good morning tesla revenue surging. 74% in the most recent quarter pollster the bottom line? sales of bitcoin and regulatory credit details ahead. lyft is selling the self-driving car unit. he wi we have the latest and hackers infiltrating the d.c. police department and holding the data for ransom. threatening to hand over informant names to criminal organizations. bizarre. it's tuesday, april 27th, 2021 "squawk box" begins right now. ♪ good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe

kernen and andrew ross sorkin. interesting day yesterday. you saw yesterday a mixed market this morning, dow futures down 25 and s&p down a point. nasdaq up 1.3. really interesting day yesterday. the dow was down a little bit. i should say the s&p set another new record that may be 24 records we have seen this year the nasdaq was up 0.9% it set a record high that is the first time it's happened since february 12th for the nasdaq the dow was down this is something that is interesting to check out let's look at the "squawk stack" this morning the story yesterday was inflation. it was the consumers product companies that dragged down dow. p&g and coke and walmart lower p&g and coke will deal with raising prices

if you look at the "stack" corn futures hit the highest level in seven years. we have been talking about it for a while. 10-year is yielding 1.79%. guys, this is interesting. we have a fed meeting today to determine what will happen in the market the question is how much they focus on inflation watching these things play out on a daily basis and corn and copper hitting new highs one more time. >> the corn price. in a previous life, i was a commodity broker that is steep. that is the old expression beans in the teens soybeans you don't think, higher prices corn's up. you know, chips. tortilla chips and the like. that is worrisome. i don't need that.

the inflation concern. >> then it catches your attention. >> hard shell tacos and things like that. we will have a couple of guests on inflation is in the back of everyone's minds that is what guys are pointing to, and gals are pointing to, at this point i saw a jay powell cartoon the federal reserve logo with an ostrich with its head in the sand regarding inflation. >> it could be the monkeys there are three of us. somebody with ears, somebody big mouth. play along >> yeah. the fed with the head in the sand inflation threatened i don't know >> do it put us back in the triple box. i forget somebody do mouth. >> you want to do that really i don't know if andrew will play

along. are you listening? >> blah, blah, blah, you're no fun. >> what do i do? >> you do this or this i forget the order. >> it is too late for you to speak no evil. that's too late. >> oh, peek-a-boo. that's neat. i had fun with that. i sktill get a kick with that. i get excited. first you are not there. then you are i love that. >> we have to do a little peek-a-boo with breaking news out of washington. on the minimum wage. eamon javers eamon. >> reporter: i will reveal the news andrew, the white house saying now that the president will be signing executive order to get to minimum wage to get to $15 an hour for federal contractors the president wanted to do this

for everybody. they docould not get that done u to senate rules. he wants federal contractors to make $15 an hour according to federal officials. they want to put this in federal contracts in january of 2022 all federal contractors must be paid $15 an hour that is indexed to inflation every year it will automatically go up. they won't have to do executive order every time they are confident it won't kill jobs as an increase. i asked what the message was to taxpayers who would be on the hook for the extra wages they insisted there will not be additional cost to this because they say all sorts of efficiencies and other benefits come from having this. taxpayers would not be on the hook for additional costs.

joe biden expected to sign that later today. back to you. >> go back for a second. what do you mean additional costs? >> reporter: additional efficiencies they are saying there will be improved benefits in terms of federal contracting as a result of hiring the workers at the higher price point the overall hit to taxpayers will be net zero that's the argument. >> eamon, the federal government, why would they lay anyone off they don't have budgets. they don't mind the ps and qs. they don't have a boss to say, wait, your division is spending too much money it's the federal government. one other thing -- >> reporter: we're talking about contractors. private contractors working for the federal government >> they charge $1,500 for a toilet seat and no one asks

questions. the january 2022 number. can we make that the go-to month for all this stuff the tax hike on the capital gains? would you mind, if you could suggest that, give us this year. we may have a couple of things we need to do long term. >> reporter: everybody gets a free year. >> if you worked at comcast. there are certain things you might have to do with that i'm not saying i'm in that 1.3%. >> reporter: i'm sure you have paper work to fill out jen psaki was reluctant to put out an answer on the question. the question of the million dollar threshold applies to individuals or households. the big difference there at the top end. you are dealing with few people. there is a big difference for the people caught up in there. >> january of 2021, eamon.

>> reporter: she did not answer that question. >> that would be unfair if they blind sided people too late already on the hook. it would be too late. >> reporter: if you raise taxes on people, you raise taxes on people the question of fairness elections have consequences, right? >> i hope not. >> eamon, they said -- somebody from the administration said they would not do it without giving fair notice you know, somebody pointed out yesterday, they said this is what they were going to do when they were running. is that fair notice this is what they campaigned on >> reporter: biden campaigned on it, right? the idea is that this is a democratic process we said we were going to do this we won the election. now we will do it. the question is if it will ever happen you have to get this done up on capitol hill so, you know, think of this as a starting point in the negotiations and see where we

end up people should not assume what biden is putting out there is the final answer >> and you know, we promise it won't be on the backs of americans. it is not americans that are doing this it is only the .3% >> reporter: she did say that. >> some type of un-americans. >> reporter: an unfortunate turn of phrase. >> "those" people. don't worry. regular americans have nothing to worry about these people >> reporter: she did say that. you can imagine she wants to take that back >> i don't think so. no, no, no that's how they feel >> reporter: it is not a big problem for the vast majority of americans. >> the unamerican. >> in truth, 500,000 americans or families?

>> reporter: i think they said households >> half a million households pay that rate. the truth is the households watch cnbc we all appreciate that nonetheless, a separate question we want to ask about this other developing story which i forgotten about. the d.c. police department is now the target of a ransomware attack hacked data on the internet. that data leak included chief report and list of arrests and persons of interest and hackers threatening to release the informants to criminal gangs what is going on here? >> reporter: that's a tough one. we have seen these hackers working through municipalities and governments around the country. hitting them really hard hospital systems where you see people with life and death at stake if hospitals go down this is tough for a police

department you talk about the list of informants leaked out to gangs and retribution for those who have spoken out to police. that could bring a wave of violence if you are a police department, you have to decide if you pay the criminal hackers that is a tough decision for the police you are the police department and you would be sending money directly to criminal gangs that is an untenable position for the police department to be in here. you think about the goal of ransomware what is the goal usually to raise money you talk about hackers cooperating with nation states this feels more political in nature because of the police department and destabilizing nature of what they are doing here this sounds like an effort to generate chaos and effort to

generate revenue for the bad guys this has the political undertone. i'll be curious to see who is behind all this. >> eamon, we look forward to you watching that for us and thanks for popping on so early with us. joe? the top corporate story. tesla with a solid quarterly revenue. surging 74%. the bitcoin helped profits elon musk predicting the model y will be the best selling vehicle. phil lebeau joins us now phil, it is hard to really try to understand this >> it tends to sell off after earnings if you go back the last three or four years, the run up and the earnings come and a sell off i don't make a lot of the action pre-market let's run the numbers that you

mentioned for yesterday. beating on the top and bottom line 93 cents a share better than 79 cents a share with revenue at $10.39 billion the numbers within the numbers, these are the important ones that people are focused on and debating as to whether this was a quality earns beat or a beat that some look at and say you have ev credit sales of $518 million. take that out and you would have had a miss free cash flow at $293 million then you have auto gross margins up nearly 100 basis points better than expected here is elon musk talking about the first quarter. >> we have seen a shift in customer perception of electric vehicles and demand is the best we have ever seen. this is -- we're used to seeing a reduction in demand in the

first quarter. we we saw an increase in demanded that exceeded the normal reduction in demand in q1. >> reporter: a big part of the demand is the model y. crossover utility vehicle. the company rolled it out a couple of years ago. that is doing well according to musk, it is doing so well, guess what it will be next year? the best selling vehicle in the world. >> more likely than not, that in 2022 model y is the best selling car or truck of any kind in the world. >> reporter: let's put perspective here the reason we are showing you numbers of tesla and toyota. toyota builds the corolla. the world's best selling vehicle. sold over 1.1 million corollas around the world last year the reason we are showing you this is because tesla's entire production for four models will

come out to maybe 800,000 this year they have not given guidance for the entire company, they are not going to touch 1 million vehicles this year or highly unlikely they will in terms of deliveries that is just perspective in musk saying the model y is the best selling vehicle next year. the bitcoin sale they did sell bitcoin position and brought in $101 million. elon musk was asked about this on social media. he tweeted out yesterday, tesla sold 10% of holdings to prove liquidity of bitcoin as an alternative to holding cash on the balance sheet. that is the rundown of what we saw from tesla yesterday a little something from the bears and the bulls. >> can they book that as revenue? phil -- >> reporter: yes, they did book it as revenue. >> it could go to the bottom line it is weird to book as revenue i don't know that is notapples to apples

with selling cars. >> reporter: i understand what you are saying that's why people are looking at this and have the big concern with bitcoin the concern for tesla or any company that holds it, did it turn in a better return other than sticking in short-term notes? absolutely what happens with the volatility of bitcoin >> you saw dave portnoy said, what is this elon musk buys bitcoin and pumps it and dumps it. elon responded to it i didn't sell it personally. the company sold 10% to show it is used as a cash management on a balance sheet. he chafed. andrew and becky, have you heard of paper hands >> and diamond hands i got diamond hands and paper hands. >> paper hands when you are a weak holder

>> hot hot. hot. >> weak. you're weak. >> phil, quickly -- >> paper hands i don't want to be any of those things sorry, becky >> you don't phil, quickly, were you very nicely calling out elon musk saying when monkeys fly is the model y the best selling vehicle? the numbers you were talking about. 1.17 million toyota corollas sold you said all four of the tesla models added up will not equal 1 million. is that your way of saying it's not going to happen? >> reporter: it will not happen this year unless something shifts in terms of global demand for the corolla and it has been p steady at 1.1 million. you can expect it will be in the range this year. although the chip shortage may have impact in certain markets if you have that many that are going to be sold, how will you get there if you are tesla you will not do it this year unless you have a dramatic

increase in production is that possible they have a huge surge in production later this year? it is possible, but not likely could it happen next year? it could happen. they do not breakout the model 3 and model y. they put them together we don't know how many model ys are sold as of right now, they put in the model y. s skeptic could happen next year i wouldn't be surprised. >> self driving and flying taxi model y headed to mars by 2023 he didn't mention that, did he >> reporter: that didn't come up on the call. >> he does make big promises i don't know about the self driving taxi or flying cars. thanks, phil we will talk more about this with these guys. gordon johnson is the gli

research founder he has questions about tesla always does. he is pretty smart makes people mad that follow me on twitter gene munster is on the other end of that. that's going to be fun that's coming up. we have a huge line up still to come this morning this time we mean it the ceos of eli lilly and pfizer and transportation secretary pete buttigieg and senator elizabeth warren a lot ahead of us still today. here is the reporting this week. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ls yo. like sports cars with three pedals. trucks that take you to incredible places. colorful crossovers.

