our goal is only to open up the access >> okay, the naacp president and ceo derrick johnson. thank you for being with us. >> thank you for the opportunity. >> our thanks to kelly, of course, for the help on this hour after doing "squawk this morning. it is 8:00 at lyft and uber headquarters "squawk alley" is live ♪

good morning, what a friday morning. no lack of news today. home sales, the biggest quarterly jump in history. management changing for some of jeff bezos's and it is a 4% gain today. they added nearly half a trillion in the market cap this month. >> it is staggering, because apple right now is about $62 billion plus above the $2 princip trillion mark. that is like adding vm wear. that is your oef raj over the two tril mark.

i don't know how history will judge that when skail has taken on new meaning >> i'm crashing my ahead because i'm not wrong, right it is remarkable but it raises questions about the breadth of this rally, right? we continue to see the big tech mega cap names push higher and investors saying can it continue, you're leaving a lot of names in the s&p especially behind, karl >>. >> that's right, something to watch as more and more people are looking for signs of a bubble now we have a piece that just crossed regarding facebook laying out contingency plans should the president try to

delegitimatize the election's result mike, thank you for joining us this morning appreciate it very much. >> thank you for having me >> walk us through what they're telling us >>. >> i think basically facebook has not been wanting to do another repeat of 2016 which means getting caught off guard by different platforms and they have really been preparing for a type of scenario where they can get everything in order before the election. they have done that. and so over the past few months, especially as president trump is making comments around the

postal service, the legitimacy of the vote. they're saying we're pretty prepared for the election how do we get through these afterwards especially as it is becoming more clear that it r wiwill not one and done election night. like after election night it is over especially in the pandemic and mail in voting, it will probably take a few days or weeks to figure things off. so it has been a lot of contingency planning around the days and weeks afterward and the big question as we stay in the article, political advertising, should it continue to exist in the weeks afterwards they are still debating that right now. >> yeah, you say in your piece they have started holding daily meetings about minimizing the

use of the platform as a tool post election. >> they clearly decided that look they don't want to be an arbiter of truth mark doesn't want to get into whether or not trump can spout lies on the platform, or the democrats and what they're spreading as well. one thing that has been very important to facebook is the idea of letting everyone vote and not disenfranchising voters. they have taken a hard line on the idea that if you're not practicing democracy, including letting people vote or talking about the results of the vote, that is a hard line in the sand that they're willing to draw they're considering taking down political ads. >> are they appreciative or

secretive about these moves? it seems to me like a kill switch would be more effective if the people that might be planning to exploit the platform didn't know it existed >> yeah, it has been a real open for the company for a couple weeks now. we have known about it i think it is always difficult i think they want to make claur -- they have good open lines of communication and they talk to them regularly about what is going on i think president trump is bringing up ideas that could be seen as like, just really shaping the core of how voting occurs, how our democracy and participation from the republic exists how it has gotten into really asking some questions. and placing priorities internally around what is important. and zuckerberg, himself, is very

aggressive on voting and being one of the highest priorities. the goal right now is to register people to vote true facebook that is what they're pushing >> hey, mike, first of all, strong quarantine beard, i have to say second secondly, a kill switch. that sounds a lot -- it reminds me of when i lived in china and they still do this, of course. when they don't like what they see on tv or the internet they can hit a button and it all goes black. i'm not saying this is the same, but i'm wondering if facebook is dam first degree they do or dammed if they don't will it add more fuel to extremist groups that say social media is trying to press their information? >> that is certainly fair. i think that they're one of the

biggest existential questions. what role do we play in allowing content to exist or not exist on the platform they made it clear they don't want to get down into the arguments of saying they should or shouldn't i think it has been about priorities for management and what they -- they basically had to step back and say what are our core beliefs what are the core things that facebook believes in that western democracy believes in especially when they're drawing a line in the sand and basically china and republics that sort of exist in a way that we don't so last thing they want to do is seem like they're going to bring down this big hammer or sensorship thing a -- censorship thing.

