Tesla's Delayed FSD: Analyst's Bullish Stance on Future Prospects

Bloomberg's Ives remains bullish on Tesla despite the delay, emphasizing the significance of the upcoming event in October.

### Analyst Stays Bullish on Tesla Despite Full Self-Driving Delay
* 🚗  Despite a 2-month delay in Tesla's Full Self-Driving (FSD) event, Wedbush Securities' Dan Ives maintains a bullish outlook on the company, viewing it as "**more an air pocket period to get on to what I view as gold at the end of the rainbow**."
* 📈  Ives sees Tesla more as an **AI robotics play** than just an auto company, with the potential for its **AI story alone to be worth $1 trillion** in the long term.
* 📉  The **8.4% drop in Tesla's stock price** following the FSD event delay is attributed to **profit-taking after a significant run-up**, rather than genuine concern.
* 🍎  Ives also highlights the importance of **Apple's AI and intelligence efforts** in catalyzing the tech industry's **next upgrade cycle**.
* 🚖  The delay in Tesla's Robotaxi event led to a **5% jump in Uber and Lyft stock prices**, indicating market confidence in **potential competition** from Tesla's ride-hailing platform.
* 🤖  Ives believes Tesla will ultimately have partnerships in the ride-sharing space, with a **significant percentage of driverless ride-sharing** expected in **3-5 years**.
* 🔮  To potentially reconsider his bullish stance on Tesla, Ives would look for **signs of demand stabilization**, **no major price cuts**, and **successful delivery of the next phase of Tesla's AI vision in October**.

You put out a note very quickly on this reporting, saying the delay did not change ultimately a bullish call on Tesla. Why not?
Look, I mean, it's two months. We're not talking nine months, a year. You'd rather them be what I view as kind of a jaw-dropper event. And that's what really needs to happen in terms in October. And obviously, the delay is not what you want to see. So no one's popping champagne when you hear that, there's going to be tweet. You know, congrats to Ed and then on the story. But in terms of the story, FSD, the next phase of Tesla, that's unchanged. That's why in our opinion, this is just more an air pocket period to get on to what I view as gold at the end of the rainbow. Let's talk about some of the goals at the end of the rainbow. I mean, we had seen a run-up in Tesla's

stock previous week, up 27%.
We did see a fall yesterday. Yeah.
And look, what really surprised me overnight was all of the retail investor
community very publicly on saying to Elon Musk, like, can you confirm this?
Can you confirm this? Like Bloomberg stands by its reporting.
And we always reach out to Elon Musk in any other avenue at Tesla to ask for
comment and verify. But Dan, what was it then?
I know that you remain bullish on Tesla, but when I said you were coming on the
show, a lot of folks in that community were saying, well, explain that.
The 8.4% drop that happened in Thursday session.
Is that just because the run up in the stock that preceded it or is it because
of genuine concern? No, I think it's more the run up book.
This is going to be a historical day, whether it's eight, eight or ten, eight
or whatever day is going to be in

October.
A lot of anticipation going in here. And in my opinion, Tesla's more of an AI
robotics play than just an auto company. And investors, they don't like the ways
because then it feeds into that narrative.
And obviously the bears they focus on in terms of empty promises.
And I think it's important, and this is the most important thing, that when they
have this event in October doesn't disappoint.
It shows the path for Robotaxis shoes, autonomous shoes, the AI vision and
modernization two months away. That's a rounding error relative to
where we see longer term, as we've seen in the AI story alone, is worth
$1,000,000,000,000 for Tesla. Mr.
Ives, we always appreciate having you on this program.
Bloomberg Technology. You are unwaveringly bullish on everything and
we just showed a graphic with your coverage, right?
All the stocks that you are across, 30.

