what are you going to do about that? >> we are in the process of speaking to that. i made a promise that i think will be kept both by me and by the president in a relatively short period of time. >> the phone records, the notification spoke to phone records, because the justice department's speaking to, it doesn't speak to e-mail reports. based on your briefings either at the time or now, can you say whether journalists' e-mail records, including contents that may be older than six monies were accessed as part of this investigation? >> again, you would have to refer to the letter that the deputy attorney general prepared. it actually i think is from what i understand -- i've only seen it in draft form, but it is pretty specific about to times, dates in which things were

acquired, and what actually was acquired, but is all in the her that the deputy attorney general sent back to the a.p. >> first time we've had a chance to she to you since the boston marathon bombing. any evidence so far that the attackers received some training and/or support from russia? >> that investigation is ongoing. i don't want to comment too much on it. i will note that the fbi director was in moscow last week. we've gotten good cooperation from the russians, but we are exploring everything in connection with that matter. >> reporter: was a.p. the only news organization that got their records subpoenaed? >> again, that would be for the deputy attorney general and u.s. attorney to respond to. >> reporter: can you say whether, as a general matter, it's possible to conduct a thorough investigation of leaks of classified information that

appear in the media without taking some of these investigative steps action like pulling records? >> the department of justice regulation say you have to exhaust all the other possibilities before you engage in interacting with the media. so it is possible to do investigation in that way. but each investigation is different, and as i said, i'm confident -- not knowingth facts, that the decision to do what they did here is consistent with having exhausted all the other possibilities. >> reporter: can you give -- can you give us the total? >> i think i'm probably the only i'm i'm probably the only person that was recused. out of an abundance of caution.

it just seemed to me that having been interviewed, having knowledge of the matter and then interacting with the press, that it seemed probably better for me to step out. >> on the irs, you had a strongly worlded defense of using the federal court system in terrorism cases this weekend over at cal. you also expressed a lot of regret about how guantanamo -- is it your desire, to move into the second term to make another push to transfer prisoner back to the united states? >> well, i think we certainly ought to use our federal court system. it's proving to be effective. it's a place in which we can convict people. it's also a place where we can get valuable intelligence, and what we're going to try to do is close guantanamo. the president has indicated it's too expensive, a recruitment tool for terrorists. it has a negative impact on the

relationship, so we'll make a renewed effort to close guantanamo? >> the appointment of a new senior official at the white house or elsewhere to work on guantanamo issues? >> we're in the process of working on that now. we're looking at candidates. >> why was this? -- why was the a.p. case different than other leak investigations that you're all involved with? i know you're not managing this investigation per se, but you described this as one of the options. what made this different, in your estimation? and why did it require such an extensive sweep of materials? >> sweep, i'm not sure about. again, i don't know the facts there. but i do know enough about, you know, what was compromised as a result of that leak. and on the basis of that knowledge, that is -- that gives me the ability to characterize it as a serious matter, as i said it was. >> reporter: on the irs matter,

what statutes potentially may have been violated? >> we'll have to get you that. there are a variety of statutes within the i.r.s. code that i'm not familiar with or have the ability to give you the numbers, but that we have looked at. in addition, there are other things in title xviii that we would be looking at as well. >> with boston, benghazi, i.r.s., it seems like the fbi is involved. only a few more months until mueller's tenure is over. u.s. attorney general eric holder speaking at a press conference in washington, d.c. addressing a number of topics, primarily the i.r.s. and a.p. and doj scandal. he says he's recused himself from the a.p., and effectively too close to the media, and also conducting an investigation into the irs overly going after any

conservative group. i've had said enough and haven't said too much at all. eamon javers, let's get the latest. wide-range -- >> brian, kind of stunning there, the range of issues he was responding to there, let's start with some of the news here. holder said he has ordered an investigation to be begun by the fbi and the department of justice into this irs situation, a situation that he called outrageous and unacceptable. he said he's not clear whether any laws were broken will, but the department of justice are investigating to see what is happening there. haz all about whether or not the irs improperly or potentially now legally subject patriot tea party groups to a higher level of scrutiny when they submitted applications to tax-empty status. he also talked about this other situation, saying that he

