Part 3/12:
Recent Market Movements and Institutional Shifts
Adding weight to Dalio’s warnings, recent actions by prominent financial institutions paint a cautious picture. Notably, Ray Dalio's hedge fund, Bridgewater Associates, has sold its Tesla holdings, shifting investments toward Chinese automakers such as Nio and Xpeng. This move suggests institutional concern over potential geopolitical risks, especially regarding the possible escalation of tensions with China.
Such shifts indicate a strategic hesitance to hold assets tied heavily to regions at risk of conflict. Since Tesla operates a significant manufacturing facility at Giga Shanghai and relies heavily on the Chinese market, any disruption in this region could significantly impact Tesla’s prospects.