painful. >> at least a tease. >> now, i almost feel like no cares. >> 2500 on the s&p that could be an interesting story. >> that's not going to get headlines either we're going to be like, that's amazing. >> i think a bigger landmark zpl how about 5% pop in tesla. >> interesting i think a relief bounce. lot of potential buying. >> call starts in half an hour "fast money" starts right now. "fast money" starts right now. live from the nasdaq market side overlooking new york city's times square i'm melissa lee. your trader rs pete, tim, karen and dan. tonight on fast, stocks at record highs again the dow breaking through 22,000 catapulted by apple surging to an all time high, but there's one stock that's been left out of the party that could be setting up for a major comeback. plus, are movie theatres going away as the department store amc with a massive warning but the chairwoman says under the rare way to cash in on this pain and later, the ceo of

sprint sounding out of b about a story here on fs munz last night, reaching out directly to me, of all people. what got him so riled up first, we start off with the big story on shares of tesla revving up following its earnings report we've got full team coverage gene is back with us out in detroit today getting ready to listen to the conference call in just about 30 minutes. we'll check in with him. phil is in chicago dig iging through the earn x report that just crosseded and phil, you had to read the shareholder letter, investor letter and to me, they addressed the issue of cannib cannibalization and cash flow. which i think were top of mind for investors. >> right we'll talk about that cannibalization because there's been so much speculation that as the model 3 came out with some strong reviews that people would say, look i'll get the model 3 for half the price of a model s. that's been a concern for tesla for some time. when you look at how the company did in terms of the second

quarter and where they were as they were manufacturing more vehicles, the automotive growth margins came in at 27.9% that's in line with where most people on wall street were expecting it to be capital expenditures, about a billion and a half in the first half of this year. expected to be 2 billion the second half of this year, then there's model 3 production they reaffirmed these. 1500 in the third quarter. 5,000 per week by the end of 2017 then 10,000 at some point in 2018, how is this impacting model s and x? well, tesla made it a point in the investor letter of saying look, we're see iing a slight increase in the number of orders for the model s and x. particularly over the last several weeks. and as they head into the second half of this year, the the company is now saying it expects s and x deliveries to be higher and they've noticed an inkrecree in orders in recent week, especially leading up to the model 3 deliveries

this is over the last five years coming into 2017 delivered about 47,000 in the first half of this year. it's expected they will deliver as many in the second half if not a few more those were primarily s and x then you have the model 3 deliveries, although they haven't given us a definitive target on those deliveries the earnings call starts in b about 25 minutes that is always the most interesting part of these reports because that's when elon musk gives us more color not only on where the company was, but where it's headed. we'll be back with some of those updates later on >> and then i want to ask you about cash in terms of capital expenditures ch $1.5 billion in the first half of 2017 i believe he said they would be spending about $2 billion or more they're spending less than expected and ended the quarter with 3 billion on hand, which sounded like more than what people were expecting.

>> a little bit more and then the $2 billion in capital expenditures in the second half of this year, you do the math there, it looks like they're going to come out with at least a billion dollars of cash on hand at least per projections lofor tesla in the second half of this year >> thanks, so, is this the beginning of tesla getting its mojo back? you're talk iing about a stock that's up more than 50% this year, but off by about 14% from its 52 week highs. pete >> i would say yes i think obviously, the earnings were very important. everybody wanted to see what these numbers are, we know exactly where they were going to come in, at least on the negative side of earnings. we expected revenue to be, they did both those two things. i think that was something as long as they didn't disappoint, that was going to be strong. this is still a software company masquerading as hardware company. he's been talking about this for a long time. i tend to agree. we look at these, the numbers for the cars

i think that's important because that's what's in front of us but i go back to amazon. amazon was a company selling books, right then they became something far different. i look at tesla in a much more similar way, we talk about the gig factory all the time the energy company they took in. there's a lot of different things going on right now. with tesla it's not just a car company. >> it can't be at this valuation and not with the approach they've taken. the cab part relatively under control. for a company that had been burning probably a bigger number and if you want to get that escape, if you want to be the amazon of transports, and adam has come on our show, they're not going for the one and a half trillion dollar vehicle market at some point, they're going to get it right, but they have to be at the table along with apple google and the other guys in a broader space, so these numbers are fine if we're going to focus on model