recused himself -- he testified, rather, back in june of 2012, now interviewed in connection with the situation, and the deputy attorney general would have been the one that would have thor iced any kind of subpoena of the a.p. for their phone records, but clearly the attorney general saying he doesn't have the facts in this case. a lot here and a lot unanswered from the attorney general himself. >> i know, listen, i know mandy has a question as well, but i have to jump in. to recuse yourself in an investigation by saying you are essentially too close to the media, but then you're holding a press conference with the media, what's your take? i can't remember seeing a precedent such as this before. perhaps you have? >> we've had a very bizarre situation here, because we had this bizarre split-screen situation, eric holder brie the 1i9 ways, at the same time jay karn jury briefing the media being asked many of the same questions.

james karney's press conference was for 12:30, holder was scheduled for 1:00, didn't get started until a bit after 1:30, but simultaneous briefings here, that you don't get the sense this is coordinated well, and that was something that jay carney was making as a point, we can't ask for fear we'll be trampling on inappropriate areas, so a bizarre sort of moment here, and we'll have to parse through what both of these guys said. >> do you feel that essentially we're losing political capital in obama's second term here, and it feels like an awful lot of distraction, a.p., benghazi, et cetera, a lot of the issues that maybe should be addressed but can't be? >> jay carney was asked exactly that question. can the president focus on his job and his agenda when all of this is going on. there are these various fbi investigations taking place that may reach as high as the white

house in some cases. we'll have to wait and see for that. of course, karney said, yes, the president can handle that, but you've got to understand in washington these things can be very time-consuming, very exhausting and demand a lot of attention from folks over at the white house and the department of justice. so there's a lot of energy that goes into these and there's only so much energy to be spread around to some of these other issues. >> and thank you very much, eamon. it is the ultimate david and goliath story. dan loeb versus sony. is it a shrewd move or flawout silly? >> plus is tessly the next apple or next ford. and thinks the stuff is going to $200. e announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school.

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well, we are looking at record highs, for the dow and s&p. is it any surprise, though, that the dow is higher, because it's a tuesday, folks, and today is the 18th tuesday that the dow is higher. by the way, they have notched up gains for may that are more than double of that for all of april. bob, you know, what i want to hit on here is there's a lot of questions out there about the move up in the vix today alongside the spike higher in equities. let mess put up the vix. normally we say it's a fear indicator. here is a good example of the volatility index today. as the market was going up, the

vix was going up. remember, the vix measure near-term activity in puts and calls. we're in uncharted territory, at new highs, as the market is melting up. a lot of activities of traders, buying a lot of calls as well, and it's possible if call activity is particularly strong, it's possible for the vix to go up, even on a day when the market is going up. it's unusual, but quite possible to happen. meanwhile the trend is intact. energy, financials, materials, consumer discretionary have been leading for more than a month. by the way, speaking of tech, tomorrow cisco and everybody's talking about how strong is i.t. going to be, listen, it doesn't matter. cisco is holding up. 3.2% different yield, mandy, you know something? that's twice the s&p 500. that's what people want for these stocks these days. >> thanks very much, bob. meantime, investing titan

david tepper on "squawk box" this morning, very bullish on equities. hugh, do you agree with his pretty wildly bullish view? >> he's a tough guy to disagree with, but on a longer-term basis, i think he has it right. the performance of the important economic numbers we all watch every day, i think he's fine. i think the problem i have with what david is saying, i think common sense alone tells you we have come very far, very fast this year. it's just common sense alone says we're due for a pretty significant correction, and i it make a fairly good case for a correction, valuations a bit high right now, so i think, yeah, longer-term basis, smart guy, he's probably got it right. short-term basis, i think everybody has to be a little on their toes. >> nothing goes up on a straight

line, right? nonetheless i asked david what would change hi bullish view. he kind of searched a bit for some to find. would you agree that it's quite difficult right now to find a serious reason for the market to move backwards? >> yeah, i think it's pretty hard to find something sustainable on the down side, but if you started to get some numbers if the economy weakened, if you started to get some numbers like leading indicators, or telling me this cycle would go fuller, we started to get some numb% that said, no, look, this is running out of gas, we're likely to have a turndown, then i think all of us have to go back to the -- but right now you don't see any of those things stating again or making it clear that we have further to go on a longer-term basis.

