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Speaker 1: All right, So this is when you know Tesla is

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Speaker 1: not just a technology company, it's an actual automobile manufacturer.

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Speaker 1: That's when the National Highway Traffic Safety Administration recalls two

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Speaker 1: million cars from Tesla. Let's see what this means for

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Speaker 1: the company for the stock. Dan ives he's a senior

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Speaker 1: equity analyst at what Bush Securities. He joins us on

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Speaker 1: the phone here, Hey, Dan, I know you're a tech guy,

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Speaker 1: but you're now an auto guy too, metal bender, you

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Speaker 1: got to deal with recalls for one of your companies.

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Speaker 1: What do you make of this for Tesla?

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Speaker 2: Yeah?

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Speaker 3: Look, I think this has been an overhang for Tesla

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Speaker 3: for years, and it's an Ota update, It's a software updas.

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Speaker 3: I think it's important it gets it's going to get Tesla,

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Speaker 3: Cluiser and Clusor to what I believe is going to

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Speaker 3: be full self driving in the next few years. And

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Speaker 3: I think this is something they had to get over

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Speaker 3: to resolve to actually move forward into twenty twenty four.

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Speaker 2: Dan, I want to get to the tech that's out there.

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Speaker 2: Just met and mentioning a Microsoft by here looking on

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Speaker 2: three years. I want to get to that. But first,

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Speaker 2: one more question on Tesla on the Bloomberg. The Tesla

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Speaker 2: multiple is seventy six, the GM multiple is I think

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Speaker 2: eight or nine. Doesn't don't they just by definition of

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Speaker 2: margin compression out three years or five years if the

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Speaker 2: Tesla experiment works.

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Speaker 3: Yeah, Look, I think that's the common Detroit because ultimately

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Speaker 3: I believe margins will expand over the next few years.

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Speaker 3: Battery technology, they have scalonsc that's on matts and that's

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Speaker 3: why you're seeing Marry at GM and Barley and Board.

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Speaker 3: Maybe he just kept right in terms of the easy

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Speaker 3: strategy given where Tea is that shadow.

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Speaker 2: With us Dana Eyes, Webbush and I just got to say, folks,

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Speaker 2: in this year of the Magnificent seven, he has been

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Speaker 2: the magnificent analyst. There's no There's others that have been

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Speaker 2: bullish like Dan Eyes, but no one has carried the

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Speaker 2: torch of the Magnificent seven like mister Ives. We heard

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Speaker 2: a rating there from Jeff Matton of Microsoft with a

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Speaker 2: vision out three years, which is up up in a way.

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Speaker 2: How do you frame the Magnificent seven out three years

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Speaker 2: or five years?

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Speaker 3: And yeah, and Tom, you've talked about this. I mean,

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Speaker 3: is it four is it five trillion? I believe two three,

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Speaker 3: years from now, we're going to be talking about four

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Speaker 3: trillion and five trillion for some of these names. I

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Speaker 3: think Microsoft by twenty twenty five is a four trillion

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Speaker 3: dollars market. I think Apple hits it, you know, by

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Speaker 3: the end of twenty twenty four, because it's a golden

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Speaker 3: age for tech, and I think more and more market

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Speaker 3: share games you're gonna see. And in my opinion, this

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Speaker 3: is just the start of this new tech bow market,

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Speaker 3: not just for example, the rest of tech.

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Speaker 2: Okay, see if a want on one Joel Fish buying

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Speaker 2: over truist securities with a three year vision on Microsoft,

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Speaker 2: are we going to be so old foggy Dan that

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Speaker 2: you're going to be wearing a blue suit a white tie,

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Speaker 2: look like you're working at IBM, and we're going back

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Speaker 2: to win sweet as a chap with actual three year

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Speaker 2: vision on equities.

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Speaker 3: Look, I think what they're doing there is trying to

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Speaker 3: show far through the trees. If you start to take

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Speaker 3: AI and put it into Microsoft's valuation, they're ultimately Microsoft.

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Speaker 3: It could it eclipse Apple down the road. And that's

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Speaker 3: why right now in Nedella and Redmond, they're really owning

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Speaker 3: an AI torch. And that's why Jassie, Aws, Google, Work Live,

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Speaker 3: dm all chasing them. I think this is the biggest

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Speaker 3: tet transformation thirty years and it's get out the popcorn,

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Speaker 3: just start, Hey, Dan.

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Speaker 1: One of the risks out there, and I have no

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Speaker 1: idea how to handicap it is regulatory risk. If I'm

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Speaker 1: sitting in Congress and I know you know one one

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Speaker 1: hundredth of what you know about technology, I can see

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Speaker 1: that these companies are big, They're getting bigger. We have

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Speaker 1: analysts talking about three four five billion trillion dollar market caps.

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Speaker 1: How do you game out the regulatory risk for some

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Speaker 1: of these big tech industries companies?

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Speaker 3: Well, look, I mean I spent you know, the last

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Speaker 3: few weeks of out of time in DC, and I'd

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Speaker 3: say regulatory is an issue, but it's a lack of consensus.

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Speaker 3: Regulatory is going twenty miles an hour in the right

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Speaker 3: lane in a minifare, the technology's going in a ferrari

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Speaker 3: at one hundred miles in the left. And I think

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Speaker 3: that's really the issue here is that allows me self regulation.

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Speaker 3: And look, the STC con it's been black eye after

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Speaker 3: Blacky Tech does not hear con the SDC anymore. And

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Speaker 3: I believe that means there's going to be a tidal

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Speaker 3: wave of M and A in twenty twenty four.

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Speaker 1: Really, but I can't imagine any of the big tech

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Speaker 1: names like a Microsoft, like an Amazon, like a Google

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Speaker 1: being involved. Or do you or do you think so? Oh?

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Speaker 3: I believe, I mean, I believe we will see big

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Speaker 3: tech do more M and A from Magnificent seven terms

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Speaker 3: AI cyber software, and I think this is something where

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Speaker 3: we're going to see a change here in terms of

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Speaker 3: the M and A landscape, given this game at Brunes

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Speaker 3: that's playing out

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Speaker 1: All right, Dan, I've the best, Dan, I have senior

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Speaker 1: analyst covering all the tech stuff for win More Securities