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Dan ives of Webbush writing, this view does not change our bullish view of Tesla and the autonomous view, but clearly does put a fly on 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 its friend It's like a Frenemi is in junior high school. That's essentially going on between Trump and much.
We're 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, by the weekend. And it's not our view that this changes the regulatory landscape. Four 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 one hundred and fifty billion dollars of market capitalization. Does that introduce a risk that a lot of institutions just won't take.
Look, but we always start and we've turn on the ship for a decade. It comes down like 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 see through the noise, understand the autonomous vision. It's our view ultimately Way Moos 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 strangers days that I've ever seen.
So last year Elon Musk said take away the subsidies. It only helped Tesla. Why does he or based on reporting out of the speak of 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, and you've talked about it. It comes down to like 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 material is how important that is from a demand perspective, He's trying to be sure, I think balances and for a musk, even though some of it could come out sort of spur of the moment, I do believe potential there's a
longer game here.
Is he rebranding for a midterm election where most people think the Republicans are going to get absolute salacking.
Well, look in the reality is is that That's why in d C. I mean, you know, if you're a hater or whatever, a 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 Frontemi's 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 sim 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 Tessa down so much, is because if you're on the regulatory it's going to be a green light when it comes to autonomous and especially Tesla, and I view is a huge advantage there. You can say way mo little as well.
You don't need Trump now as an enemy, you need them as a friend. Hopefully by the end of the day the candle White dinners back on. I just do not believe that these friends become enemies. It's a again, it's a Frenemi's junior high school situation between two as we know, a very stubborn individual.
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 say 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 DC on the Republican Party and everywhere.
Well, the distance is already there, and there's something 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 opportunity potentially for China to use BYD. We can 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 bakra on table, whatever you want to think about it. China definitely is watching this carefully because also remember Musk is i'd say, along with Cook, I mean to know the China market better. They also play nice in Beijing as well, so there is some bounds going on here. But look, must we want him to
distance himself from Trump still be a friend. It's been a very strange few weeks, a few months, and obviously twenty four hours. But I do believe by the end of the day and going into the weekend, I don't expect this to get work. I do believe this will start to be cool heads prevail and that's why Tesla stock will be up there. I think Tessa is way over sold. 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 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 this going to take for the American consumer to disentangle hammer herself from the politics of.
All and first, I'm disappointed you. I feel we are matched today. But I'm not going to storial splendor.
It's it's but it's file.
Look, I don't I don't view that. I think it's something there is brand damage and there was there is things that must needs to turn around. In terms of us, we said five seven potentially ten percent damage the American consumer.
Look, I think there's.
Confusion when it comes to us because obviously alienated you know many in Democratic Party. Now you actually alienating the republic. So now it's like, if you want to alienate everyone, you've actually done a great job. Okay, So now it's point like, okay, how do we sort of build this back? Does the board get involved? 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, then there needs to be an adult in the room.
You need a room.
You need a doll in the room with the prom.
Yeah, come on, get home, it's your curfew. Dan Ives of Woodbush, thank you so much with your sartorial splendor. Julian I love that phrase.