>> i never gamble in vegas, morgan >> all right, looking forward to that tomorrow. going to be a big show that is going to do it for us here an "overtime" with all the major averages finishing the day lower. "fast money" begins right now. right now on "fast," elon musk facing his shareholders the meeting is under way the stock stuck in neutral what can he do to get things revved up again plus, home depot's fixer upper of a quarter the home improvement giant posting its biggest revenue miss in over 20 years as do-it-yourselfers shelve big ticket items. and later, japan's big market milestone amazon's a.i. ambitions for shoppers, and the government looking to block a big bio tech deal i'm melissa lee, this is "fast money. on the desk tonight, tim seymour, steve grasso, dan na

nathan, and guy eadadmi speaker mccarthy saying a deal by the end of the week is, quote, possible. i guess that's good news eamon javers is live from baugh with the latest. >> i guess it is good news, too. a little bit of optimism from lawmakers as they came out of that meeting, talked to reporters on the north lawn of the white house, suggesting there was no deal in the room today, as they met with the president of the united states, but there was some progress. i want to play for you a sound byte from speaker mccarthy, because he hit on something that may be key as this negotiation enters into the final phase. >> what has changed in this meeting is the president changed the scope of who is all negotiating. appoint somebody from the president's team who can work with the speaker's team to see if we can come to an agreement that is what the decision was made in this meeting so, the structure of how we

negotiate has improved >> so, the speaker of the house there suggesting that the structure of this negotiation is what changed and there's going to be a key point person that is going to run it on a staff level. that's different, that might indicate that there's actually stuff to talk about and that might indicate that there's some progress about to be made. remember, the x date is june 1st. that's not for awhile yet. we have to do a lot of brinksmanship getting to the end of that, but it gives you a sense there's a formal negotiating structure in place behind the scenes that you just heard the speaker say. we heard from chuck schumer, the democratic leader in the senate. we talked about some of the things that made him optimistic today. >> what gave me the most hope and there were a bunch of things, is that everyone, including the speaker, agreed, we need to be bipartisan the idea of having a partisan bill, we knew, would get us nowhere, and everyone freely admitted that. >> so, that might be as optimistic as you can be without an actual deal on the table here one more interesting behind the scenes tidbit on the

negotiations we did hear from the white house today that the president is going to cult his asia trip short after the g7 on sunday, he's going to return to washington to be here on monday for the final week and a half or so of the negotiations, as they really get down to brass tax next week. so, a burst of optimism, a rare thing here in washington melissa, back to you >> eamon, thank you. eamon javers i feel like washington has a different definition of optimism than normal people, because to improve the negotiating structure, the fact that president biden is coming back from an overseas trip, i feel like these things, they need to be bipartisan, these are things that we all nknew had to happen in order for any deal to come together. >> i'm not surprised it's nice that the president is n going to come home and he wants to sign a deal but i'll say this again, straight out of central casting on both sides. >> yeah. >> i'm optimistic, actually. >> are you more optimistic based on this -- >> i can only be more

optimistic i am, and -- >> it's early in the show. >> the fact that he's cutting the trip good is a sign. chuck schumer is probably going to be somewhat tempered because he's probably more enthusiastic than he is and the gold market today appears as though something is going to get done today. gold started off in a precipitous way. with that said, you saw the late selloff in the s&p and the hyg, which is interesting and counter to what i just said, but i'm a little more optimistic >> i think both sides live and die by polls the american population is getting tired of hearing about this ceiling debate. why would we ever have had a debt ceiling issue anyway? they can always kick it down the road until september 30th, so, there should never be a default. that's off the table are there crazy people on both sides? yes. is this going to happen right now? i don't think so i think the worst case scenario is, they sign it for september 30th, kick the can down the