>> uber and lyft shutting down a service. they are avoiding classifying their employees for now. i don't know if you have a sense of how the ballot initiative might change the landscape and things i wonder we talked earlier, the fight will continue either way, won't it >> yeah, i mean it is so funny i was following this thing earlier this week and they were all around back in 2014 when uber was doing street fighting in new york, trying to stay on the road, and putting out push notifications, and they were wuling all of the same stops out this time. especially lift. but they got a temporary reprieve that works for now.

is this this bat it will still on going >> is there progress they kick sick, if anything happens, if the employees classification is not the answer, is there another answer that has been making progress >> no, it's a great question the thing that i had sort of believed, assumed, guessed might gain traction was a thing that uber and dara, and lyft keep pushing which is a third way, right? the idea that look, this new way of working is here to stay whether you like it or not

that is what the ride and delivery companies say so rather than making them entirely employees, find a way to give them more types of benefits, more types of health protections. maybe some advocates they keep pushing that >> i want to highlight you said street fighting. uber is using aggressive tactics. i don't know about you think i'm thinking about flash backs he is taking a lot of the tactics that we saw from uber 1.0. we know how that worked out. is this the right strategy

maybe, you know, maybe this is validation of soft and cuddley only works until it didn't they were threatening it has to be a value gags of how you pull the tactics, and it works. >> all right, mike, thank you. >> meanwhile, the rally continues to be unstoppable now. up 20% for the bont.

fill has more now. >> good morning, carl. >> i was thinking back when this was right after the ipo. now it is well above that. now well above 2,000 and if you take a look at test la, keep in mind that shareholders will then participate in the stock split they trade on the split adjusted level on august 31st we're going to show you this because it is astounding when you consider tesla's market cap relative to the big three. if you added all of them up, tesla is still worth four times more than all of them combined four times more. that is just an indication of where tesla has gone in the last year the market cap is just exploded. now up to $384 billion

so what is the next potential catalyst battery day. that is when people will be focused on what elon musk has to say about driving down the cost of batteries and extending the range of the batteries they already lead in terms of battery costs. they are tracking the electric vehicle battery market you see their tesla, by far, well below their competitors in terms of battery costs let's see what happens later in the quarter, as well the beginning of october in terms of vehicle deliveries. will they stay on track for 500,000 being delivered this year these are two catalysts here something whacky and wild could happen in the next few weeks >> phil, we'll see how long

apple continues to be worth about 5.5 teslas >> that is a good point. >> now a battle with major news organizations. we'll explain next stay with us stress comfort. three unique gummies for your unique needs. find peace. boost mood. sleep well. stress comfort comes naturally, only from nature's bounty for skin as alive as you are... don't settle for silver ♪ gold bond champion your skin

cnbc, digital content next,

which is asking for an improved deal digital content joining us more to talk about this good morning, good to have you >> good morning, thank you for having me. >> getting interesting now after cooks testimony. >> yeah, very simply, and there are concerns around the app store and how they favor the other scores, but congressman johnson asking a question and tim cook said they had a better

deal and he said that anyone could have that better deal if they met the conditions. we have the two largest companies now on the planet that have a secret deal and we want to know what those conditions are >> do you think this was possible without the epic pushback was this inevitable either way? >> we're working on this letter once we heard the testimony. we are hearing e-mails from the top executive that runs the app store that were sent to jeff bezos. so we were curious about the conditions

>> is teams to me that there used to be a platform for commerce themselves. i know all of the organizations that are rolled up into digital content next, but they give their product away for free, and now trying to create commerce around it. does that make this era challenging for so many others >> yeah, we respect more than just news companies and entertainment companies, and they're all looking for what is the future business model. and there is a lot of significant anti-trust questions for google and facebook, too everyone is looking to see can i go direct to the consumer. they are having substantial value and you are seeing the

innovation around entertainment and news to go direct to consumer so the terms of those arrangements, especially for the most celebrated operating system out there, we need to understand what the terms are >> what do you see as being the necessary conditions, the rules of the road, to make it fair for organizations like the ones you represent to operate in digital commerce >> first, just being transparent. you have the largest companies on the plan wet a secret deal. so it will be a level playing field, let it be for the news industry trying to find it's journalism, and epic's games

everyone should understand what those opportunities are and everyone should be able to negotiate them >> for those of us watching this step by step, what do you think the next significant incremental move will be >> i think there is -- there are investigations globally into these companies, particularly apple. you have a very significant anti-trust investigation, and i think there will be more question that's will come out of that it is particularly focused on if you're a platform and you provide them, are you giving special terms to yourself or companys so we're hearing about the end of that investigation. so the house judiciary will be

putting out a report, as expected, in the next month or so and i think that will move the ball further down the road >> a fascinating development jason, thank you very much appreciate it. >> take care, appreciate it. >> after the break, a key am zon executive stepping down again. we have the details coming up right here ♪ i keep working my y back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

