there's always more demand than supply there's still more demand than supply, but adam jonas and others believe we're entering a period where things shake out. and tesla is going to put pressure on the lucids of the world. they're already losing money how do they get the profitability if they have to deal with lower prices. >> and what tough choices do they make. phil, thank you very much. our phil lebeau. >>> next up is ibm, after the bell, reporting of course the hardware company trading down about 1% this morning. hardware and software company, i should say the street expects revenue to slip about 3% from the year ago quarter, but analysts have been cautiously optimistic. recently upping, despite historical underperformance it believes it can grow consistent revenues morgan stanley, downgrading to equal weight, despite the name being the best among the i.t. coverage, they think comps could get more difficult in the year ahead. it has outperformed its peer like western digital over the past 12 months john, we have talked about how it's out performed the buzzy names of the past few yea

. >> speaking of that, we've got tesla after the ball adam jonas still naming tesla a top pick despiteg to see some people have a little bit of foe moe, fear of missing out of tesla. you've seen the political component come in. i think you saw an oversold condition. i started selling puts in tesla. it didn't feel great when i started selling at 130 all the way down to 110, i was establishing a position. thank you to the folks on the other side of the options trade who said sign me we have the optimism to go back and fill about $180. yes, overnight, we did see tesla invest about $3.6 billioninto the gigafactory in nevada. and that isoptimistic and encouraging. i think a lot of people were looking for a buyback. tesla, elon musk is always the widecard i think this oversold condition, you're seeing the ability to look back. i'm going to have a tight leash on this stock. this is a trade, not an investment i'm going to be very considerate of what comes out. >> ibm plays in a similar space. what are you expecting from big blue after the bell? >> frank, you bring up a great point. this isn't

. >> adam jonas came out with a nine-page opinion on it. he's like the supreme court. he does point out -- i make some jokes but he does interesting work committed ev and av, amazing they can do both double revenues by 2030. i have mary barra on >> other characterize they bet the company on ev over the next seven to ten years. >> ev and also -- av they're all over the place in san francisco. they're spending a fortune on these. >> automated vehicles. >> right now it looks positive right now. >> think smart or not to not try to match the tesla price cuts? ford did come down in price on certain models tesla, as we know. >> on certain models, not on everything, and not on the f-150. >> understood. musk said during the call that they're starting to see in increased demand as a result of those price cuts they are by far the market share leader. >> they said they could raise it again. >> gm chooses not to compete. >> same with vw today. >> i think that -- i think farley from ford, he's not making any cars that they'll lose money on. he's not going to seed this area back -- h

. >> well, maybe that option game is -- illustrates why, for example, adam jonas at morgan stanley yesterdayr case of $70 and his bull case of $390 >> well, jonas is, as we said at law school, i've never seen anyone like jonas, because he's got a flare. it's, look at me a look at me, i'm an analyst, i'm over here. no one really does that. how's he doing with livenation and ticketmaster he should testify. he should say, listen, i'm not -- my tickets aren't selling. you know, you got to be -- he is funny. he has a buy on quantum scape. that's david's favorite. but i think that there is a notion of lotto to a lot of the -- what tesla's doing, and yet at the same time, if you listen to what musk is saying, you should just own the common stock. own the common stock he is making it -- that whole call was about ford, gm, you want to come in? let me tell you what this world is like. and not only that, jim farley, with your mach-e, you better cut prices it was so interesting because it was so henry ford-like without the -- >> yeah, don't >> i'm not going there it is so henry ford, and now the questio

just -- i mean, the man is somewhat -- he's someone unbeatable when it comes to cars >> last week, adam jonasf morgan stanley sqasked a lot of dealers if they had ever seen a car company cut prices by a fifth across most of their product range. no one could think of a precedent. he goes back to henry ford when he democratized the model t. >> that was also to keep out everybody. that was, you know, kind of like standard oil, when standard oil lowered prices to keep out everybody, but there was no -- standard oil had 100% of the market musk may want 100% of the market >> he's not going to have it >> no. >> guys, a very small part of the market is lucid, but it's worth mentioning this morning because obviously, that move up on friday, in part because of a news story -- i think it was betaville that the saudis, which own as much as 65% of the company already, might want to take it private. couple of things to share here i mean, the saudis, of course, already control this company they are spending, what, up to as much as $3 billion on a production facility for lucid. they also were a billion of th

. >> adam jonas yesterday said autos are going to start to take a lesson from the tech layoffs, jim. maybe cut back on things they can do without for now in the wake of what is likely going to be a price war. >> i do think that we're seeing numbers pick up in subprime loans for autos. autos have been a reflection of employment i am concerned, though, that tesla trying to take share which they k can because they hv such big margins in tesla. >> let's get the opening bell here let's get to the big board u-haul is opening the bell a lot of consumer down grades today. peloton, horton. >> horton had a bad quarter. there is no doubt about it peloton, look, there is going to be some pickup there but the lulu is beginning to make me wonder has it peaked i just wonder whether lulu got too expensive. those of that shop there have coupons on a daily basis the downgrade was predicated on store traffic. that's not the lulu i know they're a full price stock brand. >> bernstein goes to underperform >> yeah. >> $290 is the target. zl >> that was vicious. apparel which was up in the cpi, .5, i mean,