road, and nothing happens, crisis averted, everyone back to normal >> it's really hard to see what the market's pricing, because it doesn't seem like it's pricing a whole heck of a lot. i go back to small caps. if there was something that doesn't kick the can down the road, even if it's to september 30th, any drawnout situation, anything that makes consumers think twice about spending or businesses think twice about cap-x, those sorts of things, one thing we are all debating, is there going to be a recession, how long will it be, this would put us in a recession very quickly if there was a prolonged situation that resulted in near-term default or the government, you know, inability to pay their bills you know, the market's not pricing anything the only thing appears to be pricing is small cap stocks, some sort of disruption or slowdown in the economy. >> i think if you look at the vix, the market isn't pricing anything i then look also at the breakout of megacap tech stocks and where we are in cash levels that bank

of america fund manager survey, we've had the biggest move in tech stocks since 2009 over the last two months. that's a market that's defensive. there's no question about it, and so, the vix headlines, we talk about it, the vix geeks break it down nicely, you are a vix geek, dan, that's a compliment there are reasons that volatility is so low, but there's no question that the stock market is not pricing in disaster and i think that's something that i think is probably appropriate, but the market is pricing in recession and it is pricing it lower >> sorry if we were going to default, if that was really on the table, then you have to start investing, you sell the dollar and you invest international but i don't think that's going to happen, so, you could see the reverse of that. you could see people buying the dollar denominated assets, obviously risk on once again but if we get close to that hiccup, you want to be getting out of the dollar. >> in the meantime, right, big cap tech is almost like the new

staples, new utilities >> money nashgt. >> exactly so, the fact we've seen flows, big cap tech and the big cap stocks really do all the work in the markets, that tells you, to tim's part, it is a defensive market we are pricing something in. not pricing it in a conventional way. we're pricing it for this reality, the flight to the big cap tech stocks. >> all great companies, but again, is that a healthy sign for the broader market we can debate it, if the other companies will start to play catchup at some point, but the fact that these have been defensive and valuations have gone up along with it, we talk about it all the time. i'm not suggesting that i'm right, but all the moves in a microsoft, to a certain extent an apple, all multiple expansion, which is fine that can continue for a mperiod of time, until it doesn't. the last couple quarters, by their own standards, were not particularly good. the stock reactions have been remarkable >> the concentration is about as bad as it can get right now.

you look at energy, small caps, other parts of the economy, you know, that are very cyclical, and they're saying something very different than five stocks that make up nearly 50% of the nasdaq 100, and so, when you think about all of the risk of the entire stock market has been transformed to these five stocks at a time where plenty of other sectors are telling you there are problems out there and at least they are pricing in a slowdown of the economy. >> when you have a market cap weighed index, you're going to get that i agree, it's expanded dramatically, but usually you have 20% of the market in those top five to ten names. now it's 30% >> you understand what i'm saying is -- >> market-cap related. >> i understand, but so -- >> you guys understand each other. >> but all of the risk, though -- >> someone says, do you understand -- you have to say, yes, i do. >> split screen. >> okay, look, all right so, dan, please. >> no, no, i'm just saying, it's about as acute as it's been in a long time. >> yes >> in five names at a time when we have so many headwinds.

that's my point. >> they did it >> okay. let's move on. >> split them up we have to stay here >> no, we don't. now to the other big story of the day, tesla's annual investor meeting is under way right now. the stock is racing higher earlier this year, but now spinning its wheels, sharing dropping 18% in the last couple of months. we have a huge elon musk exclusive with david faber phil lebeau has the latest developments from this meeting today. phil >> melissa, they have just started the q&a session of the annual meeting, which is always interesting, because that's probably where you get elon musk where he is the most off the cuff, if you will. in fact, somebody just asked him, point blank, how are you doing? you've had a lot happening in the last year, and he said, yeah, it's been a little rough, had to do some open heart surgery on twitter, but i feel good that was a comment from just a few minutes ago. two pieces of news have been made by elon musk this afternoon. one of them with regard to his view of the economy.