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made 3 cents a share the good news is it was supposed to only make a penny it tripled the results these are adjusted earnings. pandemic companies being restructured in a lot of ways. still has a lot of work to do. a lot of people think progress is being made. i couldn't help when i saw it and saw 3 cents and look at the estimate of 1 cent it is supposed to get better 3 cents next quarter a grand total of 24cents for the year per share or electric orders fell for the first quarter. total orders were down 13% the revenue number may be shy. 17.12. ge capital revenue 17.768

million. they shrunk that business quite a bit. it is a big week stocks come back earnings later alphabet and microsoft tomorrow, apple and facebook thursday, amazon and twitter all of those stocks out performing the s&p joining us now is greg branch. managing partner at veritas financial and julian emmanuel. in 2017, you favored tech. now you are actually finished? not totally finished, but you think there is a sea change. the stock is reflecting good news tough to move no matter what the earnings are right now y

you would sell or lighten positions in big tech? >> contrary to what you were talking about in the first 15 minutes of the show, we are likely to get higher taxes later this year or next year particularly capital gains tax, mat majority of the capital gains the last three or four years have come from the large cap tech stocks. they are not sells, but when we look at the first tax bill coming due on may 17th and we look at the facts that last night the ev maker reported great earnings and numbers and the stock has not responded well it tells you that these names, secular growers, are likely to take a breather. >> for the intermediate term how long if you have a pull you back,

would you go back, julian. >> when we think of higher stock prices over the next 12 months, it is led by financial and energy and perhaps beaten down like consumer staples. the long-term story for secular double digit growers is going to be higher prices at some point, you know, look at it most of the stocks have gone sideways for the last six or seven months on weakness, they will be a buy at some point. >> greg, i think you are more selective. you have tech names you like to own. i was referencing you and others earlier in that you definitely have one eye, maybe more than one, on inflation. inflationary expectations finally coming home to roost, true >> that's right. i think there is an earlier

boogie man than taxes for this sector whether or not inflation spikes past that mid two range the fed says it is comfortable with. if we see that or see persist t longer than the couple months, we believe the fed will have to change its posture in rising rates prompted on the fed posture change or action earlier than expected is more harmful for tech and growth. it is a positive correlation for value. that would be the area of more concern i have i do agree with julian there is a strong secular story for names here this quarter and next will help us ferret out which is cyclical and what is secular. >> the bond market is still big. the 10-year is still under 1.6

is that not a dissect with the prognosis? something doesn't seem right something's rotten in denmark. >> i don't think so. i'm not that skeptical about it. we all expect there to be inflationary pressure. supply chains are not in tact. demand will rush back when the economy reopens. the question is how quickly can we restore that. the fed is expecting, at least 2.2% or 2.3% inflation the question is does it rise above that i don't think we see anything nece nefarious going on >> transitory? >> some things we have to wait we will see. >> julian, you think it is a blip in inflation? i don't know corn price $6 for corn. >> commodity prices are, you

know, going very much higher whether it is corn or plastics or avacados or what have you the key is wages for the next six months if we get a big boost in wages and jobs hard to fill measures indicates that is possible that's when transitory is permanent and the fed will, perhaps, move to act sooner than the market expects >> gentlemen, thank you. julian emanuel where have you been, julian? beach? oh, okay greg, good to have you on this morning. >> pleasure. >> we'll check back. andrew. coming up, we will tell you u.p.s. shares are rising the delivery service out with earnings that is well above the 172

est estimate significant contributions from small and medium size businesses as everybody is getting everything delivered. eli lilly just reporting we will have a first cnbc interview with the ceo david ricks. he will injo us at 7:15 a.m. eastern time >> announcer: what's working is sponsored by comcast business. bounce forward by comcastbusiness.com.

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these are strong numbers they beat on the bottom line the share came in at $2.77 a share. revenue beat handily $8.9 billion a gain of 9.6% year over year. better than the $8.7 billion they were expecting. they had 8% organic growth the ceo mike roman said this is growth in every section of the business strong across the board there. let's talk about adjusted free cash flow of $1.4 billion. up 49% 630 million respirators delivered in the first quarter during the pandemic. they plan to invest $1 billion over 20 years to try to bend the curve on carbon emissions and water use. they are committed to becoming

carbonn neutral they also say they plan to reduce water use by 25% and return high quality water to the environment after use in operations if you are looking at what they are seeing, they say there have been challenges. covid-related challenges in the markets, but capitalizing on growth and opportunities in health care and electronics and home improvement and other market trends. if you check it out, that stock is up $1 andrew thanks, becks. gamestop shares are jumping. the company raised $551 million in a new stock offering. it sold 3.5 million shares it will use the proceeds to accelerate what it is calling a shift to ecommerce the ceo george sherman will step down by the end of july. they are currently in a ceo search the stock is now $181.

do you want to be considered for the ceo search i know cramer has ideas how he would transform that company i don't know if he is on the list. >> he had detailed ideas and bitcoin and all kinds of stuff for gamestop it does tell you something to sell at those prices >> this is true. >> if they are making a transition -- >> we sold more shares >> if you are making transition and you are really serious, it would be good for the money. i think it puts a -- >> up 10% because you just got diluted? >> it makes me more of a believer it does. i don't know maybe there's one born every day. to raise that money. puts a stake. >> yeah. another sucker out there. >> that's horrible coming up -- it i

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still to come this morning, tesla shares under pressure after the company posted a blowout quarter. we will show you what elon musk said about the global chip shortage next. and later, david ricks will join us to talk about eli lilly's quarterly results. that stock is wndo 5% right now. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by ibm.

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welcome back let's get back to shares of tesla. that stock in the red despite beating analyst expectation on the top and bottom line. here is what the ceo elon musk said on the call about the impact of the global chip shortage

>> tesla had the most difficult supply chain challenge we ever experienced in the life of tesla. and difficulty with supply chains and over the whole range of parts about the chip shortage. this is a huge problem >> obviously tesla not the only one facing that problem. they have other issues joining us to talk about that is gene munster and gordon johnson. the founder at glj research. let me ask you a couple of questions. gene, i'll start with you. there are things gordon will point out. before we get into the mass of the things he is look at, first of all, without the ev credits in terms of the sales number and they took and included bitcoin as part of revenue what do you think of those two

issues >> well, you have to subtract those from the overall performance. they are relatively small in the grand scheme of things that is part of the tesla story more broadly which factors are most important? the simple take away is those are negatives that you described. it doesn't change the long-term trajectory i would love gordon's take on this my view is this is rare what is happening with tesla which is, in my view, a definitional growth story 109% vehicle growth delivery despite the supply chain issues. other auto companies had the issues 44% in september there's rare and i would just anchor my thoughts as you have to pick what i refer to as pressure points on any given company. in the case of tesla, deliveries are the most important ones.

demand is really good now. >> gordon, on top of everything that gene laid out, you have the issue of they are not experiencing a seasonal drop in the first quarter like tesla has seen in the past that is impressive in terms of consumer demand. what do you take away from this? >> right if you look at bloomberg estimate, tesla missed on the top and bottom line. they missed on the bloomberg estimate once again, again, again and gain, this is ththe fifth strait quarter that tesla lost. they lost $181 million this quarter versus $131 million last quarter. record delivery, but losing more money the more cars they deliver. they are selling more cars, but cutting prices to lose money another thing that is important.

look at the business segments. solar segment. gross margin is negative 20% versus negative 8%. if you look at energy, they will be a utility 13 straight quarters of negative growth margin. i don't know what people are saying when they say this is a car company. there are other segments that are losing money the free cash fell $1.65 billion. when you take the cash flow from operation. they are burning money again i don't know what gene is saying the numbers are small. the credit revenue and sale of bitcoin. $400 million of revenue, but you exclude the numbers and that is almost a $200 million loss in the record quarter tesla is burning money this is not a viable business model. they're losing share in europe and china and sales in the u.s. were down.

for the company that trades at almost 20 times it sells and 119 times earnings, you need growth. the sales fell swiftly this is a bad credit across the board. to say the outlook is good when the numbers are getting worse. we don't understand it you have to look at reality. fsd. they delayed it again. they delayed fsd again on the conference call. look at the value. >> fsd >> we will start with the earnings pieces. accelerated cash burn. part of that was bitcoin probably not worth getting into why they are investing in bitcoin. they are investing in berlin and r&d. you need to look at growth story they are trying to build the second piece around fsd is a negative

there is a notable difference in elon's comments. he previously talked about at the end of 2021 when they would have full fsd. what happened with the horrible accident in texas has impacted his public comments around that. i would agree with gordon. we are a long way away from full self driving we are still three-to-five years away tesla will benefit from autonomy if this trans forms from tech, these transformations take longer than expected, but more impactful than we can ever imagine. i would agree. fsd takes a step back. ulti ultimately, tesla will be the key winner in the autonomy race. >> can i make one point? >> gentlemen, we are out of time you have 12 seconds. >> tesla broke a law in germany. a construction law the plant in germany was delayed

a month. from march 26th to april 12th. we found that out last month that is a material development they did not disclose. >> guys, i hate to do this i have to leave it there you got a lot of good points we will do this again soon.poin. gordon, gene, thank you both >> thank you >> andrew? thanks, becky. it's a fascinating debate. when we come back, a huge lineup still to come including the ceos of eli lilly, pfizer and carl bass is going to join us and senator elizabeth warren an all-star packed show. "squawk" returns after this. up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing.

