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Don't bet against Elon Musk: Dan Ives talks $1T Tesla call

After Tesla (TSLA) shareholders voted on Thursday to approve CEO Elon Musk's pay package — valued at over $46 billion based on today's stock price — will the wins keep on coming for Musk? One analyst forecasts Tesla could become a $1 trillion company in 2025.

Joining The Morning Brief is Wedbush Securities Managing Director & Senior Equity Analyst Dan Ives to discuss his call and how Musk continues to grow Tesla's value through developing autonomous and full-self driving (FSD) capabilities, integrating AI, and even the EV maker's venture into robotics.

"This is a disruptive technology company. And I think that's where the bears will say it's a car company, they've said it from, what, $100 million up to a trillion. So the point is this is disruptive tech. And now when you look at autonomy software, FSD, that's the vision," Ives explains. "But also this is one that you're going to see three, four million vehicles per year when you look out 4 or 5 years from now. And again, betting against Musk, it's been the wrong move."

Ives later comments on the energy seen is Musk at Thursday's shareholder meeting: "Musk is Tesla, Tesla is Musk... you're seeing old-school Musk return now."

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Ark Invest (ARKK) Founder, CEO, and CIO Cathie Wood spoke with Yahoo Finance amid Tesla's annual shareholder meeting to talk about her latest call projecting Tesla stock to skyrocket to $2,600 by 2029.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Catch up on Yahoo Finance's coverage of all things Tesla, Elon Musk, and his pay package saga:

Elon Musk wins Tesla shareholder battle to keep his record-breaking pay

Elon Musk has been integral to Tesla's growth, AI: Cathie Wood

Musk's pay battle is not over. Here's why.

Is Elon Musk the right fit as Tesla's CEO?

Musk pay package: What's incentivizing shareholder votes

Elon Musk's $46B Tesla pay package: Explained

Video transcript

The Tesla bulls are charging a double entendre betting big on Ceo Elon Musk.

Our next guest says that he sees Tesla's valuation north of $1 trillion in 2025.

Dan Ives Wedbush Securities Managing director and senior equity analyst joins us.

Now, uh we might have even had a typo in there.

I think you think that this could go even higher here.

So ultimately, Dan, let's break that down here.

What is your vision for how they can get to your market cap that you're anticipating by 2025?

Yeah, I mean, first off right, this puts that Delaware Twilight zone in the rearview mirror.

I mean, now with the compact which I think that was a 20 $25 overhang on the stock and now moving to Texas.

But when you look at the Tesla story Autonomous FSD, I can argue it's one of the best A I plays in the market when you look at next 234 years, this is just the start of the next chapter.

The next book is as Musk calls it in the t of Grosser.

I think it is one of the best disruptive names in the world, right?

And so put some of these lofty expectations, then I think into a more realistic picture for us, you're very confident that you're going to see or that we could see maybe Tesla reach that $1 trillion in value here in 2025.

Talk to us about what the catalysts are for that growth, at least in the short term and then compare that maybe to the longer term picture and some of these uh longer term believers when it comes to Tesla.

Yeah.

So let's walk through a set up.

Well, New York City cab driver is expecting a bad June quarter.

So, so no one's expecting great things for June, right?

That's the last tough quarter, tough comp as then we turn the corner demand stabilizing in China and then August 8th, I think it's gonna be historical day Robotaxis autonomy.

That's kind of the vision.

I mean, no different than what we saw from Apple this week in terms of Cupertino and A I that would be them unveiling the broader strategy.

And then I think you start to then see the execution of the strategy one with the sub 30 K vehicle.

We think a quarter model 2.5 gets released early next year.

In our opinion, the bottom and, and Tesla bears go into hibernation mode and I think those thinking that that comp package was gonna get voted down had a little too little, too much of Champagne is Elon Musk.

Too optimistic with his $25 trillion target that he thinks the company can get towards.

And, and what type of company are we talking about at that point?

Is it, is it a automotive company?

Is it a technology company?

Is it an energy company?

Well, we've always talked about in the show.

This is a disruptive technology company and I think that's where look, the Bears will say it's a car company.

They, they've said it from what, 100 million up to a trillion.

So, so the point is this is disruptive tech.

And now when you look at autonomy software FSD, that's the vision.

But also this is one you're gonna see 34 million vehicles per year when you look at four or five years from now and again, betting against Musk, it's been the wrong move and I think this has clearly been a turbulent period, but I could see that Cinderella story starting again as we go into 2025.

All right, Dan, when we talk about a little bit of a longer term uh trajectory here for Tesla, we heard lots of talk about optimist, the robot and exactly what maybe Elon Musk thinks it's going to do to Tesla's valuation.

He was talking about $25 trillion here in valuation.

How, how are you looking at the robot from an analyst perspective?

And, and ultimately, what that's going to do to Tesla's bottom line.

Yeah, I view it as optionality again in terms of, from a valuation perspective.

None of that's being valued into the stock.

Now, looking out it's really more about the A I components of it.

And we've talked about, I think 35 years from now you will see more and more we call robotics within consumer households.

Well, it's gonna be A I driven and, and I think that's something that it all goes into this A I revolution.

It's not just about Musk and optimist, it's about the chips from the godfather of A I, Jensen NVIDIA.

You're seeing 1/4 industrial revolution play out here.

Tesla is gonna be a mean player in that and I get it, investors still view it as a car company.

But that is just, this is just the early stages of broader where Musk is gonna be taking Tesla.

How soon do you think Tesla needs to uncloak, what a new vehicle model would look like in order to maintain some of the, the demand generation uh that we're seeing, right?

At least in this demand generation cycle, maintain consumer mind share.

I'd say by March or April 2025.

I mean, so this is something I see coming out before the masters next year, you know, where they could ultimately come out with the strategy, lay it out for a second half delivery, sub 30 K. And I think that starts the next phase of the Tesla growth store.

And I think Tesla, you know, we look at Apple with Apple this week, you know, betting against these disruptive technology companies with massive install base.

It, it's just been, I think it's, it's the wrong move in what we view as a 1995 moment.

Dan just circling back to where we started the conversation when it comes to this vote.

Some of the concerns surrounding Elon Musk over the last couple of years has been that he's been distracted.

He has too much going on when it comes to some of his other companies in Tesla really requires someone at the helm who's putting all of their focus on Tesla are at least some of those concerns valid in your view.

And, and which one?

Yeah, Musk is Tesla.

Tesla is Musk.

And obviously I'd say most fouled human on the world in many ways, a lot of balancing act.

Now, I do think there was a phase that he went through.

Where wasn't me being the pilot on the plane?

We talk about the adult in the room, but you're seeing old school Musk return now and I do think this has reinvigorated him in terms of the vote, the confidence and but you're right.

I mean, Tesla is the golden child.

They need Musk, but Musk needs Tesla and I think that continues to really be the focus, especially with a I I believe being under the hood of Tesla as the next stage is getting Musk the 25% voting, right?

All right, Dan Ives.

Always great to talk to you.

Thanks so much for making time to join us here this morning.

Well, Bush Securities managing director, Dan, have a great weekend.