we have some breaking news right now. straight to tyler mathisen. >> the jury has returned a verdict in favor of the plaintiff in a long-running case involving the las vegas sands and a taiwan businessman who sued for $328 million regarding his help of sands in securing gambling licenses and other sort of benefits to enter the gambling enclave of macau. the plaintiff had asked on for $328 million, and correct me if i have this wrong, they have voted in favor unanimously of a $7 on million award of the plouffe in nevada. that's the story on the long-running case, richard suin was the plaintiff in the case, and sheldon adelson.

he toefield memorably at that trial back a month or so ago. folks, back to you. thank you, tyler, we can see that sands is up. >> he was suing, and he won. he had this to say about apple this morning. >> we still have a position in apple. we bought a bit below 400. i along with everybody else is waiting to hear what they have to say as far as do they have something revolutionary in the horizon? revolutionary? or do they have something evolutionary? if you don't have the steve jobs around to do the revolutionary sort of thing, do the evolutionary thing, and you have a have company that gets better. if they don't do either, we have a problem. >> joining us from r.w. bid is willpower. will, do you think that even an evolution reannounce muppet

would be enoug -- reannouncement would be enough? >> i think you're on the right track there, mandy. i think it needs to be more along the lines of evolutionary rather than revolutionary. you have to be on the top of your game in terms of hardware or software. apple i think in many respects is falling behind. >> i seem distracted, because i'm looking at apple stock. the last five or ten minutes has taken a pretty good drop. change of topic, and ask if you know why? >> i don't have a good answer for that, i don't think it's anything out of blackberry conference or nokia announcement this morning. >> if anything the nokia announcement would help apple. >> well, probably the same thing with blackberry for that matter. as i look at apple here, i think you should have some base level here, just by the nice buyback. you talked about that 3% different yield for something

else a moment ago. that's what the investor are are obviously focused on. but the back half of this year is getting confidence that this product road map will play out. if they deliver a iphone 5s and ipad mini with retina display -- >> and the price tart of yours is $438. >> that's right i think this stock will struggle to trade as a market or higher multiple. look no further than samsung. the reality is consumer electronics in this market today is tough to get up to a market multiple. >> will, thank you for your comments. dan loeb success calling for change at yahoo! but he's taking on an entirely new beast, sony. he's calling for the breakup of the company. yaw hi yahoo! is not sony.

ryan, sony is about six, seven times bigger, b, japanese, c, c, a and b. will he be successful here? >> yeah, remember this time last year yourself and david asked me what do i think of news corp.'s breakup. you'll remember last year -- is you buy that company there. look what's happened. up 30%. the truth here is you have a japanese -- the japanese areas essentially is a fantastic area to be buys in. you've got government change with devaluing of the currency to -- you've got -- it's going to unleash and unlock the levels that the current equities are trading at. that's where the opportunity here is. >> in other words are you saying that maybe sony should take a leap out of tokyo's book and sort of understand we have to do something here? the economy in japan has been

stagnant for 20 years, started to follow the u.s. maybe sony needs to recognize they have to suck in their pride and do something significant here as well? >> look, mandy, you know, you've got such a complete point. dan loeb is taking the view that there's not just a u.s. that's making value. if you look at the u.s. last year, it made, what, 13%? it did that in q1 this year. likewise april and may last year, it lost all of that. it gave it away. look at the japanese market. 60 to 70% of the stocks listed on the to be jo stocks exchange trade below book value. look at the s&p 500, and it's twice that. so here's the killer thing.