breaking news for the president trying to get a stay in that request for his tack records. >> a judge denied president trump's request for a stay of an order that would require him to turn over his tax records to the manhattan district attorney. the d.a. had been looking for eight years of tax records in an investigation over his business practices. now the trump administration being denied that request to not hand over those tax records. this is important because president trump said he has been willing to appeal this request all of the way to the supreme court if necessary for now it looks like the trump administration will have to hand over those documents back over to you fascinating developments let's get a news update. sue herera has that for us back at hq. here is what is happening at

this hour, everyone. steve ban nonwnon was smiling wh left prison last night he was stealing money from a "we build the wall" project. this morning on his podcast he is striking back >> i'm not going to back down. this is a political hit job. everyone knows i love a fight. i was called honey badger for many years honey badger doesn't give. i am in this for the long haul i'm in it for the might. this was to intimidate people that want to talk the wall it is to stop and intimidate people that have president trump's back on building the wall >> after 13 straight days without new cases, beijing residents are no longer required to wear masks outdoors most people on the street are still covering theirfaces saying they feel safer or feel social pressure to cover up. you are up to date, i will see

you again ainn hour, "squawk alley" will continue after a quick break. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

uber and lyft about to continue to define their employees as independent contractors for now. emil, good morning and thank you for being with us. you were formally known as travel palanick's right hand man during uber 1.0. we were remarking how similar the tactics have felt to that uber 1.0 when you were battling legislatures around the world. how were you dealing with that >> i disagree with mike completely i think what we did in 1.0 is try to keep that legislation

from ever happening by getting ahead of the argument and not trying to undo laws. but in terms of yesterday, the announcement, i think it was good for uber that they got a reprieve i don't think they were ready to employ the employment model. and the ballot initiative is do or die for the industry. >> it certainly kicked it down the road what do you think uber's leadership should have done. should the battle have started earlier? >> absolutely. the battle should have started earlier. when we had a battle in new york, when mayor deblasio tried to cap the number of uber cars, we prevented that legislation from happening and it stopped it >> but those tactics were, in

some cases, successful to get you what you wanted but look at where it ultimately created. travis was ousted, you had to leave as well, so is it a set back because of the ultimate outcome turning riders and drivers against them >> those are two separate things what the regulatory battle here is remember what we're fighting for. the right for drivers to conduct their economic life the way they wanted the right for riders and suburbs and all of these places that didn't have access to reliable transportation to get it and they're right. and they're supported by huge swaths of the community. so the government was insensitive to the needs of their citizens that, i think, has nothing to do with any of the battles with the

investors that are hurting uber, i think. >> i think my implication there was that they would be enrolling them in uber they say they're drives, the majority of them, do not want to be treated as employees. >> that is right and this is done by a ride share guy. 70% of drivers do not want to be employees, they want to be independent contractors. so that has not changed. >> what do you think the core issue is here that legislatures

are dealing with >> there is nail salon employees, journalists, you name it and that is, i think by my math that is ten million people in california that are exempted so i think if california, instead of tackling the problem, they are just creating a law that would blanket exempt for the prefers professions that are lobbying them and they created a mess and they punted the can down the road. >> i wonder where you are in terms of how we're thinking about business model purity. earlier in their lives the argument was that lyft was more

focused. now it is multiple buckets on which to lean. is that picture split for good >> yes, absolutely we knew this all along i think it was always the wrong narrative. you delegate power to the local leaders. the rideshare leader in new york was competing against a ride share leader for lyft. so i think the business model is superior they are more resilient overtime >> food delivery is a tougher business at this point to crack. how does uber win that field

>> that diversification, yes, there are greater losses but there are great er deliver ability. so i am pretty optimistic about that >> at the same time they could, the food delivery business, could be facing more regulation. we spoke to the forecast da that hinted that more regulation for food delivery drivers could be coming i wonder, emil, what happens at the end of all of this what do you think that californians will vote and what does it mean for the gig economy? >> i think they will pass prop 22, if they don't we will see a

negative spiral in massachusetts and some of the other states that have laws and approaches similar to the way california does i think uber has to win this and it covers food delivery drivers as well. it covers the exemption that uber is asking for, i think it is very important for them to win. if they don't you're talking about a real hit to the business model in the united states and that is someone in management needs to take responsibility for that if that happens. >> thank you for being with us this morning emil michael >> it has been a big week for retail urn iearnings today it is footlockers turn reinstating the diveniddividend shares higher well off of the interday highs late. late. or make me feel like i'm not really "there." talk to your doctor,

and call 844-234-2424. tools, cattle, grain, traded goods. even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

