Tesla(US:TSLA) 3 6 Ke·2025-12-30 03:42Market Overview - The U.S. stock market experienced a pullback on Monday, with the S&P 500 declining by 0.35%, and the Dow Jones and Nasdaq falling by 0.51% and 0.50% respectively [1][2]. Market Structure and Liquidity - The current trading day is in the last week of 2025, with most institutional traders and quantitative fund managers on holiday, leading to extremely low trading volumes [3]. - This liquidity vacuum has resulted in a technical-driven sell-off, where the lack of buyers during a downturn exacerbates price declines, typically not leading to a deep bear market [3]. Tesla's Demand Concerns - Tesla led the decline among the tech giants, with a drop of over 3% due to a significant reduction in a contract with its South Korean supplier L&F, which saw a 99% cut from 3.83 trillion KRW to just 973 million KRW [4][6]. - This drastic order revision highlights challenges in the Cybertruck project and raises concerns about slowing global electric vehicle demand and changes in government subsidy policies [6]. Silver and Gold Market Impact - Silver experienced a sharp decline of over 8%, while gold also fell from historical highs, attributed to liquidity management issues and profit-taking by institutions ahead of year-end settlements [10]. - The sell-off in precious metals triggered forced liquidations in the stock market, particularly affecting tech stocks, thereby increasing the downward pressure on U.S. equities [10]. Microsoft’s Strategic Shift - Microsoft is negotiating with Broadcom to design custom AI chips, aiming to reduce reliance on Nvidia and enhance supply chain autonomy [11]. - This move indicates a significant shift in the semiconductor industry, potentially reshaping profit distribution by moving towards more customized solutions [11]. Market Sentiment and Predictions - Optimism in the market has reached unprecedented levels, with no analysts predicting a decline in the stock market for 2026, suggesting a potential record for consecutive annual gains [14][19]. - Morgan Stanley has shifted from a pessimistic outlook to predicting the S&P 500 could rise to 7500 points, driven by resilient economic growth and declining inflation [19][20]. Risks and Concerns - Despite the prevailing optimism, some analysts express caution regarding the lack of dissenting opinions in market predictions, which could indicate an impending market correction [21]. - Key risks identified include the possibility of prolonged high interest rates by the Federal Reserve, potential tariff actions affecting supply chains, and corporate executives possibly lowering earnings forecasts after strong growth [21].