>> the great strength because of the confidence in the pipeline i love being long at holds above 143. >> join me for "overtime" because these earnings are important. paypal has been a battleground stock. we'll see what happens, and i'll see you. "the exchange" is now. hi, everybody. i'm kelly evans. are we slowing or growing? jobless claims still super strong, but the yield curve, if you haven't seen it, giving a new extreme today. so which set of data do you believe and invest on? we'll post that question to our market guests. and proxy fight over nelson pelts bowing out of the battle for disney now that iger is back at the helm. is it smooth sailing for disney from here? and live, the tesla co-founder

securing billions from the department of energy to hasten development of ev batteries here we're very excited for all of that but first, let's get to today's markets and dom chu with the numbers. >> it's loss of steam. it looked like it would be solid to the upside, but it's red across the board at 4112 for the s&p 500, at the highs of the session, we were up 39 that's a significant move on a basis of around 4,000. and then down 13 at the low. again, tilting towards the low part of that session the dow industrials down about 0.2%, the nasdaq composite down a similar percentage, about 13 points, but remember, earlier on in the session, the nasdaq was seeing real signs of life. again, slowing we'll see if that carries through towards the closing bell a lot of earnings reports today and yesterday that are tilting towards the consumer trade and various aspects.

on the consumer staple side, pepsico was stronger than expected results and a new share buyback, or at least an announcement of the expectations for the coming year kellogg with results better than expected hilton, ralph lauren, mattel, down 10%, because people spent leg less on toys during the holidays and speaking of the consumer, if you're in buy now, pay later, this has been a rough day for stocks like affirm holdings, which lost about a fifth of its value. this was a $176 stock in 2021 at the highs. it's now $12 and change. affirm coming out with a disappointing earnings result coming out yesterday and taking a look at the overall scheme for these rising interest rates, maybe plays a part in that consumer trade and maybe has a factor in these buy now,

pay later stocks back over to you >> thank you very much the bond market slashing a major warning. jobless claims are near all-time lows which data points matter more? welcome. good to see you again. we're thrilled to have you here. from my point of view, the bond market is always leading, the job market is always lagging but you have had much more experience what do you think is going on here >> i would increasingly go with the jobs markets, and here's why. bonds are a hypothetical construct based on fear of interest rates or changes. jobs are very real so companies still need more workers to keep up with demand grant it, the composition is shifting from tech to

hospitality, but it's a real number nonetheless so i'm going to go with jobs every day of the week. i don't care about the recession or not i think the feds have it wrong, the models are busted. ceos, particularly like pencpsi, they're getting it right >> tesla is one that is interesting, but one more question about the labor market. i wonder how much better can it get from here? are we just going to say at these historic levels of jobless claims it seems like the only way to go from here is worse wouldn't you want to be fading that from the market's point of view i don't think it can get any better >> well, instinctively you'll want to fade it. we also know that the markets have an upside bias. you find treasure at the bottom of the ocean, and that's what happens when the markets drop. if you stick with the right company, the brand names, the ceos moving forward, i would

submit overtime, that's the better and arguably the more profitable play. >> as we often know, you can get the macro right or wrong, but make plenty of money in the right trades tesla, you know, you stuck your neck out on this at the right time you still a fan of the stock >> oh, absolutely. i think this thing is just getting started. anybody betting against elon musk today might as well been betting against steve jobs back in the day which know how this will play out. he unleashes incredible transformation in every industry he's touching. he's not getting stuffed, he has much money to do what he wants and he has a clear vision. i think it goes back to $300 quicker than people think. >> a lot of investors have learned that it doesn't just matter if you like or don't like a stock, but where you enter and exit why not take the profits now why say i'm staying in this until $300 and would you not get out at $250 or $280? >> every investor is different,

and that depends on what your unique risk tolerances are i'm a big fan of when you have a w, you take half off now you paid for your initial investment, you're still in the game and you can continue to add more later if you want so it's not a question of all or nothing, take some money off the table if that makes you feel good, nothing wrong with that. >> how does that pet you to a pepsi, a lockheed martin pepsi had earnings this morning, up 1%. bloc why those two >> there's a different scheme in every stock. pepsi and lockheed to me are about stability and ongoing demand people like their soft drinks and snacks pepsi is a great company with solid consumer demand, capable of handling inflation. lockheed martin is a similar vein of thought.