buys, three holds, and zero sells.
So again, I kind of think, Caroline, what would it take to make Mr.
Ives a little more cautious on Tesla? Why?
What is it that he would see that would make him rethink his call car?
I don't know. Yeah, but I mean, what I'd say to that
point, look, we've talked, I mean, for the last almost 25 years. I mean, really
pound the table in tech, and of course, we've had bad calls in there as well.
But our view, especially where we are and especially the last decade, but
especially the last 18 months, this A.I. revolution just started.
So when I look at Tesla into what would make us negative.
We talked about a quarter or two ago that Musk needs to step it up.
Right? In terms of Dalton, a point, I think,
and I think he did that. I think deliveries was important for to.
Q and I think you know, you saw the

bears going back into their case for
that. But you need to continue to see demand
stabilization. No more major price cuts. In October, you got to deliver in terms
of this next phase of the store. In terms of Robotaxi, I'm really interested
by the type that you like. This is an AI robotics play more
broadly. That's certainly what we've heard from
Elon. Apple suddenly has got on the bandwagon
as well. They're also talking up production, at
least for their suppliers, as what we reported yesterday.
How you feeling about the air play for that big company that you're also an
outperformer? And we've talked the consumer air revolution goes through
Apple, so when you think about WW DC and I'll compare it a little to maybe
Robotaxi day that was a historical day, and I think that's where investors
started to recognize the keys to that kingdom is Apple.
And we've talked about a huge part of

what I think not just the valuation, but catalyzing this next upgrade cycle is going to be Apple intelligence and A.I., and that just speaks to a broader view in tech that we see with Google, Amazon, of course, and the Dow and Microsoft and Godfather of AI Jensen and video. Dan, I want to just remind two specific points to our audience that we reported. One is that part of the Robotaxi delay was because I think Elon Musk wanted more to show, we said via sources that they wanted have more prototypes, but they also had some design rethink. And in the same moment, Uber and Lyft jumped 5% in the session. What does that tell you about how seriously investors in the market take Tesla in basically an app-based ride-hailing platform that Tesla might introduce? Yeah. And I also add I'd say, I mean you get an England win and that scoop is a good day for a lot were right and I think when you when you talk about the AI

piece. Yeah, I mean, I think there's worries about this fleet and what that could ultimately look like for Uber. And what so that negative for Tesla is viewed as positive Uber and Lyft. I don't view a zero-sum game. I think some of the negatives we see when Uber is overdone in terms of what this is going to mean from a Robotaxi fleet perspective. And I ultimately believe that something where they're going to have partnerships as well. Tesla, when it comes to ride-share, but three, five years from now, I mean, there's going to be a decent percentage, whether it's 10% or 20%, that that ride-sharing will not have a driver.

Ives Still Bullish on Tesla Despite Robotaxi Delay

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Bloomberg Technology

Delay in Tesla's FSD Not Affecting Bullish Outlook

The two-month delay in Tesla's Full Self-Driving (FSD) did not change the overall positive outlook for the company.

The delay is seen as just a temporary setback, with the focus remaining on the future potential of FSD.

The recent stock fluctuations were attributed to a previous surge in stock prices rather than genuine concern about the FSD delay.

Tesla's upcoming October event is crucial for demonstrating the company's vision for Robotaxis, autonomous technology, and AI modernization.

Despite some investors' concerns, analyst Mr.

Ives remains unwaveringly bullish on Tesla, with a trillion-dollar valuation potential in the AI industry alone.

The company's ability to meet delivery targets and progress in AI development will be key factors in shaping future investor sentiment.

Discussion on AI, Robotics, and Apple's Role

There is a need to see demand stabilization and no major price cuts in the next phase of the store, along with a focus on Robotaxi.

Apple has joined the AI and robotics play, with a significant role in the air revolution and the potential to catalyze the next upgrade cycle.

The delay in Robotaxi was due to the need for more prototypes and a design rethink, impacting the market's perception of Tesla's app-based ride-hailing platform.

The Impact of Autonomous Vehicles on Uber and Tesla

Concerns about Uber's fleet and its impact are not seen as a zero-sum game for Tesla, with the potential for partnership in the future.

The negative outlook on Uber's Robotaxi fleet may be overemphasized, and there is optimism about the possibility of driverless ride-sharing in the next few years, which could benefit both Uber and Tesla.