today sf a day you can't

talk about tesla too much. shares are surging, it is the day of record for that five for one split sent to start trading on august 31 we're trying to make senses of what is one of the most incredible business stories of the decade good to see you, happy friday. >> good morning. >> you know one of the -- there is a lot of hand ringing today about the tesla price action one of the arguments over the short side is keeping the narrative going and in the end maybe ending to tesla's benefit because many of them did not come to pass what do you make of that >> it is such an interesting story, right i'm in the club of people that bought a tesla but never got the stock. i think what you're seeing with tesla, the stock drove some volume and people are winding

down on retail traders i think we bet on biotech, and it is being treated like a bio tech debt. e and for some extent i think you're seeing that with tesla. it is very hard to make sense of it you can't compute the recent numbers. let's also remember in the first half of this year the model 3 outsold the next seven competitors comebined. they are making so much progress it becomes an important part of our economy, arguably they are the most well positioned company in that space. and that will not be a hardware play, that will be a software play, and potentially use it's initials thr

initially making that play down the road >> so i have two questions for you. one is you knew the product, and you didn't dabble in the stock, why? right? the second question is are you ever unnerved by some of the promises that musk makes that even he admits, you know, might be aggressive, might not come true when he says, but it doesn't dissuade people from jumping in >> let me tackle your second question first as venture capitalists we're used to dealing with aggressive outliar prognostications if that is how we make our money, our 100 times return on investment i can understand where historical institutions are. it is so outside of the norm, particularly from the auto industry, which has not had ver

aggressive progress. anyone that owns one will tell you that it is so far ahead of anything else. i get in the car in the morning and there is a software update that adds a feature or functionality that you had not thought of and they had. it is a game changing development. i think that is where people are missing if they can't get their valuation three to five years down the road. it could be a very high margin that sells into all of the other factors. >> what does this run in tesla validate, if anything, except for just tesla itself?

>> i would love to see other companies spending money on r m mr&d. they have so much cash and they don't know what to do with it. disregarding those like apple and google but they have not figured out ways to reinvest that because that would be great for the kmern economy as well, right more investment in r&d it would be great for our economy overall. if you're taking anything away from tesla, make moonshot bets, spend millions of dollars it takes to create products that might be three or five years away the hesitation toward spending money and innovation was so high because you're trying to hit quarterly eps arguments, right wouldn't it be great if everyone earned a little lesson and said let's invest more in r&d walmart is a terrific company,

but they launched their amazon prime competitor 16 years after amazon prime was launched. it took 16 years walmart has tons of cash to invest in r&d. take moon shot bets. find the super star innovators see them make those bets >> of walmart you have bezos who say it's is always day one you say that you did not invest because you're a bc investor, but i think you would be hard priced to find an investment that would return 18%. getting into the mega cap or tech names, the public momentum stocks, even the most famous investors are scaling back on his hunt for unicorns and buying

up some stock. what is the affect that you think this may or may not have on the start of eco system at a time when there are new investments in the market and you're looking at the gains and the greater transparency in public markets >> it is great because it is having an impact in a big way. private market investors are realizing that the upside for companies once they hit scale, that billion dollar valuation, two billion or three billion valuation scale, those companies can get enormous everything thought that square was trying to discontribute the pos market and he said i'm not disrupting the pos market, i'm disrupting cash if you remember when it went public it sat there and it did a down round in it's ipo, so they have religion that they're

leading a digital transformation the upside could be exempticept. all of these are companies that went public at two to five billion market caps. so investors made a son of money, and folks are applying that lesson and paying higher valuations because the upside is so much greater. you can make 50 to 100 times your money even if you don't catch a company at the seed which wasn't true ten years ago. >> thank you, that was great clarity on what is driving the price. thank you so much, we'll see you next time. >> thanks, guys. coming up, what a slow down in the postal service could mean for business we're back after a quick bre ak you say that customers make their own rules.

let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g, everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item: corner offices for everyone. just have to make more corners in this building. chad. your wireless. your rules. only with xfinity mobile. now that's simple, easy, awesome. switch and save up to $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g.

