elon musk thinks it will be lowered to 50 cents a mile.ts like google and apple are developing their own self-driving systems, to take on the world's leader automakers, including volkswagen, general motors, formed and toyota. eventually a single smartphone app could connect to robo taxis, self-driving shuttles, e-bikes and electric scooters. that will glide you through megacities. someday urban dwellers may have to spend a day in the country to catch a glimpse of that 20th century show pony known as a private car. taylor: palantir's highly anticipated i.p.o. may be delayed. it could go public in the second half of 2019 but sources told bloomberg this now seems unlikely. joining us now to discuss is bloomberg's lizetta chapman. why the delay? >> there are three main races our sources have been telling us. the first one, mainly, their board. it is too small and not independent. it has four board members. half the size of a typical board. both major stock exchanges require a majority of board members to be independent. they don't have that. t

the company after elon must have been, the largest investor.hat is it about that company that remains attractive? >> we need to remember, i'm an engineer by training and the engineering that they have, they've managed to achieve there is transformational, not just for this industry but for the world in general. they've achieved a lot. scaling up is really difficult and they're working their way through that just now and we're trying to be supportive shareholders to help them in that journey. >> how do you support the company to make sure the story is the engineering story vs. the -- story? >> it's trying to be supportive with middleweight, with the board. trying to make sure -- trying to encourage them do exactly as you're saying. taylor: that was c.e.o. andrew gifford. i'd like to bring in -- and david kirkpatrick. max, i want to start with you. tons of bulls, some bears. felt like it was turning a bit more bearish. wrap up for me what happened. >> what happened is the main single that the china trade war is obviously not going to get settled

-so, one of the things at elon musk wants to do is send people to mars.s that something you would -- -the moon is for chumps. let's make that clear. we're going to mars. mars is cooler. all right? -ioing to ask, would you ever want to go? i think i know the answer. -absolutely not. no. earth is pretty nice. we have trees and water now. -all right. scott dikkers. foof the satirical news outlet the onion. and also your new book called "welcome to the future," poking fun at elon musk. thanks so much for being here. -you're welcome.t to be. -that will do it for us, but before we go, we'dsoike to share with you news. kqed is renovating our current building in san francisco, so for the next two years, we'll be taping our program out of a new studio, but westill bring you the same in-depth discussions and analysis of important issues, and you will still be able to find all of our coverage onlin at the same place -- kqed.org/newsroom. i'm thuy vu. thank you for joining us. eed we look forward tog you next week from our new studio. ♪ ♪ ♪ ♪ ♪ captioning sponsorwnet

why did you choose elon musk? -he's the funniest. he's the weirdest.nd he's the one that has the most kind of public image. yo, a lot of these guys hide in their billion-dollar lairs or whatever, wherever they live. -but musk loves to tweet. -he's kind of -- yeah, he's out there. he's tweeting. he's doing stuff. so i figure, you know, if you're in the public sphere, you're going to get mocked a little bit. -well, in your book, you include a number of what you call inspirational quotes from elon musk, and one of them is, "the key to success is to ask yourself, 'what's the most ludicrous, most anine, most futile thing i could possibly do,' then make it happen." you don't like any of his ideas? -oh, no. i think his are kind of cool. like, i think on some level you have to admire someone that you satiriz but you also have to find them pretty ridiculous, because if it's too mean-spirited, then it's not funny or interesting, you know, so... -and you also poke fun at mark zuckerberg, as well. he's not spared. your book includes a so-called foreword from him w

it is bart firing off a bunch of tweets at elon musk and elon musk not responding.said that tunnels at the safest place to be during an earthquake. and i twitter user replied and said that tunnels are for trains. and then by #ktvu . we carry 28,000 people per hour through our tube under the bay because of the capacity of the trains which is twice as much as cars over the bay. bart also treated the weimar passengers travel on bart at peak times then drive. they wrote down the numbers that show how important our trains were during the earthquake for people to get around. bart says that runs on almost 100% electricity. elon musk has not responded but a lot of people are on both sides. ktvu fox2 news . >>> bart is planning on redesigning the inside of its new cars to include myspace for bicycles. the agency will add a second spot for bicycles on each car. they voted to make this change last week. the existing space can only hold two bicycles and it's also used for luggage and strollers. a survey found the majority of cyclists say there is not enough space for the bicycl