the world is a very complicated case right now u.s. munitions are down considerably you can argue about the politics, but what i know is we will have to replenish all that. and it's great for a company like lockheed. >> i want to bring in a counterpart here, talking about jobs data versus yield curve rick santelli covers bonds for a living and has the results of the 30-year. how did it go over >> exactly the opposite of yesterday's ten-year i give this auction a d minus. did not go well. let's go through the internals 21 million, 30-year bonds. the market was trading 3.654 right before 1:00 eastern. the yield, though, was 3.686 it tailed over three basis points higher yield, lower price. you don't want to sell into lower price structure.

every metric was weaker than average. one that really stuck out, other than direct bidders, slightly higher, but one that stuck out, we always like to talk about the buffet table when you have an auction. that's the dealers they take the leftovers, and in this case, leftovers were just shy of 16% auction average is 10% that was the highest take by dealers since april of last year in the end, this auction did not go well. a lot of that has to do with the notion that many traders are starting to rethink how much time we will spend with rates firming up, especially with that inverted yield curve it does start to get a bit confusing. >> rick, what do you say to mike, who has research today saying this time is different, the yield curve is not necessarily signaling recession. he says it's driven by the decline in inflation can we throw this out that it no longer matters as a leading

indicator? >> embedded in your question is the answer inflation is going to drop, i agree with that. that is one of the driving forces i also think that the notion of how this curve is inverted speaks volumes about the long-range forecast of the treasury market, looking for major weakness i will just suffice it to say that you can look at the jobs data and indeed, it was strong but i would prefer to consider trying to relate all the covid experiences we have. in my opinion, whether it was people retiring coming back in the workforce, government programs that kept people out of the workforce, or notions of child care, a variety of issues. but in my opinion, i still think we're going to see a recession i think yield curves are right i'm not a huge believer in yield curves in this instance, i think it's right and that the relationship between what's left of the strong labor market and what the federal reserve thinks the labor market does to prices is incorrectly correlated >> we have to go

keith, last word >> rick's a genius, love his work, but i'm respectfully going to stick with the jobs >> we'll have to have a good old fashioned bull/bear debate on this another time. thank you both we really appreciate it. now to disney. a made for tv moment this morning. activist investor nelson pelts saying his proxy fight is over after hearing what bob iger said listen >> it created a huge divide between the creative side of the company, the content engines, movies and television, and montization, distribution side of the company again, certain maybe valid reasons why he wanted to do that at that time it was very, very apparent to me while ims out and when i came back that was a mistake. >> let's get reaction now and

what it means for the shares david favor joins us with laura martin welcome both david, wow, that's -- what else do you think you would add for investors trying to figure out if the dust had settled here >> i think it's far from settled -- sorry, kelly -- in terms of exactly how they execute on all of those cost cuts obviously, mr. iger was talking about his predecessor in that answer that we just listened to, of course, and the decision they made to reorganize the company and have those who run entertainment, espn, and parks be a lot closer to all the content created by those divisions and much closer to the pnls in terms of executing here, in particular, how you cut $3 billion in content, non-sports related content spend, that's going to be interesting to watch. do you try to get a lot of directors to get paid less

do you cut technology spending it's something that will take time but it is certainly that is underway, and as you said, kelly, it's not often that we get those made for tv moments. wish they would have kept iger in the chair a little longer when pelts came on with jim cramer and said, i'm dropping my proxy fight. >> that was amazing. laura, you have a hold on the stock. why not a buy. what are you the remaining questions? >> we downgraded this at 111 in 2018 and it's still 111. the most streaming entry has cost disney a lot of money the most important thing i heard yesterday is that he's going to look at bringing the dividend back modestly and growing it over time. i think that's really important. in addition to the cost cutting. it's what is interesting to me, facebook was up 20% on cost cutting and disney was up 7, now up 2 cost cutting doesn't seem to be as big an issue or as positive