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welcome back to "squawk. fed policy leaders kick off their two-daymeeting steve liesman has the latest fed survey ylan mui has the latest proposal from the ways and means committee. ylan >> reporter: house ways and means chair richard neil is unveiling his priorities for the next big stimulus package out of washington he wants to unveil the human capital portion and wants universal paid family and medical leave that lasts 12 weeks and is worth 2/3 of the person's wages

neil is trying to change the president's mind. >> i want them to become permanent. i want to hear what the president has to say about it, but when i met with him to talk about these initiatives he was really enthusiastic. >> neal kept all options for raising revenue on the table he said democrats need to reach consensus on what should get done before they debate how to pay for it >> i'm reluctant to embrace a direct revenue stream yet until we establish the architecture. i think what we've tried to do is assess need, seek testimony and address the issue from the reality side and then address the issue of appetite for the revenue that will be necessary going forward. >> reporter: well, the other reality is getting republican support for this plan is doubtful but his office says that his framework has been

designed to comply with the reconciliation process if democrats decide to go it alone. steve, over to you >> thanks, ylan. the latest cnbc fed survey finding the fed is expected to do absolutely nothing. this meeting or even this year and that's despite surging growth, growing fiscal spending and inflation worries. all of that is prompting growing disagreement between the street and the central bank our expectations show this is not seen coming until december 2022, three months later than the march survey the taper begins in january, one month later. 65% say the fed doesn't do any qe at all. the funds rate hits only half a rate in december of 2022 one area of disagreement, the fed's refusal to alter the policy in the face of much higher fiscal spending from the biden administration 3% of our 34 respondents say the fed should raise rates because of it.

22% said the fed should raise qe sooner and 31% say both. so that's 56% combined saying the fed should tighten in the face of the fiscal spending spree. 34% say it should stay the course john ryding from breen capital said it is entirely appropriate for monetary to take fiscal trends into account. another area of concern, how hot the economy is set to run. that's sparking the inflation worries we've all been talking about. gdp in 2021, take a look at the difference between our december survey and today 3 percentage points higher for this year alone. you'll also see higher inflation rates in the survey as well as lower unemployment rates 2022, pretty much the same but still above potential growth at 3.6% or 3.59% right there. now moving on, what fed chair

jay powell has engineered a dramatically new way of running policy the fed no longer preempts inflation and allows unemployment to fall to a rock bottom rate. this survey shows the fed has been successful at convincing markets it's going to do what it says it's not convinced markets that it's doing the right thing joe? >> time will tell, i guess, steve. we're up against some time can't really talk. thanks, steve. coming up, a big lineup including the ceos of eli lilly, b.p., izpfer robert johnson, senator elizabeth warren and a lot more. we'll be right back. ..um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options

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i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis and is not for treating symptos unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of te arms and legs and confusion.

we spoke up and it made all the difference. ask your healthcare provider about nuplazid. earnings in focus. the biggest names and the results. the ceos of eli lilly and bp join us live investor kyle bass lobbying to keep china, north korea and russia away from critical infrastructure we'll get his thoughts on the president's infrastructure plan and potential tax hikes. the second hour of "squawk box" begins right now.

we saw better than expected cash flow. the stock of general electric is down 3%. good news/bad news

good news, it's only 38 cents. bad news it's 3% ups is jumping volume up 14% compared to a year ago. that stock big gain 7% toy maker hasbro had a beat. the shares are moving higher by 2% nonetheless a dow component, no longer, right, earned -- 3m earned $2.77 a share compared to estimates of 2.29 3m's results helped by strong demand for personal safety products andrew. meantime, this is probably the story of the morning or the story of the day tesla reporting record earnings on one side of the ledger despite supply chain disruptions but faces more competition

safety investigations and then there's the question of how they're making their money it's bitcoin and government credits, not car sales phil lebeau joins us with more right now. phil. >> reporter: andrew, if you are either a critic or a fan of tesla, there was something in this earnings report for you to hang your hat on to say, aha, this is what i always thought this company was about let's go about the numbers within the numbers they did beat the street, by the way, in terms of the bottom line earning 93 cents a share, the estimate was 79 cents a share. the numbers within the number. here's the one the tesla bulls will be hanging their hats on. gross margins, 26.5% the bears say you wouldn't have been profitable if you wouldn't have sold the electric vehicle credits. you had a bitcoin sale for $100 million in there there was consensus on this point. everybody has to agree there's strong demand out there right now for tesla vehicles and the execution despite all the challenges in the first quarter,

it was strong execution. >> q1 had some of the most difficult supply chain challenges that we've ever experienced in the life of tesla. insane difficulties with supply chain over the whole range of parts. the chip shortage, this is a huge problem >> also during the conference call yesterday with analysts there were some questions regarding what's happening with auto pilot technology. the development of it. this is front and center because of this crash in the houston area from a week and a half ago where two people died in this crash. it's under investigation by the ntsb as well as nhtsa. on the call tesla executives said they inspected this vehicle along with investigators from the ntsb and nhtsa and they believe someone was likely driving the vehicle when it

crashed. and elon musk took a chance to comment on how this crash has been covered. >> it's a tragedy and it was really extremely deceptive media practices where it was reported the auto pilot systems were the reason is completely false and those journalists ought to be ashamed of themselves. >> reporter: they have a subscription program that they talked about rolling out they were asked about it yesterday. they said they are close, not quite ready. gene munster, guys,talking a bit ago about the fact that fsd, it keepsgetting pushed back a little bit at a time and it ultimately plays into this question, is fully autonomous driving anything we're going to

see soon from tesla or from other automakers the skeptics and the critics will say, no you can do some hands free driving but you cannot see fully autonomous driving in the near future it may happen 4, 5, 6 years down the road but many believe that that technology still has a ways to go. guys, back to you. >> phil, here's my question. you know i marvel at this company and yet you look at the numbers and the truth is they're not making money off the actual, you know, sales of the vehicles. my question is at what point do they actually even break even on a per car sale just as the car alone? if we stripped everything out, when he says that -- >> sure. >> -- he's going to have one of the biggest car sale -- it's going to be the biggest car out there, does that mean he's going to lose money on every single sale >> reporter: well, they're breaking down the costs. that's the important component to keep in mind here i think if you go back, and they

mentioned this yesterday, if you go back to 2017, the cost per vehicle because of the battery pack, because of the technology that was involved, it was something like 74, $75,000 it's now down closer to the $30,000 range. so as they continue to bring that down and as they have other things like full self-driving subscription put into these vehicles, i don't think people look at this and say it's impossible for them to be profitable on a per-vehicle basis. that certainly is within the realm of possibility >> okay. phil lebeau, good to see you becky? >> thanks, andrew. when we come back, eli lilly reporting just minutes ago we'll hear from the company's ceo david ricks. before we go to break, let's get a check on the markets dow is higher up by 15 oints s&p up by 4.5. the nasdaq up close to 22. "squawk box" will be right back.

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and transfer your calls, because you can't be in two places at once. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure.

and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. welcome pack with, everybody. eli lilly out with the first quarter results. the company missed on the top and bottom lines and it's lowering its forecast for the full year. joining us right now so break down the numbers is david ricks.

he's the ceo of eli lilly. david, the stock is under some pressure it was down by about 5%. what happened during the quarter? >> well, it was kind of a complicated corner for us. bottom line is we grew our core business, 7% on the top line expenses grew 3% that yields the big picture. that is all kind of buried underneath a couple factors that i think make q1 of this year challenging to look at one, last year as the pandemic started, particularly in the u.s., particular diabetes patients, we saw people fill up their medicine cabinet as the shutdowns were happening so the compare is difficult because last year's q1 was so good that washed out in q2, q3 so we expect a better q2 compare we had a number of puts and takes with the government on our covid antibody treatments in terms of rearranging and that's

difficult on the streets and why we're lowering the top end of our guidance as well is because covid therapies are reducing in their need as the virus is being arrested by vaccines in the u.s. then finally, cost growth. we spent $200 million on the same covid therapies in r&d that was unplanned and not communicated in expectations and that's part of the story >> part of that, you know, that lower drug demand for the covid-19 drugs that you mentioned, i guess i'm wondering because for the full year guidance you had said you were going to be looking for 7.75 to $8 you've lowered that from 7.80 to $8 a share. you missed earnings by 25 cents but you took the top end down by 40 cents does that indicate to the street that there could be lower numbers than they're anticipating in the future couple of quarters >> no, that's really all due to