between art and elon musk.elissa explains what is behind their dispute. >> reporter: this started with the tweet that had to do with tunnels. on friday elon musk tweeted about the company digging tunnels and how safe they would be in an earthquake. when users said tunnels of her tvu not cars. elon musk fired back saying train should be on the surface and cars below and then bart tweeted we carry 28,000 people through our under the bay because of the capacity of the trains which is twice as much as cars over the bay. why wouldn't you prioritize something that carries more. went so far as to include graphics to demonstrate how the tube carries way more people. elon musk never responded. ktvu fox2 news. >>> another person has died climbing mount everest. he was at attorney from colorado. the traffic jam near the summit of mount everest is going viral. overcrowding is to blame for a recent rash of deaths. at least 11 people have died making at the deadliest climbing season in four years. typically 5 to climbers die

he graduated. >>> bart is taking a fight, a twitter fight with elon musk. we learn what it's all about. >> this all started with the tweet that has to do with tunnels. on friday elon musk tweeted about the company taking tunnels and their the safest place to be in an earthquake. what twitter user said tunnel separates rain to not cards and elon musk fired back saying that they should be below. a tweet on the account read we carry 28,000 people per hour under the bay because of the capacity of the trains which is twice as much as cars and why wouldn't you prioritize especially with automatic train control over cards and they included graphics to demonstrate how the tube carries way more people. elon musk never responded. >>> the agency is planning on redesigning the inside of its new train car to include more space for bicycles. they will add a second , space for bicycles on each scribe. it is a space for luggage and strollers also. the majority of cyclists say there is not enough space on the new trains. they will at 775 new cars by 2023. >>> a man accused

i mean, so, first we know that elon musk sets extremely aggressive goals, right?e goal, and then you do everything you can to meet it, and often they fall short of it. but in doing that, in sort of pushing to that target, they've been able to achieve the impossible so far. if we talk about cash and those worries, i mean, in our valuation model, we actually expect -- we have tesla raising an additional $10 to $20 billion in the next five years. >> wow. >> and we're actually okay with that, because we want them to get as many cars on the road as possible because -- >> that adds to your position pretty significantly -- >> we'd be okay with that dilution because every car acts like an r&d for tesla. we want them to produce as many cars as they can, get them out there and then run a fully autonomous taxi network -- >> what do you think is the fair price for the stock then >> in our bear case, assuming no autonomous at all, that's $560 in five years. our bull case, we actually think it could go north of $4,000, and that's with autonomous driving. >> and were you surpris

emily: asking about elon's leadership in particular.mail he sent to the company -- nobody is perfect, but it had typos, missing words. what is your latest take on elon's leadership and ability to meet the ambitious goals he has set? dan: he has personally taken steps in the right direction. in terms of the expense structure, where he talked about all hands on deck for expenses, as well as the cfo, making sure expenses are kept tight. rallyre, he's trying to the troops and keep communication up. that's what he needs to do here, considering the challenges. because they need a leader, and ultimately musk realizes he's a leader for tesla to navigate this period. forget all the noise on the street. i think the doomsday scenarios are a little overdone in terms of some of the other calls. nobody can deny what the company is and where they are going, but he needs to get them through this white knuckle period over the next 6-9 months, and i think he knows that. emily: all right. dan ives at wedbush. always good to have you. thank you for stoppin

for tesla, the stock falling below $200 bucks it has dropped 40% this year we will talk about what elon music needs to do to turn things around >>> the alarming new stats that show americans are struggling with debt on a number of fronts. we have those figures and what it means for the economy we're trying to stage a comeback, it may be failing. >> it got so close, kelly, it really did at the lows of the session, the dow was down about 203 points. we got within just around 12 points of break even so that's the range today, skewed towards the positive side the s&p off by about 16 points, one-half of 1% the nasdaq deposit, the real laggard down by 1 and one-quarter percent. the technology has to do with computer chip stocks, kelly mentioned this idea that hauwei is at the center of this a lot of companies are not allowed to do business unless they're exempted by the government you see here, the semi conductor take it off by 3 and a quarter%. remember, this is down 15% from a record high we had around the third week of april. semi conductors ones to watch. a stock of the day if you want to

this is a stock that's widely owned by a lot of people out there who love elon musk and what he's doinglove the cars, frankly. we talked about that yesterday they're fun to drive a big part of the appeal, is that investor base still there or not >> they are, but there's a limit -- there's a limit to how much patience mom and pop can take i think the adulation for elon musk in certain quarters is as strong as it's ever been the balance sheets of mom and pop are not the same as you know, bailey gifford, fidelity. >> exactly and t row and fidelity have been scaling back significantly. >> one of the questions that's now coming up to the point charlie was making, if tesla needed capital, where do they go if that source were cut off, does elon musk look at spacex and kind of say, okay, well, i have a -- i can do something with that company in order to help out tesla and the way he's sold tesla in the past to help fund spacex, or what about his own personal financial tie up? >> let's talk first off about the loans that he has taken out from three banks totaling $507 million at least that was t

