US franchises at risk ?

[kab60]

Trying to stay on course, Bloomberg had an interesting article on Canadians buying Canadian. I think the same thing is happening in Europe to a lesser degree.

 

Tesla is the most obvious 'franchise' at risk. A lot of my neighbors in Denmark drive Tesla. I don't think anyone would buy one today given Elon. I wonder if this is what finally breaks Teslas share price. It seems to me like he's alienating his very customer base while appealing to a lot of folks who probably prefer their gas guzzlers. At the same time, there are finally plenty of good EV alternatives.

 

Something like Starbucks at 40x earnings and -4% SSS could be at risk as well - there are good coffee alternatives most places in the world today. It's an iconic American brand which would be easy to boycott in Canada and Europe. And then you might have increased consumer weakness in the US if tariffs increases inflation and DOGE leads to meaningful layoffs.

Edited 17 minutes ago by kab60

[dealraker]

5 hours ago, kab60 said:

Trying to stay on course, Bloomberg had an interesting article on Canadians buying Canadian. I think the same thing is happening in Europe to a lesser degree.

 

Tesla is the most obvious 'franchise' as risk. A lot of my neighbours in Denmark drive Tesla. I don't think anyone would buy one today given Elon. I wonder if this is what finally breaks Teslas' share price. It seems to me like he's alienating his very customer base while appealing to a lot of folks who probably prefer their gas guzzlers. At the same time, there are finally plenty of good alternatives.

 

Something like Starbucks at 40x earnings and -4% SSS could be at risk as well - there are good coffee alternatives most places in the world today. It's iconic American brand which would be easy to boycott in Canada and Europe. And then you might have increased consumer weakness in the US if tariffs increases inflation and DOGE leads to meaningful layoffs.

So maybe BUD Light in auto!  

[kab60]

19 minutes ago, dealraker said:

So maybe BUD Light in auto!  

BUD wouldn't be a bad idea if not because the stock looks pretty cheap as is, Americans have finally started to NOT boycott it again, and we Europeans don't drink that weak piss anyway.

 

Starbucks CEO is still in his honeymoon period, so perhaps it goes higher still, but it does look like a pretty good consumer short with the added risk/upside of ex-US consumers avoiding it. 

 

Tesla looks like the most obvious 'victim' though. I don't think Germans are rushing in to buy after Elons antics (pretty sure most Germans, and Europeans for that matter, didn't like his 'heiling that wasn't heiling' or whatever it was he did).