BY ANDREW GIOVINAZZI
March 27, 2025
Yo Pit Crazies,
While the MSM press is going crazy over the “textgate” debate, I still wonder why anyone in the White House would want to purposefully include a journalist. This question will probably remain unanswered, but at least we have some clarity on the automotive tariffs going into effect – 25% for any vehicles made outside the USA. This is not great news for General Motors Corp (Ticker: GM), which continues to be the saddest of the sad when it comes to stocks. Take a look at the graph below, but it stands out to me that GM doesn’t manufacture a significant portion of its cars in the USA—down goes Frazier. However, GM might still be a solid income play, so click here to see if it makes Hans Albrecht’s list.
5 day GM Chart
The market isn’t fond of GM because, despite selling a lot of cars, it struggles to achieve growth. It’s funny, I could say the same about Apple Inc (Ticker: AAPL), but Apple has a much stronger balance sheet and generates $100 billion in revenue annually.
Ultimately, the rally to 600 in the S&P 500 Trust ETF (Ticker: SPY) was driven by the promise of limitless growth in AI and semiconductors. However, this growth and valuation have recently come under pressure, with looming tariffs and significant cuts in government spending. Still, a growth story remains a growth story.
This stock had a $40 range today and I think it can do it again – here’s why.
TSLA is flying all over the place
For some reason, TSLA has become the stock that represents the success or failure of the current Trump Administration. More so than the silly Trump cryptocurrency, TSLA is even getting folks keying cars for no reason. To say the stock is polarizing is an understatement. That said, if the administration is making headway with D.O.G.E, I think that TSLA will do better longer term.
In the short term, expect TSLA to remain volatile and another 40-point swing won’t surprise me as we all wait anxiously for the next Tariff Tantrum.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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