even when we hear from elon musk it doesn't do too much for the stock anymore and he can do much forous taxis and with the stock not too much in the past month alone there have been 12 price target cuts on wall street this week there are two bullish analysts laying out bearish scenarios for the stock, the stock today finished flat. we watched danny throw in the towel and the only criticism i'd have of adam jonas other than saying $10 instead of some other number and that's okay we all kind of realize what happened here and when you put down that bearish scenario, but it's best case if things are as bad as they are and it seems to be that he's leaning on that direction, why is his price target still 2.30 that he didn't touch that part is concerning to me. yoe i don't understand, why i wouldn't cut that down to 200 and why would you leave that at 230 if all of these other metrics you don't like seem to be turning more and more bearish. why wouldn't that price target come down further? >> if you want to try and do a risk reward and best case is 3:30 and bear case is $10. >> it's a wild

and there are increasingly questions about elon musk's stake in tesla as the stock continues to move lower. the reason we're asking this question is because when you look at the most recent report from tesla, filed within the last couple weeks, in terms of personal loans that have been extended to elon musk backed by his shares of tesla, it is almost $507 million. there are the three major loans from goldman, morgan stanley, bank of america in the most recent prospectus from tesla, they write about this in their risk disclosure saying mr. musk may be forced by one or more of the banking institutions to sell shares of tesla common stock under the terms of miss lohis l. any such sales could cause the price of the common stock to decline. we should point out we've reached out to find out has there been a margin call, has elon musk been asked to sell some of this stock because he's had to pay some of these loans because they were sold on margin we have not heard back from tesla. also as you take a look at shares at 204 right now, everybody is talking about th f worst case it could go as

elon musk fired back saying trains should be on the surface and cars below.d in and said, we carry 28,000 people to our tube under the bay because of the capacity of the trains which is twice as much as cars over the bay. why wouldn't you prioritize something that carries far more and safely with automatic train ktvu fox2 news . >>> you can explore australia's great barrier reef in the first submarine. uber is launching a new service that will cost $2000 for two people. the driver will pick you up and then you will be flown by chopper to get on that submarine. it will be only available for a limited time. >>> a high care is making a remarkable recovery after being lost in the forest for over off and lost her sharch and refor 17 days before she was spotted. >> there were times i had total fear and loss and wanting to gi and i had to choose. i chose life. >> she said she only plan to go for a short hike the got turned around. she survived by eating wild berries and drinking water from a stream. >>> a 65-year-old man was killed by guest shark attack in now we. h

tesla in turmoil down more than 20% in the month of pay one top shareholder says don't bet against elon musk. we are live from times square in new york cy itand there is much more "fast money" right after this ♪ most of us don't know how much data we use... ...but we all know we're paying too much for it. enter xfinity mobile. america's best lte with the most wifi hotspots. combined for the first time. when you're near an xfinity hotspot, you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. get $250 back when you buy a new samsung galaxy. call, visit or click today. >>> welcome back to "fast money," tesla finishing in the red today. the electric carmaker down 10% after bearish calls from wall street sent shares plummeting and then signs of life yesterday after ceo elon musk sent an e-mail to employees saying it was close to hitting its production targets for the model 3. arc invest ceo and big-time ceo said wall street is missing tesla's edge >> the edge that tesla has in battery,

elon musk saying they will be data off thee ground station. >> by next year, elon musk saying,about thems of these circling the planet. if it is successful, they are entering a new of business, hoping to get to that dream sending people to mars. >> this is good coverage of the launch. covering the most populated areas. launches that would cover the internetobe and allow to the entire globe. as one satellite moves away, another one comes in. send and receive greater volumes speaking.lobally >> lots more stuff to do on your phones. but theay in aviation, in the stratosphere. above the earth's surface. let's talk about going. u.s. aviation regulators have held what they call positive talks with foreign officials. how to return the 737 max 8 service. come under fire. they say they will not rush. let's bring in our company's reporter. how did the meeting go? >> in the last few hours, we heard from the acting chief of the faa. he described the meeting as positive. he said he was encouraged. describe the talks as comprehensive. we are not sure why he is encouraged. strict timetable to get the 7

i'm just saying. >> they make more than elon musk is what i'm saying.s sending more troops to the middle east with tensions arising in iran. will this lower the temperature in the persian gulf? a live report from the state department coming next. >> right now i don't think iran wants to fight. i certainly don't think they ♪ (vo) i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪ it's toughcold turkey.king so chantix can help you quit slow turkey. along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostil

i'm just saying. >> they make more than elon musk is what i'm saying.id: president says he's sending more troops to the middle east with tensions arising in iran. will this lower the temperature in the persian gulf? a live report from the state department coming next. >> right now i don't think iran wants to fight. i certainly don't think they want to fight with us. ly! liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? oh! we just spend all day telling everyone how we customize car insurance because no two people are alike, so... limu gets a little confused when he sees another bird that looks exactly like him. ya... he'll figure it out. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ leave no man behind. or child. or other child. or their new friend. or your giant nephews and their giant dad. or a horse. or a horse's brother, for that matter. the room for eight, 9,000 lb towing ford expedition. my ideal cloud? it has to work like air traffic control. it's gott

tesla's q4 deliveries are on track to hit a record high elon musk, tesla, there's always some shift,s to do with the actual performance. some of it doesn't some of it has to do with tweets this one, the main issue is capital, right do they have enough runway to get all of these mechanics right, and is china that trade situation going to throw a monkey wrench in their plan? >> this is one of the stocks, some stocks have religious communities around them. there's no other way to say it elon musk extraordinary entrepreneur he's done things that are unfathomable, will continue to over time, but i would say there are 200 points in tesla's stock that vary around whether people are believing elon in a particular moment or the fundamentals are looking so bad or issues are so bad that people are saying you know what, i just can't get there. that's where i think we are. yes, they need capital they need to run much more smoothly and a lot of the more bearish analysts are saying there's a demand problem now and the company actually has to be restructured to meet the current demand, not some hypo

paul: she covers all things elon musk andg spacex. never a dull moment.ing up, we will look at what wage growth numbers will look like and what they will mean for inflation expectations. we will look into all that next. this is bloomberg. ♪ paul: it's eight: 30 a.m. friday morning here in sydney. the market open about 90 minutes away. futures modestly high right now. withore group just out full-year earnings, a slight beat, a little more than estimated. the cory -- mcquarrie getting some tailwinds from a weak so narrow beat, but the outlook for 2020, they are expecting things to be a little bit tougher in the next year. taylor: it's 6:30 p.m. here. you are watching "daybreak australia." ed: another of president trump's fed picks has bailed hours after telling he was -- telling bloomberg he was all in on the process. afterthdrawal comes days the president's other fed choice also dropped out. he had earlier told bloomberg his biggest ally was the white house and that he was feeling confident. >> the situation today, i think it could be a lot different three

you know what i'm talking about, elon's musk brother?his is a problem? >> people are looking at stock charts, financials, joe is looking at the brother's hat. >> no, he always wears it so people recognize him as elon musk's brother. >> if you wear something that looks that stupid. >>> coming up, secretary of state mike pompeo joins us live in times square. we'll discuss, huawei, national security, iran, china and much more that interview is right after the break. check out the futures at this hour down about 200 points. we'll beig bk. rhtac >>> right now on "squawk box," secretary of state mike pompeo, live in studio we'll ask america's chief diplomat about president trump's targeting of huawei, tensions with iran and the global oil market and much, much more. >>> plus, futures under pressure fears over tariffs and trades mushing markets lower this morning. >>> putting boeing 737 max planes back in the air the right way. ralph nader will join us on what boeing needs to do next and how to hold an industry giant accountable. the final hour

with love, california. >>> elon musk was tunnelling and suggested that pla trains should be aboveground and cars should be under ground. and trains run on electricity. musk did not respond to b.a.r.t. but kept the conversation going that under ground tunnels are meant for cars, not trains. it started with him praising opportunityi tunnels for being the safest place in an earthquake. >> a 35 yoga instructor is recovering after a helic helic c rescue. >>. >> a miraculous ris cue, a woman hiked into a forest come out. servers combed the island for days. from the air and on the ground, volunteers searched without any luck. that was until friday when the yoga instructor was spotted. they looked down and saw the woman between two water falls raising her arms to get their attention. >> it was like a movie. he is lost 15 pounds and survived by forging berries and drinking local water. he is got lost and injured in the forest. her leg was fractured and would require additional treatment, but saying he is is in sir prisoningly good shape. >> her disappearance triggered a massive serarch and a cas

be one to watch very closely because this could be a revenue generator if it works out according to elonestimates this could be something that generates tens of billions of dollars for the company versus launch services, which is more like a $3 billion business >> yeah, interesting dichotomy between the space business where there's a lot less consumer interface and the car business, which is just hypercompetitive right now. "squawk alley" is back in less than three minutes we're back up 70 point s. so servicenow put your workflows in the cloud, huh? mm-hm. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. >>> memorial day weekend always high stakes for the box office and rainy weather could drive even more people to the theaters so how does the forecast look for the summer season ahead? >> well, john, what's old is new again at the summer box office and the appeal of old tried a