and where it's at, where it's headed, and how long until he sees things improving, he's not real optimistic near term. here 's musk talking about the next 12 months >> i expect things to be just at a macro economic level difficult for at least the next 12 months. like -- tesla will get through it and we'll do well and we'll see a lot of companies actually go bankrupt. >> that's elon musk talking about the economy and what he expects over the next 12 months. he says he believes that tesla shareholders will be better off, let's say, 12 months to 18 months down the road, once they come through this patch that he expects for the entire economy with regard to tesla spe speci specifically, he said the company is planning a couple of new products, so, there's some news there here's musk talking about what they're planning >> two new products that i think

you'll be very excited about and both the design of the product and the manufacturing techniques are head and shoulders above anything else that is present in industry. >> he did not put a volume on those two new products, but he was extremely bullish in saying they will be big sellers, in his opinion, for tesla at some point in the future. melissa, we don't know what those products are, he said there will be a proper unveiling, if you will, at some point down the road. i'm almost positive one of them is going to be a lower-priced car, probably something that they can sell in the $25,000 to $30,000 range, if not lower. likely will be built at the giga mexico, which is being built in northern mexico right now. as for the other vehicle, there has been speculation that we might see a more full-size suv, a traditional-looking suv at some point, but that's elon

talking about what he expects and like everybody, melissa, we're looking forward to this interview with david faber coming up at the top of the hour >> we are. thank you, phil. phil lebeau, who is in-house here at the nasdaq market site again, 6:00 p.m., that one-on-one, david faber with elon musk. two new products, particularly when we're talking about a more affordable product, isn't that the holy grail here, to get a tesla car -- >> wasn't that the model 3 wasn't that supposed to be the car for the masses >> for the masses, but $25,000 to $30,000 could be emerging markets, mr. emerging markets. >> it could be and this was a classic elon headline very vague, very pronounced and very dramatic. and, you know -- i think it's exciting to think about that, i think the dynamics around the company right now are really people, you know, they're on both sides of this where is demand? and is this production at any cost, any margin, the right strategy, and i'm sure we're going to hear about that >> margins

what does it mean for margins? they talked about it in the fall, tesla, that their margins were coming down, but they wouldn't reach the levels that the fords and the gms were i think 16%, something like that number i think they're below 20% or right around 20%, which i think alarm bells go off when we get south of that. this is interesting, i'm not trying to parse every word, but after he said roughly 12 months, global economy will be better, so, anyone who is a long-term investor in tesla will do extremely well >> right >> what happens in the short-term, though i mean, the stock has not traded particularly well for over a year that bounce over 100% not withstanding, i mean, there they're still a $165 stock, significantly lower than its all-time high. this is really the level of support. we start breaking down here meaningful and you are probably looking at that 110 level again. >> i was just going to say, they're really wrong about one thing. they thought that there was going to be this elasticity if

they reduced the price of the cars and what happened, it just destroyed profitability. we saw that with the margin decline, it was much worse than people expected. that's even with the credits, that sort of thing so, if demand really does fall off and there is a big price war and your point about the model 2, this really lower end than the model 3, they're having huge competition issues in places like china in emerging markets right now, so, to me, i -- >> all of latin america. >> okay, fine. manufacturing there. >> i don't know. right now, china is the growth engine, right? so, that would take a couple of years to get ramped up >> long-term, he said lengong-tm let's bring in gene munster. how excited are you, if at all, about this, you know, tesla model 2 or whatever you want to call it, this lowest end car that could be unveiled soon? >> ah, scale of one to 10? 9.5.

this is a measurable outcome a measurable development we know it's coming. we don't know the timing, but to put the context of the conversation and ultimately is, there is -- this is about selling units. this is about deliveries and to increase deliveries, you need to increase your products they really have two products right now, model y, model 3. they announced that model y is the best selling nonpickup truck in the u.s pickups sell her than the model y. that's the f-150 and i think there's an opportunity for tesla, if you just take the step back here, cyber truck is going to be coming out next year, that could be a nothing, it could be a grand slam, and then you put on that lower priced vehicle that you're talking about, then there is this other vehicle, it's kind of like a van, a sprinter-like type of vehicle, smaller marke than the model y, but fills in this product gap they don't update their products very often