the covid therapy. so we lowered really the range we had said about 1 to 2 billion in covid nabs. we set guidance in december. december feels like a long time ago. the ability to forecast that part of the business is challenging. we're now saying we expect half a billion lower range on the covid therapies this year. the core business, we'll reinforce this today, is exactly where we thought it would be, 7% growth in the quarter. we expect that to continue to accelerate throughout the year 7.80 on the bottom up. 7.75 and $8 from $8.40 that lowering is due to covid therapies. >> the covid therapies, why is there less demand for it do they not work as well because you still hear how covid is running rampant in lots of areas of the globe >> yeah, that's the u.s. side of

this picked up quite a bit europe, other countries have been increasing their purchases of this. it's been a little slower than when the u.s. government, which is one big government that can move moved last fall the u.s. utilization, although littlely's antibodies are 75% of a all antibodies in the u.s. in europe we're seeing good use. in some countries we have a crisis in india, we're not approved yet they have a different regulatory process. we've submitted and we're hoping we can get to patients, it just hasn't happened yet. those will be lower priced or no price in the case of india we were offered to donate the volume will be but the pricing is different that's not our core business that's important to emphasize. >> that's fair i have a couple more questions on it just because it is part of the business that was not

reaching the expectations on these issues forgive me for my pronunciations on these bamlanivamab which was the therapy already approved in the united states. you've asked authorities to pull the approval for that and instead grant the approval to be used with that drug in combination with edisibimab. >> you said it pretty well all along we planned to transition to this combination, again, it's due to variant control. last spring we made a decision to sprint ahead with banlimibimab as therapy. the problem is having enough and we're glad we did that we surged all our manufacturing capacity, our partners and other contract manufacturer to make that single monoclonal antibody

through the worst of the crisis in the u.s., october to january. 90% of all of them used were that single antibody from lilly. we estimate the government saved 10,000 lives >> wow. >> we're glad we made that decision now we know the variants are evolving and it is better to have two, three, four antibodies perhaps in a single dosage as we know these variants are occurring in kidifferent parts f the spike protein. that's what we're evolving to and we've changed with the federal government to change it. >> that makes sense. it sounds like you were not asking the other governmentsto pull their recommendation. you were recommending that these other governments use some of

the other antibodies as well but you weren't asking them to withdraw their approval they had given for the original antibody. is that the case >> not yet, but we will. in the summer we'll transition globally that's for instance in europe the main variant is b.1.1.7. this drug fully arrests that there's no need for a combination. combining both what we think is going to happen going forward but in the period of crisis using what works today and in the case of europe, primarily the variant of concern is one that the monotherapy still works quite effectively on they have high case rates occurring across continental europe in particular but we do anticipate that. we do anticipate it globally and moving to a triple or quadruple combinations >> but just to be clear, the underlying business you have seen strength, you've seen good demand, you've seen good metrics for everything outside of what

you've seen with the covid antibodies >> that's right. health care utilization in the u.s. has not returned to pre-pandemic levels in a number of diseases. but we see now in march and april pretty strong return of new prescription growth. this is an indicator that patients with diabetes are getting tested for their blood sugar again. we saw those tests drop during the pandemic and they're realizing they're out of control and they need better therapies from their doctors, visiting their doctors, initiating on lily medicines patients with psoriasis that lived with psoriasis during the pandemic and are going out and getting treatment for that we are seeing a strong resurgence in business and that's a good indicator for the core business. q1 was mixed in that regard. it's pretty strong. >> thank you for coming on and answering questions this morning, especially when you're dealing with disappointment on the street the stock is down 3.6% but we do

appreciate you coming on >> thanks, becky appreciate being on. ceo of bp on the company's latest plus, hayman capital kyle bass and donna campbell will be on. we're going to hear from both sides on the president's infrastructure plan and what it means for the lone star state. later, senator elizabeth warren talks taxes and other ises quk x"s ming right back

i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis and is not for treating symptos

unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of te arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid.

we've got a big lineup still to come on "squawk box." bp's company ceo joining us straight after the break transportation secretary pete bo buttigeg sharing messages about the importance of financial education. here's the ceo of council for

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for you. on saturday berkshire hathaway will hold its programming note warren buffet and charlie monger will be together they'll be taking questions for four hours they'll be joined by two others. shareholders, while you can't be at the meeting in person, it's not too late to get your questions in i'll be there and i'll be looking through all of the questions. you can send them to berkshire questions at cnbc.com. the email address is berkshirequestions @cnbc.com

"squawk box" wilbeig bk.l rhtac this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.

i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis and is not for treating symptos unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if if you have certain abnormal heart rhythms

or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of te arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ welcome back to "squawk box. bp reporting better than expected quarterly results

they say they're going to resume the share buybacks after what has been a remarkably tough year joining us is bernard rooney it's great to see you. you are in the midst of a transformation of your company more broadly this past year has been a bit of a transformation why don't we dig into the numbers where we are this quarter and talk a little bit about where all of this is headed these numbers were significantly better than had been expected. >> andrew, thanks for having me on it's my first time on. it's good to see you it has been a strong quarter for bp strong financial set of results, about 2.6 billion. underlying profit. that's up from 100 million in the last quarter, but importantly strong cash delivery over $6 billion of operating cash $5 billion coming in from divestments. that's $11 billion as a result, we had our net debt target, andrew, about a year

ahead of schedule. down at 33.3 billion now having come down $18 billion down during the pandemic. so that then got us to the next stage, which is buy backs so we'll start buy backs in the second quarter $500 million and all this time we have been making step by step really disciplined strategic progress on that energy transition that you talked about. >> what does the picture look like over the next call it year -- six months to a year i throw in -- i think we've all seen the challenges, for example, that are taking place with covid in india and what that may mean to the price of oil and just what's going to happen. >> yeah. it's a good question, andrew look, i think america's back strong you know that. oil demand is pretty much back at pre-covid levels. china, oil demand is higher than pre-covid levels europe, the vaccination program

is accelerating so we'll see europe back. and then of course, as you say, you've got clearly issues in brazil, but we have the humanitarian issue that we have ongoing in india today with 7,000 people in india and we lost two colleagues this past week first and foremost, it is a humanitarian crisis and we're doing everything we can to support people including getting oxygen into the country. with that said, i think we're not seeing any impact yet on oil demand the big question is will there be a lockdown? what impact that might have? but in the background you have opec opec has both the capacity and the intent to maintain a stability in the marketplace they seem to favor a price regime around 60 to $70 oil and the tools remain at their disposal to exercise them if they need to we're relatively optimistic on the outlook of oil for the rest of the year.

>> let me ask you a larger question about something else that's in the background which is your push, maybe it's not in the background, maybe it's in the forefront for you, your push to be effectively net zero but specifically to reduce oil and gas production by 40% by 2030. where are you on that -- on the spectrum in terms of just progress towards that? >> so we are continuing to make progress on that journey this is a journey that is first and foremost about value we would do this whether there was an energy transition or not. we want to create the highest value hydrocarbon business that we can, not the largest hydrocarbon business sometimes that means that the barrel is better off in somebody else's hands we are step by step making our way through a disposal program we have a $25 billion divestment target by 2025 we're $15 billion of the way through that we have 10 to do over the next four to five years

we're not in any rush. we'll take our time. we'll make sure we get good prices for it. it is the right thing for bp it will help bp decarbonize and it will help bt diversify. we're going to use those funds, andrew, to reinvest into our transition businesses. we're going to reinvest in low carbon ten fold from about 500 million a year in 2019 to about $5 billion per annum that's what the transition is about. it's about a net zero direction with clear targets in the next 5 to 10 zblyears. >> i have a bit of a philosophical question for you you're selling some of these businesses and as a result i believe the investor class is rerating you as a company that's interested in the climate that may have a higher esg rating and the like and yet of course there is a buyer on the other end, right? there are folks that are going to buy some of these plants that will continue to produce carbon and i wonder how you think more

broadly policy makers should think about that. >> yeah. no, i think it is a good question and it's something that's been discussed a lot recently i'd say a couple of things if i may. first and foremost, divestment is not the only way that we will reach our 40% reduction in production we're also exploring and we used to spend 2 to $3 billion. today we're spending less than $500 million we have said we will no longer explore for oil and gas. we're investing less we used to invest between 17 and $20 billion in the upstream. today we'll invest $7.5 billion this year and along with that there is divestment. so, number one, it's not the only tool in the toolbox it is part of the equation but not the whole equation then the second thing i think is that who do we sell these to well, we sell them, i think, to responsible operators. people think they are somehow immune from societal pressures

or immune from the financial markets. that is of course not true they're having to borrow money they're in the debt markets. so they're subjected to the same societal pressures as the rest of us. the final thing i would say, an gr drew, it's what you do with the proceeds that enables us to get our net debt down and enable us to invest into the transition which is what we're doing over the next five to ten years we're making great progress. we've entered off shore wind with equinar in th we are in ev charging, we have solar fields it gives you a sense how you say we think philosophically about the question of divestments. >> we appreciate you being on the program. we hope you come back because there is so much to talk about in this space and you are right in the center of it. we appreciate it talk to you very soon. >> thank you very much >> thank you

>> joe coming up, protecting america's infrastructure from cyber attacks. we'll talk to hayman capital kyle bass and donna campbell the dow is up 15 points. s&p headed for possibly another new high along with the nasdaq we'll be right back.

i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. this is hannah, she's a posh virtual receptionist w at the ready 24-7 cvs is wo to answerring you your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ so you're a small business, visit letsmakeaplan.org to find or a big one.essional. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back?