elon has been putting band-aids over it.is an indication that poor execution, their cash burn is going to be a major problem. one thing that's a big risk for the stock, there's going to be a lot of short sellers coming in and adding additional pressure to this stock. there's a lot left on the downside, in my opinion in the near term. ashley: 2.2 billion in cash. elon musk himself saying that gives us about ten months at the rate we're going through the cash burning it up. susan: that's on top of raising 2.7 billion in fresh capital as well recently. they need to get some sales going. stuart: we started with baidu way down, tesla, way down, $220 a share. let's move on to amazon. they are down -- are they? amazon is investing hundreds of millions of dollars in a food delivery company. a british-based company. ashley: it's a big company. anywhere you go in the streets of london, you see bikes delivering food. they are everywhere. huge. stuart: amazon is putting -- sorry, yeah, amazon is putting -- susan: it's part of a consorti

elon musk needs to climb a few mountains. >> this comes after elon musk last week says he wanted a hard-corela's expenses. it will go very fast because the company is burning so much cash raisee they may have to another $1 billion or $2 billion. he says it is a herculean task for the country to reach production targets with you 4000 cars, i think it will become below the low end of that forecast. isn't besides the production issue, we have concerns about the actual demand. the underlined demand for the model three in the u.s., specifically in the growth project -- prospects. that had forced him to take it down yet again. he cut it last night from $275,000 down. now one of the bears, you could hop into the terminal. average analyst price target. the price target on averages above to 90. the stock crashed earlier today and there is a big diversions here. andlso facing a new course technology issue. >> the ntsb investigating a fatal car crash, saying autopilot might have been involved. for tesla.se a risk analysts pointing out that is one of the main reasons or instances in which the country --

. >> that's because elon's cannot tweet. we thought the s.e.c. was on cbs.ut they're more active than ever. >> take a look at the premarket. dow is on pace for a fifth week lower. if that holds, haven't seen that in eight years we're back in a moment plan oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. . >>> looks like the buyers come on tesla in the premarket. shares are up. coming into the day, though, down for the 11th session in 12. tesla, of course, recently had some issues recovering delivery concerns we know musk hasn't liked or tweeted anything in several days. >> no, no. i think one of the things that's really discouragi

fast money's tesla showing signs of life after ceo elon musk wrote that it's close to the production models for the model 3. tesla has a long drive ahead of it to make up the losses the stock is up 15% in the past week and has lost half its value in just nine months. let's bring in bruce clark, lead auto analyst at moody's. bruce, you have an equity threat and a death threat for tesla how does the tesla story ultimately play out? >> look, from our standpoint the store is carried and we have a negative outlook and one of the things that's important to keep in mind that tesla has a pretty good liquidity position and after the capital raise, we think they need about $1 billion to run the business and another half billion for the convertible bond and that gives them $3 billion left over. if you assume that they beurn a half billion, that gives them a long runway. from our standpoint the b-3 rating is still appropriate and that cash position does give them -- to be fair, they can issue more debt equity and in the current credit structure and income statement you just talked about six quar

it has been fixed. >>> bart is picking a twitter fight with elon musk.e is what the feud is about. >> reporter: this all started with a tweet that had to do with tunnels. on friday, elon musk tweeted about the tunnels are the safest place to be in an earthquake. one replied saying tunnels are for trains, not cars. musk fired back saying trains should be on surface cars below. bart tweeted, we carry 28,000 people through hour under the bay because of the capacity of a train. the twice as much as cars. why wouldn't you prioritize and with automatic train controls over cars or graphics to demonstrate how it carries way more people. plus, never responded to bart's directly. >>> alyssa harrington, ktvu fox news. >>> the bart news, the agency is planning to redesign the inside of the inside of the train cars. the agency is going to add a second space for bikes on each bart car. the board says the existing face can only hold about two bikes but it is a space that will carry luggage and the majority of the cyclists who use it say there is not much space on bikes

i'm not expecting today's enthusiasm to last much longer >> robert, investors perhaps liking elon musks putting his own money to work in the stock. >> he's putting $10 million in to buy stock so that gave the stock a boost today. one of the issues with tesla as it relates to disclosure is how much stock has he collateralized for margin loans he hasn't sold any stock, he owns 20% of the company. he doesn't have any liquid source of wealth to buy more stock. what he's done is he's leveraged stock to get cash, he's also got some mortgages and private homes. this amount is right -- as of 2017 was around $600 million that he had leveraged. we don't know what the number is for 2018 but it's likely a lot higher he's worth 20 so we shouldn't worry that he will be down to his last buck, but you look at what happened with chesapeake energy, you look at world come, adelphia these were all cases where founders who had a lot of stock, leveraged, had margin loans and when the stocks fell dramatically and quickly they had to cover and they were trying to cover stock with selling more stock and that's