so, i'm optimistic about the long-term here, based on what's going to be more models coming out. and it's -- yes, we're in a storm around the economy right now, but as soon as the products start coming out, i expect investor optimism is going to shift to being more positive >> gene, hold on i want to get to phil lebeau again. he's got more details from the meeting. phil >> it just came out, a couple of minutes ago, melissa, a question from one of the shareholders was basically, why don't you do advertising? if you did advertising, you might be able to reach a larger audience and advance sales and advance the development of electric vehicles. elon musk kind of talked about it, he said, yeah, maybe, he goes, hey, i'm open to ideas, we will try advertising we'll give ate shot. now, does that mean that we expect a full campaign that you would see from a traditional automaker? i don't think so but it is significant, melissa, because they have never done any type of advertising. let's see if this is just a comment that is made at an annual meeting or if there's

follow-through here and we see some form of advertising for teslas >> sounds like a comment made by the owner of twitter, which relies on advertising. phil, thank you, fur keeping us posted gene, back to this here. should we think about tesla now as growth at all costs i mean, is that the right sort of way that we're looking at it? because that's what it sounds like whatever products they have, they don't really care about the profitability, they don't care about the margin they want to get the units out there. you made it sound like that, too. >> yeah, i think dan was mentioning that earlier on i agree with that, i think that they are -- this is growth at all costs. this is not just an ev story, it's not just a model 3 and y. we talked about the other two products coming out. they led their investor commentary today, there's going to be hvac, that's a new product, obviously fsd, more solar products, and then he said optimist, and this is kind of the, i guess the eye-rolling comment, i think the head of the

eye-rolling comment is that long-term optimists will create more value, be more of the valuation of tesla obviously that's the robotic, just in its infancy right now. this is growth each of these products are going after big addressable markets. and i would just put that up against -- when the debate about investing in this is that, put that lineup, even if two or three of those hit, put that lineup against any other carmakers and i think that tesla still stands above the rest, when it comes to growth opportunities. it's going to be bumpy, but they are going after such big markets and they have such a big lead, i suspect the momentum is going to shift more positively in the quarters ahead >> gene, dthe market has become too fixated on that margin of 20%, because they are so far ahead of the competition? do you think that's where we should be fixated on the fact that even if it drops to 15%, they're still going to be way ahead of the other carmakers i think i know your answer, but

why do you think the market attaches itself to 20? >> markets typically look two, three years out. in the case of tesla, it's been looking one quarter, two quarters out, focused on that number if that number goes down, say it goes at 15%, the stock's going to go down i'm going to be wrong in the near term, but i think eventually, what really separates, and this is what we do at deepwater is look for persistent growth. and i think what really -- the opportunity around tesla is to lean into whatever the margin is, if it's 8%, if it's 2%, but if they start capturing some of these markets, they are large, and large is an understatement and i think eventually the profitability is going to swing back and they've shown they can do that in electric vehicles, i think they can do it in energy capture. and eventually, long, long, long shot here, around robotics >> gene, thank you we'll check back with you.

the meeting still under way. meantime, coming up, spending slowdown home depot delivers a weak output could target and other retailers follow plus, overseas outperformance japanese stocks hitting their highest levels in 33 years can the climb tonight? we'll debate that when "fast money" returns 's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

we moved out of the city so our little sophie could appreciate nature. through a changing world. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

welcome back to "fast money. home depot dropping today after delivering its worst revenue miss in 20 years also saying even high income homeowners are cutting back on spending that warning sending william-son mow ma and rh stocks lower target might be in a tougher spot than home depot the retailer is highly relying on discretionary spending. only 21% of its revenues come from groceries what should we glean from this, other than something we've been saying for a long time, and there's been a tremendous pull forward when it comes to discretionary items, particularly for the home. how many oven mitts and pillows -- >> are you buying those at home depot? that explains a lot. >> william-son mow ma and rh

and -- >> take a many mitts >> you get the small ones. >> nice. >> i'm sorry >> you can't even talk let somebody else talk >> i think in low depot's case, no one's had a sweeter spot than home depot's had there's been lumber deflation, so, as we're speaking about small mitts, this is something that i think -- home depot is suffering from -- they were in the perfect space for two years. and i actually don't think the numbers are that bad it's still above 2019 level. should you be out rushing to buy home depot there is this shocking for home depot? but this is hardly, you know, like, run for the doors, and, in fact, their pro business is part of the reason why they're very resilient, because there are still a lot of contractors out there filling a lot of orders. but it's a sign of the times they're never going to see that again, home depot will never

