Well, we had a big slump in big cap tech today. Two stories here, one Apple, the second is Tesla. Let's take a closer look now with Dan Ives, Managing director also senior equity analysts at wed Bush Securities. Joining from here in New York City. Dan always a pleasure. So we got two topics, and I want to begin with the Apple story because we were told that the company has essentially told suppliers in asition to make fewer components on some products because of weaker demand. How do you
read this? What is it really saying about what Apple is up to these days? Yeah, I mean, look, I think Apple is seeing storm clouds form and I think it's what we're seeing across big tech, and ultimately they're now starting to sort of pull back some of those orders to as of suppliers. I think it is more around an iPad, Mac and some of the other hardware. But I think queerly Cupertino and Cooker a little nervous
come into the next year and they don't want inventory issues. Ironically, this supply chain issues have really hurt them on iPhone, especially in this past holiday quarter. So let's dig a little deeper into that. I mean, is the risk they see as simple as, oh, there's going to be a recession. We're going to see it in the US and Europe, and uh, you know, China looks like it may be bouncing back, but it's struggling here at the beginning. Or is it more long run like, uh, you know, maybe
demand is shifting. Is we're finally going to see an era where people do not have to buy new Apple gadgets every time they come out. Yeah, I do think it's more near term. I think Apple is preparing for a recession. I mean at the end of the day, and that's we're seeing that across big tech, whether it's a Microsoft, you look at Google, you look at Amazon
and others. I do think for Apple they're in a what I'll call more position of strength because demand is much more resilient than really any other big tech player out there. So demand continues to outstrip supply, at least right now on iPhones. But they don't want to be lead to the game. The last thing they could do is cut too late, and that's what they're doing. They're trying to get ahead of it going into what clearly is a very uncertain two thousand twenty three an Apple
is ready to from navigate this category five storm. So the stock down three point seven percent here in New York market value breaking below two trillion. Let's talk Tesla next, Danny, because the company, we were talking about this in the program last night, delivering fewer vehicles than expected in a Q four despite offering some big incentives not only here in the States, but I think that incentive program is not is now rolling out in China as well. What's
the story on Tesla here? Well, I think the story for Tesla is after a Cinderella ride where they really were the only game in town in terms of electric vehicle, you're seeing demands off and the specifically in China. China is the hearts and lungs of the Tesla growth story, and I think that's really what hurt them this quarter. And now competitions coming from all angles. You have a macro slowing and that I think really for the first time.
You know, you are starting to see Musk needing to navigate Tessa through a storm with their back against the wall. Ironically to Twitter fiasco, you know that continues to really be you know, what I'll call it is a black eye from Musk and Tessa, and that's been overhim in the stock You just have to ask us elon Musk, is he doing the right thing by first of all saying hey, should I step down the CEO? Uh? And and now saying he's actively seeking one and what who
should he get? What kind of person? Well, I think first of all, this has to happen sooner rather than later, and they can just be a figurehead. Yes, person. You know, there's clearly a top tier list from Sandberg as well as others that with the would i'll call Facebook, Google lineage,
But who knows if he gets that individual? And I think from Musk he needs to separate himself because ever since he bought Twitter, it's been a fiasco, a train wreck at the same time that Tesla is going through demand challenges, and right now Tesla needs a leader, not one that has three children. Were ultimately in the eyes of the street, is spending a lot more time with Twitter than Tesla. Dan very quickly about thirty seconds. Is there a lot more risk of further downside and Tesla stock.
Let's put the Musk selling aside just on the basis of what's happening fundamentally with the company. Look I think it's gotten oversold, and ultimately, if they ripped the band, they'd off give conservative two thousand, twenty three numbers and must stops using Tesla's personal ATM machine. Then I believe Tesla's bottomed out here. I think that that and ultimately must start the fire. He the only one that can extinguish talk about a fire. Today shares we're down twelve percent, Dan,
thanks for being with us, said Dan. I'ves managing director equity analyst ed wed Bush Securities, joining us here on daybreak Asia