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tv   Cavuto Coast to Coast  FOX Business  March 1, 2024 12:00pm-1:00pm EST

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22, 25, 28, 31. i'm not sure that ashley is first, go. ashley: i don't have a clue, 28. stuart: sound like a good guess to me. lauren: 25 is a solid guess. stuart: i'm going to go with the low number, 22, probably wrong again. all right. okay. the answer is 22. together those countries share 28,000 miles of coastline, home to 480 million people. lauren: i've got the question wrong every day this week. stuart: first time i've gotten it right in a long time, good to see you again on monday. out of time on "varney and company". i now have to tap dancer 89 seconds because coast-to-coast starts in 2, one, now.
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neil: not roaring like a not lyanne but it won't go out after a lamb after the two months we've seen with these markets and not looking at the nasdaq and s&p, building on records yesterday and acknowledging investors are chasing of the day. artificial intelligence was a big deal last month, one of the smartest people on the planet tell us it will be a bigger deal this whole year. ubs's ai excitement fueling another 20% rally from here, the s&p 500 this year and arrayed domino says things might get crazy but are far from crazy right now. as we set up on the third month of training, what's next? let's ask ray want, gary k kaltbaum. ray, what do you make of this? it's too fast. another 3% or 4%, calm down, what do you say?
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>> the market has a lot of room to grow even if nvidia hits 900, we have the beginning of the ai age, that's just hardware, we have areas around software that will grow, companies that make a lot of advancements and service companies, this is like the beginning of the internet. we have a lot to grow, a lot of stacks and layer to gain in that area and a lot of winners and losers that haven't even been created yet. stuart: julie: but you are the kid in this, we are seasoned veterans, not you but we can remember the internet boom. i see stark differences, you put it this way in the past, what do you make of where we are now in this run-up now that continues unabated now? >> you never know if it's gone
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too far too fast. all i can tell you is it is still going on and there's nothing better when you see growth technology companies raising estimates far and wide to the upside at it's not just one name. it is super micro, dell talking about it, nvidia, we are talking gargantuan increases in earnings and what happens at that time, institutions sit down in the morning with her portfolio managers and analysts and say we are going to make 6 books a share, now they are going to make 10. we've got to buy a crap load more and that is what you are seeing going on right now. how long it lasts and how far it goes i don't know. all i know is it is still going right now. amd breaks out yesterday, taiwan semiconductor breaks out today, seems to be something new every day and as long as numbers keep increasing we are in good stead.
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neil: when you look at valuations, stocks are racing but earnings are not following suit. when they are they look strong. nvidia added a price earnings multiple of 100, now it is only 60 or 65, not sure what it is now but in other words, the morning money comes in, the more adjusted by the money that goes into stocks. i'm wondering what you make of that? >> we have some legacy affects. nvidia going up means that tmc will do well, company like amd will do well and go after nvidia. it was the software companies in this space as well. google and microsoft and other companies coming here, meta is a hardware a lot of language models are so that's where growth is. companies last year did not
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budget for ai. 20% of their technology spent has gone into ai, we see the shifted to companies with ai stocks. those that don't have an ai offering, the short answer is yes so we are seeing a massive divide between companies that have ai or deploy ai or don't have ai, start to see that in the market. stuart: neil: so focused on ai and the magnificent seven. stuart varney talked to ken fisher who had a different viewpoint. my to be magnificent but not the reason markets are looking magnificent. react to this. >> most of the media says it is the magnificent seven. six huge tech stocks, that's the bull market. the fact of the matter, look at
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the s&p 500 last year, 348 in stock, 192 rose 20% or more, the world index, 1480 of them, 642 rose 80% or more. if you pick out the magnificent seven, it increased on average 17%. >> the brilliant mr. fisher is correct. japan is that new all-time highs. i'm finding strength in jpmorgan and wells fargo in the big banks. i'm finding new yearly highs in truckers like old dominion. i'm finding breakouts in a bunch of different sectors so it is broad-based and the talk of seven stocks was passed, not anymore. tesla is no longer magnificent, apple is going by the wayside
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so the top seven is getting cut down a little bit but we've no based, broad-based, the russell 2000 growth, 2,000 stocks about to break out the two year highs, that would add more fuel to the fire. lauren: 1 to see follow through, and the risk of 2,000, that does get attention. let me get your attention if i can one at a time on interest rate scenario because that's a deep impact on technology stocks in general not exclusively but those stocks generally go down but given this environment where it's possible the fed doesn't cut rate at all and market rates go higher where they are now, how does that change or not the scenario for you?