see -- and that includes their margin profile >> i've composed myself. >> thank you >> you're welcome. i thought the stock actually traded okay today on what wound up being a lousy overall tape. the stock was down four bucks. $275 was still a support level we talked about. it should have been worse. the restoration hardware move was really bad they took that out to the wood shed and that, on valuation, it's actually cheaper than home depot, so, i don't think hd traded particularly bad today. for a trade, i think you'd be long the stock >> anything that you're going to need a second mortgage to buy, anything that's related on interest rates, when you go to home depot, people are doing new bathrooms, doing new kitchens, if it's a sectional couch, yes, you probably have to finance that, too, but you have to be a little more cautious if it's a high end product, people who have money might curtail it a little bit, but they're still going to spend it. if you need a second mortgage to buy it, stay away from those stocks >> you would rather be in home

depot even if there's a pull-back in spending? >> no. i think home depot, i could see those people pulling back because they have to actually take out a loan. so, anything that needs a loan, but if you're talking about high end clothing, you can still be there. >> yeah, it's interesting. guy just said he's surprised how well it traded today, this stock trades at a market multiple. we don't think the multiple assigned to the broad market given how fast interest rates have come and what we're starting to see, the data from the economy. when you hear a company like this, the worst revenue miss in 20 years, these are not one quarter sort of things, you know here's a company that's dealing with a hangover from the pandemic they really benefitted from the dynamics that were going on with the housing market, low rates. and we think about, again, the conversation we were having, you know, you were talking about margin expansion in the new staples now, like the biggest companies on the planet that have all these modes and now they're trading at 30 times or whatever to me, there needs to be some

sort of, like, we need to see this kind of spread narrow a little bit and to me, it's just getting further widened right now. >> home depot or target, tim >> home depot. yeah i mean, i -- again, i think you've had a pull-back here. let's see where it goes. i agree, this doesn't turn around overnight, but i'm still going to get masking tape and fertilizer and -- >> sure you are. >> and, you know, that's what i do >> a lot more "fast money" to come here's what's coming up next japanese stocks jumping, soaring to a 33-year high. but can the overseas outperformance keep on rolling the traders break it down, next. plus, artificial acceleration amazon, the latest company to get in on the a.i. surge but does this kind of feel like a back to the future dot com moment we'll debate you're watching "fast money," live from the nasdaq market site in times square.

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♪ yeah, yeah ♪ welcome back to "fast money. japanese stocks continuing to climb. the topix index jumping half a percent. that brings the index's gains this quarter to 6% japan's other major index, the nikkei, gaining nearly 6.5% in the same period, sitting at highs not seen since november of 2021 both of those indices outpasoutpassion i outpacing major averages in the u.s. tim, this is a major milestone for japanese stocks. >> it is, and we can look back and say, they're still not above that blow-off top from the '8s,

but it's extraordinary they are seeing greater free cash flow, toyota, sony, hitachi, if you look at their banks, they trade at half the price of tangible book you look at the dax, it's within a whisper of all-time highs here i go back to the bank of america fund manager survey, they are betting on a weak dollar long european equities is a very crowded trade. what you see is, people want to find the most cash flow generative stalwart balance sheet companies around the world that actually will benefit when china kicks it up into high gear >> part of it, it's the not china trade. then there's the buffett factor. >> without question. he sihined a light on the brokes out there. he owns five or six of them, but

he put on the map. now more people are focused on it and starting to see money flows there. and the ewj that steve talks about, not breaking out necessarily, but still room to 71 or so, levels we saw a couple years ago. this is an interesting place to be, for sure >> we haven't seen inflation in japan in forever, and now, you start to see it in the last couple of months so, they're the real canary in the coal mine. you want to watch what's going on in japan. it has a lot more to do with what you said that people want to be exposed to that area, don't want to be exposed to china and they use that as a replacement theory for buying stocks in that area. >> all right, coming up, primed for an a.i. boost. amazon adding a chat bot search feature, just the latest company to get on the a.i. surge we'll lay out what is next for this space and there's still a lot more to come that's next. and we're just 30 minutes away from david faber's exclusive interview with elon musk we'll have special coverage at the top of the hour.

meantime, we're back in two.