you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. welcome back to "squawk box. i'm dominic chu with your market

minute earnings season momentum is picking up on the heels of reports starting with shares of archer daniels midland up 4%. 2,000 shares of volume this is the food processor that reported better profits and revenues helped along by strength in its agbonla service. shares of general electric are 3% lower the industrial conglomerate reported mixed results ge's power and aviation units posted results that came up short of some analyst's expectations shares of u.p.s., up 70,000 shares of volume they reported much better than expected profits and revenues helped by what else these days, the massive demand surge for delivery services driven by the covid pandemic everyone starts ordering and keeps ordering goods for delivery these days. keep it right here

coming up on "squawk box," kyle bass joins joe, becky,andrew t talk about taxes and infrastructure "squawk box" will be right back. keep it right here keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo

american businesses and the u.s. government have recently been the target of cyber attacks and rather than wait to be attacked, texas is taking matters into its own hands just last night the state senate passed the lone star infrastructure protection act. it is designed to stop certain countries from compromising its critical infrastructure. joining us now is kyle bass, founder and chief investment officer of hayman capital investment who testified before the senate and republican state senator donna campbell who sponsored the bill senator, i want to get to what's in the bill in a second but i just want to initially start with something that we've discussed with kyle before kyle, i would -- if i didn't know this to be true, i might talk to netflix about a series based on this gentleman and some of his, we've talked about it before, some of what he's been doing in texas in terms of wind

energy can you go into that he's a former officer in the chinese people's liberation army and he owns a lot of land in texas, businesses including windmills, wind farms where in your view it's the worst place in texas to even have a wind farm and he's connected to all the infrastructure or his companies are and you've raised that red flag before could you go into that, kyle >> sure. i mean, joe, first of all, thanks for having me on. hello, senator campbell. i think, you know, joe, as we sit here today, we know whether you're listening to the director of national intelligence or the state department or the director of the fbi, we know that china, russia, iran and north korea are not our friends and they are here to potentially inflict pain on us through various means of cyber attack and other attacks on the country and here we have a general frommin jinjang, which

is the region where ithe genocie is happening and they are plugging directly into our electrical grid. i mean, like you say, joe, it's almost like how can this possibly be in today's day and age, but i'm telling you it's happening. the good news is senator campbell decided to kind of grab this bull by the horns and lead the united states with a texas bill >> senator, the bill itself that we're talking about is a little bit more generic, not just china that you're talking about and in general terms talking about protecting texas infrastructure, but do you look at this particular situation and in your view is it a clear and present danger that kyle's describing for texas infrastructure and the bill would at least, you

know, raise the awareness in the state? >> thank you for having me, joe. yes, kyle is right on target you know, this project initially was looked at more of like why this unusually tall wind farm? what's going on with that? why 700 foot tall wind farm towers in a place, as kyle said, where the wind doesn't really blow 65 miles from a strategic air force base and it's close to our border why a 10,000 foot runway what's the purpose for that? and when you start looking into it a little bit more asking all these questions, it looked more like a trojan horse where if they -- if hostile countries invaded our infrastructure, it could be catastrophic. so this bill protects texas critical infrastructure, our vital military capabilities, our economy and just the safety of

texans this critical infrastructure includes communications, cyber security, our electric grid, hazardous waste, our water systems. even, as you all described, the latest threat assessment that was by odni that outlines china, iran, north korea and russia demonstrating capabilities and an intent to advance their interests at the expense, even in spite of a pandemic at our expense even secretary of state blinken has been vocal on this matter. other states need to assess enterprises within their own state where possible threats to our national security. >> kyle, you point out that even fbi director talked about how many china-related counter intelligence cases there are every ten hours there's a new one open and out of the 5,000

around the country, almost half are related to china so people that would say this is kind of paranoid or confused, do you really expect china to try to disrupt the grid or to try to hurt water supplies. you say that's not a stretch, kyle >> no. joe, i'll point you to the u.s. government accountability offices titled electric cyber security dated this month, march 2021 we say nations or groups or programs sponsored by nation states use cyber tools as part of their information gathering and espionageactivities. according to the 2019 worldwide threat assessment and the 2020 homeland threat assessment china and russia posed the greatest cyber attack threats of particular concern they have the ability to launch cyber attacks that will disrupt or damage critical infrastructure it's all written in plain ink if

you read the reports from our government and our government is not -- these are not partisan reports whether they're democrat or republican, these are government accountability office and the director of national intelligence this is something we need to pay a lot of attention to. joe, the thing that i still can't figure out is we here on cnbc love to talk about the various chinese stocks that we can't wait to invest in and make another dollar of profit with when there's this schism between our national security edhe edife and the only difference between wall street and the federal government is we don't care about national security, we only care about making another dollar for investors and ourselves. i think that's got to stop. >> senator, in general in terms of texas infrastructure, the white house gives grades out on infrastructure i think texas gets a c do you -- what needs to be done? what do you think of the

infrastructure bill that's being proposed by the biden administration i know you're a state senator. how much would texas benefit what is needed how do you view infrastructure >> first of all, i'm going to say i disagree with our having a c on our report card with having an infrastructure. obviously we went through a winter apocalyptic blast if you will but we have great infrastructure the biggest threat -- infrastructure in any state is the fact that there's vulnerabilities there that nations hostile to our country can get into and we've got to watch out for that you said the critical term -- the critical term that you said regarding the biden administration is infrastructure infrastructure proposed by whether it's the state or our nation is vulnerable and we've got to keep our eyes open and be very vigilant to make sure that our infrastructure anywhere is not violated by hostile -- or

nations hostile to our country i think kyle said it great in a different wall street versus national security, we've got to -- we've got to watch and make sure that nations hogs tile to our country cannot get into, tie into our critical infrastructure because it would be catastrophic for any state and catastrophic for our nation. >> kyle, you're trying to wade through, navigate through these investment waters right now. what do you make of -- i don't know, take your pick, corporate taxes going up another 2 trillion spent on -- i looked at where -- i looked at where texas is being -- getting some low grades for infrastructure and it includes care giving, child care, veterans health, which is all these things are important but not -- clean energy jobs there is that. you guys have some oil and gas down there, i know

but what do you make of how we're headed right now with the administration >> well, i'm going to agree with the senator about one thing, joe. i think texas produces more alternative energy than any other state in the union today so this is not an antiwind, antisolar talk, this is just a malign actor owning those assets when you look at the biden energy and climate plan and biden infrastructure plan, it will benefit our state in a big way. the one thing the obama administration figured out a little too late was to engage in alternative energy production there are places in the texas panhandle and oklahoma that are the most -- have the highest wind values and the best sunlight to promote wind and solar. the problem was, we didn't have the transmission lines to get it to the east coast via the tennessee valley authority

and/or across the rockies to the west coast i think the biden administration is going to invest carefully and thoughtfully in the alternative energy grid for america and that is going to benefit our state in a great way. we are still a very large hydrocarbon producer hydrocarbons aren't going away in the next 20 years despite anyone's wishes thereabouts, but i think -- i think you're going to see a very large infrastructure plan come out of it by the administration i think it's going to benefit us that's the first plan. the second plan that they're talking about is what they call human infrastructure i'm not quite sure, i'm skeptical of what's in that plan i think the energy and climate plan is something that's going to be very good for our country in the long run for the state of texas. >> kyle bass, very good. appreciate it. senator campbell, you don't step into the emergency rooms anymore and fix people

you do that on the side? what happened? >> i still to that full time. >> you all do that full time thank you for doing that >> thank you so much >> you're welcome. thank you. it is almost 8:00 and it's still another big hour of "squawk box" to come this morning including secretary of transportation pete buttigieg on president biden's infrastructure plan and we have senator elizabeth warren on taxing the wealthy a few things to talk about this morning. "squawk box" will be right back. (announcer) carvana's had a lot of firsts. 100% online car buying. car vending machines. and now, putting you in control of your financing. at carvana, get personalized terms, browse for cars that fit your budget, then customize your down payment and monthly payment. and these aren't made-up numbers. it's what you'll really pay, right down to the penny. whether you're shopping or just looking. it only takes a few seconds, and it won't affect your credit score. finally! a totally different way to finance your ride.

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you don't do this. we do this, together. bounce forward, with comcast business. good morning it is 8 a.m. on the east coast and you are watching a jam packed final hour of "squawk box. next 60 minutes we have four interviews you cannot afford to miss with transportation secretary pete buttigieg, bet founder bob johnson. albert burla and massachusetts senator elizabeth warren investors, infrastructure, taxes, beating the pandemic. it's all on the docket plus a wrapup in this morning's big slate of earnings and what went into tesla's first quarter

profit beat. it is all ahead. the futures are calm right now let's see what happens next as the final hour of "squawk box" begins right now. some bold names, bold. welcome back to -- >> bold faced names. >> bold faced names. we'll get to our newsmakers in a second first, a big slate of quarterly results out this morning let's take you through some of those names starting with delivery giant ups posting first quarter profit well above expectations the company scoring a beat on the top line as well positive results were driven by more than 14% -- you guys make some -- okay they took you away. i wanted you guys -- oh, your mouth to drop open or eyebrow to

be raised or something while i'm doing that because we are doing reaction shots there i'm not sure why i like seeing that anyway, increase in volume from a year ago small to medium-sized businesses contributing significantly dow -- look at that stock, up 7% that would be -- you guys go -- dow component 3m beating 3m results helped by personal demand for safety devices. sharply higher now, becky, you can see it's down >> yes 1 1/3% all right. president biden is scheduled to make his first address to congress tomorrow. a major topic will be his more than $2 trillion infrastructure proposal which includes on upgrading roads and bridges to broadband to home care services but congressional republicans aren't fans. a group of senate gop lawmakers has unveiled a $570 billion counter proposal