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>> absolutely right. what's happening is we are operating at a 5% interest rate, we've seen a lot of companies letting go of workers. what they are preparing for is a world that will be at 12%. most of the cfos we talked to are focusing 3% in the next two years and that is change the investment our locations. the other piece in the tech market is the it market, one of the first ipo markets ever, two big ipos in the tech space, hoping the pipe comes back. once the deal flows there, there will be exits and we did hit the bottom sometime in 2022. stuart: we will have to watch that closely. he refers to cheap financial officers, the guys to keep track of one hundred ipos, initial public offerings picking up some steam. your thoughts on this and how the fed might risk screwing all this up.
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>> they have done in the past so we watch them closely, the only thing they can do right now is raise rates which is off the table. as i said time and again i am not paying attention to the fed. nothing personal. i am just watching that we 10 year yield and it has quieted down. the fact that it is up from the lows is normalization of jay powell printing money and taking rates down artificially. i'm seeing it as no biggie. i'm watching my stocks, they will tell me everything i need to know. they are acting strong, but leave no doubt if the 10 year yield starts heading back towards 5 an even higher that will definitively cause some sort of head wind. to what extent i don't know but i'm sure it wouldn't help housing, wouldn't help utility stocks but right now the market doesn't care, growth stocks in technology are going their own way regardless of where rates are but i will always watch them closely.
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neil: don't go anywhere, a great report is coming up, kelly o'grady has been following the soap opera that has become community bank, shares better than 20%, taking a lot of smaller regional banks, we don't know if this could be another spv thing or sovereign last year, the bankruptcy fund last year. very different. i hasten to add that but kelly has interesting revelations, things she has discovered. what can you tell us? >> one week out from the 1-year anniversary of the regional banking crisis last year. regional banking stocks sliding again. this time it's led by 20% drop by new york community bank today. it has been under pressure for months. investors have grown more concerned about the commercial real estate loan portfolio, you look at that, stock is down
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roughly 65% year-to-date, the latest disclosure cited three new pieces of bad news. the fourth quarter losses were $2.4 billion worse than previously stated, the ceo is out, the bank identified internal risk issues, not something you want to hear on wall street. the company said management identified material weaknesses in the company's internal controls related to internal loan review resulting from ineffective oversight, risk assessment and monitoring activities. the regional bank stocks have been volatile since last year's regional banking crisis that led to the collapse of spp and signature. today's no different. you can see the anxiety is spreading to other regional bank stocks. some are down 1%, citizens is up half of one person. it is stemming from similar commercial real estate how holding his.
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they hold 2.7 trillion and the majority of that about 80% held by smaller regional banks. those are the banks that are too big not to fail. one thing that is unique that's driving their issues, they expanded quicker than they should have. they bought a lot of signature bank assets following the failure last year. of the regionals don't have that issue but you heard the change in leadership, admission of week internal controls sparked some depositors about the regionals in general. neil: if you're wondering about commercial loan exposure, great reporting is always. now back to gary and ray on this. i particularly noticed the ten banks with a high concentration of commercial loans whether they are good or bad, they are the ones being hounded so i don't want to say that's the problem because it doesn't indicate just because you have i exposure to commercial loans,
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but what do you make of contagion fears that always build with something like that? >> wall street has magnifying glass on regional banks, especially the ones that have exposure because you just don't know. you never know what is behind the next door. i remember in 2007-2008 everybody kept saying don't worry, everything is okay and then we found out wall street does have pretty good memories so these companies are on notice to be looking over their balance sheets, looking over their loans, seeing where they stand and make sure they have full and fair disclosure to the public and hopefully things work out but i will tell you this. go take a look at the regional bank etf, go look at the xl of which is the big bank etf and you will see a stark difference in what wall street thinks. the confidence in smaller banks versus big banks, way below as far as i'm concerned we like strength, we don't like
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weakness. with nyc be, very simply, when you hear the words chief risk officer fired and we need a new one, run for the hills, tells you everything you need to know about it and i suspect it could end up being taken over by somebody big, and somebody will get bigger down the road and probably real soon. stuart: that is what happens a lot of times, but we still have a lot of regional banks, not wishing helon anyone but thousands of them, many will argue certainly after the crisis of the 80s, dramatically whittled down the number of savings and loans we have. is that we are looking at, we had to go through this. >> the challenges, the concentration of banking, megabanks got so big, regional banks picked up commercial real estate portfolios. people were not returning things fast enough. on the other end, new york city rents have come back and