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>> melissa, a few final questions from shareholders. one of them was, hey, there's lots of rumors out there that you are going to step down as ceo of tesla, is that true elon said no, he is not planning on stepping down he plans on remaining ceo of tesla. and then, unprovoked, he said, why? which is, he believes that the development of artificial intelligence, a.i., needs to be done responsibly and needs to be incorporated into future products at tesla and elsewhere responsibly. and he said, i got to stick around and make sure that happens. so, that question has been f floating out there for some time, would he say at some point, eh, i've had enough, i'm going to move into a different role he says no, that's not happening. >> all right, phil, interesting that the stock is not really reacting too much right now on that headline. phil lebeau. afterhours session highs, but not really much of a move, i don't know, what do you think? i would have thought it would

have seen a bigger pop >> to the extent that this is a guy that is a cult of personality ceo and somebody that's reaffirmed he's staying at the help. we got the news on twitter i don't think there's any surprise here. he's let people know, i'm here and i'm focus. amazon shares climbing almost 2% today on reports it is planning to add generative a.i. to its search feature. the amazon the latest big tech to move into a.i. search following microsoft and alphabet all stocks up over the past week is the a.i. hype warranted dan, your thoughts >> well, not near term i mean, this is a company that's been using machine learning, deep learning, all those phrases before we started saying a.i. for over a decade, if you think about the recommendation engine they've been using, that was some of the secret sauce about the growth of their e-commerce and then just search relevancy and searched a advertising to become a huge business for them, over $30 billion a year. and you think about how they're using all of those technologies as it relates across aws and the

services they provide there, their logistics, so, the fact that this stock turned around after they gave guidance, okay, remember that 10%, and now it's rallied 10%, this is part of what i'm saying. when i say this is a bubble, it's a near term bubble that is not particularly warranted across multiple stocks, this is exhibit a here, so, to me, i mean, this doesn't make a whole heck of a lot -- amazon is a great company and they've within doing the right things for a long period of time, but right now, it seems a bit of hype. >> for more on this, let's bring in brett winton, "fast money's" favorite futurist. the only one we know, actually just to be clear, for amazon, when we think about what amazon does already, i mean, it knows what books i want to read, it shows what food i like to eat, et cetera, i mean, on some levels, isn't a.i. already been implemented? what is the difference between what amazon is doing now with what they will employ? >> well, i think that this is

more speaking to how amazon's front end experience is broken and perhaps profoundly broken because of the way they integrate third party products onto their platform. i think amazon's platform has a lot of legacy debt to how the business has evolved so it's natural they try to apply new language models to help user discovery. i think through their smart speaker networks, that's maybe been a more promising way they can deliver users to products that they want to buy. and every company's going to have to adapt to a.i it's funny, dan, to hear you talking about, oh, this is hype or near term hype cycle, our belief is there's going to be $90 trillion that acures to the enterprise value of a.i. software companies, broadly speaking and to give you a sense of that scale, current equity markets are on the order of $100 trillion, so, there's a huge business value opportunity that's going to be kind of

accommodated over the course of this business cycle. amazon, because it announced that the large language model at its front end going to take advantage of that? probably not maybe legacy infrastructure they have that they need to upgrade to stay competitive with nimble competitors. >> 90 trillion, but how much is destroyed on the other side of it i'm just curious, because it sounds like an amazing thing that amazon is going to be doing this, but if you think about how amazon is working right now, if you search for something, the knock on amazon in recent years is that it delivers sponsored content, products you may not want, but you pay for the advertising. how does that work when you're doing generative a.i.? do we know if this will be as profitable for amazon as its current business model >> i mean, the short answer is no, we don't and that's part of the reason why i'm surprised that the shares rallied on the news, because they do have an advertising business and companies basically, merchants