for these stocks as like the tech stocks. >> true. laura, what are the implications for the rest of the media and streaming cycles remind everybody about your call that netflix should add that supported tier and disney has gone the other way by raising prices what is the ripple effect? >> i think the most important thing is we're getting economic discipline back into the stream as the companies have streaming in them. so i think it's really smart that bob is saying we just raised prices 30%. sounds to me like he'll take another price increase netflix is raising prices. and bob's saying hey, we're going to cut $3 billion out of let's call it non-sports content. we're also going to get rid of the general entertainment business, we're going to go out of the business competing with netflix.

we that's smart, because you have pricing power, and you can differentiate yourself >> david, what do you think the implications are going to be, as everyone digests what just happened in the past 24 hours? >> yeah, listen, i think one of the key things that came out of our interview this morning that was not discussed at all on the conference call was hulu and the future of that asset to the point laura just made and their focus on franchises and not general entertainment, i think we may have time, kelly. but mr. iger did make news it seems clearer now that just buying in what they don't own of that asset, our parent comcast owns 30% of hulu that is not assured at all >> everything is on the table now. i'm not going to speculate whether we're a buyer or seller of it. i have obviously suggested that i'm concerned about undifferentiated general

entertainment, and particularly in the competitive land scape we're operating in and we're going to look at it very objectively >> if there is an opportunity for example to potentially sell your interest to comcast, if ryan roberts were interested, that's a conversation to have? >> i said we're open minded. we will be open minded >> i just want to make sure that the assumption is good -- >> i'm suggesting that suspect necessarily the case >> david >> yeah, i would love to hear laura's thoughts i don't know who the potential buyers of hulu would you applaud that or not? >> i wouldn't. but i want to bring in a more controversial thing into the conversation he's going to spin off espn in a different category and said we are not looking to sell espn so the most interesting question is, why are we breaking out espn for the first time in the 20 years i've covered this company and making it more visible

i think he might be looking for a partial investor here. either for cash, you know, to buy 15% of espn, which would be a big number, i think. or he goes to the nfl or some of the leagues and says, take a 10% equity play, guaranteeing access to professional football, right? and it would lower their price i think that's an interesting thing no one is writing about. >> david >> you know, he didn't indicate any interest in doing that, laura, at least not during the course of the call or our interview. he seems committed to that business and right now at least the linear cable universe in which it sits. he does see it becoming an over the top product, but given the escalating cost of sports rights, particularly the nfl where they are signed up for ten years. then the nba, which again iger made it clear to me, i think they're going to compete for >> that's one of the last

things nelson pelts, let's get him on the phone and ask him what does he think about laura's idea about espn thank you both for your time coming up, inflation is falling and the unemployment rate is at the lowest level since the '50s is a soft landing within sight that's next. plus, can lyft beat uber and let's get a quick look at the markets. we saw moves to the downside the dow is down 77 points. ten-year still around 3.60 back after this. bc> this is "the exchange" on cn onal results. at allspring, we break away with purpose.

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welcome back to "the exchange." is small business the key to the strong labor market, despite a wave of layoffs and high profile big companies. a new survey finds a third of small business owners can't find the workers they need, with roles going untilled for three months how long can small business power the economy forward? great to see you, julia.

you have a sanguine view of how well the labor market can keep doing here do tell. >> it's a big disconnect between the headlines and data if you look at what's happening with layoffs, 2022 was the year on record with the smallest number of layoffs. layoffs are only above average in three sectors, tech, finance, and trucking elsewhere in the economy, they are way, way below normal levels >> so that right now tells you what i hear that and i go, well, not sustainable. hammer is about to fall. it will catch up with small business and everybody else eventually but how do you see it? >> there's risks ahead investment has collapsed business investment in home building, in software development, in research and development, in equipment have all cooled substantially in response to the fed's rate hikes.