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stabilized, that the majority of the portfolio but other cities like san francisco we haven't seen that reaction yet so that's the challenge when we see moving from city centers to serve them in areas. public safety issues, that's was driving the sentiment and there's a lot of issues really driving this. neil: those questions always come up after the fact or during that, thank you both very much, great insights. we are getting more legal insight as to the plans of donald trump who is running for president, you might have heard but he has a billy calendar to sharpen a number of courthouses including one in florida that's debating is document case, that's just one. the impact after this. ♪
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>> donald trump has a busy schedule not only ahead of super super tuesday, he looks into when i get the republican nomination. as things stand now, he's got all these legal cases in
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florida where they are debating, the one about the documents and whether he stole the men should have given them back or lied about how many he had etc. etc. . it is all about getting the timing right on this and when you can have a trial if you can have a trial. i will get into that later. charlie gasparino is looking at trump media being sued by the co-founders of this spat that was involved in this. it gets complicated but shows a little bit of all the things that are on his plate. what's the latest? charles: patrick orlando, one of the cofounders on trump media and truth social is all intertwined. i spent a lot of time speaking with patrick the last couple years, on things that are becoming public, we assume on the travails of it because it was off and on for a long time and now it is on again. he claims, patrick does, that he was essentially screwed by donald trump as to the shares he will control.
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in his words, illegally diluted. it is a suit in front of the delaware chancery court. this is where it gets interesting. that's a court that adjudicates all business issues, the main court for that. you can, if the judge comes in and put to stay on this deal, comes in and says i need to first look at all the issues before it can become public that will throw monkeywrench into donald trump's plans to finance some of those lawsuits like leticia james -- leticia james's money name. >> this is the fort pierce florida court where they are deciding about the document case related to his document when he left office. it's a different ballgame. it is among the litigation
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going on. continue. charles: here's why they are connected. donald trump, one of his biggest liabilities isn't the documents case. it is new york state, where he owes $400 million, might have to put up a bond or his property. neil: another 90 million, go ahead. charles: if you are cash poor which apparently he is because his lawyers have gone to court and said that even though he claims to be worth $10 billion his lawyers say he is cash poor and doesn't have cash, essentially what they said, to get a stay on the new york state case but if you are cash poor, one way to get richer is the trump truth social deal to become public, and $3 billion in your pocket or stop 3 billion so he can finance them. if this judge puts a stay on
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that based on this lawsuit by patrick orlando that there is a monkeywrench into it and his money problems ramp-up exponentially. then it is going to be an interesting couple of weeks for donald trump in terms of what he puts up. does he put up mar-a-lago? this could get messy but we will know in the next couple weeks. neil: no one covers his money issues better than you so appreciate that and your insight. charlie gasparino keeping on top of that because this is pivotal to that entire campaign in and outside the court. let's go to a federal defense attorney who knows the ins and outs of all these things. so excited to know you were going to be here. there's a lot he has to juggle. some cases were held when judges want to hold them, bump
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up against timing of key primaries and the republican convention. how much to courts way that sort of thing? >> we see cases continued and adjourned based on availability of counsel, illness of folks which i couldn't imagine what's more important than the front runner for the republican nomination. that seems to be a suitable reason. it traditionally hasn't been the court in dc the federal court, as well as court in new york, we will see what happens in florida. we should here soon with jack smith asking for trial date of july 8th, donald trump hoping it happened after the election. i imagine that trial will not happen before the election. neil: the supreme court taking up oral arguments in april on the immunity claims.
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you can't touch me. could this judge in this case. >> that could happen in florida and be a good reason to put it off. that's certainly going to happen in the dc federal court. with respect to the supreme court's grant of search they have an expedited briefing schedule, the decision is going to come out by the end of the term. for their official acts, we may still see even if the supreme court gives donald trump some relief a trial on the question of whether his statements and january 6th conduct was an official act. it will have that before the election.
