⚡ Tesla Re-Coil

Plus, what could a US-EU trade deal look like?

HAPPY TUESDAY TO THE STREET.

Think politics are divisive? Try playing Uno in mixed company.

Mattel’s $MAT ( ▼ 0.72% ) iconic game may be instantly recognizable, but its rules are anything but. Disagreements over what moves are technically allowed in Uno are going viral, and Mattel itself is fanning the flames, weighing in with official declarations on X.

Sounds about as effective as most politicians. If players aren’t following the literal rulebook, what good will a tweet do?

  • 🟩 | US stocks surged in the wake of President Trump’s one-month pause on his planned 50% EU tariff.

  • 📈 | One Notable Gainer: Nike $NKE ( ▼ 0.23% ) sprinted forward, outpacing the Dow, despite preparing to raise costs in early June to offset tariffs. Photos of the sneaker giant’s anticipated LEGO collab surely didn’t hurt.

  • 📉 | One Notable Decliner: Temu-parent PDD Holdings $PDD ( ▼ 0.32% ) slumped after a massive earnings miss in the wake of the US-China trade war, as well as growing competition at home.

— Brooks & Cas

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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

AMC, TRUMP MEDIA, APPLOVIN

$AMC ( ▲ 0.15% ) Movie theater stocks soar after record-breaking Memorial Day box office (CNBC)

$DJT ( ▼ 8.04% ) Trump Media plans $2.5 billion bitcoin purchase (Axios)

$APP ( ▼ 0.49% ) AppLovin - When It All Goes Right (SeekingAlpha)

$FICO ( ▲ 0.96% ) Fair Isaac Stock Is Sinking Again. Here’s Why. (Barron’s)

$BX ( ▼ 0.81% ) / $HOLX ( ▲ 0.72% ) TPG and Blackstone offered $16bn to take health group Hologic private (FT)

OVERHEARD ON THE STREET

AP: US consumer confidence rebounded in May after five months of decline, as concerns eased over the economic impact of tariffs.

CNBC: Salesforce $CRM ( ▲ 1.51% ) will acquire cloud data management firm Informatica $INFA ( ▲ 0.1% ) in an $8B deal.

Bloomberg: Apple $AAPL ( ▼ 1.08% ) plans to launch a dedicated gaming app within days of the Nintendo $NTDOF ( ▲ 0.69% ) Switch 2’s debut.

WSJ: Facing a steep tax hike on endowment income, universities are developing new strategies that could reshape how billions are invested.

YF: Trump’s tariffs generated over $22B in revenue in May.

Tomorrow's Trade Idea, Today

TESLA’S $2 TRILLION VISION

Growth Through Autonomy

Tesla $TSLA ( ▼ 14.26% ) has had a bumpy ride recently, and the potholes keep piling up. Stateside, the EV maker has come under fire for CEO Elon Musk’s role in the Trump administration, while overseas concerns regarding European sales continue to mount.

But Wedbush analyst Dan Ives sees a light at the end of the tunnel. He raised his 12-month price target to $500, a jump of $150. This implies a potential upside of nearly 38% from today’s close.

Turmoil to Triumph

Musk’s controversial political involvement earlier this year resulted in some extreme volatility for Tesla’s stock price. However, the billionaire recently committed to spending more time at the helm of Tesla — at least five more years, in fact. Ives believes this signals a return to strategic clarity.

Furthermore, the analyst highlighted the significance of Tesla’s upcoming autonomous vehicle launch in Austin, calling it the beginning of a new growth chapter for the company.

Ives isn’t alone, as many analysts on Wall Street are echoing his sentiment. As attention shifts from politics to technology, analysts believe Tesla is well-positioned at the forefront of the AI revolution. This transition reinforces investors who view Tesla as not only an automaker, but as a cutting-edge tech leader.

AI Opportunity

Ives estimates Tesla’s opportunity in AI and autonomous driving alone to be worth more than $1 trillion, and believes the company could double its market valuation to nearly $2 trillion within 18 months.

The analyst described Tesla as “one of the best pure plays on AI over the next decade” and underscored its pivotal role in shaping the future of transportation and the broader AI economy.

Many investors may take the analyst’s rhetoric with a grain of salt. Ives is well-known as one of the biggest Tesla bulls on Wall Street. But his tone today is an e-brake turn from last month, when he slashed his Tesla price target by more than 40%.

The latest upgrade shows Ives believes Tesla is back on the open road, and its myriad roadblocks are starting to look more like mere speed bumps.

Are you bullish or bearish on Tesla (TSLA) over the next 12 months?

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ON OUR RADAR

WSJ: Trump is considering sanctions against Russia after its President Vladimir Putin escalated his attacks on Ukraine.

Reuters: Hit hard by tariffs, more retailers are considering take-private deals to escape market volatility.

CNBC: No more free luggage. Starting tomorrow, Southwest $LUV ( ▲ 0.54% ) will charge passengers $35 for the first checked bag and $45 for the second.

Bloomberg: The US halted student-visa interviews ahead of potential new rules requiring stricter vetting of applicants’ social-media profiles.

AP: What might the terms of a US-EU trade deal look like?

MONDAY’S POLL RESULTS

Which list of stocks will outperform in the near term?

▇▇▇▇▇▇ CNBC’s

▇▇▇▇▇ Goldman’s

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