U.S. Markets closed
  • S&P 500

    4,482.73
    -50.03 (-1.10%)
     
  • Dow 30

    34,715.39
    -313.26 (-0.89%)
     
  • Nasdaq

    14,154.02
    -186.23 (-1.30%)
     
  • Russell 2000

    2,024.04
    -38.75 (-1.88%)
     
  • Crude Oil

    86.29
    -0.67 (-0.77%)
     
  • Gold

    1,839.50
    -3.70 (-0.20%)
     
  • Silver

    24.51
    +0.28 (+1.15%)
     
  • EUR/USD

    1.1315
    -0.0032 (-0.2829%)
     
  • 10-Yr Bond

    1.8330
    +0.0060 (+0.33%)
     
  • Vix

    25.59
    +1.74 (+7.30%)
     
  • GBP/USD

    1.3601
    -0.0010 (-0.0762%)
     
  • USD/JPY

    114.0920
    -0.2610 (-0.2282%)
     
  • BTC-USD

    40,649.80
    -1,117.07 (-2.67%)
     
  • CMC Crypto 200

    992.43
    -2.83 (-0.28%)
     
  • FTSE 100

    7,585.01
    -4.65 (-0.06%)
     
  • Nikkei 225

    27,772.93
    +305.70 (+1.11%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Apple building a car ‘is a matter of when, not if’: Wedbush’s Dan Ives

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • NKLA
  • RIVN
  • LCID
  • TSLA
  • AAPL
  • NIO
  • SEMIX
  • VOLT

Dan Ives, Wedbush Securities managing director and senior equity analyst, discusses where he sees Tesla's stock price target topping at, how the new infrastructure bill enables the EV space, Ford's plan for electric vehicles, and expectations for the Apple car.

Video Transcript

- Get more bullish on Tesla. That's Dan Ives of Wedbush. He's coming out with a new note, and putting a $1,400 price target on the automaker. That matches the highest target that's out there. I think Jefferies is the one that has the same target on it. Dan is joining us now. Dan, I'm curious about the timing of this call, and why now is the time to come out and say that Tesla is going to make this next push.

DAN IVES: Yeah, it's because of all of our [INAUDIBLE] focus on the China market. I think right now, China is accelerating going 2022. And that, I think that's worth $400 a share of the Tesla story. I think they're going to continue to be able to accelerate that. That could be 40% of deliveries next year. This is really a China-driven price target increase, but also in terms of what's going on across the world. And we're seeing this green tidal wave play out. It's a $5 trillion mark. And I think a further rerating in Tesla continues to happen.

- Dan, why aren't you fazed much by Elon Musk selling down his stake?

DAN IVES: Well, we always assumed he was going to sell 5% to 6%, just given the call it 12 to 15 billion tax bill coming. Now, the fact that he did it in a Twitter poll, that can only be one company and one CEO that ultimately does that. But from a PR perspective, I mean, that-- I think it ended up being a win, because if he just started selling stock indiscriminately and without sort of notifying, this is a stock today that could be $850, $900.

But Musk is part of the cachet and part of the genius that is Tesla. And that's what they've built. And right now, you're seeing this sort of market share gains accelerate. But it's not a zero sum game. I mean, GM, Ford, Lucid, others are going to be significant beneficiaries in terms of how we sort of see this accelerating into the next 12 to 18 months.

- Well, and all those other guys are a lot cheaper, like, in terms of valuation, in terms of just absolute stock price. I mean, why not counsel investors to maybe buy the ones that have more upside?

DAN IVES: Well, I mean, GM, we view bull case $100 next year. I think GM is just a massive rerating story on EVs. But I think when you look at the pure plays, and you've seen it with Lucid, and you've seen it obviously with a lot of the excitement of newcomers coming out, and of course you see it in Tesla that these are really growth transformation stories. I don't view them as auto stocks. I view them as disruptive technology players.

And it's an arms race, in terms of what I view as the biggest transformation to the auto industry since the 1950s. And that is really how you're seeing this just massive shift in terms of the way the street's looking at auto companies. And you've seen it in GM and Ford, and [INAUDIBLE] as well, in terms of that rerating.

- Dan, a tweet from Ford CEO Jim Farley caught my attention last night. He said, quote, "we are now expecting to produce 600,000 EVs a year globally by the end of 2023, two times our original plan." I mean, Farley at Ford is absolutely fired up. I mean, does Elon Musk need to be worried about what Ford is cooking up?

DAN IVES: I mean, Farley's done. He's had the golden touch so far. And I think you could also say for what Mary is doing at GM. But they're diving into the deep end of the pool on EVs. That's what Farley's doing. And that's more and more what the rerating is going to be, in terms, you know, they could even lose share in traditional [INAUDIBLE] you gain in EVs. This is a stock that could go much higher. And I think that's a smart move, in terms of the conversion opportunities we're seeing, [INAUDIBLE] the Biden infrastructure bill, from tax credits to charging stations. That's just the first step in what's going to be this massive green tidal wave playing out.

- Hey, just quickly, Dan, I've got to ask you about the Apple car, as well. A report yesterday from Bloomberg's Mark Gurman said that Apple is looking at full autonomous capabilities in its electric vehicle that it's developing. And I think 2025 was the target date that was in that story.

DAN IVES: Yeah, it's a matter of when, not if Apple comes out with the Apple car. We've assigned 75%, 80% plus chance that this happens. We've said 2024. Gurman's talking about 2025. Apple is not going to view this market from the outside. It's a fourth Industrial Revolution playing out. And I think Cook and company within Apple Park, they have a lot of things going on when it comes to autonomous. [INAUDIBLE] a partnership, like [INAUDIBLE] GM or others, or they could go on a standalone basis.

- Interesting stuff, as always. Dan, good to see you. Happy holidays.

DAN IVES: Thank you. You, too.

- Dan Ives, Wedbush Securities managing director and senior equity analyst.