but the u.s. consumer can take aus long way you heard recent earnings call like uber, saying the consumer is so strong, the business is roaring. that's what main street businesses are experiencing. small businesses are seeing enormous amounts of customers come through the door. they can't keep up, and that means that they're still adding jobs just to fill their immediate business needs >> you guys have some access what's happening in the labor market, especially with these tech workers, and we are generally finding work quickly is there anything in the recent weeks that tells you that these dynamics are changing? >> we conducted a survey of laid off workers in january those are workers who are laid off since july 1st and the findings are quite striking so among those laid off in the last six months, 42% have found

new jobs that pay more than the jobs that laid them off. on average, they have found employment within eight weeks. so this is really the best time to be laid off the labor market is extremely tight, and there are abundant opportunities. it's never good to be laid off it always is a shock most people who were laid off say it was a huge surprise to them many are actually finding that they are coming out ahead. >> the anecdotes you hear from tech companies how layoffs have happened, it's almost like a random number generator. so in many cases they are letting highly skilled people go i'm sure there are other firms desperate for talent who are thrilled to have access to that. do you think this is one of those production recession but not employment recession kind of dynamics here? >> that is what seems to be the case we still do have a shortfall in the labor market of 3.5 million workers, compared to the

prepandemic trend. and you can't lay off what you haven't hired. many industries, many businesses still have a staffing shortfall. so they're in no hurry to let workers go on the contrary, they're retaining workers who are underperforming and trying to find other ways to monitor productivity like improved management practices >> the places we could go. julia, thank you so much for bringing that information to us. we appreciate checking in with you. >> take care, thank you. still ahead, from co-founding tesla to pioneering production of easy batteries here in the u.s., we'll speak with jp straubel as we head to break, let's take a look at the dow map, with boeing and walgreen's with the hexcng irformance. "t ehae"s back after this trate our unmovable strength? (eagle call)

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welcome back let's take a quick check on the markets. it started strong, turned neg negative nasdaq only seven points away from positive territory. let's get to tyler mathisen now for some news updates. >> thank you very much here's what's happening at this hour nicaragua freed 322 political prisoners, many opponents of president ortega and his authoritarian government a plane carrying them landed in washington earlier today secretary of state antony blinken says releasing the prisoners is a step toward addressing the country's human rights abuses. that opens the door to further dialogue with the u.s. house republicans made a

formal request to hunter biden for records related to his business dealings to back long-standing accusations that the president's son tried to make money off of his father's political connections. a lawyer for hunter biden refused the request saying congress lacked the authority to ask for the records. colgate recalling 5 million bottles of cleaning products the affected bottles lacked a preservative and could allow certain bacteria to grow that could cause infections the products were sold online and retailers including dollar general and walmart. >> tyler, thank you. see you soon still ahead, three more names that will provide clues into the health of the consumer. x teedia, lyft and paypal, next. and we're celebrating black heritage through the stories of some of our leaders in business.

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welcome back, everybody. it's time for earnings exchange. today, we have the action, the story and the trade on paypal, lyft and expedia expedia, shares are up 35% a net reopening, travel reopening and the face of some macro head winds can the positivity continue? steve grasso joins us. one of the few lucky men still working at home, steve, don't anger our entire audience.

>> i worked in the studio last night. you wanted me to do two days in a row? >> i would never ask that. welcome to both of you steve, i'll start with you what are you watching? >> the last 48 hours, we heard from two travel companies. in europe, they're seeing customers trade back from five days to four-day trips, no longer going to that five-star hotel, opting for a three-star hotel. hilton said their revenue is exceeding pandemic levels for the second straight quarter, seeing strong growth with luxury and premium economy segments for expedia, just giving its breadth across hotels, vacation rentals and airlines, we want to understand whether the american consumer is cutting back on their travel budget. you know, chin a is a big topix expedia is a american pure play, compared to airbnb but it has been sort of

