Mexico Is The New China? SPAC King Chamath Palihapitiya Spotlights 1 Trade Data Point That Flips The Script Amid Sino-US Tensions
Portfolio Pulse from Shanthi Rexaline
Venture capitalist Chamath Palihapitiya has highlighted data showing the U.S. is importing more from Mexico than China for the first time since 2003. This comes amid increasing tensions between the U.S. and China, which have impacted tech stocks such as Apple, Tesla, and Nvidia. The diversification away from China could be positive for these companies, particularly Tesla, which is building a Gigafactory in Mexico.
September 08, 2023 | 7:34 am
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POSITIVE IMPACT
Tesla, which produces about half of its electric vehicles in China, could benefit from the U.S.'s diversification away from China. The company has begun construction of a Gigafactory in Mexico.
Tesla's significant production base in China makes it susceptible to U.S.-China trade tensions. However, the company's move to build a Gigafactory in Mexico could help mitigate this risk.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 75
NEGATIVE IMPACT
Apple's stock has been negatively impacted by the frosty relationship between the U.S. and China, with the company losing about $190 billion in market cap over two days.
Apple's heavy reliance on China for production and as a market makes it vulnerable to U.S.-China trade tensions. The recent ban on iPhones in Chinese government offices has already had a significant impact on the company's stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80
NEGATIVE IMPACT
Nvidia, a major tech giant with a significant market in China, could be impacted by a potential U.S.-China trade war.
Nvidia's significant presence in China makes it vulnerable to U.S.-China trade tensions. Any escalation in the trade war could negatively impact the company's stock.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70