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CC-Transcript

  • 00:00He spoke a few days ago. What's changed here. Miguel Guard checks in over the last week especially even over the last 48 hours. It's just not showing the improvement that we wanted to see which essentially means in China can be pretty big disappointment not just on deliveries from production and 0 Covid issues. No I've really been a Category 5 storm for Tesla here. And look we're not just going to cut the price target just to cut it. I mean fundamentally there is a change. I think it's a new reality for Tesla in China and that's why we're cutting numbers and price are accordingly still bullish which shows what a diamond is. So let me jump in on that. No I wasn't on a thousand. Give them we're a six ninety five right now. Let's talk about reality. How divorced from reality. Surprise. Talk of the thousand from the stock. Right now it's six ninety five. It's all how you view it. You think that the 0 Covid issues continue for the next four year to year. Then obviously it's unrealistic. No we believe this is going to be something that will start to navigate smoother waters is begin to the second half of the year. Production will ramp in Giga Shanghai. You'll start to see do web restart to significantly ramp second next year. And I think that starts to happen. Then the test growth story again starts to take hold. But this is rose colored glasses are home in the June quarter. In our opinion given what we see in China ya call legacy and second epic disaster. Come now turn it down. How would you know if you're wrong about the future Doug. What would tell you and what would tell me that would get you out in front of this in a way that you won this time around. I mean if we start to see we go into June July and we're in the same situation it's start go supply chain issues no doubt lockdown continues. And ultimately you do not see the red. Then all of a sudden you could look at deliveries for the year that could be off another hundred two hundred K because China has had talked them 40 percent deliveries and it's a big part of the production and the most profitable. And then of course you know the sideshow at the circus show with Moscow Twitter. Yeah. It just there's a that's been a it's been a black eye for much. And just I think the way that this has been handled has really been unconscious by magic done. You called it a circus. Let's talk about this tweet. It came out yesterday from Elon Musk. I want your interpretation of it. In the past I voted Democrat because they were mostly the kindest party but that's become the party of division and hate. So I can no longer support them. And we'll vote Republican. Now watch that dirty tricks campaign against me unsolved. Damn you're an activist. I'm just a guy hosting a market show. We don't have to talk about the politics of this because I've got no idea what that means. But Don I do want to talk about the regulatory threat that this individual my face IBEX you think it is. Well I mean it goes back to the Twitter situation the beginning. It's been a disaster from the beginning. And he just continues to add fuel to the fire. And right now he's from passive shareholders. It's like as the planes crashing you're worried about salted or salted peanuts. And I think that's the frustration because you right now one must dialed into the Tulsa ecosystem navigate what we see in China as well as overall production issues. These. Look I think from the best of perspective in a white knuckle market. Exactly. You don't want to see it just adds more news. And like you said even political blowback in which just been you know I think almost a tornado like situation. Sam just a final question and work with me on this. Often I'll speak to people on the buy side that become married to a stock that conditioned by because it's treated them well over a series of years they get the gains and then they start to get punished by it and things start to go wrong and they just don't know how to get out of that name. And the losses build up. They become married to it. Dan as an analyst is there a risk that people have been bullish this night for so long just become married to it. And how do you make sure that you don't become one of those guys. Yeah I look I think sometimes to your point there becomes an emotional attachment whether it's bullish or Barack's right on both sides. And that's why I think you can't wear the rose colored glasses. You guys got all my call I guess when it comes down to fundamentals. That's why China's story continues. Castro is a stock given electric vehicles massive transformation. I think the stock will continue to move much higher. However you evolve a sign of sorts. The faster you can not just expect that the past is optimally predict the future. And no doubt. I think that's right. Now it's a fork in the road situation. Now as we go into the Tesla story give it especially given Musk. I think right now there's been some almost semi-permanent teens on the story because of the way that this soap opera slash circus show has turned out.
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Why This Tesla Bull Cut Its Price Target by 29%

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May 19th, 2022, 2:57 PM GMT+0000

Wedbush Securities Managing Director Dan Ives says the current lockdowns in Shanghai limiting sales and production are behind the decision to cut Tesla’s share price target to $1,000 from $1,400. "It's a new reality for Tesla in China and that's why we're cutting numbers and price target accordingly," Ives says on "Bloomberg Markets." (Source: Bloomberg)


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