3 though, then we have to call this more of a car company in terms of what we're doing on the multiple >> now, we have the third car. the 3, model s, x, they were kind of, every step of the way, they kind of missed those -- the guidance sh, that sort of thing. so right now, investors are like, so they only delivered 15 last week of the model 3 this is the thing that's going to make the mass market adoption the thipg that makes it become a car company. i think you have to think of it as a car company not in valuation terms you just said, amazon has defie valuation terms for a long time. i think there's a lot of runway now for this company i don't think you have to think about it as software or tech company. i think you forget about solarcity, there's a lot of things going on. to me, investors will love to see this stock below $300

because i think every step of the way, we know they're going to have to raise capital it's had 30% drawdowns ef year in the last five years, to me, we had a 15% drawdown options market was implying about a $20 move >> most of that move was something more towards the upside what we saw today during the trade iing day in the middle ofe day, swron was talking about they're buying 320s, 325s. the kind of move they were looking for was more biased to the upside >> i don't know why we're so, are we really focused on bringing up cash is important, but they have been able to tap the market for cash anytime they want >> i think you know what, tap the markets right now. even if you don't need the money now. it would be a lot more expensive.

they're giving the debt. investors are so hungry for the debt or they can do a convert for so cheap i don't know why they don't do it now and fill the coffers. >> the stock is either ticking to its after hours highs up now by 6.7%. i guess your comparison to amazon, at the same time, it sells web services tesla is never, or i shouldn't say never. you don't sell hardware. >> they also invented it within tesla is the energy side of this thing. solarcity and giga factory when we look well, they missed on cars once again ch i think we are missing the bigger picture if gugen heim is right, if those out there i'm interested to here what the value is. we've got to have cash flow.

they won't get there not saying they won't. that's the important part. to get to that velocity. >> let's bring in our guest. fast money friend. what stands out b tonight? >> one thing is this 18 orders for the model 3 since they had the hand off event if you're going annualize that, these are people buy iing the c, sight unseen, that amounts to about 657,000 vehicles a year. or 30% the number of cars that bmw makes, the reason why i want to point that out, i agree with pete that this is not a strictly a car company. i think the opportunities they have and these preorder numbers really have a point.

>> bernstein did a survey and found one-third of those proordered didn't intend of taking delivery, so there could be a certain number of those 1800 orders per week that never get filled, no >> they could. those are, unfortunately, they're nontransferrable it's still putting $1,000 down, i think there are some people that will not fulfill that, but i don't think it's going to be a third. i think it speaks to incredible demand for a car that's been largely unseen >> this model 3 coming in at $35,000. once it's tricked out, it's a $35,000 price point. what, when people are slapping down $1,000, are they con figuring the car, do they know

they're going to be payi ining $55,000 if they want one with good range and bells and whistles at some point, does cannibalization become a big issue? >> before i saw the car, i thought it was going to be a big issue. when i had my test ride, i thought this is the best car for that price range but this is no model s model is is a rocket ship and so, i think at the epd of the day as the, it is clear ly different. apple's done a great job of dif wrennuating the projects the hand off event, the concept of the shared mission, not only with the employees, executive staff to custodians. everyone was passionate about really get iting this. it reminds me of the story of the custodian who told jfk he's putting man on the moon. that was the feeling at this event. so i just want to put that out

there. they have a lot to do. but this is one super charged group of people that wants to do that >> would you characterize a party like that, is it akin to apple in the early days when people would be lining up around the block and camping out overnight in order to get their hands on the first product sns zpl it's like that, but almost a slightly different level you have investors there who are supportive and the suppliers are on board ilt felt more comprehensive. when you look at the number, look at the picture of the event. believe me, they are busting their back to make this happen >> gene's going to be listen in in on the call which gets underway in about 15 minutes time meantime, let's trade it pete, i'll go to you because