joining us to talk about the competing plans and how president biden plans to pay for his plan is transportation secretary pete boughtuttigiegbuk for being here. >> thanks for having me on good to see you. >> good to see you the president's plans, everything kind of hinges on what democratic senator joe manchin is doing right now people have been watching him closely especially in recent days as it looks like he is starting to tap the brakes on things you all can't be use the budget reconciliation without his vote because it's such a close senate at this point. i just wonder, have you or anybody else done it you might be able to sway him. >> he prefers a bipartisan approach so do i. so does the president. that's why we're not only in dialogue with the fellow democrats but we're in dialogue with the republicans we're glad they came to the table with their version

that's a starting point. we need to be moving pretty quickly here i think the american people expect results quickly we've allowed our infrastructure to fall to 13th place in the world. one area that there's strong bipartisan agreement definitely among the american people is we have to act and we have to invest in a big, big way that's what our plan does. that's what we're discussing every day and people from both houses and both parties. >> i think you're right that there is definitely some bipartisanship when it comes to infrastructure but that depends on your definition of infrastructure the big plans and moving forward quickly probably don't correlate with bipartisanship at all joe manchin wants to slow down and talk to republicans and embrace at this point it looks like something between 600 billion or 600 billion and a trillion dollars in infrastructure is that something you're willing to give him time to sort out with the other side? >> yeah. we're eager to have these conversations. we've got to make sure it's big. we've got to make sure the

investments are over the baseline of what would have happened anyway. these are exactly the conversations going on right now. you know, i think it was a mayor who once said that there's no such thing as a democratic or republican hole in the road. we know that our roads and bridges need work. we know our ports, airports are not what they could be we know that americans have been asked to settle for less on rail, on transit by the way, this isn't be just an issue for quality of life for americans, this is an issue for our business competitiveness also you look at our allies, strategic competitors, they are not shy to make big infrastructure investments a lot is what we here in the early 2020s choose to do. >> but, secretary, if you look at infrastructure again, the bipartisan angle is one that's a muchnarrower definition of infrastructure and probably one that fits into your purview as transportation secretary a

little bit better, too would you be okay with a stripped down version like senator manchin said he wants that doesn't include some of the at-home services and looks at more traditional samples of transportation, things like bridges, roads, even broadband would you be okay with taking a trillion dollars and focusing just on that >> we believe these things go together and that's why the president planned them in a package together there's a really complex process of getting paid and legislative mechanics and we're going through that process right now what i will say is the debate whether to call somebody infrastructure is a little beside the point the truth is a strong majority of americans believe something like elder care is more affordable i think that's part of our economic infrastructure. a lot of people are in the work force because they can't afford to take care of lord ones. if you don't think that's infrastructure and we still agree it's good policy, my message to the republican

legislators is vote for it anyway, call it whatever you like and we can both celebrate doing something good for the american people. this is the process we're going through right now. i do think we're going to get to something that's going to be good for the american people and it will help move us forward. >> mr. secretary, i agree completely with something you said earlier i was really happy to hear you say that infrastructure improvements will benefit our corporations and their ability to compete globally, which is what we really want them to do then i think about probably your support for raising corporate taxes back at 28% and you add in state taxes and it goes up quite a bit higher than that you put in the guilty part of things, the glti part of things, you can get up to where we are the highest taxed nation in the world in terms of corporations and i'm just wondering how do you square those two

many people on the other side. >> the american corporations it's competitive in the 2000s. we have a 35% or much higher rate to tell me something has gone wrong in the american business, this business is incredibly competitive at 35 plus it's suddenly lost its capability to be competitive at 28 it just doesn't seem to square with the evidence. there was a time -- remember, there was a time when 28 was what conservatives were hoping to get back to. >> the rest of the world is going down that's why they call it a raise the bottom the rest of the world has been cutting. competitive is one thing american businesses are always

going to be competitive. i'm talking about less competitive. we did see benefits. >> so the race to the bottom is a real issue that's one of the reasons why the president's plan adjusts the issue they're incentivizing parking dollars overseas there's every evidence that american business can handle this this has been modeled. look at moody's analysis america creates more jobs if we do this plan than if we don't do this plan because the biggest thing holding america back right now at least in terms of our long-term outlook is the fact we've tolerated a deteriorating infrastructure you can't get something for nothing. when you add this all up, i think it's going to be a win not just for the american people but for businesses too even if some of the corporations that have paid zero taxes on billions of dollars of taxes have to pony up a little bit and make sure it happens. >> mr. secretary, question about the framing of this. right now the higher taxes are being framed as effectively pay

fors for the infrastructure package and some of the other ambitions by the administration. the question i'd ask you is if, for example, the price of the infrastructure package ultimately came down by half or even less than that, do you believe that the tax -- the tax raises should come down as well? or are the tax raises something very different, which is just to say we want to bring in more revenue more broadly, deal with debt, deal with other things or do you think of them as directly tied? >> well, there's a reason that the amount we're proposing to invest and the amount we're proposing to raise in terms of revenue are connected. they align because the president believes the petition going forward ought to be paid for then when you run it out past the 15-year window where we collect those revenues for these purposes, it's actually serving to reduce the deficit starting in year 16 now i know that that's the template, right? that's the plan we've put

forward. congress will have all kinds of ideas about the paid fors, the revenues and the spending. that's part of what has to be discussed and negotiated now i want to stress the plan the president proposed, we're arriving at this negotiation is one that's fiscally responsible and we've identified how to pay for everything we're proposing to do. >> mr. secretary, can we ask you about another issue we spend a lot of time focusing on.

>> automated vehicles present a tremendous opportunity, including, by the way, theoretically a huge safety audit. human drivers don't have the best track record seeing well over 30,000 fatal crashes a year but that's talking about the future in terms of the technology that you can get right now when you buy a car with these advanced features, it's very important to point out that anything available on the market today is designed to assist the driver, not to replace the driver. it counts on you being in your seat paying attention and that remains the main issue of safety today.

having attentive drivers, not distracted or impaired and we're going to continue that with nhtsa. the authorities we have are designed around the vehicles we've known up until now we've got to be ready for the future >> secretary buttigieg, it's great to see you today thanks for your time. >> great to be here. okay i'm getting geared up for this big, long -- oh, they just took some of it out these teases are long. i'm he going to tell you a lot right now so just sit back final big hour of "squawk box. up next b.e.t. founder bob johnson joins us to lay out an ambitious plan to push out dollars to black and minority owned businesses called boost. and then albert borla and elizabeth warren tesla, the electric car maker stock is lower despite beating analyst estimates for first quarter profits and revenue.

revenue was up 74% from a year ago. one caveat, tesla's numbers were helped by sales of environmental credits. don't go anywhere. "squawk box" will be right back. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.

there's a new plan out aimed at narrowing the racial wealth

gap. bob johnson is proposing a $30 billion plan to give preferential tax treatment to investors who back black and minority owned businesses. he sent letters and the proposed act to key members of congress and the white house. bob johnson joins us now he's a cnbc contributor. this is not a surprise to me that you are behind this plan, bob, because it more or less uses capital inflows which have been lacking some black and minority owned businesses and gives kind of a tax advantage to individuals who would do that instead of just a regular tax and spend sort of a handout. that is in keeping with your philosophy, i think, over the years. >> that's correct, joe if you think about there's a lot of talk in the country, as should be, about racial equity, reparations and other ways of getting -- closing the wealth gap. the good thing about the boost

act, it's voluntary but it's supported by if it's enacted it's supported by the government saying we don't give preferential tax treatment to investors who do what they morally believe is the right thing to do, that is to bring about racial equality and close the wealth gap so unlike other mandated taxes or payments or transfer payments, this is voluntary and i believe that people who believe in equity or equality, however you define it, this is a perfect thing and all we need is the congress and the white house to enact the legislation it's been done before, joe, as you well remember. there used to be something called the fcc tax certificate which allowed white-owned radio station owners or tv owners to sell to blacks who wanted to get a voice in media to get a tax

deduction on their capital gain. and that legislation, the fcc tax certificate, increased dramatically the number of black-owned radio and tv stations cable systems in the country. >> bob, we're in an environment now where i'm not going to call them loopholes because i wouldn't view this as a loophole, but we're in a tax raising environment. we're not in a giving tax breaks environment right now and i'm wondering what you think of proposals that would raise the capital gains tax to the highest levels in history, only for -- according to the administration, only for a small percentage of americans but we're still talking about raising corporate taxes. and then i want to talk to you about some other things as well. >> well, i've never considered the capital gains tax a loop hole i've considered it an incentive

for people to take risks with companies who need growth capital. i know at my private equity fund, that's exactly what we do. we hold that investment anywhere from five to seven years to allow that company to grow and not only do we bring capital, we bring strategic advice and guidance so to me the capital gains tax has been at this rate for a long time because it's an additive to the u.s. economy, to small businesses seeking capital and the other thing, joe, if they erase the capital gains to some 40 plus percent, it's going to destroy minority private equity fund because first-time funds are usually minority and they have a tough time raising capital. and if the returns start to drop, the big investment in funds, the pension funds, corporations, the private

foundations, they're going to start consolidating their money and selling the larger funds it will wipe out first-time startup or medium finance high north private equity funds >> yeah. >> the tax and spend policy of taxing either to harm or to pay for favorite things that you promised your supporters during the campaign is harmful to the u.s. economy in every way. >> bob, i notice that with your criticism of the infrastructure plan isn't really, i don't think, that there's a lot of things that aren't generally considered infrastructure, but you say both parties use it to put earmarks through and i -- that raised my eyebrow so, what, one party has 600 billion in earmarks and the other has 2.3 trillion can't you see a little bit of a difference there if it's a bipartisan problem with using infrastructure, you know, to degrees your own sort of interests, i mean, can't you see

