Live on Bloomberg TV

00:00[CC may contain inaccuracies] Tesla initially is substantially weaker after hours but then came that word of the model Y being built in Austin with those 46 ISE cells. Tell us why that's so significant. Yeah it's just like Microsoft yesterday. The knee jerk in a nervous environment is shell of the stocks. Then look at Microsoft today. Even the Fed backdrop. Look if you look at the headline from this quarter it's really Austin has started to build cars. And you look at 40 60 80 is the battery technology. I mean that to me is sort of the window into the next stage of the Tesla story because remember right now Tesla they don't have a demand from demand outstripping supply by 30 percent. They got a supply problems. Now you get Austan you know simply expand in Shanghai as well as Fremont. That's the key. So Tesla does see those supply constraints and during throughout 2022. Yes. Forecasting 50 percent growth in deliveries. So how are they going to manage that. And how do you think they've managed the supply chain issues so far. They may have navigated basically better than any automaker in the world. And I think that's what's so impressive. You get the deliveries in this chip shortage. I mean did they beat the street by 20 percent. And I think you start to actually factor in if it wasn't for a supply chain issue then you could potentially be looking at 70 percent growth in 2022. And that's what the street's going to see through this supply chain are still transitory issues whether it's 6 9 to 12 months. The demand story for E.D. is hitting the next stage and I think that's a further flexing its muscles. Down What about the fact that they won't be introducing any new vehicles this year. Those that matter. No that does not mean we never viewed cyber truck that that was going to 2022. That was always going to be 2023. Also the last thing you want us to do right now juggle so many balls in the air one to focus on model Y the ramp in Berlin the ramp in Austin the 46 E.T. battery technology. That's an important. Grants a huge part of the movie and then you will get deliveries and profitability. This company is going to do run north of ten dollars earnings this year and then potential 25 to 30 in the next three years. That's a different turn. Now if this Tesla store. What about the China component whether it's demand or output from their Shanghai Gigafactory. I mean the hearts and lungs of the bull story in TASO are in China both from a supply perspective in terms of gig in Shanghai that's been sort of the golden jewel in terms of from a production perspective and demand. I mean demand continues to to really look robust in China. Tension of fifty thousand per month type run rate because China and you see this with new and index thing in some other names that we like in the 80s in China. You really start to say evey story in China you're really elevates significantly. It has a big part of that. Damn we've got Elon Musk on this analyst's call. He didn't appear at the last one city only shows up if he's got something important to say. He mentioned the four 680 batteries for the model Y but he's also been talking about how they Optimus Human Robot is going to be the most important thing. Tesla works on this year. How does that square away with your point about Tesla not trying to do too many things at once. Well to its typical mosque there's always going to be a lot of different projects going on. But the most important thing here is 46 80 and also you look at full self driving 60 thousand being a customer that's important in terms of the next leg of the story in terms of airfares the U.K. robotic technology and so many things are working on. I mean these are more three five years down the road from the street perspective. It's really around the production and the supply that they need to ramp. You get a demand story underlying just really looks robust. And especially if you look at these earnings combined with what we saw yesterday with Microsoft it's starting to give investors comfort. This is no longer just a Fed vacuum. You start next season of fundamental news terms as fourth industrial revolution an arm.

No schedule data available.

Tesla Further Flexing Its Muscles to Meet Demand, Analyst Ives Says

Dan Ives, managing director and senior equity research analyst at Wedbush Securities, discusses the prospects for Tesla Inc. The automaker reported fourth-quarter results that beat Wall Street estimates, but warned supply-chain troubles will limit production into 2022. Meanwhile, Chief Executive Officer Elon Musk said the Optimus Human Robot is the most important thing Tesla will be working on this year. Ives speaks with Paul Allen and Shery Ahn on "Bloomberg Daybreak: Australia." (Source: Bloomberg)

More From Bloomberg Daybreak: Australia
All episodes and clips