gene, you know, was talking about apple, tesla the enthusiasm so, would you rather which are you more enthusiastic about at this point this time? i think apple. i've owned it forever. that keeps creeping up and up. wait until we get the supercycle >> i want so say something you've been right, but creep is the main word. when you think about 3% b increase in services when you consider how they're installed bases grew quarter over quarter, it's really not growing that fast

it was growing at triple digit percentages. to think about the tech savvy base they have the services these people want and loyalty they have to this brand, i have fo problem with 50 billion if this is where they're going to be. if they get to a place where this is a critical mass, there will be that hockey stick moment and either way, it's bringing up the entire march of the firm without any distraction from their mission. >> to that point, i know the valuations are different at this point, but couldn't you make argument for tesla, it's okay, you can still with a hardware company and the stock can find a reason to go higher. doesn't matter that you're a hardware company you don't have to have a hardware or car company multiple you're a car company z you were saying let them do what they're doing. doesn't have to be an auto company, but the model 3 needs to establish itself.

yes. >> that's what i'm saying. there's been a lot of comparisons between apple. you made one, too. with apple's release of the iphone there were plenty of smart phones out before it came. i think the most important thing going back to tesla here is that they are able like gene just mentioned, to make this idea of a $35,000 mass market electric vehicle an aspirational thing. we saw those numbers last month. they're pretty dismal, so if they can create a product in a dismal market which is what apple's been able to do, going back to apple, did you see the acceleration in apple? that's why tesla -- has ability to do this >> this gets back to a big problem i have are you telling me that bmw and toyota aren't going to be here with great car in two or three years? of course they will be an look at the pressure that the model 3 has put on the other oems. we've heard from companies, countries about whether they're going to outlaw internal combustion engines

can't tell me the rest of the world is going to be flat footed i don't believe that so, it has to be more than that. otherwise, you don't own this company at this valuation. >> all right stay tuned here. tesla's up by b about 6 % in the afterhours session we'll continue to track it coming up, are we witnesses movie theatres retail moment the stocks are crashing, but the cofounder explains why he's betting big on the box office and the ceo of sprint is watch ing and something we said last night might have touched a nerve and dough 22 k is here one of the oldest stocks is sitting out. now, one smells opportunity. much more "fast money" straight ahead. who knew that phones would start doing everything?

entertaining us, getting us back on track

and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. sprint in the spotlight this week after the company hinted it could make a deal announcement soon that kicks off our top trade we discussed this yesterday on the show and something i asked our guests got under the skin of claure >> is this the smell of desperation at this point because the ceo is constantly talking about we are look iing t

deals, everything is on the table. the valuation with a premium to the rest of the group because of this expectation of a deal and there is no free cash flow >> well, claure tweeted me this morning saying saw your piece on "fast money. don't confuse evaluating all options with desperation to be clear, i have no personal opinion on this one way or the other. none of these stories i cover. simply ask the questions we did invite him on the show to continue the conversation. haven't heard back all that said, do you buy this stock in hopes o f a deal, dan >> i think your point was it's been range bound for a while we know they're in play. they've been you know, whether it's been t mobile, whether it's you know, there's been no shortage cable, this and that so, to me, you have to go back to a couple of weeks ago remember when the rumor that buffett was going to take a stake? that was not going to come at a premium, at the current market value, so i think your point was kind of taken in jest. it sounds desperate.

