Hey everybody, we're out of malware here. Happy Friday. Today we've got a couple of updates on the macro environments and macro reporting.

The PPI report and some updates from Elon on macro as well. Then we've got more reporting. Of course, seems like a daily occurrence this week on Tesla's production situation in China.

Some news on at Tesla Energy and a couple other items as well. Sorry guys, let me fix something here quick. Almost got into that situation where I had my stream running in the background and we had that terrible echo that one time if you guys remember that.

So let me get out of that quick. Alright, so anyway looking at the stock Tesla today a nice day up 3.2% while the NASDAQ was down 7% so nice to get a little bit of a pretty significant outperformance even though Tesla was up around 5% earlier in the day fell off a little bit in the afternoon.

Maybe relating a little bit to Elon's comments but the overall market dropped a bit as well. But finishing at $179 and 5 sets.

So the main macro report that we got today was the producer price index and it did come in a little bit higher than expectations depending on if you're looking at core or if you're looking at the headline number anywhere from 10 to 20 basis points or so higher than expectations.

And here probably the most disappointing part of it is that the core month over month PPI number did come in at 4% higher than last month which as you can see here was a little bit of a version in the downtrend that we had been seeing in that month over month number over the last 6 months or so.

So that number is a little bit disappointing that being said if we do go to the year over year we are still seeing a nice decline here nice and steady so the core year over year number came in at 6.2% so that's up versus the forecast or expectations of 5.9%.

So 30 basis points higher on that number but you can see still a nice steady drop from where we've been which is nice to see hopefully that'll continue.

One point on this is that we are comparing to last year's number in this year over year graph and you can see that there was a pretty significant jump one of the biggest jumps that occurred maybe the second to the first largest from a month to month basis that happens from last year October to November.

So it is a little bit higher of a number to be basing off of in terms of where inflation had been trending at this point last year so that kind of helps this come down to which is why most of the focus for good reason tends to be on this month over month number.

That being said there's a lot as always underneath if we dig into some of the category numbers we won't spend a ton of time on this but a lot of the increase being driven by demand for food and actually energy.

So although core excludes these things just in general kind of interesting call outs food was up 3.3% and energy was actually down 3.3%.

So that's interesting because a lot of times even though energy is excluded from things like the core report obviously energy costs kind of work their way into everything so it is important to or you know helpful to see the energy prices starting you know starting and continuing to come down.

So hopefully that trend will continue hopefully this trend will continue but you know a little bit disappointing on that on that top line number that being said not too bad of a reaction from the overall markets today.

Elon did have something to say today as he has been saying for quite some time now the fed Elon saying on Twitter if the fed raises rates again next week the recession will be greatly amplified.

He also went on to say that his rough guess on how long a recession might last would be sometime you know things start looking better sometime Q2 2024.

So it's kind of a specific time frame there but I think what Elon is doing is just kind of saying hey we know we're in Q4 2022 right now this would be about 18 months out and he's kind of said before recession 12 to 18 months.

If the fed raises rates which I think we all know at this point is coming then you probably looking on the longer end of that so my guess is that's kind of what what Elon is thinking.

So that being said you know this is probably the the third or fourth time this week we've heard Elon talk about the macro environment kind of expressing some of his concerns.

And I know you know we've talked a lot about this situation in China we do have more reporting on Tesla's production plans in China.

I know people are just getting a little bit tired of this and I think that's very understandable but our readers today with another you know report on this they're saying that Tesla is planning to suspend according to a couple of sources suspend model why production at Shanghai between December 25th and January 1st.

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