they picked it obviously, elon is more than 40,000 shares.n i say the guy managed to get it so it didn't hit 230 which the shorts tell me is a magic level. >> yeah. that -- it's -- it's been there before then the next stop was 150 supposedly. >> i know. i mean, he's looking at a quinn up theel bottom. yeah, he raises the money and they get to play again it is been a great story that and the fact that they are producing a lot of cars. i know you were questioning the demand side. i have been working all morning on dow and how bad autos are in china. looks like tesla is not bad. i think demand there is better than people realize of it is hard to believe. what a good story. >> how about -- i mean any surprises for you with what powell was saying yesterday? >> what were people expecting, he was going to come out and say i was going to raise rates but i read the tweet, now i am going to cut and you should buy stocks that was stupid. the sell, the futures came in. they blasted it down powell is probably saying what, what, i didn't say anything. futu

them not being able to sell as many model threes as maybe elon musk sort of suggested there was demandmodel s and model x are long in the tooth and very expensive. that is causing real problems for deliveries and is what has everybody freaking out about this company. >> they are too early to the party. we have not seen demands catch up. they are saturating the market. do you agree with that? >> eventually it will. it is important to stress that i am a believer in tesla. i think they will turn the corner and capture what will be a juicy growth curve around the electrification of vehicles. that will eventually be 100% globally. 2019 will be a difficult year. they are going to miss their numbers. everyone knows that. i want to focus on what has happened in the last three weeks around this story. the stock is down 27%. it is down 24% since may 5 when trump tweeted about 25% tariffs. there has been an acceleration on the downturn based on what has happened in the past few weeks. analysts have not changed their opinion. the reason why the stock has dropped is ultimately, this gets back to th

last year, elon musk was certain tesla wouldn't have to raise any more capital, and now he has to change. tesla planning to raise $2 billion to replenish its cash. they filed to sell 2.7 million shares and about $1.3 billion in senior convertible notes. to talk about this, i want to bring in cross as it reporter luke kawa, and our analyst covering the company. why the sudden change of heart? >> tesla had a terrible first quarter. cash fell to the lowest position in three years. any executive wants a good buffer. it is scary to be close to the razor's edge, especially with projects in the docket. emily: how could musk have underestimated so much how much tesla would need? luke: that is a question that should be asked. the overwhelming sense is relief, that he was able to come to his senses and realize there was a need for this to happen. that is essentially what wall street was saying, which is why you see the reaction in the stock. but correct me if i'm wrong. we almost seem to need to go back to the well, because this doesn't do much more than close a working capital cap. in terms of am

elon musk reacted on twitter saying makes no sense. in order to grow the...he two billionaires have a long history of sparring over their space ambitions. >>> sal, are you taking care of things on the roads? >> i am trying to. dave and pam, it is a different commute as it always is, as long as i have been doing this, the friday before memorial day some people don't go to work. you can tell by the bay bridge toll plaza that is traffic is lighter. and you may leave yourself to believe that it will be a light day. it is not going to be a light day. later today about noon people will hit the roads trying to get out of the bay area. so many people i would not recommend being on the roads, for example on i-80 or 580 trying to get out of the bay area about 3:00 or 4:00. that would not be a good idea. northbound 880 we have slow traffic here. this is northbound 880 as you drive into downtown oakland. we don't have anything major going on here but we have slowing. there was a crash at high street just a little while ago. here you see it. you can use westbound 580. a m

our elon mui has the ory. >> the united states is the biggest exporter of liquefied natural gas in the. most of it is shipped out fromr als in louisiana and texas. that's drivingn investment boom along the gulf coast. the $10 billion in parish today, a backdro foramerica's energy dominance. >> you are not only making a nation wealthier, but you are making america sger by build the future of american energy independence. we are independent. we don't need>> anybody. he timing is a little awkward. coming jt oneay after china being. >>ed up tariffs on unlng from 20% to 25% and the latest salvo in whats now a full-fledged trade war. >> and we don't need to be ripped offy the rest of the world either because those days are over. >> china is one of the most important markets for lng and it has 10% of lngrt exand that is growing faster than anywhere else in the world and analysts say the tariffs are already slowing down u.s. shipments and we counted 26t vessels t left the u.s. for china last year and 17 of them left in the first half of the yr and only nine tankers left in the second half and

some say the treatment of elon musk was unfair.me time, even right now, stock promoters and con artists are committing , usingies fraud, daily social media and other tools to do investors. what do you say? absolutely. nobody should be permitted to use social media or any other tool -- erik: of course, but it's a question of the allocation of resources. robert: absolutely. everyone was watching the mosque case, and we knew it. that is why it was important that he stuck to the deal that he struck with us. i understand the judge was skeptical. with all due respect, he should not have been skeptical about the meaning of the last agreement, but now we have a new agreement which is specific to what he can and cannot do. erik: if he violates that agreement, the punishment will be harsher the next time? not want ton, i do prejudge any effects that are not before me. i expected to follow the you that he cut with us last week. credit andrespect to lending, this is becoming a multi-trillion dollar business, largely outside the oversight of th