jockeying to appear higher on their rankings and using a large language model could break that and perhaps profoundly google faces the same dilemma. i think the -- it's interesting to me that these large, you know, meg ka cap tech companies have rallied over the course of the last few months when it seems to me that the likely output of a.i. is to enable their smaller and more nimble competitors to, you know, nibble at their heels, while they use these technologies to try to beat each other over the head. and so, it's not clear to me that it accrues to any of the megacap tech companies, despite what the market seems to be imbedding. >> brett, so, that's my question why this announcement from amazon today this doesn't make a lot of sense to me, and i kind of agree with what you're saying we certainly argued cynically that a.i. is something that's already -- amazon didn't just

start investing here, google so what are they -- is it as simple as understanding what moves stocks, or is there more going on here? >> i mean, sometimes it could be that the leadership team believes that their employees are not moving quickly enough to deploy technology, and so it's a way to prod the internal employee base that this is something we need to take seriously and we know it's going to disrupt existing business lines and we as an organization need to move more quickly. i can't think exactly why amazon announced this now i can say that across the board enterprises are taking up a.i. very quickly, because they see very clear roi cases and it's not just in these big tech companies that it's happening. this is accelerating every technology across every sector, and i think business leaders or savvy business leaders know they need to move quickly, or else they're going to fall behind because of the are pidty of the

pace of change >> it sounds like what you're saying is that if you want to play a.i., if you want to invest in a.i., investing in the five biggest technology companies in the united states, that's not the way to go right now. >> yeah, i think -- i think it actually imperils each of their business models in a unique way. apple has privacy issues that prevents it from taking data from users google has their entire search franchise that is put at risk. google is trying to wound microsoft in its office 365 product. and here, amazon, a.i., if anything, is likely to empower a lot of independent merchants to operate outside of amazon's platform and eat away at the logistics advantage they have in low cost delivery. by enabling drone delivery from outside vendors and really producing point to point mobility for people. in the meantime, you just mentioned tesla and elon musk, hey, you know, tesla has the largest deployed fleet of robots

in the world if you look at amazon's robot fleet, they have roughly 3,000 robots per employee. tesla, if you look at their vehicles, they have 300,000 per employee in terms of deployed robots and so, i think there's interesting in other ways to play this. >> brett, thank you for your time appreciate it. dan? >> i think we're on the same page you look at that ark innovation etf, there's a bunch of garbage in there, there's stuff that's down on average, like, 75% from their all-time highs and all deemed to be innovative technology companies a couple years ago. i would assume that some of this tech would really help those names kind of get them toward that 90 trillion in value. coming up, musk-see tv we're counting down to dave faber's exclusive interview with elon musk. this is a live look at tesla headquarters the crew is all set. we're now just awaiting david and musk to show

but first, it's bio tech blues for two health care stocks as the federal trade commission tries to block their deal. we'll bring you the details and the trade, next.

welcome back to "fast money. a pair of health care stocks taking a hit today horizon therapeutics nose diving after the federal trade commission sued to block its act by acquisition by amgen. amgen intends to challenge the objections in court. in order to complete the nearly $28 billion deal by the end of the year guy? >> i thought this one was a foregone conclusion. this clearly came out of nowhere. stock market's telling you that, as well. amgen said they are going to mount a -- what's the word, vigorous defense, i'm probably paraphrasing and i think they will wind up getting it done. i'm not sure what the objection are. amgen is just too cheap here trading at levels we found support a number of times, so, on valuation, yes, and horizon, i think, just got whacked too much, as well. i think horizon is worth more. this deal is going to get done one way, shape, or form. >> today's news sending

horizon's options into overdrive. mike khouw has the details on one huge bet against the pharma name mike >> yeah, well saw over three times the average daily options volume in this, and the most active options were the january 2024 85 strike puts. a block of 10,000 of those trade for $10.75, two more blocks of 5,000 apiece traded for similar price within minutes and ultimately, nearly 35,000 of them traded all day. this represents some of the highest premium i've ever seen spent on a single options trade and my guess is what's going on is that people who are long the stock or may have purr chaised more of it betting that the deal is going to go through or deciding to hedge their bets >> all right, mike, thank you for that mike khouw for more options action, tune in friday, 5:30 p.m. eastern time. coming up, david faber's exclusive interview with elon musk is just moments away. so, what would our traders ask elon stick around, we'll break that down rightft ts. aerhi if your business kept on employees