allocating more capital towards advertising and marketing, not just here but internationally, as well. so the big question for the ceo, is that starting to pay off? the stock expect thing rebound in travel to continue, up over 30% this year. >> steve, expedia, the travel names broadly speaking, do you like them here >> i do. when you think about -- when you look at discretionary spending for the consumer, the needs versus wants, the top of the want list is always travel so travel will always win out. as long as you have a job in the employment situation in the country has been great so expedia, i expect to still pop. if you look at what seema said, a year ago, the stock was down 40%. so even though it's rallied recently, we have seen analysts ratchet up their estimates, which is always a good sign as

you lead into the print. so there's still a little more juice left in the tank for that. >> we appreciate it. a quick programming note, the ceo will be on tomorrow to discuss those results, 11:00 a.m. eastern time. now to lyft. it has a tough act to follow after uber posted its strongest quarter ever shares are up 31% over the last month. diedra, those earnings, with everything else going on, flew under the radar. but wow, what a report >> it did. and that makes it tougher for lyft year-to-date, it's up some 50% that beats uber's performance. but this is a stock trading at $16 and change that's a fraction of what it went public at, at $72 a share so it has fallen extremely far over the last few years. really, there's concerns on the street that maybe it's losing market share to uber just take the revenue expectation. it is expected to post revenue

growth of 19%. how does that compare to uber of more than 50% in the same quarter? so it will be important to look at things like revenue per rider, to see if lyft is charging customers to kind of make up for maybe a driver supply problem and longer wait times, and finally, kelly, this is a company that has not diversified in the same way that its competitor uber has. you know, a we haven't seen the good delivery business shape into something substantial >> are these grasso favorites here, steve? >> you know, i think diedra nailed it. the difference, though, is that uber has outperformed on an ongoing basis. li lyft is still right around its pandemic low so a stock can be down and up in

sympathy lyft has been up in sympathy with uber knocking the cover off the ball best quarter, best margins, a hard act to follow but never under jest estimate io bad it's good. if you look at the stock on a technical basis, you are above all the moving averages, although it is starting to roll over a little bit. that's why i say hold this one you don't have to buy it i wouldn't be a buyer, but i'm afraid to say sell it ahead of earnings, because you could get that pop >> we'll call it the yellow light. diedra, thank you very much. let's turn to paypal investors want to see how they're handling a more challenging macro environment. with consumer spending seeing head winds, the question is whether that will pal. and paypal has had a tough time

keeping up with competition. we saw what happened with affirm today. cost cutting measures, as well paypal cut 7% of its global workforce a week ago doing that a week before earnings can have you feeling that positive or maybe this needed to happen what is your take on paypal here >> if you look at the entire space, every time you announce any type of cuts, the stock usually rallies. so maybe they were looking at that, kelly. i don't know but i invite you and everyone to examine that chart go back to october of 2021 why is that relevant they were interested in buying pintrest that makes the investor think that your core business is out of organic growth, you're out of growth ideas the stock has not looked good sense that interest in buying pintrest so we're looking at a stock that trades a traction of what it was. it was $280.

this one, i also say hold. this also a yellow light i'm the least positive out of those three stocks, expedia, positive lyft, maybe. paypal, i think you can maybe get a relief rally, but longer term i think they're just out of growth ideas >> they showed their hand when they went for that pintrest deal steve, thank you so much we appreciate all your time today. good to see you. steve grasso and all three companies report after the bell coming up, the disney proxy fight may be over. that's next on "the exchan." ge at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services

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alphabet on pace for its worst week since march of 2020 alphabet is down, look at this, almost 5% again today. it was down 8% yesterday that's a 13% drop in two days, all going back to that miffed ai launch for that paris event yesterday. amazon in the red today. apple and microsoft up fractionally new members are rushing into the ai stocks. inflows over the past five trading days at levels not seen in a couple of years a lot of the action is in smaller names that have seen big games. $80 million of inflows in the past five days, and shares have more than doubled this year, although down about 10% right now. other names include big bear ai, market cap of about $600 million by the way look at this, up seven fold just since january 1. soundhound has more than doubled. and nvidia, 55% pop this year.

