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☕️ Detroit’s worst nightmare, Tesla hits the gas!

Mar 12, 2025

Howdy! 👋

I mentioned recently that the AAII survey had reached record bearish levels and, in the same breath, pointed out how and why that is almost always a very bullish indicator. (See #5).

I have also reiterated several times since (and in no uncertain terms) that staying in the game is what you want to do if at all possible.

I hope you have.

The markets are being led higher by – ta da – tech stocks this morning as I type.

No idea if that’ll stick but that’s neither here nor there.

In fact, I think that the S&P 500 and the Nasdaq may stay green today but that the Dow could roll “red” by the time you read this. But, who knows.

Bottoming is a process, not a destination.

Keith’s Investing Tip: Many investors think they’re being smart by running for the hills when things get dicey but very few realize how much they give up in the process. It’s one thing if you need the money and have no choice, but if you don’t and you do (have a choice), history shows very clearly that missing opportunity is more expensive than trying to avoid risks you can’t control.

Here’s my playbook.

1 – What’s really leading markets higher

This isn’t rocket science.

The official story is that the inflation readings are lower than expected which, of course, calls into question who is doing the expectin’. Weather forecasters are the only people who make economists look good, to paraphrase an old joke – but I digress.

The real story is one we’ve talked about many times.

The lower reading brings back confidence and pressure is off bonds for the moment, so traders are using that as an excuse to get back on the gas – meaning buy.

I suggest you take a page from their playbook if you haven’t already.

2 – Detroit’s worst nightmare, Tesla hits the gas!

Elon Musk announced that Tesla will double its U.S. vehicle production within two years. (Read)

You know where I stand on this but, honestly, you’ve heard that enough. So, I thought I’d share this post from a super-bright young analyst named Arny Trezzi who sums up what’s happening succinctly.

MyPOV: People are going to look at that announcement and think it’s all about the cars but that’s only partly true. Doubling U.S. production means Musk expands the playing field and that ought to be downright terrifying to Detroit as well as every other legacy vehicle maker selling into the US.

Reminds of Japanese school.

Let me explain.

When our boys were young, they attended both US and Japanese schools which gave them an incredible advantage. Like many expat children, they were in class 6 days a week, which meant they not only mastered both languages but got an extra 10 hours of class time every seven days, some 500+ hours a year compared to their friends who were simply in one school system or the other. Not surprisingly, they accumulated more knowledge faster, learned to prioritize, be efficient and, most importantly, that hard work leads to great results.

Doubling U.S. production is going to give Tesla an unprecedented advantage in everything it touches, not just cars.

And yep, still $600, roughly a triple from here.

Call me crazy! 🤔

3 – Palantir AIPCon 6

Palantir is back at it, hosting its sixth AIPCon on March 13, 2025. (Read)

Six events in and the momentum is accelerating.

If you aren’t familiar with AIP and why this is a big deal, here’s the skinny.

AIP is a programming powerhouse event – think coding Super Bowl here - designed to accelerate AI-driven solutions, streamline workflows, and empower smarter decisions with speed and security.

But here’s what really matters.

Customers aren’t just using Palantir’s AI-driven solutions; they’re lining up to brag about what happens when they do.

Save a few hundred million...
Sell more...
Increase efficiency...

They’re getting real, tangible results—and they’re shouting it from the rooftops.

All of which eventually translates to revenue, then to earnings and then to stock price.

Still $200.

MyPOV: People constantly tell me that there’s no way in you know what that they’re gonna miss the “next Apple” or “another Microsoft” but, sadly, that’s exactly what they do when the time comes and shares of companies like Palantir get beaten down to bargain basement levels.

You’ve got to be in to win… if you want to win.

4 – Big tech 🥰 nukes… But don’t hold your breath

Amazon, Google, and Meta just pledged to triple nuclear power capacity by 2050. (Read)

Cue the clickbait frenzy.

Sounds great—until you realize the regulatory hurdles involved make the Great Wall of China look like a speed bump.

Tread lightly.

And if you’re in search of real solutions and real profits?

I suggest the power players already in the game. I’ve got a few in mind.

Don’t get me wrong, I love the appreciation potential, but I also love my divvies, too.

5 – Porsche… but we have a US plant

Porsche is bracing for tariffs, and CEO Oliver Blume hopes VW’s US factory earns them a “fair” deal. (Read)

In case you’re wondering how this ties together… Porsche SE – a holding company – owns ~53.3% of VW’s voting rights but Volkswagen Group owns Porsche AG, the car maker itself - ergo Porsche SE ultimately controls VW – which is why Blume is speaking about it. Whew!

Anyhooooo…

The US is Porsche’s largest market and China (which is also high on the tariff tantrum list) is material where Blume says Porsche prioritizes value over volumes, preferring to stand on things like in-car intelligence.

My guess is BYD might have something to say about that.

Trade Idea: Roughly a year ago I suggested buying BYD and to short/avoid Porsche. Since then, BYD has returned 83.49% while Porsche has returned -16.05%. I think the idea has room to run but how much is anybody’s guess… POAHY (Porsche’s Unsponsored OTC listing) is just $4.11 as I type. 🤷🏻‍

Es ist fünf vor zwölf – time’s almost up!