the difference between 2.3 trillion and 600 billion for earmarks >> i can definitely see the difference and as i said, i think you get into pork barrel legislation kind of process as well what happens, joe, is if one side is getting its way and with the congress under control of the -- i mean, the house under control of the democrats and ways to use reconciliation to give control in the senate, it is likely to cause some republicans in certain districts to say, well, they're getting theirs, i've got to get mine so we get on a slippery slope. now there's definitely a difference between the two parties and i hope when president biden talked about bipartisanship and when he recognizes that infrastructure spending should be tax efficient and cost efficient and we

continue down this road that everything becomes infrastructure, we're going to find ourselves exploding the debt and deficit further and we're also going to find ourselves creating a situation where the american people are going to be facing some potential growth in inflation that's going to really rebound and hurt the lowest income level. same thing with tax policy you tax, that stacks is not going to stay at the company, that tax is going to the consumer taxing of any kind is very regressive and low income minorities when a company is faced with a tax increase they pass that cost on to consumer goods, low income people are going to be hurt worse than moderate or wealthy people >> hey, bob, we've been covering, as you know, over the last month or so now the issues around voting rights around the country and the role businesses play in critiquing, criticizing

some of the voting rights proposals out there. this was led originally by the two kens, ken chenault and ken frazier who put together the letter of 72 quite prominent black executives i noticed your name wasn't on it i was curious if you were asked to sign it >> no, i was not asked to sign it it didn't reach my level of attention. i don't know why i know both ken frazier and ken chenault, terrific guys. terrific ceos and i'm sure they have their heart in the right place in saying businesses should be more concerned than just about, you know, tax -- more concerned about shareholder value. should take a broader look at the country as a whole so if they support voting rights as a policy, which i think nobody disagrees with, people will disagree on whether or not

the georgia legislation hurt black voter registration and voter -- and there was voter suppression, but here's what i would say to my good buddies ken and ken. if you believe that voting rights is a primary need of the black community, i would argue that access to capital is equal to or more so. voting rights without access to capital to build wealth in my opinion is an empty cup. and so i would argue that they say businesses should embrace the boost act, endorse it with the congress and the ways and means committee and the white house and say let's not only move to the forefront for the black americans, let's move access to the capital and

closing the wealth gap. >> just to put a fine point on it are you suggesting you don't believe that the laws that were put in place in georgia, suppress the vote of blacks in that state >> i don't believe that the laws that people talked about were in it -- were enacted i believe that they changed the language in the bill to address the concerns that were earlier expressed that was moving into the georgia legislature. i didn't delve into it to be honest because i'm more focused on what i think is the real problem, not that voting rights is not a problem, but as i said earlier, it's a glass half empty if you are saying i'm going to give you the right to vote but that vote doesn't translate knew being able to build wealth for your family, send your kids off to college, provide retirement

savings for you to become a part of the economic system in the country as you deserve giving you equal opportunity. so we can do both, and my thing to -- as i said, to 90 or so business men who signed the voter's calling for an end to the legislation in georgia, take that same attitude towards capital. this is, after all, a capitalistic free market economy and if you spend all of your time chasing, you know, we need to change social voting issues, you're going to miss out on what really makes america a successful nation and that is access to capital and access to wealth and that's what black americans need now more than ever >> bob, do you -- some of this has got to be, obviously, paid for. trying to figure out how to do

it i want you to go into a little bit more about what you think it's going to do if we raise corporate taxes back to 28%. we're going to have senator elizabeth warren on in a little while in the next half hour. lee cooperman won't go before a senate panel i was wondering if you would volunteer. you can say something now and we can cut a sount d bite of what your thoughts are on approaching this what's the best thing about cutting your nose off despite your face and having unintended consequences >> well, there's no doubt that infrastructure replacement, rebuild is long overdue. i don't think anybody would argue that i think the question is what you said earlier what do you define as infrastructure and how do you keep it from being, as i said, a gift to your

particular constituents? then once you do that, then it comes down to how do you use the tax code to increase growth, economic growth overall? and turning to a we're just going to raise taxes on corporations in a blanket fashion is not, in my opinion, the best way i would argue that the government should look at infrastructure programs the way we look at other kind of investments in the economy i mean, we look at the defense industry as a national interest and we focus our attention on that and structure our tax policy to deal with that but we don't put defense and health care and every other

social program all in the same tax bucket and so i think if we're going to look at roads and bridges and tunnels and airports, what's the best way to do it? you have taxes that ought to be targeted a little bit. a gasoline tax is regressive, no doubt about it, but it is certainly targeted and there's certain industries who depend on the roads and bridges more than others >> yeah. >> same thing with airplanes and so there are ways to do it, but when you start off with the idea that i've got to use the infrastructure bill as a strategy to tax big corporations because it sounds good to tell the public you're not going to have to pay a tax. and that's another thing, too. everybody uses a road. everybody uses a bridge. everybody uses an airport.

you could spread out these taxes across the whole population and not just target certain industries >> right. >> so that's where you start getting what i call equality of treatment in making america successful economically. that brings everybody in the country together not only corporations but workers. not only the large business, but the small business as well >> right >> i think if we did it that way, you'd find more people embracing tax policy see, the thing that concerns me is that now, and somebody spoke about elizabeth warren, tax policy -- i'm asking for tax policy on the boost act to be used for americans in what they believe in. >> we're going to ask her that, i think, bob that's a great thing -- that's a good subject because capital, it's got a bad name. capitalism has a bad name. i think when you use it in the way you're talking about it, it certainly should be a positive

bob, we want to have you back and update us on what happens, how thes goes with boost got to run though. we appreciate your time today. thank you. bob johnson, former b.e.t. becky. when we come back, a rampaging virus surge in india missed second vaccine doses and what the rollout of a u. ss. booster shot could look like plus, massachusetts senator elizabeth warren ahead of a high profile hearing on fairness and the u.s. tax system. quack box will be right back ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want. the right financial professional can show you how.

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welcome back to "squawk box. leading up to the launch of our special event inspiring america this saturday night on nbc and sunday night on cnbc we're highlighting extraordinary people making positive impacts on their communities we're joined by a very special guest and meg tirrell is bringing it to us. >> we are joined by the ceo of one of the most influential companies in our country right now. pfizer is helping people get back to normal all around the

world. albert bourla. welcome this morning you know, we'll all never forget that day your vaccine was found to have more than 90% efficacy is a day i think a lot of people are marking as a historical one in their lives here in the united states your vaccine is really helping us get back to normal how are you looking at access around the world to your vaccine, particularly in india where it is just a horrible situation right now? >> india is a horrible situation and other places of the world there are vaccinations and the ability overseas is lower and the way i see it is a very big problem not only because ethically it's unaccept anable in a pandemic you are as safe as your neighbor. if he cannot provide solutions for india and africa, they will

become the pool where the virus will replicate and generate variants so this is something that needs to be addressed. >> are you seeing work moving at a good pace to addressing that, to getting vaccines, yours or others, in higher quantities to india or other countries that don't have access? how do you see that system working? what is the best way to achieve global access when manufacturing is still getting ramped up everywhere >> absolutely. i think everybody's making great progress i can speak about ourselves. as you know, when we made the announcement for the vaccine, we were forecasting 1 billion doses for this year. then we did tremendous, tremendous progress in improving the processes, in building infrastructure with the speed of light in resolving issues of

suppliers. this year we are comfortable of saying we'll produce 2.5 billion doses. that means annualized 3 billion doses not coming from one company. that's a lot of doses. clearly they can be used not only in the north part and the south and the rich and the poor. the second is make sure there is no price barrier when we signed our first commercial contract pfizer introduced the tier process. higher income, u.s., europe, the cost of a meal which i think is very reasonable and allows every government to have it. then the middle income

countries, they have a price which is half of it. low income countries, they are having a price at cost nonprofit. they have a solution that can be found. >> albert, in the new york paper, the post admittedly, but covid cure may be ready from a pfizer drug. you know which one i'm talking about. pf 07321332 is what it says but it prevents a replication of covid in the nose and could be an oral medication and they're calling it a cure. could be ready next year is that headline accurate? >> it is accurate that we are working on antiviral one, it is injectable and the other it is an oral as you just said

particularly the attention is on the oral and of us because it provides several advantages. one of them is we don't need to go to the hospital to get the treatment, which is the case with all the injectables so far. but you can get it home. that could be a game changer the compound we are talking about, you said very well the numbers, it is a protease inhibitor. this is also the first molecule that is coming from this type of class. this is good thing because you can combine it with other classes. also, the vaccine is such that it is not expected to be subject to mutations, particularly because it's not acting on the spike. as we all know, all the mutations that we are hearing right now are changes in the protein of the spike this one doesn't work there. so that allows us to believe that will be way more effective

against the multiple variants. so all good news we are now progressing the status and we will have more use around summer. >> around the summer what do you think is a reasonable time frame, albert, for a small molecule antiviral pill like that to get through phase 3 and get out there and potentially be available if all goes well? >> meg, if all goes well and we implement the same speed that we did so far, and we are, and if regulators also do the same, and they are, i hope by the end of the year >> all right really quickly the timing for the vaccine for kids, you had data in kids 12 to