mars,ne: the moon, not which notably elon musk is after.a real differentiation between like elon musk who want to go to other planets, view mars as kind of a plan b. jeff bezos is kind of a dialogue -- kind of in a dialogue saying other planets would be horrible. afters and styles and physicists he studied under at princeton, says we need to go to a place like the moon, use the materials and manufacture -- it sounds crazy, but manufacture orbiting and rotating space habitats were millions of, maybe billions of people can live and freeing up resources on earth. hasline: virgin galactic just tobout the aim is foster entrepreneurialism, foster a reason to think differently and think big, but is it really blue origins' ethos and focus that this is about saving humanity in the same way it is for elon musk? a it really is and there are bunch of different projects. virgin galactic has a tourism business. blue origin has a tourism business, a rocket called blue shepherd will start taking passengers in space later this year. that's about kindling en

only a taxed government project, mars, but some private money is being thrown in by people such as elonle with that? with the notion that america's richest billionaires, and you mentioned elon musk, we could talk aboutjeff bezos as well, are you comfortable with a sort of climate in space exploration where they seem more committed to pushing the boundaries, the frontiers than the us government? no, well, i think the us government should welcome their money in, sure. if they want to throw in $1 billion here and $1 trillion here, well, bless them. i don't see that there's anything wrong with having... once you are in a spacecraft, you are not sure who paid for the thing that you are up in, the fact is that you are there, that you are adding to the possible reality of a trip to mars a little bit sooner than if you relied solely on appropriated funds. isn't the truth, though, that if we, the human species, are serious about the next phase of space exploration, which will be mindbogglingly expensive and extraordinarily technologically challenging, it can only happen if there's collaboration

earth to to elon. shares of tess hitting the lowest -- tesla hitting the lowest level since 2016. espn has a new way, fighting cord cutting by cutting the politics. the big changes coming to the sports network. game of thrones breaks records and the internet once again reacts after yet another editing miss a take. the latest product fans have found. it is tuesday, may 21st. "fbn: a.m." starts right now. ashley: good morning. here's a look at how your money is moving at 5:00 a.m. the u.s. stock market futures pointing slightly higher at the open. the dow up 54 points, the s&p and nasdaq up close to half a percent. oil up 10-cents at $63.20 a barrel. take a look at what's happening overnight in asia. mixed bag, the nikkei down, shanghai up, hang seng down, you get it, kospi up. over in europe, it's all green arrows, modestly so. the ftse up 36%, the cac and dax also up a quarter to half a percent. cheryl: never know how global markets will do in a trade war. ashley: usually not well. cheryl: good morning, i'm cheryl casone. ashley: i'm ashley webster in for lauren simonetti. cheryl:

caroline: gene, very quickly, does elon have to be more transparent?o bethink he more judicious about what he says and set better expectations at the core. it is unlikely we are going to soon, soanytime whatever he says, dial that back by about 40%. caroline: gene munster and craig trudell, we thank you. up next, cisco ceo chuck robbins that he is not worried about the upcoming tariffs or the huawei them on 5 -- huawei ban on five g technology. this is bloomberg. ♪ caroline: since the u.s. ban on huawei, many are wondering what the impact will be on 5g technology. with robinson sat down carol massar and jason kelly to find out if the ban could slow the progress of technology. chuck: about eight months, when all of this began, our teams proactively started thinking about this, and we have three parts of our strategy around this. one, we will continue to dialogue with the administration to try to influence the outcome. second, we will optimize our supply chain, because we have a globally distributed supply chain that we have the capacity to move things a

so elon musk has tried to take people's attention away from demand and the delivery issues the companyn having and talk about the future of robo taxis. and he has really sort of undercut, in terms of being able to make the case that we are on the verge of this robo taxi future, when it is a case of deja vu all over again of someone tragically dying in an incident involving autopilot. >> does elon have to be more transparent? >> no, i think he just needs to be more judicious about what he says and set better expectations at the core. it is unlikely we will get that anytime soon. whatever he says, dial it back by 40% and that is probably the right answer. ♪ emily: that was gene munster and bloomberg's craig trudell. coming up, a top banker wants to take on amazon. we will talk to him about his new venture. this is bloomberg. ♪ emily: retail startup very shop wants to bring back the joy of online shopping. is it possible to shake a marketplace that is already so crowded and dominated by one major platform? i caught up with the cofounder and ceo. before launching the company, he was the ch

