the gigafactory is more of a long-term development over the next three years.serves its own call. we will do that call and answer questions in as much detail as we can next week. >> as i can, can you clarify a couple of points? are you going to be building this with partners? >> yes. we expect this to be done with a number of funders. >> can you give a clue as to who they might be? panasonic? samsung? >> the likelihood that panasonic would be part of it, but that is not confirmed. i think that seems like a pretty good likelihood. a reasonable assumption. i have to be careful what i say because we are a publicly traded company. i can reiterate some things i said on the earnings call. we can pay for the gigafactory in more than three years -- from retained earnings if we allow the time. to extend beyond three years. we would probably need to raise funds if we wanted to be done in three years. >> you would prefer debt equity? >> i would love to answer those questions, but i cannot. >> one of the things you said on the call was that your best guess is that model x

the gigafactory is more of a long-term development over the next three years.serves its own call. we will do that call and answer questions in as much detail as we can next week. >> as i can, can you clarify a couple of points? are you going to be building this with partners? >> yes. we expect this to be done with a number of funders. >> can you give a clue as to who they might be? panasonic? samsung? >> the likelihood that panasonic would be part of it, but that is not confirmed. i think that seems like a pretty good likelihood. a reasonable assumption. i have to be careful what i say because we are a publicly traded company. i can reiterate some things i said on the earnings call. we can pay for the gigafactory in more than three years -- from retained earnings if we allow the time. to extend beyond three years. we would probably need to raise funds if we wanted to be done in three years. >> you would prefer debt equity? >> i would love to answer those questions, but i cannot. >> one of the things you said on the call was that your best guess is that model x

whereas the gigafactory is more of a long-term development over the next three years. it deserves its own call. we're going to do that call and answer questions in as much detail as we can next week. >> elon, as much as i can, can you just clarify a couple of points on that? number one, are you going to be building this with partners? >> yes. we expect this to be done with a number of funders, yeah. >> can you give a clue as to who they might be? panasonic? samsung? >> i think there is a likelihood that panasonic would be part of it, but that is not 100% confirmed. since they are our main cell supplier now, i think that seems like a pretty good likelihood. >> right. a reasonable assumption there. how are you going to pay for this, elon? >> we can pay for it in more than three years if we -- we can pay for the gigafactory from retained earnings if we allow the timeframe to extend beyond three years. if we want it done in three years, we would probably need to raise some capital. >> yesterday your shareholders got a little bit richer on reports that you had met with the

liz: gigafactory. love that. david: after-hours doing well.shares aae also surging up nearly 40% this year. can a left for dead stock trade places with apple for title of comeback pick of the year? we have someone who says buy apple, sell blackberry trade, well that has totally flipped. he will tell us why next. liz: online shopping not the only challenge facing brick-and-mortar stores. satisfaction with retailers hit all-time high, not all stores are receiving high marks coming to this experience. 2013's biggest losers coming up. ♪ myad has atror afib.illation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says yourst afib puts you. at 5 times greater risk of a stroke. that's why i te my warfarin everyay. but it looks like maybwe should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for callinmyoctor. sure. p

with tesla's announcement, the gigafactory is going to cost between $5 million to $10 million.t was our estimate going into this week. i think people are plenty surprised this is going to be the cheapest lithium battery c factory out there. and tesla will own a portion of it. >> do you have a guess as to what the structure might be? they're going to partner with somebody and maybe a number of parties. and what the controlling interest will be from tesla? >> you know, we don't have the details yet. i would say if there was one thing that is missing here, this really is hard and fast details of the battery plant and offtakers. and any other potential partners there. but that's tesla's style. they're going to keep it close to the vest and release information as they make progress on the plant. >> ben, you've been great on the name. if i had to isolate it, is it a battery company? is it a tech company? or an auto company? without saying it's all three, which is the one you would classify it as? i think the last push has definitely been energy/battery. but if it's an automobile comp

