Tesla Is Poised to be a 'Technology Titan': Wedbush's Dan Ives
*By Chloe Aiello*
In five to seven years, Tesla will be valued as a diversified "technology titan" rather than just as an automaker, Wedbush's Dan Ives told Cheddar on Monday.
Wedbush rated Tesla ($TSLA) "outperform" and raised its 12-month price target on the company to $440 last week. Tesla shares jumped Thursday following the report.
"I think it's a disruptive technology player, which is really our perspective and how we view Tesla. And that's why in our opinion it's similar to how we viewed Apple ($AAPL) going back to '07 with iPhones ー revolutionizing smartphones," Ives said.
Wedbush analysts Ives and Strecker Backe attributed their bullishness to Model 3 production volume and profitability turning a corner. But Tesla's long-term viability has more to do with its potential to become a more diversified "technology titan."
"Overall, seeing the forest through the trees, we believe Tesla has the most innovative product roadmap in the technology space over the next five to 10 years," Ives and Strecker wrote in their note. "Its flagship Model 3 \[is\] poised to catalyze a broader move to electronic vehicles, renewable energy, and eventually broader ambitions for Musk and Tesla that will lead to further innovations around battery production and self-driving cars looking out into 2020 and beyond."
Of course, with controversial CEO Elon Musk at the helm of the company, the path forward will be a "bumpy road and never a smooth straight line," Ives wrote. But Ives said he doesn't consider Musk to be the greatest risk to the company. Rather, Ives said the biggest risk derives from Model 3 production.
"Biggest risk is around production, specifically on Model 3. I think any bottleneck coming out of Freemont or Giga\[factory\], or any sort of major hiccup in terms of China, in terms of building Giga3, in terms of demand ー I think China's going to be key," Ives said.
Tesla needs to maintain those numbers because it has a big opportunity to revolutionize on the consumer demand for cars in the mid-range with the Model 3. It's especially important considering it faces such stiff competition on electric vehicles from high-end automakers, like Mercedez, Jaguar, and Audi.
Wedbush is just the latest Wall Street firm to upgrade its target on Tesla. Analysts from Jefferies and CFRA also upgraded the car maker earlier in the month, sparking a positive reaction from the shares.
For full interview [click here](https://cheddar.com/videos/wedbush-securities-begins-tesla-coverage-with-outperform-rating).
Orangetheory Fitness is redefining the future of workouts with smarter tech, strength-based programming, and community-driven studios built for what’s next.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