if you've got with the sony stock here, it's's got to break up. this is a bit -- >> i think you were going to say it would be the start of a big battleground. >> it's close. >> unfortunately we have to go. we'll get you back on soon. we had a big press conference that ate up the top of the show. we're jamming everything together, but we'll see you soon, ryan. if you're right, it's just the beginning. jay-z had 99 problems, but we'll give you 91 reasons to has been happy to live in this. and mombook, have the kids been chased away? we'll discuss that after this break. time now for today's "return on retirement." it looks to be a crisis that's happening right now. the percentage of workers who

are confidence they'll be able to afford retirement remains at record lows. that's according to an annual survey released by the employee benefit research institute. here's what they found. only 13% of workers are very confident they'll bet retire comfort annual. 20% are not at all confident. that is pretty startling. wait until you hear how little workers have socked away for retirement. next.

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back now with today's "return on retirement." pretty shocking findings from a new survey. out of those who shared -- nearly 6 in 10 say the value of all their savings and investments, not including home values and pension plans, is less than $25,000. that includes 28% who have less than $1,000 saved. what's holding americans from

saving more? debt. more than half claim to have a problem with their debt levels. >> the mandy voice "resources." it's a good segment. you provide some good advice. i saw -- until basically like world war ii, nobody in america retired. you worked and then unfortunately you kicked the can. >> it's like the holy grail, i want to retire and retire as early as possibility. i don't know what i would do with my time. >> the national geographic last month said this baby will live to be 120, and quit their job at 50? it isn't happening. if you live longer, you have to work longer. speaking the nations 91%,

that is how many french residents are negative on the economy. i don't know what that is. negative on the economy, negative on the voice-over. kill that. >> have a sighest that. >> in paris? >> all i can think of is a pillow and la siesta. >> 91%. speaking of the french, listen to this. france is preparing to smartphones, tab letts and other internet-ready devices to fund french art, inert, culture. the new sales tax which could be up to 4% is broadly endorsed by the president. i think they very french. i like that idea, but i have to feel they're going to have to do something -- 4%, i don't know

whether that's too much or too little. number one, really annoy consumers, maybe even spark a black market. >> i think france has a lot of bigger problems they should focus on the big problems. it's like something out of "midnight on a friday night." good luck with that, france. still ahead, street talk action we're going to ask if facebook has turned into an old people's hangout? we asked lasts week, with tesla be the next ford? will it also be maybe the next apple? we'll talk about it coming up with a man whose price target is $200 on tesla. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio.

and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.

sploo. licing and dicing. the first is dean foods. upgraded from a buy to a neutral. they say excluding the value of that white wave steak, which they say is currently worth just under 15 per share, they see compelling potential value of 12, so essentially more than 26

$on a current base. we're about seven bucks more than where it is right now. also taketwo. >> who says video games are dead. eps 38 cents, 15 cents above the consensus, revenues well above consensus. there's a game called bioshock, infinite, sales were soaring. >> okay. we've also got creed. did you see that? i just took a shiver, did you see that? >> no, i did not, because i'm watching on radio. >> sterne agee down from 66, as phillips says probably taking cree shares. raising targets. it takes a village and takes a buyer and seller to make a market. >> it's an interesting stock, relates to something we've all been talking about today. shares of myriad genetics, hitting a new 52-week high, this

is because -- >> news that angelina jolley, she took a test, which is a test administered by myriad genetics that proved she has the gene that often leads to breast cancer. she had the double mastectomy, so maybe get a news on that move. if you have the dispensation for the gene, and my wife's mother died of breast cancer, so it's an -- insurance will often pay for the test which costs about $3,000, otherwise you might have to pay for yourself if you don't have a history or dispense, it's called the brac analysis test. >> and open hyper raising the targets from 68 to 60. the rating stays the same. that stock is up year to date. survey sells, 38% i think is the last time i checked, probably a 58%. it's a lot. >> a lot. >> it's a lot. >> talking of a lot.