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neil: there's a possibility where all of these, at least non-civil matters which are the most expensive of all are put, could be put off until after the election. can he make those go away? >> with respect to state issues generally not. with the fani will indictment we will see what happens. adam: might float of its own accord. >> with respect to the rest of the federal things arguably a president can tell the attorney general to get rid of the case, i don't know if he will do that. that will be different from one most presidents have done. what is true, he could pardon himself or at least push that off until after he leaves office.
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neil: thank goodness. it's got to be tough by donald trump going back-and-forth, dealing with mar-a-lago, on and on we go in the travels and traffic of donald trump front and center. i want to let you know, charlie brady, he was noting the nasdaq and the s&p follow up on yesterday's records, continued records today. for nasdaq, gets a lot of attention, averages have their most dramatic accomplishments in the middle of trading day, the all-time high reached by intraday dating. intraday record. a lot of people were bullish enthusiasts, that is a good
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adam: neil: normally when stocks are on fire, crypto and other related plays are not. $5000 a coin. there's a report this is a rush to one hundred thousand dollars a coin by the end of the year. don't know the credence you put in that. the crypto universe getting out of attention off of its best month in three years. the rally, when you see bitcoin jump up, the etf thing, the short-lived catalyst is last. >> i do think it will last. in the bitcoin ecosystem over the last two months before the etfs, for retail self-directed
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investors, 20% of the market, the largest institutions and wire houses and financial advisors are all able to access bitcoin. we have entered this new era of price discovery and those people control trillions and trillions of dollars. if they allocate one% or 2% to bitcoin which many will, we could see sustained price appreciation, dampening of historical volatility. we are in a new era of bitcoin and it is exciting. neil: we tend to lump them all together, you see the other players. a lot of people say if they might go there. turning get things around. great market for this. rather than getting any of these guys exclusively. how do you tell investors what to do?
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>> a few things to unpack. if you out okay to bitcoin, for an etf, the bitcoin etf are among the easiest, lowest cost and safest ways to access bitcoin that ever existed. we are talking fees that are extraordinarily low and there's the question of which crypto assets you want. in the etf rapper the only asset you can own is bitcoin and as we discussed in the past, bitcoin is different from other areas. people still have research to do, what many people are able to do which they were not able to do in the past is have exposure to the crypto system with easy packets, that is what has changed. whether they go from bitcoin to other assets in the future, i think they will but the process will take six months, a year, some time.
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neil: this isn't either/or, stocks not doing well, precious metal and gold, they can go together and have gone together fairly consistently. >> we are in a bull market for american equity or crypto. they are driven by different things. the us economy is robust. inflation is contained. we are seeing significant rallies on the equity side. some improving regulatory conditions, improvements on the political side. it's great to own assets driven by different things. the best when they are both working together but even if they have different rallies, that's how you get the best risk of adjusted concerns over time. these are assets, nice to see them both.
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neil: thank you for taking time. grow your attention to something that president biden in the state of the union address. and it happens sometimes. we debated this for years. it used to be 90%, supposed to be now. after this. ♪
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adam: donald trump is not dealing with a beef with leticia james. and james is off a big wins against donald trump. the largest beef producer. being not forthcoming to the public about their sustainability efforts. when they had their commitment to sustainability, they are misleading consumers and endangering our planet. and a promise of healthy planet for future generations.
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and environmental groups, they are a major driver of omission. james says that goal is not feasible. in a statement to that, he will partner with farmers and ranchers and the food system partners around the world to feed a growing population using fewer resources and reducing the environmental impact. our belief american agriculture can sustainably feed the world is undeterred. even though jps usa is an international company the new york attorney general's office is pursuing this case because they have an office here and operates in new york county. another interesting business case with financial capital of the world. neil: thank you very much. lee carter, the strategist and pollster.
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when all is said and done, this -- the criticism of leticia james is truly you have more important things to do than this because this seems like a major producer, seems out of sync with what's going on. >> reporter: seems fascinating that she would be going after a producer for this. a lot of companies right now are deciding should be back down from esg? is it better for companies to put forward sustainability goals? or just walk away from them entirely. this kind of interrogation in this kind of litigation as a result of putting forward, a lot of equal said, a good effort on his part.
