Dan Ives, Global Head of Technology Research at Wedbush Securities, joined CNBC’s Closing Bell: Overtime to discuss the regulatory risks facing tech companies, his bullish outlook on Tesla (TSLA), and the potential impact of upcoming regulatory changes under the Trump administration.
Ives addressed the regulatory scrutiny surrounding Microsoft (MSFT), particularly in light of comparisons to the tech boom and bust around the turn of the millennium. He suggested that the current leadership at the Federal Trade Commission (FTC), particularly with Lina Khan at the helm, has been a significant point of concern for big tech. However, Ives believes that with Khan’s potential departure, there could be a shift towards a more business-friendly regulatory environment. He noted that despite the noise, the regulatory impact might not be as severe as feared, drawing a parallel to Microsoft’s past legal battles in the ’90s, which the company ultimately overcame.
Discussing the incoming Trump administration, Ives pointed out the importance of the appointments to the Department of Justice (DOJ) and the FTC. He suggested that while there might be some aggressive stances against tech from certain appointees, the overall direction could be less regulatory, particularly with Khan’s expected exit from the FTC, which he sees as a positive for big tech. Ives highlighted the influence Elon Musk could have, given his proximity to Trump, which might unofficially sway some regulatory decisions.
On the topic of Tesla, Ives expressed an exceptionally optimistic view. Despite the stock’s recent rally, he believes Tesla could double in value over the next 18 months. He attributes this potential not just to Tesla’s current market performance but significantly to its advancements in autonomous driving technology. Ives views Tesla as “the most undervalued AI name in the market,” suggesting that the true value of Tesla’s autonomous technology could push the stock price to between $500 and $600. He sees Tesla on a path to a $2 trillion valuation, emphasizing the stabilization of margins and the ongoing AI revolution as key drivers.
Ives concluded by stating that despite regulatory uncertainties, the tech sector is in the early stages of an AI-driven boom, with many opportunities for investment rather than reasons for concern. His outlook projects a continuing bullish market for tech through at least 2025 and 2026, advocating for investors to seize the moment rather than be deterred by short-term regulatory noise.
Price Action: TSLA closed Friday’s trading session at $345.40, a slight increase of $0.24 or 0.07%. The stock has performed well over the past year, posting a 39% gain year-to-date and an impressive 44% year-over-year increase.
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