Core Viewpoint - President Donald Trump softened his tone on China tariffs, which appeared to bolster investors' appetite for risk assets [1] Group 1 - The change in tone from President Trump regarding China tariffs is seen as a positive signal for market sentiment [1] - Investors are responding favorably, indicating an increased willingness to engage with riskier assets [1]

Investment Rating - Industry view is rated as "In-Line" [6] - Specific company view is rated as "Attractive" [15] Core Insights - Demand for Temu continues to decline, with household purchases at a record low and purchase expectations trailing competitors [2][4] - The removal of the de minimis exemption and high China tariff rates have significantly impacted engagement with Temu [2] - Dollar Stores are expected to benefit from Temu's market share loss, with a hypothetical 30% decline in US sales potentially representing ~$5 billion in market share being transferred to Dollar Stores and other retailers [2] - Temu's US GMV is projected to compound over the next several years, reaching approximately $39 billion by 2030, with profitability expected in 2025 [2] Summary by Sections Consumer Survey Data - Approximately 18% of respondents reported shopping on Temu in the past three months, marking a record low since the survey began in September 2023 [4][9] - Net purchase frequency expectations for Temu are at -25% in June 2025, the lowest among tracked retailers [12] - Web traffic and visitor trends for Temu have shown a significant drop, with traffic down 81% and visitors down 78% compared to March [16] App Performance - Temu app downloads and monthly active users (MAUs) have continued to decline, with downloads down 85% year-over-year and MAUs at approximately 49% of peak levels [17][20] Competitive Landscape - Shopper overlap ratios for Dollar Stores have declined, indicating that Temu's competitive threat is waning [21] - BURL and TJX have seen increases in customer overlap with Temu, while ROST has experienced a decline, suggesting a shift in market dynamics [24][27]

Core Insights - Tesla shares increased by 5% following CEO Elon Musk's indication of dedicating more time to the company and positive tariff news from the White House [1] - President Trump indicated that tariffs on China would not reach 145%, which contributed to a positive market sentiment [2] - Tesla reported disappointing first-quarter results, with a 20% year-over-year decline in automotive revenue and a 71% drop in net income [3] Financial Performance - Tesla's adjusted earnings were reported at 27 cents per share on revenues of $19.34 billion, falling short of analyst expectations of 39 cents EPS on $21.11 billion in revenue [3] - The company plans to "revisit" its 2025 guidance during the second-quarter update [3] Management Changes - Elon Musk announced he would spend "significantly" less time at The Department of Government Efficiency starting next month [4]