The announcement is that US Tariffs are down to 30 percent for China and China reduces tariff to 10 percent for the US. The positive China-US trade news is being viewed as great news for Tesla. This is just the start for Tesla with the robotaxi release in about 20 days and the new lower priced cars.The positive China-US trade news is being viewed as great news for Tesla. This is just the start for Tesla with the robotaxi release in about 20 days and the new lower priced cars.
The U.S. will cut tariffs on Chinese goods to 30% (from 145%) for 90 days, while China will lower its levies to 10% (from 125%) for 90 days, according to US Treasury Secretary Bessent.
BREAKING: The US and China have reached a trade agreement on a 90 day pause.
The U.S. will cut tariffs on Chinese goods to 30% (from 145%) for 90 days, while China will lower its levies to 10% (from 125%) for 90 days, according to US Treasury Secretary Bessent. pic.twitter.com/5c7frxxNoW
— Sawyer Merritt (@SawyerMerritt) May 12, 2025
May 11, 2025 overnight trading is seeing Tesla up by 7.7% ($23) to $321 a share. A video I recorded 2 days ago, indicates what the scenario where Tesla reaches over $1000 by the end of 2025 is still possible. Key factors will be a successful introduction of lower priced models and the rollout of robotaxi in Austin and substantial scaling through the end of 2025.
I was anticipating good news on the macro side with tariffs and this has happened.
If Tesla scales robotaxi starting in June 1, 2025 then they will develop the only scaled self driving solution. Waymo and the China robotaxi only have about 3000 combined robotaxi vehicles.
Tesla can have 1000 times as many robotaxi in 2026.
Self driving cars can make taxi revenue by driving over 50,000 miles per year and make about $1 per mile in profit. Cars that make $50,000 per year starting in 2026 will drive demand for those vehicles.
The demand wave should start late in 2025.
Chinese stocks opened higher on Monday, with the benchmark Shanghai Composite Index up 0.33 percent to open at 3,352.97 points. The Shenzhen Component Index opened 0.92 percent higher at 10,220.33 points
China and US leaders have said talks have been positive and constructive.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described substantial progress and said details would be announced on Monday. China’s vice premier said the two sides have reached a series of major consensuses. China and the United States have agreed to establish an economic and trade consultation mechanism. China’s vice premier says that this will give the world more certainty.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
Tariffs are apparently still up on Chinese EV’s according to Politico.
Tesla stock is very much up. It still has a shockingly high price vs earning ratio though, but I agree with almost everything Brian points out in terms of its future.
So both nations are still higher than when they started. A pointless exercise that only led to market turmoil and uncertainty.
Rick, this was all about bringing jobs back into America and addressing a trade inbalance. Do you also judge the winner of a marathon after the first mile mark? From just the new business investment announcements so far, this looks very promising… Sorry if you got a boo boo from short term uncertainty but working quickly is far better than dragging this out which we have seen results in nothing but more inbalance and more job departures.
Gee Martha, seems you’ve really drank the cool aid. The unemployment rate is 4%, but we need to bring jobs back somehow. We’ve had a trade imbalance since about 1980, but now it’s a problem. Can you explain why? Manufacturing went overseas for a reason. Inflation has been low, outside of Covid, for at least 35 years. Do you think there’s a correlation? Do you think forcing manufacturing to return will increase inflation?
Trade imbalance is a nonsensical issue: if you are a plumber and go to buy groceries, you use your money and receive goods. And the amount of goods you receive is LESS than the value of your money because the shop has to turn a profit. The same thing is true for you: if you are a plumber, you provide work with LESS value than the money you receive because part of that money covers your profit. And you are not expected to buy groceries if you are fixing the pipes in a grocery store, nor are they expected to contact you for a job because you are their customer.
Furthermore, while “trade imbalance” is calculated between nations, is not a matter between states, but between customers and companies within the states. US has strong trade imbalance because US companies have delocalized to other nations, because US companies wanted higher profits and delocalizing reduced operational costs. This was considered advantageous because it drove stocks up (making the wealthy and 401k owners happy), please note that since US companies need to pay salaries in the local currency they have to exchange US dollars into the local currency providing foreign banks with US dollars, these foreign banks then use US dollars to purchase US treasury bonds, generating demand for US treasury bonds and lowering the cost of servicing US debt, this allowed US to finance the debt in a convenient way and this is advantageous for the poorer segments of US population that rely more on public services. “Trade imbalance” was a situation the US actively pursued, not a “rip off” developed by foreign nations.
Meaningless dribble. To create global uncertainty, to anger our allies and trading partners, all to declare something and return back very closely to a level before it was meddled with, almost like it was found…all of that is wasted activity. Quite simply, we don’t mess with that which is not broken. That’s makes things worse.
https://www.nextbigfuture.com/2025/05/us-china-trade-deal-china-lowered-tariffs-11-2-and-us-increased-9-2.html
us increased 9.2%. ( a 40% increase) and China dropped 11.2% (a 55% decrease)
Some 5D chess right there /s.
I just tune out at this point. Stocks are basically back up. If I had money, I’d buy some pharma today. I’ll cheer when the UK/RF conflict is finally resolved with its redesignation as an Oblast.
It is from the Chinese. Unfortunately Trump is playing checkers with the pawns.
Biden had a 100% tariff on Chinese EVs, has Trump now reduced this now to 30%? This is great news for BYD, Nio and other Chinese EV car manufacturers. The BYD seagull with ADAS is sub $10k. Isn’t this a threat to Tesla?