a lot of down side. all of a sudden in many ale stock today. apple analysts will power, and will, i understand we were just speaking with you like ten minutes ago. you've been doing a couple calls to find out exactly what's behind -- have you found out anything? >> tell you what, mandy, i'm not aware of anything fundamental. i did talk to the trading deck. they did see a lot of large orders, so blame it on the computers, but aside from a to pinchal near-term -- i'm not aware of anything fundamentally. the stock has bounced off the recent lows, so perhaps you have people that get? at 400. >> what about ten bucks in a matter of an hour? something like that. will, promise us this. if you find out anything, even though it's not a call-in show, we have numbers. please call in, e-mail, tweet, smoke signal, pigeon. come back.

foster heinz unveiling a new cheaper phone today, a blackberry live. it's called the q5. anyway, separately, nokia shares are taking a beating as well, down more than 5%. so a lot to taupe about there. first of all, why don't i ask you about blackberry and this new cheaper phone. >> you know, candidly i don't think so. i think it will help in developing markets. developing markets generally, whether venza or indonesia is primarily the growth engine, but the question is, can you make money? i'm not convinced they can. the other question with the q5 is to what degree it can. their higher profit margin, and i guess that remains to be seen. >> do you think there's any confusion over the audi? q10, this is the one with the keyboards. e-10 is the touch screen. the z-10 and q-10, any take

which one will be more successful? can together they regain some mark share? >> first on the z10, our check suggests that demand mash somewhat lackluster. and so my sense is that's been only somewhat disappointing. i do think the q10 has real opportunity. we think that blackberry has close to -- in light of those, as you well know, still like those kwerty devices. i think you will get an upgrade cycle. >> i certainly like the physical keyboards. they're obviously going after the ladies' market, because i think it will be available in red, pink, white, all those female colors. >> i'm wearing a pink shirt. >> and you are very masculine. >> will, help me out here. >> you have alisha keys pitching the product, too.

>> pink is the in you black. >> you're wearing blue, what's up, lady man? >> move away. what color is your car? that's a girl question. nokia, you have an underperform, so clearly not impressed by anything coming out with at the moment. >> i think it's similar to the z10 feedback. we think demand has been somewhat lackluster. 5u89 profits acuto the high end. as best we can tell, nokia hasn't been able to break through. lumia 925 is the exact same but with a different casing itches that's not good, is it, will? you're not saying that like it's a positive. >> no, i think that's exactly right. it will not be a needle mover for them. >> if you find anything out about apple, let us know. thanks a lot. >> i love the pink tie, will. >> i want a full pink suit

tomorrow. up next, are moments taking over facebook? >> and birthday that has us feeling doggone out. you macho man, what's going up? stocks on pace to close higher. and yahoo! shares up 70% since marissa mayer was named ceo last summer. also speaking of tech, we'll be speaking with s.a.p.'s ceo mcdermott, and talk about whether -- and the ceo of citi mortgage tells us how the housing comeback is affecting that financial giant's bottom line. kayla tausche is with me today. we look forward to seeing you at the top of the hour. meantime, more "street signs" coming your way in just a moment. ♪

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with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. it is mark zuckerberg's birthday. he was born in 1984, the year herb turned 60. also the year that apple changed the game with tv commercials.

he's made about $450 million each year of his life, or according to my calculator, $1.2 million each day. >> i feel like such a slouch. anyway if you're part of the "street signs" team, you know your facebook feed is filled with the candy crush score and baby pictures. it feels like the median age lately is about 55. if the young cool cats are leaving facebook, where exactly are they going? inns that gram, tumblr? pintere pinterest? >> and twitter in particular, but on the last earnings call, facebook's cfo says the younger users remain among the most engaged. what they talked about recently is it's not a zero-sum game. they continue to use facebook, but also the other -- they continue to check it every day.