some leadership changes announced at amazon today. he will depart the e-commerce giant in early 2021 after more than two decades in top leadership roles he will be succeeded by amazon senior vice president dave clark. i sat down with jeff last year i ask him whether he's altered his strategy in dealing with competitors with accusations

that amazon has too much power >> we're just focused on customers. we're trying to invent things that customers are going to love and we think that's our primary job. if we do a good job of that, customers will keep coming back to us. it's too hard to predict what everybody else will do we'll stay focused on what we can control. >> i was speaking to him at the remars conference in vegas a year ago it seems like a decade ago he was announced drone delivery technology opini technology i had the nerve to question one day delivery is that fast really necessary. i gesuess in a pandemic now, i'e got my answer. >> it goes to show you how quickly these things happen at amazon he's been behind a lot of the expansion growth plans and raises some succession questions. he was seen as a potential successor to bezos the bench has strong

bezos has managed to keep his core people around him if more years. lit be interesting to see how dave clark fills those shoes ay nl take a quick breakow st with us ♪ ♪ [ engines revving ] ♪ ♪

it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive. that selling carsarvana, 100% online wouldn't work. but we went to work. building an experience that lets you shop over 17,000 cars from home. creating a coast to coast network to deliver your car as soon as tomorrow. recruiting an army of customer advocates to make your experience incredible. and putting you in control of the whole thing with powerful technology.

that's why we've become the nation's fastest growing retailer. because our customers love it. see for yourself, at carvana.com. shares of deere remain a stand out. 202 will be a high >> this earning call reads like a tech company the ceo mentioning that farmers are adopting technology. the use of e-commerce sell its tractors during the pandemic all of this as pricing increase for the third quarter for a number of its equipment.

driven in part by more people moving out to the suburbs maintaining their garden and backyard research pointing out that farmers are applying more technology in general to their farm much faster than they even did before the pandemic. you see the stock moving on those after delivered better than expected third quarter results now near of 6% back to you. >> quite a move. our next guest runs the e-commerce orthodontics company bite warning a slow down at the u.s. postal service could have a significant impact on business with no physical store fronts for his customers to visit joining us is president and ceo of the e-commerce driven company bite it's good the see you. >> good to see you thanks for having me >> have you seen any theys, any

slow down in the ability of you to deliver your product to your customer thus far there the u.s. postal service >> as of today, we haven't seen any slow down in any sort of service from usps today. we have been keeping close eye on this. we want to make shower that everybody realized the usps is a critical cog in the structure of this economy it slowdown will hurt consumers and businesses >> that raises an interesting question about what the model for the postal service should be on the one hand, we talk about it as being critical infrastructure and needs to be there to serve the american people on the other hand, can it be insolvent for an expended period of time. what sorts of changes do you think need to be in place so it continues to serve the needs of customers, of citizens, of business but also can remain a growing concern. >> yeah, i think i spent a lot of time going through the financials of the usps but it

needs to be valued properly from a last mile solution a lot of the vendors use the usps for that last mile solution i do believe that we should support the usps, figure out the right strategy going forward i haven't dug into the details on whey it continues to lose so much money i think it is a critical structure piece. we have to realize how to run it properly >> are you able to -- dejoy this morning was asked about some of the removal, disassembling of mail sorting equipment his point was it's not needed which makes little sense to lay people who don't know how the postal service works maybe he is being forthright and honest do you know enough about the operations to explain what that statement might mean >> i don't i haven't dug into the details around that. the mail sorting system does an incredible job we are reliants on this. it creates at home experiences

for at home kits that we deliver impression kits to consumers they send those back to us through the usps and the sorting has all been worked. we have short turn around time of consumers sending back impression kits. doints have enough details about the sorting equipment i believe they need to be supported going forward. >> you haven't dug into the details of why the usps losing so much money but in part it's attributed to amazon and you guys and other consumer direct to customers deliver your products and pass onto consumers. would you be willing to pay more if that means supporting the usps >> i would have to look into the details. we want to create it we focused on the consumer experience from day one.

it's very obvious we have to do our part and support whatever crimin critical from you are is needed to prop up this economy. >> you have not seen a slowdown in the postal service at this point. you do find it to be critical infrastructure a story we will continue to follow guys, this market sure is interesting. looking at companies that i follow in tech with above a quarter trillion in market cap, apple is positive. alibaba, tesla, nvidia, not a lot else >> as we said earlier this morning the awesome 8 which if you consider them as a bucket doing way above even what the

triple qs have done year to date the prmerformance of these megaa names continue to amaze. we'll be on the look out for any signs of progress regarding stimulus on capital hill, regarding the post office which remain a topic of discussion and watch earning season start to taper down next week welcome to the halftime report front and center, the big tech take back as the sector surges to another new high this week. is it another sign that the value trade which had sown flashes is done. we'll debate that. a little bit all over the place. nasdaq and s&p prett