Asia stocks skittish after Wall St slumps on Trump-Fed feud; tariff jitters remain By Investing.com
Market Reactions to Trade Tensions: Most Asian stocks remained flat as investors reacted to U.S. President Trump's trade tariffs and criticism of Federal Reserve Chair Powell, leading to losses in Wall Street that affected Asian markets. China's e-commerce sector faced declines due to increased competition, while Japan's markets were pressured by concerns over U.S. tariffs on automobiles.
Economic Indicators and Future Outlook: U.S. stock index futures showed signs of recovery amid upcoming earnings reports, particularly from Tesla, while broader Asian markets fluctuated with mixed performances. Key economic data, including Japan's purchasing managers index and South Korea's GDP, are anticipated later this week, influencing market sentiment.
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- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
- Strategic Partnership Expansion: STMicroelectronics has announced a multi-year, multi-billion-dollar commercial agreement with Amazon Web Services (AWS) to support the development of next-generation high-performance compute infrastructure, thereby enhancing capabilities for cloud and AI data centers.
- Warrant Issuance: Under the agreement, STM issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares, which will vest in tranches tied to payments for STM products and services, positioning STM as a key player in the semiconductor supply chain.
- Comprehensive Technology Solutions: The collaboration encompasses a wide range of semiconductor solutions from STMicroelectronics, including high-bandwidth connectivity, advanced microcontrollers, and analog and power ICs, aimed at addressing the increasing demands for compute performance and efficiency in hyperscale data centers.
- Financial Outlook and Market Reaction: While STMicroelectronics reported fourth-quarter net revenues of $3.329 billion, surpassing analyst expectations, its adjusted EPS of 11 cents fell short of the 25 cents forecast; however, the stock rose 4.22% in premarket trading, reflecting market optimism about its growth potential.
- NASA Revenue Share: Musk revealed that NASA is expected to account for only 5% of SpaceX's 2026 revenue, indicating a diminishing reliance on traditional space agencies and a strategic pivot towards alternative income streams for sustained growth.
- Significant Starlink Contribution: SpaceX's Starlink satellite internet service is projected to be the primary revenue driver, with Musk stating that it will constitute the vast majority of SpaceX's income, underscoring its critical role in the commercial space market.
- 2025 Financial Performance: SpaceX generated nearly $16 billion in revenue and $8 billion in profit in 2025, with Starlink contributing between 50% and 80% of this revenue, highlighting the service's robust profitability.
- Competitive Contract Acquisition: Musk noted that SpaceX secured various contracts through competitive bidding, including astronaut and cargo transport to the International Space Station, further solidifying its market position in the aerospace sector.











