Wedbush's Dan Ives believes Apple Inc. (NASDAQ:AAPL) and Tesla Inc. (NASDAQ:TSLA) are the "only two companies" able to "thread the needle" between the U.S. and China.
What Happened: Ives underscored his belief that U.S. tech companies are ahead of their Chinese counterparts when it comes to artificial intelligence (AI,) in an interview with Bloomberg Surveillance.
"There's only two companies able to thread the needle in terms of China-US. It's Cook in Cupertino, and Musk and Tesla," Ives said in the backdrop of Cook and Musk's recent China visits.
"This is a huge win for Musk."
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
This comes amid Apple's recent struggles in China, while Tesla registered its first earnings decline in four years.
Both the tech titans have been facing trouble in China – while Apple's iPhone sales in China fell 19% year-on-year in the March 2024 quarter, Tesla reported a 9% fall in revenue year-on-year.
"There's only two companies able to thread the needle in terms of China-US. It's Cook in Cupertino and Musk & Tesla," says Dan Ives of Wedbush. "This is a huge win for Musk" pic.twitter.com/TGM6ErM5G9
— BSurveillance (@bsurveillance) April 29, 2024
Ives also thinks Apple and Tesla will remain notable players in China "because they make the best products in the world... consumers are going to buy them."
Why It Matters: Top tech analysts have been bullish about Apple and Tesla's fortunes.
While Ark Invest's Cathie Wood has doubled down on Tesla after the recent stock dip, investing over $17 million in shares, Ives thinks the seeds of Apple's turnaround in China are "being planted."
Ives' Apple optimism is based on the steady iPhone production in the region and the strong performance in other key markets such as the U.S., Europe, and India, which could offset the impact of the Chinese market's underperformance.
Similarly, Tesla has been making strategic moves in China. The company recently partnered with Baidu to introduce its driver assistance features in China, a move that could significantly boost its presence in the East Asian market.
Price Action: At the time of writing, Apple's shares were up 3.4% at $175.05, while Tesla's shares were up 12.50% at $189.33, according to Benzinga Pro.
Check out more of Benzinga's Consumer Tech coverage by following this link.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photos courtesy: Shutterstock and Flickr