not really they know that they are going to have a seat when the you know, when the music stops just depends on whether it's a premium or a discount and whether it's strategic or not. >> to me, this has been rumored and talked about and verified, but a lot of different times, so, i also think you can be both looking at all alternatives and desperate. you can be both. so in our defense of saying that, but the other thing is when you're in talks like this, with multiple parties over so many periods, so much time, things leak. there are too many players involved too many adviser, too many banker, things leak, so stocks become efficiently priceded. that leak is somewhat in there, so i don't think you're going to get a wildly better price. that would be my guess >> than where the stock is now >> if the premium is built into

any stock, it's built into the other side of this trade usually the guys with the content or delivery. i realize on some level, sprint is a network they provide essentially a xhodtized service. they're not supposed to trade with a high multiple and that's where they are sxwl although they've got somebody aggressive. >> that makes it that much more interesting. it's like having anyone of these activist shareholders involved in your company. anything is on the line. so something and somebody who's really into the acquisition side, that's what makes this so interesting. >> they know this is a heavily debt layden company. they have trillion in debt they owe 84% at this point, they have to make thipgs better inkre mentally for their economics, so to me, i just see this thing with an equity premium, whether it's stra tinlg k or some sort of financial situation. >> it sounds like you would buy splint coming up, check out shares of

tesla. that call is about to get started. we'll hear from elon musk has to say b about the quarter. you're watching "fast money" on cnbc in meantime, here's what else is coming up on fast. >> people are running from movie theatre stocks but the cofounder of netflix says don't count out the silver screen yet we'll be here to explain why he's betting big on the movie business plus -- dow 22,000 is finally here and one name that set up the party could be about to join in on the fun chor"ft ne rht mu me asmoy"ig after this [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans,

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welcome back the dow hitting the big mile tone today who did the most heavy lifting hey, dom >> well, talk b about heavy lifting, melissa, if you take a look at the bulk of the work done for getting the dow from that 21 k to 22 k area, just around six companies are responsible for the entire game. but since we have got limited real estate here, we got some of the high and not so highlight ifs you will it's worth pointing out again before we start the dow is a price weighted index, so the stocks with the highest prices often have the biggest impact. boeing, that brings us here, tops the list. nearly 400 points on the list.

then the golden arches s up 17 a points united health, a close third with 170 and yes, apple, that stock has done its part adding 135 points to the rally. but it wasn't all champagne wishes and caviar dreams shares of ibm, a big drag on the run to 22k, it took 225 points off the index since march 1st. goldman sachs cut 175 point off the run then ge stock isn't as big an influence as it used to be, but the downturn took 30 plus points away if some of those lag regards could get things turned around, could it provide the fuel for the next milestone marker run, guys back to you. >> thank you very much, dom chu, with a hat tip to robin leach. hey, scott >> hey, melissa, how are you

>> good, what are you looking at >> when you hit a milestone like dow 22 thourk, you want to make sure you don't chase situations and you want to right strategy so i want to look at three dow component that couldmove the first is apple apple just reported a great report and if you look here, you have a progap. it means power so if we can get here, i'll show you that's where it is, so any way, the took it above fire resistan resistance the longer it pulls above this, i think you could hold it and add a move above 160 i could get the measured move over this range, this channel, which is off 14 points and get you to about 170, which i think is feasible going into the fall i like owning it here and adding above 160. it holds that gap. the next chart, boom

like dominic said, you have the heavy lifting done in the past month. look at the size of this move. right here, you have a little bifth bit of exhaustion. that means you need a tiny rest and pullback i think around here, which is closer do this 230 area. that's your dip. i think it holds the gap that would be a compelling buy the dog, the dogs of the dow we see rotation. maybe the old school rotation comes to life. but maybe you have to wait why? because ge has been caught in a down trend you could do this two ways one, you could buy a little bit haves slow here, which i believe is about 25. but small. just so you watch it you have to get above this trend line

stay above it then get a catch up trade, but make sure that actually gets involved or you see the volume because a lot of people have been trying it every time so stick with what's working if something changes, you could play catch up. >> scott, thank you very much. let's focus in on that dow we talked about the dow component. the component a lot here you were once a big fan of general electric >> i was and i still tend to be because i thought they needed a change and they've moved in that direction. how long is that going to take none of us know. i think you've got to give the new ceo a couple of quarters this is just in. he just stepped in august 1st. so this is something where i think over time, can he fix this, i think he can they've bought high in the energy space sold low on the financial space thand and that makes the difficulty of what ge is today >> every time we have a new ceo,