15. >> they are scrutinizing all of the data as they should. i'm very optimistic. they found they were having 100% efficacy and very, very good for ability and safety so based on that, i believe that the fda will move very, very fast so it's a question of which. >> and the other question for you, albert, in the united states, we're getting to the point where folks who wanted a vaccine have probably been able to get their first shot already. how does pfizer seek to reassure people who might be hesitant about the long-term safety of your vaccine that this is something that will help them and will protect them? how do you counter when folks ask you how can you be sure, this was tested so fast, what do you tell your friends an relatives who might think that >> i will tell you what is the thing that you should never tell

these people you should never try to ridicule or challenge their judgment or to shame them because of their decision they are all good, decent people and either they have a real fear or they have been misinformed so you can tell a lot of things what i have noticed is it's not me that i'm the best to calm these people, it is others it is the scientists, the journalists, it is the political leaders, it is the leaders of the community, but of course it's also me i found that what really resonates with those people, it is when you explain to them that, okay, you may have your doubts, but your decision is not going to influence only your health, your decision to get vaccinated is going to influence the health of others and likely the health of the people that you like and you love the most because they're the people that

you interact with. so think it wise, look at the data, what happened in israel, what happens around the world and think twice before you make a decision that affects people around you >> right albert bourla, we appreciate you being here today thanks again we'll see you soon. >> thank you very much >> andrew, back to you >> okay. thanks, meg. we're going to be hearing from many other incredible individuals on inspiring america, the 2021 inspiration list it airs saturday, may 1st on nbc at 8 p.m. eastern time and right here on cnbc on sunday, may 2nd at 3 p.m. eastern time becky? >> thanks, andrew. when we come back, massachusetts center owe liz beth warren will join us we'll talk live about taxes, rergeting the rich and much mo don't go anywhere, "squawk box" will be right back

welcome back to "squawk box" this morning with lawmakers arguing over the multi-trillion dollar proposal, washington is consumed with taxes and who should pay more of them later today a subcommittee chaired by massachusetts senator elizabeth warren will hold the very first hearing, title creating an opportunity through a fairer tax system. here to tell us what fairer means is senator elizabeth warren thank you for joining us this morning. we should mention, this is the

same hearing that i know you had invited lee cooperman to and there's been a bit of a back and forth about that i want to get into that in just a moment, but more broadly when you talk about a fair tax system, what are you hoping to achieve in this instance >> look, we need the revenues to be able to make investments in america going forward. in infrastructure, in child care, in the things that help us build a future so how can we do that? well, let's start with the fact that the 99% in america pay about 7.2% of their total wealth in taxes every year. but that top 1/10 of 1%, they're paying about 3.2%. we put a 2% -- a 2 cent wealth tax, 3 cents for people over 1 billion and they're still paying less than the 99%. but that's part one. and we can raise about $3

trillion from that part 2, there's giant corporations that report more than $100 million in book profits. corporations like amazon and nike and fed ex that pay zero or little in taxes. a 7% across the board tax on their book profits, something by the way an approach that president biden is using, we could raise from the way i do it about $1.4 trillion. and the third is fairer tax enforcement. not just sending out letters to people who are making minimum wage but actually hiring enough people at the irs that we concentrate on the folks who are cheating at the top. the irs commissioner says that we have a tax gap right now of about $1 trillion a year even if we only got a fraction of that, we could get about 1.8

trillion over 10 altogether it's about $6 trillion that we could get just from those three changes in our tax laws. >> right >> that would more than pay for the infrastructure and have a couple of trillion left over >> senator, do you think there's a framing issue around this? the reason i ask is depending on how you look at it, you could also say that a majority of the tax revenue that comes in more broadly, we can talk about the percentages as you just did, but comes in from the 1%, but the reason i ask this is there are clearly lots of viewers of this network and others who have made an extraordinary amount of money who feel oftentimes that they're being attacked and oftentimes being attacked by you. as opposed to a sort of view of, look, you've had an enormous amount of success. you've worked very hard hopefully for it some of it may have been luck along the way but you did it in america and what we're trying to do is figure out a way to

contribute to the country and make it work and oftentimes i hear from people on the other side of it who feel that they're being attacked, whether that's fair or not, i'm curious how you think about the framing piece of it. >> well, i think of it as you built a successful business. good for you. it as you built a successful business. good for you we want to celebrate your success. but here is what i know for sure everyone who built a successful business here in america did it using a workforce that all of us paid to educate. did it getting their goods to market on roads and bridges that all of us help to pay to build did it protected by police and firefighters that all of us helped pay their salaries. and all we're saying is that when you make it big, and i mean really big, i mean the top 1/10 of 1%, pitch in a little more so everybody else gets a chance to

make it in this country. that is all this is about. >> enator, what do you make of the self deduction and whether it should come back and also what seems to be like lots of people of means with money at some of the levels that we're talking about leaving states anyway have been hit by salt are you for bringing it back or not because it is a complicated one in so far as it does help the wealthiest but it is also hurting a lot of is it states that depended on that wealth. >> my view, i come from a state like massachusetts that says we're going to collect taxes from the people who live here. so that we can make those investments in our people. so we can invest in education, so we can invest in healthcare and i believe we augment to get a federal income tax deduction for that but let's be clear on this when you talk about people leaving states, this is part of

the reason yet we need a federal wealth tax in america so it doesn't make any difference whether you live in massachusetts or you live in montana or you live in mississippi. you have to pay the wealth tax that way it is there for all of us and that way we can make those investments collectively where they are needed the most educate our children and we can build our infrastructure >> senator, thanks for being with us today. just a quick question, alexandra ocasio-cortez said recently the biden administration has exceeded her expectations in terms of how progressive its been she expect ad much more conservative administration. do you feel the same the time has changed the year 2020 is a year in which we had a pandemic. a racial reckoning and then

right at the beginning of 2021, an armed insurrection. president biden or then candidate biden ran to meet the moment he ran on a progressive agenda he talked about things like build back better and saying that the rich have to pay a fair share on their taxes and now he is meeting that moment he was out there with a big rescue package that was exactly what america needed. now he's coming forward with a big infrastructure package that is exactly what america needs. so i see the president as meeting what america needs now he is truly serving this country. >> senator, it is good to see you. as always. we had bob johnson on a little bit earlier and i specifically -- i don't know if you were watching but i specifically asked him for a question we could pose to you. he's another billionaire and this is about corporate taxes and whether there is some

unintended consequences that could come from it that we don't want here is what he said >> if they raise the capital gains to some 40-plus percent, it is going to destroy minority private equity funds first time funds are usually minorities and they have a tough time raising capitol and if the returns start to drop, the big investors in funds, the pension fundamentals, the corporations, the private foundations, they are going start consolidating their money in some of the larger funds. >> senator, i also asked about that was capital gains we talked about corporate tax as well flow throw the consumer and hurts plaque owned businesses as well just as a general question on corporations and what we want to try to help them do. considering that their employees pay the taxes that fund all the

federal workers and all the federal programs and it all is sort of generated from that engine, the private sector engine, the corporate engine, we want corporations to be competitive around the world and if they make a lot of profits they innovate or they cut prices abroad and do better than their competitors in foreign countries. they do all these things that sort of help workers help shareholders and really help the u.s. economy and always seems like democrats pick on big corporations as if they are a part of the problem instead of part of the solution. wouldn't you want to make them as competitive as possible globally so that we can do really well and hire more people and even stocks go up >> i believe in competitive markets. and i really want to see black-owned and brown-owned small businesses get a chance to get in there and compete but what's happening right now

in america is that these small businesses, they pay their taxes at the full rate they got to pay the whole thing. but these giant businesses, you look at businesses like fedex and nike businesses like amazon and they pay zero. right now there is a thumb on the scale. in the tax part of this. and that is a thumb to help the giants and at whose cost does that come it comes to the cost of small businesses that have a harder time competing as a fraction of their work. and they are the ones who are out there, they are innovating the new ideas. they are generating the new jobs and yet they are having to pay a bigger fraction of their income and taxes than the amazons of the world. how do you compete like that and why would america want to say, oh we want to help out amazon but not every small business, every start-up, every business that is trying to make a competitive market work.

>> let's cut their taxes instead of raising the other taxes >> look, the way i see it is somebody has to pay. for our infrastructure somebody has to pay for our educating our children someone has to pay for our military to protect it so i get it. giant corporations say let's shove that off to the middle class. let's shove that off to working families my view on this is everybody pays a fair share. remember when we started -- remember where we started this conversation the 99% paid 7.2% of their total wealth in taxes last year. but the top 1/10 of 1% the top millionaires and billionaire, 3.2%. less than half as much that is just not fair. >> senator question about amazon which often gets used a bit as a pinata in this story because

they have not paid or their federal tax numbers in certain years has been zero. do you blame amazon for that i will admit i don't i blame congress for that. in so far as you believe there should be an alternative minimum tax for corporations and i've always sort of wondered again that there is sort of an interesting framing around this issue. >> you know, it is not like congress woke up one day and said i know, let's try to help multi billion corporations pay zero in taxes. how do you think the tax code ended up like it did it ended up like it did because companies like amazon sent armies of lawyers and lobbyists to craft every possible loophole that they would be able to use pay nothing in taxes and by the way, that is why you see such a tilt in the tax system how many small businesses do you think used foreign inversions.

how many small businesses located their ip in ireland. how many small businesses used their assets overseas? and the answer is not very many. those tax loopholes were bought and paid for by the amazons of the world so they could get away with paying nothing. >> senator, we're going to be up against a hard wrap in a minute for the next program question i have actually relates to philanthropy. lee cooperman has been quite philanthropic as so many of the billionaires we've talked about. do you believe -- but most of them have contributed stock. so a lot of that income has never been taxed do you believe that that stock should be taxed before it is given out? and what does that do to philanthropy if that is the case >> look, let's start by asking leon cooperman just to pay 3 cents, since he's a billionaire, in a wealth tax. make that contribution so that we can use it to rebuild our infrastructure, so that we can use it to support our military

so that we can use it to educate our children that is a good starting point for me >> it is a longer debate and conversation but we appreciate having you senator. that does it for us today. make sure you join us tomorrow "squawk on the street" begins right now. ♪ good tuesday morning walk to "squawk on the street. on carl quintanilla with jim cramer and david faber ups, tesla covid deaths the lowest since october. and begin with the earnings gone led tesla lower, ups higher and the faang names are on the way. >> and ge shares under prern the compan