the electric car company's ceo says it's so big, he's calling the supersized plant the 'gigafactory'. the tesla plant may even supply batteries to other carmakers. currently, there is said to be a shortage of lithium-ion battery packs to keep up with demand for tesla's models sedan,. tesla shares hit a new record yeterday at-- $218. the stock closed at-- $217. in a one-two punch, solar city, delays its full earnings report related to an accounting issue ...and says it will install fewer panels in the first quarter. the company said it would not release its full report until march third, the street did not react well in after-hours trading. the stockdropped more than 5%. solar city is the nation's largest residential installer of solar panels and is backed by tesla motors. a closely watched legal case involving moldy washing machines is being rejected by the supreme court. by declining to hear the case consumers taking on sears roebuck, whirlpool and bsh home appliance corp can move their case to lower courts. the lawsuit claims kenmore brand high efficiency washers made by sears holdi

. -- gigafactory. his own call.will do that call and answer questions as much as we can next week. it is likely panasonic would be part of it. that is not 100% confirmed. since they are our main supplier that seems like a good likelihood. we could pay for the factory in -- fromn three years earnings if we allow the time to extend beyond three years. if we want the factory down in three years, we would probably have to raise capital. >> tesla's new model, the battery-powered suv. >> the hardest part about it is achieving great form and great functionality. it is easy to give up on one of those two. hard to make an suv in particular that is beautiful and yet incredibly functional at the same time. >> what about the reports he has been talking to with apple? >> are you for sale if there is a right price? >> that is very unlikely. stay focused on creating a compelling mass-market electric car. i would be very concerned in any kind of acquisition scenario, whoever it is, that we become distracted from that task, which ha

elon musk just two days ago announced his new gigafactory - >> up $5 billion battery factory not to beuilt in california. >> not even considering california. i don't fault him for making a wise business decision but went to improve california's economic climate so we are in the hunt. if you look outside these windows, we have some natural advantages in california. i like to joke that nobody wants to move to texas. people of california. we don't need to be the cheapest place in the world but we need to be competitive and were not. >> apple is building a factory in arizona, samsung in texas -- how would you get them to choose california instead? >> first of all, the regulatory litigation complex in sacramento is out of control. hundreds of new rules and regulations every year, like a giant ball of yarn that gets bigger. we need to reign that in. legislators want to go the new arena, they exempt their arena from the environmental review because they know it will take years and cost more money. if it's good enough for their projects, why isn't it good enough for apple? why isn't it good en

tesla putting up $2 billion towards the gigafactory. is said and done. 1.6 billion will be coming by way of convertible notes. the company expects to sell 35,000 model s sedans this year. model s capacity has been limited by the battery supply. and the location is what's most interesting here. four states have been mentioned by tesla as possibilities. arizona, new mexico, nevada and texas. don't forget, guys, this is not only for the development and production of lithium-ion battery packs but also the development of electric storage politics. a lot of possibilities here with a very huge project. >> phil, those states, were those all right to work states? is there any relationship to that do you think? it just sound like right to work states. >> they're also located in the western united states relatively close to the fremont factory where they build the tesla. the most interesting one of those states, texas, joe. texas has banned direct sales of automobiles, which means if you want a tesla in texas you have to buy it from the company bu

this gigafactory will double the potential volume. changes the whole case. if you read the report from morgan stanley they changed their base case. they can't make up numbers. if the numbers suck that bad, they couldn't get 1% yields on their debt. >> he made my debt. melissa: did sort of make the point. >> they're diluting shareholder and saying -- melissa: still raising the price target. >> not raising it. they doubled it. melissa: doubled it. >> this is insane. melissa: you are kind of making his case that even worse bet. >> other thing, they do get on the phone and talk to the bankers and do talk to the company. someone says this is our customer. that all does happen. let the viewer know that out there. melissa: jared? >> yeah. it happens, charlie, but again -- >> thank you, made my point again. >> listen to me. you can not make make up numbers. >> i'm trying, dude. >> there is fair market out there, charlie. >> bear market. >> buy this for $2 million. buy this old ffat from 1974, pay two until because it is worth it. you wouldn't do that because you've