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we are just minutes away from david faber's one-on-one interview with elon musk the company's annual shareholder meeting just wrapping up so, as we get ready for that big

interview, let's find out the one question our traders would be asking elon musk. let's start with gene munster. gene >> melissa, i would ask if we're going to see a punch-through moment related to fsd. that was one of the continued themes of the whole shareholder meeting. he is founding the table on fsd. we've heard that for years but just like we saw chatgpt punch through in a.i., the company's been working on it for years, will we see a similar type of breakthrough moment when it comes to autonomy >> breakthrough moment meaning like the stock pops on the back of fsd specifically? what is punch-through? >> just that the miles get to a point that this becomes a reality, and then it's just everywhere, just like chatgpt. >> gene, thank you gene munster >> thank you >> all right, tim, what would you ask? >> i would ask if he's bothered by corporate governance. it's clear that he's been bothered by whole career he's paid no attention to it some of these board elections

even today, i mean, replacing the japanese pension fund, doesn't seem like a good trade for investors. how do you feel about corporate governance do you believe in it >> the most important, pressing thing for investors is margins i would rather figure that out, back end into that and say, what do you feel on pricing i have to know his thought process on whether he's lowering, raising, how deep is he going to go on that and then i can figure out the margins out of that. >> guy >> is there a scenario with the twitter valuation where you would be forced to sell more tesla stock and what is that scenario >> that's a very interesting question >> thank you. >> that has been part of your bear case on tesla >> yeah, my case is that twitter is a huge overhang for tesla, but the question i would have is, he's done amazing things for pushing forward development of evs and the industry globally, and look what he's done for spacex, so, why not spend all of your time on spacex?

you're the space guy drop the mike on tesla, drop the mike on twitter, drop the mike there and do the thing -- >> i think his answer would be he can do it all >> but i would say, my answer to him, or my push-back might be, it doesn't appear right now over the last year you're doing a great job with all of them >> why >> spacex just had a major verd verd victory. i'm not going to argue he's doing a great job because i'm not going to -- it's all relative, i mean, he's got people working at these companies that are doing what they're doing. there's been a real argument about distraction at tesla for twitter, so, i agree spacex, i think, right now, again -- for a private company that we don't have a lot of information about, the progress there seems extraordinary. >> to your point, though, i mean, for the next year, the question is, if it's going to be tough for at least the next 12 months, which is what he predicts himself, then what does that mean for the stock? and if all these other companies

go bankrupt, some of the other -- does that mean that investor money, the atm effect, does that go to tesla, which is actually the thing for the stock? >> i think part of what he said is exactly that. if you can sort of get to the other side of this, we'll be in a much better position, given what i think is going to happen over the next year, where things are going to be rough, we will be the one that wins on the other side what happens between here and then, though that's the real question >> time for the final trade. let's go around the horn tim? >> gdx i think that 33 level is a level you can nibble on this >> steve >> i think, you know, elon musk always tempers his opinion on what the overall economy is going to do. he's some what similar to a jamie dimon. so, i think he's setting the bar real low for himself i'm going to go with tesla >> dan >> despite guy's unusual optimism about the mccarthy/biden meeting, i think you can be long some vix calls here >> is that sarcastic >> a little. >> guy

>> mets/braves this evening. >> oh, how about that? what is your prediction? >> my prediction is pain >> yeah, okay, okay, mr. t >> what is your final trade? >> we talked about oven mitts earlier, which provided me with -- you've been coughing ever since >> i know. >> william-sonoma too cheap. >> thank you for watching "fast money. do not go anywhere david faber's sitdown interview with elon musk is just moments away we've got live coverage right after the quick break.

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cdw makes it powerful. this is a cnbc special presentation. elon musk, live, one-on-one with david faber. >> live at tesla headquarters in austin, texas. in just minutes, our own david faber has a one-on-one interview with tesla's chairman and ceo elon musk. everything about tesla's future, the new ceo twitter ceo he hired, spacex, ai, and a lot more. with us tonight, bringing that what we will hear, dan, cnbc