city leaders have approved a $48 million contract with elon musk's boring company to design the projecte different options to take passengers from the convention center expansion to the current hall. the people mover will be able to accommodate roughly 3,400 passengers per hour. >> and a new study suggests women think better in warmer rooms while men work better in lower temperatures. researchers found women perform better on math and verbal tests compared to men. in warmer rooms. temperatures didn't seem to change the results of the cognitive tests for men and women. the findings will hopefully prompt employees and educational institutions to consider raising room temperatures to boost productivity. i should say employers. anne-marie? >> put an end to the temperature wars. >> oh, my goodness. go ahead. >> i do perform better when it's warmer. my hair does not perform better. >> fair point, fair point. but it's like what you don't see right now i'm not wearing a cardigan and whatnot, but i'm often wearing that because it's often cold. i can think better. >> i can understand. diane king

6 star link i will soon see 7 satellites for every single star to those upset about how bright the elon musk's starling satellites are please don't forget their horrendous impact on radio astronomy well since he's heard the concern space x. founder of the musk later asked his team to investigate ways to reduce the amount of light coming from the satellites one astrophysicist we spoke to thinks is the thin end of the wedge that the more companies will be encouraged to use the night sky as a business platform in future. visual issue which is that us in the telescopes usually track the stars in the sky and then the subtle waves move not according to the 30 in the sky with according to their orbits which is a bit faster and that leaves huge traipse tricks in the images when you analyze them and therefore this is a huge problem that you have to deal with we usually estimate we deal with these kind of problems but if the number of satellites increase it's too posed to us with the brightness is maintained as we observed last weekend and that this could be really problematic that in the optical

stargazers outrage to schools of space 6 satellites been placed on the wall that despite that elon musk says he plans to deploy 12000 more for his internet from space initiative. they get off in just 1 pm this thursday in moscow my name's kevin though in this is our international live here in this half hour as world news update starting with julie. in a sanch genocide just supporters have gathered outside westminster magistrates court in london head of a court hearing on his possible extradition to the u.s. which has just been postponed we can tell you the wiki leaks said it is being transferred from his cell in belmarsh prison in the u.k. to a hospital wing after his health took a rapid turn for the worse yet for what exactly what that means the whistle blows website fears for its co-founder's life indeed his lawyer says he can barely old the conversation let's go to learn to get a handle on what's happening ali boy because crossing 4 is probably high the noisy scene again beyond. a couple of things to deal with the space program over the court hearing would be more portly to many many

the federal reserve withdrawing his name the fall-out ahead tesla looking to recharge cash pile and elon musk pitching in what it means for tesla investors and mark zuckerberg with an historic threat to the pou power. "the exchangshow "power lunch" now. stocks are under some pressure this hour. worst day in more than two weeks but well off the lows at this hour with the dow down 157 points s&p down by 9. oil, in the meantime, plunging having the worst day of the year the trump administration stopped issuing waivers that allow several countries to buy iranian crude and that's sparking uncertainty over prices. wtif, up more than 3% and it is the ipo of the day beyond me more than doubling on the first day of trading kelly? >> 65 right now. goodness bob pisani, beyond meat not lifting the markets here >> reporter: we've got some problems, kelly. there's some sectors that are starting to lag the overall market you see oil down today talking about this all afternoon. we're seeing some big hits to these oil stocks and remember, they never really fully recovered. where we were in 2016 with the

it is valued at as much as $2.3 billion for founder and chief elon musk last year. shares currently down as we said. they stand at $190.14, down 10% this week. one thing for sure. elon does not have to worry about paying for gasoline in his electric vehicle but if you do, on your screen, $4.03, the highest price per gallon for regular gasoline in the u.s. can you guess which state's residents are paying that hefty price? we reveal it next on "countdown." you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase. i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. ato be eye-catchingly we mabeautiful.ehicle we make them to be exhilaratingly agile. we make them to be meticulously engineered. and fo

where's it go from here and when the margin calls begin to hit elon musk. "power lunch" starts right now let's get a check on the markets at this hour nice gains on wall street. the major averages up for the first time in three sessions dow up 195 at the highs and 174 right now and s&p 500 up 26. almost a percent apple one of the stocks fueling this market but investors still getting more defensive the dow utilities set yet another record intraday high kelly? >> let's get to team coverage at the nyse china's xi is turning up the heat on trade talks signaling we have to start all over again kayla tausche with the story and steve liesman with the new risk in the trade war let's begin with bob down at the new york stock exchange. bob? >> reporter: kelly, we've been emphasizing that china trade is the marginal mover of the markets and again, that's the story here as we got an extension on the huawei here and all the large cap china tech names. everything up 2%, 3% or 4% here in the united states steel stocks, often proxies for global trade and had a horrible mo