stock in tesla motors hit an all-time high when the company announced plans to build a so- called gigafactorymake its own lithium ion batteries. tesla wants to be making those batteries by the year 2020 when it could be producing half a million cars. a far cry from 2008, when the car company almost went bankrupt. >> at tesla we had multiple near death experiences. again, what are the odds of a car company succeeding? pretty darn low. >> and launch of the spacex -- >> reporter: even riskier, a rocket ship company. >> beginning of spacex i really just reserved money for three failures. so we haven't had three failures. then we just barely had enough to scrape together to do a fourth flight and that succeeded. it was a real close call. >> reporter: it did work. now, if tesla motors does come through with its giga factory, the company says it will produce more lithium ion batteries in 2020 than were made in the world all last year. >> wow. >> yeah. well all we need is, what, 500- mile battery charge and cars under $30,000. it will be the next henry ford. >> maybe we'll get the tube between here a

the latest anticipation is around tesla's so called gigafactory where they will produce their own battery packs. that announcement is expected next week. california state officials confirm they are in talks with tesla but there's plenty of competition from cities around north america. what a whirlwind year. tesla stock closed the day just above $209 a share. one year ago today, a share was worth just over $36. live in fremont, i'm ryan takeo, kpix 5. >> inland metal says its work with tesla also landed them deals with toyota and mercedes- benz. >>> disturbing new details today about the bloody rampage that rocked a small northern california town. police say a former tribal leader killed four people in the town of alturas near the oregon border. among the victims, her own family members. kpix 5's andria borba tells us in the gruesome crime scene, officers did find a sign of life. >> reporter: look behind me now. we'll talk about that sign of life in just a moment. but tonight, here on the streets of alturas, a growing candlelight memorial for the victims at the cedarville rancheria. but yo

they are looking at something called the gigafactory. i think this may have something to do with making their own batteries. david: they were talking about deliveries to china by spring. that of course could be a big thing if in fact wealthier people in china are buying that car. they don't need much in order to get a lot. we're waiting on details about how many cars they are actually selling or they actually sold in the fourth quarter and that issue about the 25% gross margin which essentially elon musk promised us during the last one. liz? liz: let's bring in mark sebastian on this. mark, you're down there in chicago on the cme pits. i do have to quickly mention they're putting a number on q1 production. more than 7,000 vehicles. the expected number is 7,000 -- 7,400. boy are they driving fast here. >> yeah, when i look at tesla i see figures of apple 2011. i think valuation is really rich. it is what, 40% of the value of gm and ford and puts out 7,000 cars in a quarter. how long does it take ford and gm to put out 7,000 cars? it is al

ultimately what happens, i think they partner on this g gigafactory.meet demand. maybe that's where we see a partnership with apple. >> what is the gigger factory? >> it's a huge factory to get all the lithium ion cell production battery production in the world under one roof. it's an enormous task. musk has proven everyone wrong about what he can and can't do. this is an enormous task. >> do you see a world where apple is the electronics inside a car like tesla? is that a partnership possibility. >> absolutely. tesla runs on linox, an open operating system. they are pushing to making the next connective car. tesla is like driving a computer at 100 miles an hour down the road. i could see a partnership where apple goes in the model s. >> at&t is talking to companies to -- i think ford and other companies doing this. who wins in that battle to take over your car? >> who wins right now is still unknown. everyone is throwing their hat in the game. google's announced an auto alliance with toyota and honda and a couple others. apple is trying to do this. ev

tesla is unveiling $5 billion plan to massive gigafactory to manufacture batteries.la says it's exploring locations in texas, nevada, arizona, and new mexico. the factory aims to drive down the costs of lithium battery and make their cars more affordable. >>> the "atlanta journal-constitution." delta airlines will make a change to its frequent flyer program. i wonder if you could use it now. they will reward customers based on ticket prices rather than miles flown. delta joins jetblew and southwest and have similar programs. experts predict other airlines will follow delta's lead. the change will start next year. you have certain flights you can use and random times and then you can't. it's difficult. >> i've seen the last couple of years of delta and how they treat their frequent flyer customers and it's, for the most part, very positive changes. of course, as you know, i have not always been positive about my experiences with delta going, you know, 30 years back. without a doubt, a big change. >> i would like to take this opportunity to talk about airlines. i'm out