Tesla is the most undervalued AI name in the market, says Wedbush's Dan Ives

Shares of Tesla sinking today after its robo-tax the event underwhelmed investors several analysts notes calling it quote Disappointing my next guest says he disagrees says the event was a quote glimpse of the future and the next generation Transportation joining me now post nines web Bush's Dan Ives so you say you left that event in which you were there in person more bullish on this story How I mean it's all about Then clearly details were obviously scarce and that's why we're surely why the stocks down but in terms of cyber cab in terms of what? we saw What's really gonna be over the next call it? 1824 months you look at optimists in terms of what I've used for robotics where right now There's no value for optimists in the story, and I think most importantly in terms of the unsupervised FSD that's gonna really be rolled out throughout all the Tesla models at least, California, Texas into next year And I think that's why to me I'm not talking in the next quarter to that's moving the needle But in terms of the next few years, I believe it's a game-changer to the broader story. You saw what might be Not what is and there really is no real idea of when exactly this is actually going to hit the street You want to take issue with that well, I'd say first and look in terms of price per mile I think the big focus was could they get under 50 cents? He taught must talk about 20 cents per mile potential with taxes 30 or 40 cents When you look at cyber cab and not clearly the two-person cyber cab. This is something where as This goes to the next three to four years. There's no reason this can't ultimately be 10 15 20 percent overall profits for Tesla as this all ramps up Just given what our view of the overall ride-sharing market and what they can gain and it comes down to 1.5 billion miles Driven, so the stock had a significant move on anticipation of this event the event to many underwhelmed therefore Not justifying the multiple that the stock has expanded to that's JP Morgan's note today They see substantial risk to multiple of multiple compression after the big rally into what they call a underwhelming day. I Think we look back at last night Three four years from now is a historical moment And the reason I say that because they just think because they held an event and showed you these these Prototypes sure, it's why I think it's more than prototypes because ultimately I think the next leg of the story in terms of autonomous I believe they will be a clear leader in broader autonomous And I think it shows now when you look at cyber cab, that's just one piece I think the other reason the stocks down is model to lower-cost vehicle. They didn't show it I think they're not gonna show we never expected they're gonna show that at the event. I still believe that's the 2025 story so I think broader you look at I think demand stabilizing just a robust China quarter I think Cogs is gonna come down you got model 2 or 2.5 in 2025 and then when I look at the future next two or three years you'll get cyber cab you look at Optimus You'll get just some of the parts. I Argued the AI story it is the most undervalued AI name in in the market I understand, but I'm trying to get my arms around how you're you're trying to Value a stock based on some level of Identifiable fundamentals are you telling me that you came away from that event last night? Satisfied with the details that you got and because you're your colleagues at other places We're not Adam Jonas, that's it disappointing lack of detail Tony Sakanagi Stunningly absent in in detail Wells Fargo little substance Are you telling me that you were fulfilled in the detail that you learned? No, we called out details are scarce. That was a negative and it's a reason to stop We want more details, but to me with Musk and Tesla in an event like that You're maybe not gonna get as many details right there as you'd want But the reason we came out so positive in terms of the test drives and if you look at cyber cab and you look now At production and this is real. We're not talking prototype 2026 they start to produce this we go into next year. This starts to become more and more of reality and all comes down to us FSD FSD penetration increases within Tesla There's the story massively changes. When did when do you when you need more details? Wonder when when are you when do you sit back and you say you know what I I've given the benefit of the doubt on this story Whereas many of the others who cover this stock have not sure when do you want details? Well, I think by by the by later this year early next year You basically need to have some details on when the lower-cost vehicles coming out what production looks like What in terms of cyber cab and overall FSD what the rollout is gonna look like throughout? 2025 and and most importantly cogs because The whole goal here is that Tesla's gonna be able to decrease cogs significantly Especially with the next-gen platform if that happens then you can numbers into next year or two I think they're underestimated by 40 50 percent. That's what we need to see if we sit here Six months from now and they didn't give us that then at that point you you probably do have to reevaluate things But I don't I think they have a lot more coming than they ever have in the story if I think back to last few