Tesla has opportunity to ‘put that iron fence around’ EV, charging infrastructure: Analyst

Wedbush Managing Director and Senior Equity Analyst Dan Ives joins Yahoo Finance Live to talk about Tesla's Investor Day, the EV maker's position in the market, and CEO Elon Musk's succession plan.

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SEANA SMITH: All right, well, now let's get you up to speed with Tesla, another big story of the day. Shares are under pressure in the final hour of trading. We're looking at losses of just about 6 and 1/2%. The move lower looking like investors were left pretty unimpressed by Elon Musk and company at its Investor Day yesterday afternoon.

Dan Ives, Wedbush managing director, senior equity analyst joining us now here with more. And, Dan, it was a pretty long presentation, about four hours. Some criticism just in the fact that we got this grand Tesla vision, but it lacked details. You don't seem to be concerned about that. Why?

DAN IVES: I think that's always the narrative coming out of these events. I'd say the same for Apple. I think what they really did was they laid out the foundation to drive costs down 30%, 40%, 50%, and that's going to ultimately enable them to have a lower-priced vehicle, you know, which I think is a really important thing.

I ultimately viewed it as a flex-the-muscles moment for Tesla, but it just comes down to these events knee-jerk sell-offs. We'd be buyers on it. That's how we've been telling our investors.

DAVE BRIGGS: How essential, Dan, is that under $30,000 Tesla model for the investor story moving forward?

DAN IVES: It's the hearts and lungs to get to mass market. In other words, when you have $60,000, $70,000 cars, OK, you could sell 2, 3 million, but you're never going to get to annual 4, 5, 10 million when you're selling at those price points. That's why sub $30k is so important, especially right now as part of this green tidal wave in terms of electric vehicles. Tesla, it's their world. Everyone else is paying rent.

So this is the opportunity now to put that iron fence around their install base, and that's essentially what they're doing. They're laying the groundwork. But, of course, coming out of the event, investors, Wall Street, they want more meat on the bone.

SEANA SMITH: Dan, I got to tell you, I love all of your one liners. It's hard to keep up with all them. They're the best. We talk about it all the time. But, Dan, what do you make of the reaction that we're seeing in the stock today? I know you were saying you weren't too concerned about anything or maybe lack of detail that we got out of the investor event yesterday, but do you think that's just simply a result of the fact that Tesla is up so much since the start of the year?

DAN IVES: Exactly. I'd say-- and again, first off, happy birthday.

SEANA SMITH: Thank you.

DAN IVES: So I would say this is-- yeah, so I think this is just a sell on the news in terms of maybe some anticipation going into it. But if you read the tea leaves, I mean, Musk is essentially laying out that they're going to be able to lower costs 40%, 50%. Look at this neighborhood. Look at Rivian. I mean, that's been a dog eat the homework situation every quarter. Then you look at Ford and others. I mean, it just shows Tesla is in a very, very strong position. I think that's sort of our takeaway.

DAVE BRIGGS: We did see some actual video of the Cybertruck, although again vague promises from Mr. Musk in terms of when we can actually expect it. How much were you moved at all by seeing the truck, and do you think-- how much of this is part of your price target?

DAN IVES: Well, I mean, we don't really have too much factored into our numbers. I mean, if you look at Cybertruck going 2024, I think it's going to be revolutionary. I mean, it's our estimate you have over a million preorders. Even if you cut that by 30%, 40%, this is going to be massive. I mean, I think a year from now you're driving around Manhattan outside your studios, and you see cyber trucks. And I think this just ultimately sends that path where you're going to have Tesla expanding more and more of their model line now that they have the scale and the scope globally.

DAVE BRIGGS: At what price point does Dan Ives buy that hideous-looking vehicle?

DAN IVES: I'm on the-- I'm on that preorder list myself.

DAVE BRIGGS: You are?

DAN IVES: So if you-- so if you see a Cybertruck in New Jersey about a year from now, it could be me. But look, I'm just a believer-- now again, this is a-- it's a people hate it, others love it, "Mad Max." I just view this as sort of a revolutionary design that I think is going to ultimately be attracted by many Tesla loyalists.

DAVE BRIGGS: It's the cilantro of automobiles. There's no gray area.

SEANA SMITH: There is certainly no gray area.

DAVE BRIGGS: That may have been a really strange--

SEANA SMITH: Yeah. Yeah, exactly.

DAVE BRIGGS: --comparison.

SEANA SMITH: Dan, did you want to hear anything--

DAN IVES: If you pull up to-- if you pull up to a Costco parking lot in that a year from now, that's-- I mean, you're going to be able to put a lot of stuff in that back.

SEANA SMITH: OK, there we go. One compelling case then to get it.

DAVE BRIGGS: That's the video I need, man.

SEANA SMITH: I know. Exactly. There we go. We're intertwining all the big stories of the day.

Dan, let's talk about succession because lots of questions-- or I think a lot of people wanted to hear a little bit more about succession from Elon Musk. He had a number of his executives up on stage with him. How are you viewing all this talk about succession and what Tesla might potentially look like 5, 10, 15, 20 years from now?

DAN IVES: Look, I think Musk is CEO of Tesla at least through 2030. So, I mean, succession-- you had Tom Zhu. You had others. That was sort of a show of force, you know, to show it's not just Musk. But ultimately, look, Musk is the hearts and lungs of Tesla. It's part of how we are where we are today in terms of what I view as, along with Apple, the most transformational company in the market.

But I think this was really showing that there's not a revolving door. You have a bench, and you're starting to see that now play out. But I don't-- in terms of as a CEO, I believe Musk is going to be CEO of Tesla at least until 2030.

DAVE BRIGGS: Elon does not appear too concerned about JD Power releasing its annual customer satisfaction rating, which Rivian dethroned Tesla in the EV category. What are your thoughts on Rivian's future and their cash position?

DAN IVES: It's a frustrating one because just like you said, like, I think like what RJ and the team have built, like the product, the category, it's game changing. The problem is you have to be able to produce the vehicles, and that's been their Achilles heel, and it's sort of been one thing after another. I believe they're starting to fix it, but they need to scale over the next 9 to 12 months. That's sort of the key.

And it's not a zero-sum game. You're going to have a lot of benefits as part of this green tidal wave, including, you know, many in the 313 area code where I believe GM is going to see a renaissance of growth.

SEANA SMITH: All right, Dan Ives, we've got to leave it there. I got to tell you, I'm excited to maybe see you behind the wheel of a Cybertruck--

DAVE BRIGGS: At Costco.

SEANA SMITH: --pretty soon at Costco. Better follow through.

DAN IVES: At Costco.

DAVE BRIGGS: It's going to be awesome.

SEANA SMITH: There you go. Easy. Dan Ives, it's great to have you. Thanks so much.