>> maybe they're in the middle phase, where they're starting to move away, by they still have the account, but they're just not using it anymore? >> based on the numbers -- >> phase-book. >> exactly. >> if you look at the growth and in mobile users and also mobile-only users, it's really striking. it shows that the mobile users who are inevitably younger continue to grow. the numbers don't bear it out. >> if you're 90, like i am, you're still sort of using facebook. >> you look good for your age. >> thank you. >> i'm still sort of using it, but i continue to use others like twitter more effectively. linkedin i think is important, as i've said before. my kids phase in and out of facebook now, but i think it's become part of family life. >> it is the way we live or life, something we use every day. >> old and young alike they care

if you're doing something. >> but also how much time. >> and that could damage facebook's business model just as much. >> i don't know if we can pull up the charts, but the growth in mobile users and mobile-only users are pretty striking. there we go. those are mobile monthly active users. that's very striking. >> how do they make money? >> they have ads in the news feed, but also we have to remember that facebook bought instagram. they go there for the photos and now facebook has the option of flipping the switch and putting ads there.

>> a contingency plan. i want to bring up something that brian was discussing. i think it's an excellent -- younger users phase out of things like facebook, because they're scared of maybe when they go for a job that their employer can go back and look at all the things, they look -- their privacy settings, if -- >> teenagers do silly things. >> if they're worried about employers, then they're not thinking of -- by the way, since you mentioned twitter, i saw an amazing stat somewhere that mike mark zuckerberg had over -- like sever hundred thousand followers, i think. >> several hundred thousand would not be a lot for him. >> but he never tweets. he's tweeted like less than 20 times. >> i follow him because -- >> rick santelli has more followers than me. >> but, you know, here's the

issue. in tv, jewels, you know better than i, we care about who? 45 to 54 years olds. that's who you want. >> 18 to 34-year-olds for digital advertising. >> if those are the people leaving and being replaced by moms or moms are more engaged, isn't that almost just -- i'm not piling on facebook here, but you see my point. >> look, facebook needs the young people to stay engaged. there's no indication that the younger users are leaving. i think it's not a zero-sum game and people are self-reporting their -- people are like, i don't care about facebook, but if the numbers at facebook show us consistent growth, that that's what investors care about and that's what advertisers care about. >> facebook ain't going away. >> nobody said it's going away. >> but it might have just to evolve a little. i thinker remember they have

this instagram thing action and it's december they haven't monetized it yet. >> thank you very much. we've been following what happened with apple. we showed you the chart. it's still moving lower, we'll go straight to josh to try to figure out what's going on. >> watch apple closely here. it's in the red. traders say it was showing some relative weakness all morning. he did say that he thinks the stock should be somewhere around 240. traders like scott red her tell me 450.50, that was the eight-day moving average. when that broke, some traders got stopped out -- he says you can see that stock is now down about 2.4%. >> good reporting, josh. thank you. i can't call you joshie. sorry. all in on tesla. we're going to speak with a guy

who's got a $200 price target. he's owned the stock. >> later on coca-cola's big secret revealed, maybe. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. at bny mellon, our business is investments.

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some really big news on boeing. let's bring in phil lebeau straightaway. what are we hearing, phil? >> for the first time in four months, boeing has resumed deliveries of the 787 dreamliner. the company delivering a new dreamliner, the first one since january. this one going to japan. so they have resumed 787 deliveries. and remember, they say that they're going to be delivering at least 60 this year. a long backlog to make up, but they say they'll make it. >> thank you very much, phil lebeau. on thursday last week, we showed you this. we showed you tesla's market cap. that shows the market values, quote, tesla stock at around $384,000 per car expected to be sold. market cap now over $10 billion. that puts the per-car valuation at about $500,000 per car. yes, this is hardly scientific. it was a little fun exercise i did, bored watching hockey. but your next guest says tesla