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some unintended negative consequences. this adds to the notion, is new yorker friendly place to do business? it will be a big question mark going forward. neil: this it happened it to me it could happen to you and a lot of businesses titans, jamie dimon, jpmorgan, was an inhospitable environment. the better part of valor would be states like texas where they don't do that. >> what i think, there's nothing more important than protecting our food supply or our air supply and reality is by pursuing this legislation, holding this county accountable and making sure we have beef and clean air to breathe, including business, the idea
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that we have to be either to the left or the right and what's good for business is bad for the environment, what's good for the environment is bad for business is a false choice. i applied aji james for pursuing this. neil: companies or businesses that would be harming the environment than those in the business of herding cows, but that's a separate issue. can i address something else to get into this for you? the state of the union address is expected to talk about how the rich paid more higher taxes. i have always asked this of politicians who support this kind of thing, what a fair amount for the rich to pay when they are paying their fair share? the only one i asked who gave me an honest answer was bernie sanders when i alluded to the fact, and 70, getting close.
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in other words he was getting to the point, that is closer to fair share. what do you think? >> red meat for the masses. this is a democratic talking point, let's go after the wealthy and corporations, they should be paying more, how much is enough, 50%, 70%, 90%, whatever the number is, there's almost a never enough answer. republican this have an opportunity to talk not just about taxation for the wealthy but taxation overall. this is something very typical. it is almost too easy that that's going to be what he focuses on when his numbers are so low. he has a heavy job on thursday night. not sure this is where he should be focusing his attention. lauren: 20 the bottom line,
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regardless of tax increases, it's a problem for both parties, controlling spending. address that. talk about raising revenue taxes down the road. what do you think? >> the reality is a small number of people have a lot of money, president biden and democrats, they tried to level that. at the georgia afl-cio office, to underscore that democrats and president biden is committed to expanding the middle class. the same is true here, what's good for the middle class is good for everyone. the notion to give the rich more and it will trickle down has not poured out in our economic history from the 1980s. more people are doing better, we all do better.
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president biden is not antibusiness, democrats are not anti-business, what we are is very pro-middle-class, more people having more, the key to economic security and overall security for the country. this is what the president needs to be doing at the state of the union and the final stretch. neil: you don't want to bite the hand that feeds you. got to be a better way of handling that. we will see what the president outlines next week. appreciate that. they developed in the ev push that will finally help sell more evs. this idea of finding common ground on charging stations. just happened after this. whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work.
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i think he's having a midlife crisis 1-800-217-3217. i'm not. you got us t-mobile home internet lite. after a week of streaming they knocked us down... ...to dial up speeds. like from the 90s. great times. all i can do say is that my life is pre-- i like watching the puddles gather rain. -hey, your mom and i procreated to that song. oh, ew! i think you've said enough. why don't we just switch to xfinity like everyone else? then you would know what year it was. i know what year it is. adam: neil: when it comes to chargers we are learning chesler is open to seeing its chargers in the united states to ford and a bunch of competitive vehicles here. this should set a, standard that will make it easier for
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people who are weary about purchasing different types of evs fearing some charging stations where you can go and somewhere you can't, i go to lauren fix, how big a deal could this be if people find commonality on where they can charge their vehicles? >> this could be huge. the tesla charging station has been the best out there. as we look at europe, they've had no charging issues at all because everything is on the same plug. in the us, if you purchase a tesla, it is fabulous for those who purchased cheslers. everybody else got on board but there weren't enough charging stations sotos i made a deal with ford and so forth down the road. everyone is jumping on board and ford is the first to have access through their lightning after one hundred 50 truck to charge in a tesla charging station which is really good
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because one of the biggest issues is finding reliable charging and this may solve some people's problems. neil: chesler has the most chargers so that makes it easy. the other competitive systems have their own charging systems and networks. how much of a game changer would that be for them if those people go to the tesla charging station? >> a lot of the charging stations come different ways, you can get level ii charging which is going to take the same it would at home. and the charging that tesla planned for their people, originally part of the car you got, free charging, that has changed and now they are building more charging stations that are tesla only. very smart, elon musk is smart, he will say if you buy a tesla you won't get cut out of having a charging space, you can use my super charging station exclusively for certain charging stations but this is good for all the charging companies. one of the biggest problems
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consumers find with electric vehicles is the cars are spectacular. the problem is the charging get, you've got a rental or an apartment, this will allow people to charge other people's networks. the big dilemma, go to a charging station at you've got another branded a tesla owner and you can't charge, tesla charge at a faster rate, the other vehicle will charge at level 2 so this offers more places to plug in and to be charging, that, no one really talks about. neil: great catching up with you. as the week goes on, a lot of people, we will have more on that after this. ♪
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