Longtime Tesla bull hits the panic button on robo-taxis vs. Model 2

The long-time Tesla bull said CNBC on Friday that such a move can be a bet that might determine the electrical vehicle maker’s future for the following few years.

A sub-$30,000 mass-market electric vehicle, which Wall Street has dubbed the Model 2, could account for 50-60% of Tesla’s incremental growth over the following two to 3 years, while a completely autonomous robo-taxi may not yet is prepared for an additional five to 6 years, Ives said.

“We have seen many difficult moments for Musk and Tesla,” he added. “It’s up there.”

Ives, who has often provide you with various metaphors and analogies for his steamy interpretations of Tesla, warned that what was once a Cinderella story could turn right into a “Nightmare on Elm Street.”

In the long run, he’s optimistic about robot taxis and autonomous driving, but that shouldn’t come on the expense of a Model 2.

“If that were to happen, it would be a disaster of epic proportions,” Ives said.

He predicted that Tesla could have a moment of truth on Tuesday when it pronounces quarterly results and Musk appears on a conference call with Wall Street analysts.

If loyal Tesla bulls don’t love what they hear in the decision, they may back out, as eliminating a Model 2 would cause a serious growth hole in the following few years, he said. Ives compared it to Apple CEO Tim Cook dropping the same bombshell on his May 2 conference call.

“That can be like Cook coming out on May 2nd and saying, ‘Okay, iPhone 15 – look, we’re not going to have anything until iPhone 21.’ But trust us.’ “Thanks for joining the conference call,” Ives quipped.

Of course, he said he stays bullish on Tesla in the long run, but additionally said he must take heed to Musk’s growth strategy in China, which accounts for 60-70% of the corporate’s growth, but where fierce competition for electric vehicles is constructing a “game.” “got the throne” situation.

Musk’s credibility can also be at stake because recent earnings announcements have been “train wreck horror shows,” Ives added.

There’s rather a lot at stake for Tesla after reporting quarterly delivery numbers earlier this month that were 13% below Wall Street consensus estimates. Meanwhile, Tesla shares have fallen 41% for the reason that starting of the 12 months.

In a research note last week, Ives said that Musk and his company are experiencing a “Category 5 demand storm” in the electrical vehicle market. He said Tesla is stuck between “two waves of growth” – the primary led by rising sales of high-end electric vehicles, and a second expected to come back from mass-market electric vehicles and robotaxis. But despite this narrative: “Investors’ patience is slowly wearing thin.”

This comes in keeping with Reuters reported Earlier this month, Tesla announced that it had abandoned its plans to construct the Model 2. Musk replied in a single tweetby simply saying that “Reuters is lying (again)” without making it clear.

Given recent demand concerns, Musk also commented announced On April 5, Tesla announced that it will unveil its robo-taxi at the tip of the summer.

Meanwhile, Tesla cut prices for its electric vehicles within the U.S. late Friday, bringing some models to their lowest levels ever. This comes after Musk last week announced 10% layoffs and recalled nearly 3,900 Cybertruck pickups to repair or replace accelerator pedals that could cause unintended acceleration.