What We Learned This Week

Musk Headed Back to Austin: We got a good look this week at how the current global environment is weighing on Tesla’s business—and the picture isn’t great. The company reported a 20% year-over-year drop in automotive revenue, and for the first time in recent memory, it stopped short of forecasting any growth for the full year. Tesla pointed to factory downtime related to model refreshes, falling average selling prices, and higher incentives as the main culprits. But it’s also clear that recent reputational challenges and buyer pushback—both domestically and abroad—have taken a toll.

Tesla has been at the center of a unique storm: geopolitical tension, exposure to China, and CEO Elon Musk’s increasingly visible role in Washington have reshaped the company’s public image. What was once seen as a progressive, clean-energy innovator now finds itself polarized—caught in the middle of the political firestorm. That shift has hurt sales and raised investor concerns about Musk’s attention span. And yet, despite all of this, the stock jumped 8% post-earnings. Why? Musk offered a few remarks that helped stabilize the narrative: an autonomous taxi service will begin limited launch in Austin this summer; production of the Optimus humanoid robot will begin later this year; and, notably, he plans to scale back his time in D.C. starting next month. As always, timelines from Tesla are aspirational at best—but the commitment to forward momentum and Musk’s return to the helm seem to have calmed some nerves. The question now is whether the brand can recover its footing—or whether the past few months have done more lasting reputational damage than expected.

Couple More Wins for Boeing: Boeing shares got a lift this week after the company reported a narrower loss than expected and showed meaningful improvement in its cash burn—both signs that execution is trending in the right direction. Management also noted they’re seeking FAA approval later this year to ramp up production of the 737, which has been capped ever since the safety issues and deadly crashes several years back. Investors were also closely watching for commentary on trade tensions, particularly with China, which remains a major market for Boeing aircraft.

New CEO Kelly Ortberg acknowledged the impact of the current trade environment, confirming that Chinese airlines have halted deliveries of Boeing jets under government directive. That said, the company has been able to redirect those planes to other customers, thanks in part to a record backlog of over $500 billion. This flexibility—being able to shift delivery schedules and reallocate orders—is a key advantage at a time when international trade dynamics remain volatile. The real challenge for Boeing now is less about demand and more about execution: ramping production without further safety setbacks, and managing its balance sheet through what still remains a choppy recovery. So far, the signs are encouraging.

Chipotle Facing Headwinds: Chipotle is starting to feel the pinch from a more cautious consumer. The company reported its first same-store sales decline since 2020, citing both unfavorable weather and a broader slowdown in discretionary spending. Executives noted on the earnings call that internal visitation studies pointed to economic concerns and a desire to save money as the primary reasons for reduced frequency. These trends appear to have continued into April, and with spring typically being the strongest part of the year for the category, expectations for a pickup may be delayed until the back half of 2025.

There were a few bright spots—namely, the strong reception of the new Chipotle Honey Chicken limited-time offer launched in March. Management still expects some growth this year and emphasized they won’t scale back brand or product investments despite the softer start. Given how much the stock has already pulled back in recent months, the market took the update relatively well. But the broader message here is likely to be echoed by many consumer-facing names this earnings season: sentiment is soft, and until the economic picture improves, meaningful upside for the sector may remain elusive.