for more, go to cnbc.com as for institutions, salesforce is a big name here this was the mystery chart we teased before the break. stock sis up 3% today the others include elliott management, and after being one of the worse down stocks in 2022, it's now the top dow stock to start the year. investors are hoping this activism pays off. coming up, some of the key components of electric vehicles. we'll tell you what they are and why they may be poised for a breakout, next

we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you

have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back, everybody. liftium, stealing a lot of the spotlights when it comes to evs. we're joined now with that story. miffed is the term

>> yes, it doesn't roll off the tongue as easiy as f.a.n.g it stands for the metals important for future technologies lithium gets all the attention, but the group includes a whole lot more think copper, aluminum, to nickel, cobalt, zinc and graphite among others. estimates vary how much each material will need major miners glik like glengl there is a big push behind reshoring. mp materials has a rare earth site in california and much smaller names to watch

include talon for nickel on the lit yaum side, there's albemarle, piedmont among other names. >> would you say copper is still the one? people look at the free ports of the world and say copper is the key technology people feel like the trade can't go wrong, but the thing about commodities, they always generate just as much supply as is necessary to keep the prices sustainably breaking out over the long run >> i think lithium is the sexy side of this, and copper is electrification, and the energy transition is let electrificati, and copper is key. think about transmission, evs. evs require twice as much copper so all of these new technologies require copper i think also it's going to be interesting to see if we see a

slowdown in demand from the old economy, to what extent will this new economy meet copper demand halfway that will be something to watch. >> this is a good indicator. pippa, thank you very much sticking with evs, redwood materials announcing it received a $2 billion loan from the a $2 billion loan dpfrom the department of energy joining us to discuss is j j.b. strobel, with our very own phil lebeau. great to have you both here. phil, kick things off. >> thank you, kelly. j.b., you made the announcement regarding the $2 billion loan. i think the big question a lot of people have is with this loan, how much will it accelerate the production of the cathode and anode materials? >> thank you, phil it is great to be back here this is incredibly helpful to accelerate the projects. these are capital intensive

projects and we're in a competition with asia to ramp this up and to bring these supply chains and these manufacturing operations back to the u.s. so having the strong support, the continual support and the strong industrial policy from the u.s. government, the federal government, is pivotal and this will accelerate us. >> you know, most of the raw materials in the battery cells that are manufactured in this country, they're coming from asia, coming from overseas how quickly does that change i know you're working to change that, but realistically when will we see more sourced here in country? >> well, we're having an interesting project here where we blend recycled material, which is essentially almost urban mining we're able to incrementally add new sources of these raw materials, same critical materials, copper, nickel, lithium, cobalt, from products we already have in the country and we can mix that, blend it with sustainably mined material. this is already beginning to ramp up. but we have a long way to go the u.s. battery demand and the

ev demand is growing in a phenomenal pace, which is great to see but we have a long way before that supply chain is predominantly moved to the u.s. >> and as you know, this is the main reason why evs are so expensive, for automakers to be profitable on them, they got to make up the cost of the battery packs, the battery cells, which are so high right now. when does that price come down are we looking 25, 26 when you can say, okay, we see more affordably priced evs in your opinion? >> well, i think it is a tale of two stories. people are getting better and better at mass producing batteries and evs, so that component of the cost is continuing to drop on the other hand, there is so much pressure on the same commodities that those commodity prices are volatile and still trending upwards so, right now they're somewhat counteracting each other i think in the long-term we're going to see that same dynamic continuing for quite a few years to come. so, i wish we could get to even

cheaper evs. we're doing our part in that, by trying to help reduce those raw materials costs by recycling more of them but it is going to be a long transition, where we go from 2%, 3% of our fleet being electric to 80%, to 90% over the coming decades. >> in california, it is reported as the model y as one of the top sellers. i went to trade in or buy a new iphone the other day and my old one had a significant trade in value, which surprised me. i joked, i don't want to turn in my data on it, can i pound it with a sledgehammer. they said you can do whatever you want to as long as you don't hurt the battery are companies like yours the reason why that battery is the most important and valuable part of the iphone and the reason why they're worth so much right now? >> well, there are a lot of valuable materials in that old phone or that old electronic device that so many people have. and part of our vision is to