should be worth even more than it is. joining us, cole wilcox. herb is still here as well. cole, welcome to the show. you just did a presentation, saying that tesla should be worth about 200 bucks per share. compelling slide presentation, but how'd you get to 200? >> it's a five-year projection, you have to keep in mind, too, the $200 price target. i think we said it was going to go to a hundred or trade at hundred within 18 months. so we got pretty close, even though the stock's had a little bit of a reversal today. the way we get to 200 is really not looking at kind of where we're at today, but looking at sort of as they get into executing the third-generation vehicle mass market distribution and just the tesla brand kind of exploding around the world. >> it feels, herb, as anything less than perfection in delivery from this company could cause this stock to maybe fall faster than it's written. >> i wrote this piece today on cnbc.com. is tesla a tech company? and you look at this ting at its current valuation, and you have to think that anything that goes

anyway that isn't correct will get this stock heading the wrong direction. i have to tell you one thing, and not just a little bit like it is today. the morgan stanley analysts today came out and gave the stock a price target upper from 47. but he used what he calls a 15-year discounted cash flow model to take into account the maturation of everything going forward. the question, can you do that 15 years out? >> cole? >> you know, i think that i know adam, the analyst at morgan stanley, and the way you look at that report is how you have to look at tesla, not something other than that long duration venture capital investment in terms of where they're going in the future. so it's a function of what's the business model, what's the probability of them being successful in what it is they're doing, and how big is the market as we go forward in time. and where they've positioned the company at right now, you know, they've really got themselves in a great spot on go-forward basis. there's a lot less risk in the

stock today than there was six months ago, prior to getting cars out in the market place. >> and phil, you've probably driven one. i know you have. you did that tour. everyone i've talked to loves the car. 99 out of 100 on consumer reports. spectacular. everyone loves it. but can they make enough where they can ever get to the point where they can justify this kind of valuation? >> you're talking about a segment of the auto market as a whole, that upscale, luxury, anything over $60,000, that's a really limited market. what they need to do is go down market, which they plan to do eventually. and the real hurdles in the future is whether or not they can go from making one model to two, to three and increasing production. it's not just like flipping a switch, and yeah, they're all going to roll off the line and be no problems at all. they've had great success so far and they have proven their doubters wrong. the question, can they do this over and over, and moving to become a mass manufacturer of autos, very difficult. that's why a lot of people are looking at this and saying,

aren't we getting a little ahead of ousts? >> i would like to know where this stock would be if not for the government subsidies. a lot of people say, why does this car company even need government subsidies when it's essentially a car for pretty welloff people? >> right. the government subsidies is kind of a green energy. it's more of a macro thing that's come on, tesla has definitely benefited from having capital and access to the ab to build infrastructure and do the things that they're doing. but i'll have to tell you that if you listen to the conference calls about margins, they're talking about 25% gross margins by the end of the year, and that's exclusive of having any kind of tax credits or any of the rebates that come off from the profitability of the business. it's, you know, the manufacturing facility that they have, i would also like to point out, the plant there has the manufacturing capability to pump out 500,000 cars annually. they have the capacity to produce these vehicles, it's just the function of the one thing tesla can't speed up is time. >> so i assume you're not selling any of the stock, cole?

>> i'm not selling the stock based upon the valuation. you know, i think, though, that the stock may have gotten ahead of itself in the short-term. i would expect a lot of short-term volatility. a lot of new players, a lot of shareholder base that's come on. a very, very high amount of short-term volatility. >> the stock up 174% year-to-date. cole, phil, herb, thank you all. up next, the world's most expensive recipe. [ male announcer ] my client gloria

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we're out of time today, but tomorrow, a very cool story on ebay, coke recipes. it's very juicy, indeed. >> thanks for watching "street signs." coming up next, the "closing bell." if it's tuesday, it must be rally day. i'm bill griffeth here at the new york stock exchange. after that one-day hiatus, we're back to the races. >> currently on pace to be the 18th tuesday this year into the green. >> incredible! >> welcome aboard, by the way. >> thank you, thank you. i'm kayla tausche and i'm sitting here in place of maria bartiromo who's on assignment today. we have a big show. the stocks rocking again. the stocks on pace for another new record. and comments here on cnbc giving some reason to think there's a lot more to go in this rally. if you didn't think that we were going to keep