we talk about the kitchen sink of the beginning, so that could happen not like it's trading with huge expectations, but i think there's value to be unlocked here and when you have a new guy in, none of these are his baby, so he's much more open to doing a transaction. i think interesting. i don't think there's a ton of downsize and you have a tiny, tiny catalyst. they're there. >> isn't it within the real m of possibility, even with the possibly of this new ceo coming in and reevaluating its businesses that ge gets kicked out of dow it shrunk so much. we doept know. i don't think that's at least the way people are trading this thing. i think it's going to take some time that's why there's no quick turn around they're deeply embedded in businesses as someone said, they bought high, especially in energy and utilities

having said that, this is ge, a world class company. a technology company, too. these guys many many ways, are part of underpinning the technology of lot of the core companies, so at the valuation, which in a trailing basis isn't terrible, i think it's an interesting play with a high dividend yield it's a disaster though in a market that gives so much the benefit of the doubt you look at the corporate, the changes on the management level. valuation, dividend yield, possibly activists and the trades there's so many stocks that get the benefit of the doubt in this market, something's going on here i agree with karen i tried buying this on a couple of different occasions i was disappointed the reaction after immelt left. then the earnings gap. i'm out. i mean, at some point, it feels like there's going to be some capitulation and that doesn't seem like there's any rush >> i am. relative ly i thought you were agree wg them frds. >> i think you looked down at 24

bucks. >> still ahead, two big after hours movers tesla surging more 6%. in fact and square, that's higher right now we'll hear from both ceos. plus, box office blues sending movie theatre stocks sinking, so why is the netflix cofounder making a big bet on tradiol neor"ft itna mu me asmoney" right after this stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

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welcome back it was worse, talking about shares of amc tanking after the company shocked the street julia joins us from los angeles with more. hey, julia >> hey, melissa. the box office an rise of at home entertainment options like netflix are really taking their toll on the nation's largest movie theatre chain. amc shares plumeting after the company previewed a swing to a big loss in the second quarter they're down nearly 27%. the company saying it expects to lose about $1.35 per hair. analysts expected only a two cent loss per share. projected revenue of about $12 the billion was also short of expectations doesn't look like q3 will be much better. the company forecasting a quote, very challenging third quarter now, amc blames a lackluster u.s. box office, is taxdown almost 4.5% as well as a $203 million charge on its investment

and this theatre marketing company. the company also unveiling a cost reduction plan, including pricing, promotional incentives, inductions and operating hours the chain echoes industry wide box office declines. down 8% so far this summer amc's grim warning driving on other chains ree gal and sin mark fall iing nearly 5% while imarx lost nearly 8%. the concerns about a summer full of films that were failures and the ride of at home entertainment alternatives such as netflix its shares are up 93% and the company continues to add more subscribers. we'll hear more from amc, probable some questions about its batting and release its official final earnings when it holds its conference call on

monday >> thank you in los angeles so, are we witnessing movie theatres retail moment karen. >> yes, i think we are starting to see movie theatres retail moment because a lot of them are in malls this was a really big miss we haven't yet seen from regal and so i think that these malls will trade again on the same news we saw retail trade down many times on the same news and i think that's sort of stopping slowly but this is is early in that evolution, so even today, you have ggp and they announced that they're not going to look to sell some of their properties. they don't think that big charge between public and private markets they said was there in maybe is there anymore so i think there is more bad news to come i had thought maybe third-degree bottomed, but no, stay away. more bad news. >> it's not the retail moment. it's their moment because of retail so -- >> and -- >> it's a retail moment. netflix, clearly people are consuming movies differently,

but people have been consuming movies differently for a long time i think your point is well taken, which is a lot of the traffic you're getting, walk in traffic, people at the mall doing their thing. let's kill a couple of hours in the movie theatre. i think if you look at these companies though, youb, if you look at amc, somewhere in here, this starts to at least have a valuation and have a balance sheet that becomes interesting these guys have been cash machines for their core products and i think if you believe their business is going to go out, you stay out >> one reason people are not going to the movies, netflix so why is the cofounder of netflix betting on traditional movies mitch love currently serves at president and ceo of movie pass, a monthly services for unlimited movie tickets. he joins us on the fast line great to talk to you finally about movie pass specifically. are you seeing that same down trend in terms of movie attendance in your business >> well, we're definitely seeing that consumers and especially,