build the processes, make them very sustainable and scale them so we can recover that value, take advantage of it, and deliver it back to the customers, some of what you're seeing, you know, the customers can benefit at end of life after owning the product but the battery is a safety issue as well. so, yeah, you don't want to smash your battery with a sledgehammer you can cause a fire or short circuit there. >> i don't own a sledgehammer, but i can come up with ways, i guess, drive over it with the car or something let me turn and ask you about tesla for a moment shares had collapsed into the end of last year they're on this massive run right now. but people are wondering, even as we get these accolades about model y top selling car in california, if it is becoming just another automaker, can you just weigh in on the valuation of tesla and what you think the potential is for this industry which does see saturation, which seems less sexy now that it has gone more mainstream

>> i'm not connected with tesla anymore, but i think tesla is more than just a carmaker. they have a huge range of different products and exciting road map ahead of them there is not always complete logic in the public markets and how people value and price things, but i believe tesla has incredible future ahead of it, and we're really just getting started in this whole transition even though the cycles of incredible excitement and maybe a little more, you know, caution, go up and down, i think it is useful to look at what% of the cars on the road today are actually electric. that to me is what highlights how much more market growth is ahead of companies like tesla and others as they electrify >> j.b., you're in touch with all the automakers you know what their plans are. are they investing enough as a group in battery production? i know they made big commitments and announcements, but it almost feels like they need to be making even more when we look beyond 25, into '27, '28, '29.

>> i think you're right. and i think overall this industry needs to make even bigger moves to try and hit some of these sustainability goals. we're making dramatic commitments across the whole industry, oems, battery manufacturers and parts of the supply chain but the level of investment needed to electrify the whole fleet is staggering. it is hundreds of billions of dollars across the whole industry i think today we're seeing that weighted heavily toward the ev manufacturing efforts and battery manufacturing efforts, partly because of the inflation reduction act accelerating the investments, but we need to see i think more investment moving into the supply chain side of that to balance out and make sure we're not overly reliant on importing all of the components and materials. >> quickly, you know the i.r.a., the ev incentive, half of it goes for if the vehicle is manufactured in the u.s., the other half goes to if the batteries sell, the battery pack and the components are sourced

here in north america. and there is very few that can qualify for that end of it are we likely to see people getting that type of ev credit anytime soon or is that more likely '25, '26, when we see people get that ability to get that credit? >> well, the incentives in the inflation reduction act are extremely difficult. and my understanding is they were that way by design. i don't think we'll see everyone getting those incentives some people will, though and, you know, projects like this one we're announcing here are fully i.r.a. complaint these materials are made in the u.s., largely made with recycled materials which qualify as domestically sourced materials so it is possible to get these incentives, but they're a challenge and it requires the industry and requires batterymakers to adjust their supply chain that's happening, it is under way, but it is going to take a bit of time before every vehicle, every oem can fully

capture them. >> sure. founder and ceo of redwood materials joining us today from sparks, nevada thank you very much. kelly, back to you. >> huge thanks to both of you as well the debate around the impact of china's reopening is ongoing, but economist jim o'neil says it is looking especially encouraging for the global economy. he'll join us with that take coming up on "power lunch" and i'll join tyler mathisen for that i'll see you on thotr de ts icbreak.si my name is douglas. i'm a writer/director and i'm still working. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. at stores everywhere without a prescription.

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with fidelity income planning, a dedicated advisor can help you grow and protect your wealth. they'll help you create a flexible strategy designed to balance growth and guaranteed income so you can enjoy the life you've created. that's the planning effect. from fidelity. all right, welcome to "power lunch. i'm tyler mathisen with kelly evans. are we about to see a wave of deals in pharma. after one of the slowest years in recent memory, pfizer, merck, others could be on the prowl for takeover targets, the panel will discuss what it means for those companies and the biotechs that could be on th