We're joined by Dan Ives, managing director and senior equity analyst of wed Bush Securities, Dancy to talk about Tyler, among other things, missing a delivery forecasts and the third quarter. Dan um ms shure three forty three thousand cars got delivered in the quarter. But that's still a record. So what's the more important number here? Is the cup half full or is the cup half empty? Yeah? I think it's gonna be half empty in terms of the reaction
because it's a miss. It's about five percent miss on deliveries relative to what the street was expecting, and clearly logistical issues put into it, especially I think in China, but especially in this white knocko environment. I mean, I think the stock will be under pressure as investors worry that the demand story is starting to wean a bit. Okay, so tell us about that demand story. You know Tayler still makes an enormously popular range of vehicles. Well, why
do you see demand easing off? Well, on the enterin we think demand continues to be robust, and I believe this is more of a speed bump and logistical issue in terms of delivering cars to customers at the end of the quarters, rather than ultimately a demand really starting to come off. But I do think what Tesla is facing on a lot of automakers are facing, is that the supply chain continues to be extremely complex. And Tessa demand his outstrip supply, but ultimately, for the Wall Street,
it's about the numbers. And if you look at this quarter, there's no way of sure coaded. It was softer, and I think that's something in this market that that the bulls didn't I qually didn't want to say, yeah, let's look at that supply chain issue a bit more tastes like calling it a transportation capacity issues. So getting physically the cars to the customers, is that the whole problem
or is just part of it? How many undelivered cars are sitting around on the testa lotton and how many are waiting for Patsy We think of fifteen twenty thousand roughly in terms of what i'll call either in transit or ones that you know ultimately not been delivered to customers.
It's a problem because it's also the expense. If you look in Europe as well as what we've seen in China, the expenses to get customers actual cars in their hands have been astronomical and I think Tesla has started to balance that and basically be fined with ultimate deliveries that could push quarter a quarter and that's what happened this quarter.
And you know, it's something where it puts more pressure on the fourth quarter for Tesla because that's really gonna be, you know, the big quarter for them in terms of from a delivery perspective. So what's your outlook for the stock. It's still quite expensive, but broadly flat on years. That's a buy right now. Yeah, we view it as a buy. I mean, we view this as just the narrow speed bump on the broader long term thesis to to where
ultimately Tessa is gonna go. And to us, it's really this is something that I think we'll get over exaggerated in terms of the market, but in our opinion that this is more of a buying opportunity rather than time to throw in the towel. Yeah. Well, Tasla had one of its most cluss closely watched events over the past few days AI Day. What was some of your takeaways from that? Yeah, so that was really more about robotics and ultimately what I've used for the next generation of
Tessa products as well as FSD full self driving. I mean, I think what Musk and Tests are trying to show is that this is really the start of not just the car company, a much more broader technology company. And that was really the focus of AI day, really showing this is more about the test of story when you look past the next three to six months. That's what was really the importance of it. Yeah, we got a closer look at that Optimus robot. Of course this time
I wasn't a human in a suit. It was the real thing, and it walked out, it waived. What were your impressions of that? Because Elon Musk has previously said this is going to be a bigger product than the cars. Yeah, I think three to five years, it's a huge product. And I think it really talks about just the AI the technology that's ultimately happening in Tesla, and I think that's important in terms of where this is all going for Tesla, showing it's more than just a car company.
And I think if you're at four GM and others you're watching that presentation, I think it's jaw dropping in terms of the technology they're coming out with. And that's why even when you think about deliveries. I think it's just the ultimately just the start of what I view
is just a broader trend for testing. I want to talk a little bit about Apple as well, and of course you know we had a story out on Bloomberg a few days ago also about the iPhone fourteen, Apple choosing to maintain production rather than increase it as expected. As this any calls for consent from your point of view. Look, I think they're clearly seeing softness in the base model, but I do believe they're seeing strength in the Pro
model that's been much stronger than expected. And I still think this is one that demand going into holidays is going to be strong. But it's a cautionary sign that Apple is seeing, and we're seeing across the world that demands in some areas, you're gonna start to see some softness, and I think it Apple, You've seen that, but it's also been neutralized by strength that you're seeing on the
higher end Pro model. Yeah, the that to what degree does that surprise you or is a resilient consumer something that we can take for grounded? Now? Well, Look, I think Apple is unique because of the golden install basin, because of the upgrade cycle, and I think that's something where they continue to be what I'll use almost rocket gibralder demand despite some of the black clouds are seeing
in the macro. Yeah, we're also running a story today on Bloomberg about the difficulties and diversifying manufacturing away from China. We're going to be talking about that a little bit in the next hour as well. But in terms of Apple's manufacturing base, do you see them increasingly moving away from China, towards India, towards other jurisdictions. Well, I think
slowly they'll diversify, but that's easier said than done. And I think China continues to be a mean stay for Apple and and that's something that will take years to ultimately diversify. But I think they're starting to do that given some of the writing on the wall. And how about the supply chain issues for Apple, do you see these coming to an end? I think they're starting to moderate, but into the mid two thousand twenty three it's still going to be an issue, but we are starting to
see that modering. They be They're able to navigate supply chain better than any other technology player in the world, and it's showing. Yeah, we talked a second ago about Tesla, how it's still expensive. Of course, Apple a famously expensive stock as well, but also coming off the boiler a little at last trade of one thirty twenty. Do you buy at this level? We would be buyers of Apple here.
I think that's been oversold. I still think the demand stories holding, and to me in technology, there's no better mean that I want to be buying on this weakness and Apple all right, then, I've always great to have you on the show and to get your expertise and your analysis. Dan Ives is managing director and senior equity analyst at wet Bush Securities.