Speaker 1: Well, we had a big slump in big cap tech today.
Speaker 1: Two stories here, one Apple, the second is Tesla. Let's
Speaker 1: take a closer look now with Dan Ives, Managing director
Speaker 1: also senior equity analysts at wed Bush Securities. Joining from
Speaker 1: here in New York City. Dan always a pleasure. So
Speaker 1: we got two topics, and I want to begin with
Speaker 1: the Apple story because we were told that the company
Speaker 1: has essentially told suppliers in asition to make fewer components
Speaker 1: on some products because of weaker demand. How do you
Speaker 1: read this? What is it really saying about what Apple
Speaker 1: is up to these days? Yeah, I mean, look, I
Speaker 1: think Apple is seeing storm clouds form and I think
Speaker 1: it's what we're seeing across big tech, and ultimately they're
Speaker 1: now starting to sort of pull back some of those
Speaker 1: orders to as of suppliers. I think it is more
Speaker 1: around an iPad, Mac and some of the other hardware.
Speaker 1: But I think queerly Cupertino and Cooker a little nervous
Speaker 1: come into the next year and they don't want inventory issues. Ironically,
Speaker 1: this supply chain issues have really hurt them on iPhone,
Speaker 1: especially in this past holiday quarter. So let's dig a
Speaker 1: little deeper into that. I mean, is the risk they
Speaker 1: see as simple as, oh, there's going to be a recession.
Speaker 1: We're going to see it in the US and Europe,
Speaker 1: and uh, you know, China looks like it may be
Speaker 1: bouncing back, but it's struggling here at the beginning. Or
Speaker 1: is it more long run like, uh, you know, maybe
Speaker 1: demand is shifting. Is we're finally going to see an
Speaker 1: era where people do not have to buy new Apple
Speaker 1: gadgets every time they come out. Yeah, I do think
Speaker 1: it's more near term. I think Apple is preparing for
Speaker 1: a recession. I mean at the end of the day,
Speaker 1: and that's we're seeing that across big tech, whether it's
Speaker 1: a Microsoft, you look at Google, you look at Amazon
Speaker 1: and others. I do think for Apple they're in a
Speaker 1: what I'll call more position of strength because demand is
Speaker 1: much more resilient than really any other big tech player
Speaker 1: out there. So demand continues to outstrip supply, at least
Speaker 1: right now on iPhones. But they don't want to be
Speaker 1: lead to the game. The last thing they could do
Speaker 1: is cut too late, and that's what they're doing. They're
Speaker 1: trying to get ahead of it going into what clearly
Speaker 1: is a very uncertain two thousand twenty three an Apple
Speaker 1: is ready to from navigate this category five storm. So
Speaker 1: the stock down three point seven percent here in New
Speaker 1: York market value breaking below two trillion. Let's talk Tesla next, Danny,
Speaker 1: because the company, we were talking about this in the
Speaker 1: program last night, delivering fewer vehicles than expected in a
Speaker 1: Q four despite offering some big incentives not only here
Speaker 1: in the States, but I think that incentive program is
Speaker 1: not is now rolling out in China as well. What's
Speaker 1: the story on Tesla here? Well, I think the story
Speaker 1: for Tesla is after a Cinderella ride where they really
Speaker 1: were the only game in town in terms of electric vehicle,
Speaker 1: you're seeing demands off and the specifically in China. China
Speaker 1: is the hearts and lungs of the Tesla growth story,
Speaker 1: and I think that's really what hurt them this quarter.
Speaker 1: And now competitions coming from all angles. You have a
Speaker 1: macro slowing and that I think really for the first time.
Speaker 1: You know, you are starting to see Musk needing to
Speaker 1: navigate Tessa through a storm with their back against the wall.
Speaker 1: Ironically to Twitter fiasco, you know that continues to really
Speaker 1: be you know, what I'll call it is a black
Speaker 1: eye from Musk and Tessa, and that's been overhim in
Speaker 1: the stock You just have to ask us elon Musk,
Speaker 1: is he doing the right thing by first of all
Speaker 1: saying hey, should I step down the CEO? Uh? And
Speaker 1: and now saying he's actively seeking one and what who
Speaker 1: should he get? What kind of person? Well, I think
Speaker 1: first of all, this has to happen sooner rather than later,
Speaker 1: and they can just be a figurehead. Yes, person. You know,
Speaker 1: there's clearly a top tier list from Sandberg as well
Speaker 1: as others that with the would i'll call Facebook, Google lineage,
Speaker 1: But who knows if he gets that individual? And I
Speaker 1: think from Musk he needs to separate himself because ever
Speaker 1: since he bought Twitter, it's been a fiasco, a train
Speaker 1: wreck at the same time that Tesla is going through
Speaker 1: demand challenges, and right now Tesla needs a leader, not
Speaker 1: one that has three children. Were ultimately in the eyes
Speaker 1: of the street, is spending a lot more time with
Speaker 1: Twitter than Tesla. Dan very quickly about thirty seconds. Is
Speaker 1: there a lot more risk of further downside and Tesla stock.
Speaker 1: Let's put the Musk selling aside just on the basis
Speaker 1: of what's happening fundamentally with the company. Look I think
Speaker 1: it's gotten oversold, and ultimately, if they ripped the band,
Speaker 1: they'd off give conservative two thousand, twenty three numbers and
Speaker 1: must stops using Tesla's personal ATM machine. Then I believe
Speaker 1: Tesla's bottomed out here. I think that that and ultimately
Speaker 1: must start the fire. He the only one that can
Speaker 1: extinguish talk about a fire. Today shares we're down twelve percent, Dan,
Speaker 1: thanks for being with us, said Dan. I'ves managing director
Speaker 1: equity analyst ed wed Bush Securities, joining us here on
Speaker 1: daybreak Asia