o subscribers who fit more into the avid moviego eraker categor, want to go more often. the b problem come downs to the movie theatre, who by the way, has done a great job creating a better environment fewer sticky floors and audio and sounds and seating and food are slight all better, but really, the problem is, consumers have gotten used to a kind of a subscription like con sunlgts model when it comes to entertainment, we all, you know, like to try things, but we don't want to be stuck having paid for it we want to be able to what i call change the channel. and the movie theatres have not kept up with the changing evolution. and the business model, not the content, but the business model under which you go to the movie theatre.

>> so, if if you were to apply that scription model to the business now and try to reimagine that, in addition to the passes that u yo saw with just the subscription model, how would the theatres do business differently? >> they really won't do it that different. movie theatres have a huge percentage of unfilled seats so, they would love to do everything possible to get more people in the seats. sell them more concessions, which are huge profit margins for them the problem is that the studios and theatres all have to get together on this the studios don't want to see a kind of a decline in the way people value the ticket. to go to the movies, yet the theatres want to get more people in an consumers want to reduce the risk of seeing a bad film and as a result, go more often so, it really, really will involve a collaboration between

those three and it reminds me of the early days of netflix, where when dvd had just come out, we went to the studios an said you know, you should really give us the product on a rough share we'll double your revenue, but want to pay based on the volume of the rentals an they said you're crazy and we just loaded the price dramatically why should we do that? well, we had to replicate what revenue sharing would be and prove to the studios over time that that kind of model is better i think the same thing is true here the studios and theatres have to figure out new ways to i tract especially young people back to the theatre. >> all right, mitch, great points.nalysis mitch lowe, one of the cofounders of netflix, so he thinks they can coexist here >> i listen a guy on to something with netflix he came up with in some of the

notes is theatre sales are down b about 6% over the last decade, that's not so bad, meanwhile, their costs have gone through the roof i think he's got something >> his ex partner was probably in that same camp. i think they'd like to see a really he will althy ecosystem. if there's tremendous demand for movies blowing up in the theatre, there's going to be great demand for it back on their systems, so to me, it just makes it a stickier ecosystem all together >> isn't it a two part sort of content issue? why is it that netflix has come up with their own content? they make money off of it, but the other is, you talk about a collaboration, are we seeing the blockbuster great mfs in line bringing people into these theatres >> and that was the problem with the last >> that seems to be a big issue and they make money not just the ticket, it's really off the concessions. if they'ir fannies aren't in the seats. >> if fannies aren't in the seats. >> fannie.

>> sticking with media shares of disney falling 2% today, but one trader is betting on a breakout going into earnings, so dan, why don't you head over to that old plasma over there >> guy's here, so i can't push him over disney reports on tuesday. the implied move is only about 3% not a huge move, but this has been a bit of a battleground stock. it toppeded out two summers ago at about 122 bucks has had a hard time getting back there. had a nice run off of the 52-week lows last year as you can see from this chart, but today, options volume ran high one and a half types daily volume and there was one trader looking at an auction expirati n expiration those break even at 112.10 i suspect a day with wr the stock is down about 2 pbt 5%, that's looking to play for a little rebound inline with a move on tuesday, about 3% looking to play with defined

risk about 1% of the underlying stock price, just want to make a couple of quick points draw a few lines here. this is kind of impactful. the stock had a really stealthy rally. up about 8% off of the lows from a couple of weeks ago. but then let's go and look at the long-term one. this is what you're looking at here any progress on espn, studios, that sort of stuff this is you know, b obviously going to make a beeline right back to the other one. >> thanks for that for more, check out the full show friday. coming up, tesla, up 6% in the afterhours session the company conference call got started a little bit late, but we'll be bringing you the headlines as they come out much more right after th is [pony neighing] is what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade

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let's fix that. let's give this guy gig- really? and these kids. and these guys. him. ah. oh hello- that lady. these houses! yes, yes and yes. and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. wk back to fast money. square's incredible run continues the afterhours after a its earnings beat some of the initial enthusiasm has waned a bit. investors are optimistic about the growth prospects last week, an analyst calling it the tesla of payments because it's been able to upsell using technology like machine learning on the call, dorsey says this is square's dif wrennuating >> our mission has always been a

core for us. we're constantly looking for way to make our services more all the automated and self-serve and machine learning is perfect for that sxwl as you know, square shares have nearly doubled so far this year, giving dorsey's payment processor market cap up nearly $10 billion, which b isn't that far off from his other company, twitter, which has fall ton a market value of less than 12 billion. guys >> thank you very much the tesla of payments. >> wow like when somebody says it's a harbor of the ozarks that aside this was fantastic quarter the growth is is phenomenal. one thing particular with the large seller growth up 61% that's enormous. they've been able to do it without the margins been compressed the only thing anyone can say is that the reaction to earnings

doesn't happen in a vacuum with the stock up so much, expectations were very high, but this was fantastic i wouldn't be a seller just because it's not reacting well right now. tim's been on it for a long time and grasso, too. >> i was concerned going into this number. it's been a more volatile one. their service is a great core business it was an obvious place for them to make money, but it's nice to see core business is outpacing this is a company that the valuation, it is tough to make a call on it >> back to tesla pretty much at after hours session highs. higher by 7.4% phil has been monitoring the earnings which got underway late what did elon musk have to say >> just start tog talk now and

primarily, his xhaecomments are regard to the model 3 production the rave reviews regarding the model 3 and when you look at it, there's been some questions. people have said what did they say about production they reaffirmed production guidance 1500 in the third quarter. 5,000 per week by the end of 2017 then 10,000 per week. tesla continues to work on it, they are spending more capital expenditures will go up by about $2 billion. talking about the model 3 and where the company stands >> what people should have zero concern about is zero. is that tesla will achieve a 10,000 unit production week by the end of next year >> so there you have it. reaffirm that is the production targets they have set for some time, are not changing as we head into a very busy and

important second half of this year back to you. >> thanks so much. and tesla shares up by 7.9% right now. we've crossed 350 yet once again, so we're just about you know, $36 away from its prior 52-week high final word from gene, how would you grade the quarter? any outstanding questions you have over the con trens call >> i'm going to give it an a minus. this is going to take longer than people think to get off the ground, but be a bigger, more transformtive in terms of every day lives. tesla has a pole position on that unanswered questions is what they're going to do in terms of solarcity. xwra >> would you still buy it up 8% or so here >> absolutely. i think this is the most upside of any large cap tech over the next fyfe years. >> the most upside of any large cap technology company in the next five years? >> yeah, i think people are undermating the opportunity here >> thanks so much.

in detroit for us. you convinced? >> with my minnesota brother >> you're with him, but you're not. >> tesla, you know what, there is the volatile tiity of teslatt you have to have the patience for this people have to understand. he's been right the entire time. software company >> if you were afraid of that production number, i'd feel more comfortable if you said we're very, very confident, not zero chance it's zero chance can't be free >> he's elon musk. did you guys see that thing today with the trains flying around holy smokes he's getting it done >> i think it's important to remember this is no matter what the valuation, how much cash they've burned, it's a $53 billion market 55 now at one point, amazon was that. five, six years ago. >> up next, final trade. your insurance company

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>> i would actually be a seller of disney. >> seller of -- i think apple sets up for long holders to sell calls against it take a little premium. >> i really do >> i'm melissa lee thanks for watching. seyoba he moowt e u ckertorr amo anywhere "mad money" starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job, not just to entertain, but to educate so call me at 1-800-743-cnbc, tweet me @jimcramer. if there's one thing i have learned, i learned when i got into this business, when the dow jones average was at about 1,000, it's at