Elon's initial response to the tariffs—coming on the heels of Tesla’s record post-election rally—was somewhat dismissive. He believed Tesla’s superior production margins would allow it to weather the impact far better than its competitors, who were already struggling under the weight of EV-related costs. In his view, the tariffs would only accelerate a "thinning of the herd," ultimately expanding Tesla’s share of the electric vehicle market. 

Ironically, during its April 22nd earnings call, Tesla expressed concerns over the very same tariffs - this time lamenting their impact on its other business lines—including robotics and energy products—where the margins aren’t nearly as robust. The confidence it seems doesn’t always travel well across divisions. Tsk, tsk…

Netflix kicked off 2025 with a strong performance, as detailed in their Q1 shareholder letter. The streaming giant reported a 13% year-over-year revenue increase and a 27% rise in operating income, surpassing guidance thanks to higher subscription and ad revenues alongside strategic expense timing. With a robust content lineup, the successful U.S. debut of their ad tech platform, and expanded live programming—including WWE RAW and upcoming boxing and NFL events—Netflix emphasized solid progress on its key priorities for the year. These results underscore the company’s confident outlook as it maintains its 2025 revenue guidance of $43.5–$44.5 billion and a 29% operating margin.

Major U.S. banks reported stronger-than-expected Q1 2025 earnings, largely driven by increased trading activity amid market volatility. While net interest income varied across institutions overall performance was solid. JPMorgan Chase, Bank of America, Citigroup, Bank of New York Mellon and Goldman Sachs all exceeded earnings forecasts though revenue results were mixed. CEOs flagged ongoing economic uncertainty, particularly from rising geopolitical tensions and potential tariffs under the Trump administration.

Concerns over new tariffs dominated executive commentary, with JPMorgan, Wells Fargo, and Citigroup highlighting risks to economic growth, deal-making, and consumer spending. Analysts at Morgan Stanley downgraded the banking sector, predicting weaker revenue outlooks and no Fed rate cuts due to tariff-related inflation. Investor sentiment reflected these worries, as seen in a notable decline in the KBW Bank Index.

Other highlights include AmEx outperforming peers due to its premium customer base and lower delinquencies. Staffing remained stable in Q1, but banks are preparing for potential disruptions and slower M&A and IPO activity later in the year.

The Trump administration's 25% tariff on imported vehicles and auto parts, implemented on April 3, 2025, is expected to significantly impact the U.S. auto market. It led to a surge in March 2025 auto sales as consumers rushed to buy before price increases. 

Major automakers, including GM, Ford, Toyota, Honda, and Stellantis, face varying degrees of impact depending on their import reliance. 

Economists predict increased vehicle prices, potential model eliminations, and broader economic consequences such as market volatility, inflation, and slower GDP growth. 

The long-term effects on the U.S. auto industry and global trade remain uncertain.

Last week's U.S. stock market saw notable declines across major indexes, with the S&P 500, Nasdaq, and Dow all falling. Investors are now weighing whether to "buy the dip" or brace for further market volatility, as trade and inflation concerns create a complex and uncertain economic outlook.

In a week marked by light trading and cautious investor sentiment, U.S. stock markets generally rebounded, although tech stocks underperformed, as the Federal Reserve maintained interest rates while acknowledging heightened economic uncertainty and adjusting forecasts. Mixed economic data, including weaker-than-expected retail sales offset by strong housing figures, contributed to market volatility. 

Globally, European markets reacted to potential U.S. tariffs, Asian markets navigated their own economic challenges, and other key markets experienced unique political and economic pressures, all while central banks grappled with balancing growth and inflation amid ongoing geopolitical risks.

Recent market activity is characterized by high volatility, driven by trade war concerns, economic uncertainty, fluctuating interest rates, company earnings, and the performance of the "Magnificent Seven," amidst a general trend towards defensive sectors and international equities, though Friday's rally offered temporary relief.