4% slump is a largely predictable outcome.

On the macro front, the market sentiment pendulum has swung violently - from the risk-on rally following Trump's election victory to the current full-blown risk aversion. Investors now fret that Trump's tariff threats could simultaneously cripple economic growth and reignite inflation. The synchronized collapse in equities and cryptocurrencies reflects retail capital flight and hedge fund deleveraging creating a vicious negative feedback loop. Worryingly, this correction appears far from over, potentially requiring extended consolidation.

Compounding matters, Musk's political capital keeps eroding. The DOGE community implosion - with a third of core developers resigning while launching smear campaigns against him - adds fuel to the fire of his declining public favorability. The real test lies in whether American voters ultimately trust government institutions or Musk's techno-utopian vision.

Fundamentally, Tesla's operational missteps are equally concerning. Beyond the glaring delivery slowdown, its FSD development remains caught between regulatory scrutiny and technical limitations, often appearing embarrassingly glitchy in real-world scenarios. While rapid iteration might salvage its reputation, the window for redemption narrows with each underwhelming software update.$Tesla(TSLA.US)