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Bloomberg Audio Studios. Podcasts, radio, news. Dan Ives of Wedbush writing, this view does not change our bullish view of Tesla and the autonomous view, but clearly does put a fly in the ointment of the Trump regulatory framework going forward. Dan joins us now. Dan, great to see you. Great to be here. Very curious to hear what you have to say about this. The fact that you do not change your bullish outlook on Tesla, even though it seems like there is a massive key man risk.
Please explain how you dismiss that. Look, I mean, this is a, it's friend, it's like a frenemies in junior high school that's essentially going on between Trump and Musk. Poor billionaires and leaders of massive empires. And look, the reality is that our view is that this is something where the friendship, it doesn't end. In other words, I still believe that this will be resolved potentially by the end of the day or by the weekend. And it's not our view.
you that this changes the regulatory landscape for Musk when it comes to autonomous and the broader vision. How do we even talk about the fundamental backdrop, though, when you have a war of words whipsawing this company by more than $150 billion of market capitalization? Does that introduce a risk that a lot of institutions just won't take?
Look, but we always talk, and we've talked about it on the show for decades. It comes down to with Tesla, that's the reality. I mean, you're going to have the volatility. It's part of what we've seen with Musk. But in our view is that you have to sort of see through the noise, understand the autonomous vision. It's our view ultimately way more at the kids' table when it comes to autonomous and the AI future. And look, this is...
It's Rod Serling. It's an episode out of the Twilight Zone yesterday. I mean, in my opinion, in all my years covering Tesla, it might win the prize, top three, maybe top one, for one of the strangest days that I've ever seen. So last year, Elon Musk said take away the subsidies, it'll only help Tesla. Why does he...
or based on reporting out of the Speaker Johnson, out of President Trump, why has there been this reversal from him regarding the EV subsidies? He's no longer in the White House. I mean, you've talked about it. It comes down to he's now trying to distance himself for a few reasons. One, that would hurt Tesla not as much as the others in terms of the Detroit Big Three. But then you also look at what's happening here. I believe there's some poker going on as well, that he's trying to distance himself from Trump
because of China, because he also needs to play nice in the sandbox in Beijing with everything that we see as given the China market, raw materials, how important that is from a demand perspective. He's trying to be sort of, I think, balances and for Musk, even though some of it could come out sort of spur of the moment, I do believe potentially there's a longer game here. Is he rebranding for a midterm election where most people think the Republicans are going to get an absolute shellacking?
Well, look, and the reality is that that's why in D.C., I mean, you know, if you're a hater or a lover of Musk, he is going to be a huge player. And that's why for all parties. That's why White House, you know, it seems trying to put together this phone call because no one's a winner, Trump or Musk, in this frenemies battle. I think it's two kids in the sandbox. I do think the play date will be back.
on at one point, it's just going through definitely some little tension here. - Wait, you're actually suggesting something that's pretty important, that there is an aspect of deliberateness to this by Elon Musk to revive the brand
around Tesla to try to paint it with a less MAGA type of brush after a lot of blowback and a lot of fall off in sales, particularly outside of the United States. Do you really think that actually this is a vocal way of his distancing himself
and that he can get back in good with President Trump, but this is an effort to revive a brand that suffered a black eye, just like Elon Musk. - Look, I think there's some of that potentially at play, but you don't burn the house down just so you can meet the firefighters. I mean, the point is you need to navigate the situation very carefully. You need Trump as a friend, not a foe.
And that's why Tesla down so much is because the fear on the regulatory, it's going to be a green light for when it comes to autonomous and especially Tesla. And I view as a huge advantage there. You can say way more little as well. You don't need Trump now as it is.
enemy. You need him as a friend. Hopefully by the end of the day, the candlelight dinner's back on. I just do not believe that these friends become enemies. Again, it's a frenemies junior high school situation between two, as we know, very stubborn individuals. Let's say in episode six, they still haven't gotten back together. Do you change your view and become more bearish on Tesla? Look, if this continues to continue to play out
longer and longer term. Obviously, that would be a huge negative. But my view, just like junior high school, they will get back together as friends, but it's going to take some intermediaries. That's why the White House, there's a lot in D.C. on the Republican Party and everywhere else. Well, the distance is already there. And there's some things that happened yesterday that potentially the White House are really upset with and maybe are going to create a lot of tension for a long term, even if they start playing a little bit nicer. Is this an
Is there an opportunity potentially for China to use BYD? Are we going to see BYD cars made in the United States? Look, I think this is just a broader game of poker going on. And Musk and Trump are key players at that poker, baccarat table, however you want to think about it. China definitely is watching this carefully because also remember, Musk
I'd say along with Cook, I mean, know the China market better. They also play nice in Beijing as well. So there is some balance going on here. But look, Musk, we want him to distance himself from Trump, still be a friend. It's been a very strange few weeks, few months, and obviously 24 hours. But I do believe by the end of the day and going into the weekend,
I don't expect this to get worse. I do believe this will start to be cooler heads prevail. And that's why Tesla stock will be up there. I think Tesla is way oversold. Like, unless you think draconian, this goes into like a dark period, to me, I think we view this as an opportunity. So, Dan, let's get back.
back to the American consumer for a second. So what I hear you saying is you're assuming that Elon is not going to form a third political party, which I think we can all say we're relieved about.
Has what's happened caused a measure of irreversible damage? And if not, how long is it going to take for the American consumer to disentangle him or herself from the politics of all of this? And first, I'm disappointed. I thought we were matching today, but I'm not going to hold that against you. Sartorial splendor, I can't even come close. But it's fine. I'll pass it.
Look, I don't view that. I think it's something. There is brand damage. In other words, there is things that Musk needs to turn around in terms of U.S. We said 5%, 7%, potentially 10% brand damage. The American consumer, look, I think there's confusion when it comes to Musk because obviously
alienated many in the Democratic Party. Now you're actually alienating the Republicans. So now it's like if you want to alienate everyone, you've actually done a great job. Okay, so now it's a point like, okay, how do we sort of build this back? Does the board get involved because
Because, again, it goes back to the board needs, I think in a situation like this, they do need to play a hand in some way to make sure that this doesn't go off the rails. If it's a junior high school situation, there needs to be an adult in the room. You need adults.
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