it using elon musk for some kind of political purpose. elon musk is breaking ground here.something together. levelther point, a second here. if anything, this will help china and the beijing authorities push forward. their own goals in terms of made in china 2025 and the ev they want to get out. by 2025, the country wants to have 7 million ev back on the roads. that is 20% of the sales they are expecting. that is supporting tesla and the bottom line. oppo over to the bloomberg terminal. i want to show you the forecast for new energy -- hop over to the bloomberg terminal. i want to show you the forecast for new energy. china's share of the shales -- sales of ev will be more than through 2029 and 2030. this is playing into the hands, playing into the roles of china for its own purposes. tesla all right, well declined to comment on the offer. so who knows if it will be accepted. ramy and max, thank you very much. that does it for this edition of bloomberg technology. we are live streaming on twitter. follow the local breaking news on tictoc. i'm emily chang in san francisco.

hey, elon musk is coming to this country, elon musk is breaking ground. something together. a second level, if anything, this will only help the beijing authorities push forward their own goals in terms of "made in china 2025." and in terms of the ev they want to get out. by the country wants to have 7 2025, million evs out on the roads. that is about 20% of the sales they are expecting. this is supporting tesla in its bottom line. hop onto the bloomberg terminal. i want to show you the forecast from bloomberg on energy finance. you can see the red bars in 2020, 2021 and 2022 indicates china's share of the sales of ev's around the world will be more than 50%. even through 2029, 2030. this is really playing into the hands, into the goals of china for its own purposes. emily: we decided it was time for a road trip across europe. being a resident of paris, she is not blind to electric vehicles. she decided to make a 715-mile battery-powered lawyer in other than a tesla. mary: recently i went on a special road trip, my first road trip with a fully electric ve

could elon musk be the answer?th the chinese premier and he hopes tesla can be a promoter of better ties between the countries. he even offered elon musk permanent residency. on monday, tesla broke ground in shanghai. >> only 10,000 foreigners have gone into this ultimate comics exclusive chinese club of folks who have a chinese permanent residency, a so-called chinese green card. it gives equal treatment as chinese citizens if that is something that you want to which is another question but you can purchase a home, you can get a drivers license along with drivers license along with financial services. and to the question of eligibility, it goes to folks who are smart and powerful if they have some contribution to the chinese economy. to society. to technology. elon musk fulfills all of those. especially if you are contributing a lot of money. with the opening of the tesla factory on the order of $5 billion come elon musk definitely hits a lot of those boxes. emily: should we call him ambassador musk? when you thin

it does speak to the power of the elon musk brand. out his hijinks and craziness but he is broadly admired. any country would be happy to claim him as one of their own. really havelon musk an impact on u.s.-china relations? especially given his relation with the president. >> i think there premier would be hopeful but i think it is something more for the cameras if he can use elon musk for some kind of political purpose. musk is coming to this country and breaking ground, let us do something together. though, ifvel anything, this will only help the beijing authorities push forward their own goals in terms 2025." in china by that year, the country wants out on theillion evs roads. 20% of the sales they are expecting. and it is supporting tesla in its bottom line. let us hop onto the bloomberg terminal. in can see the red bars 2020, 2021 and 2022 indicates of ev's around the world will be more than 50%. this is really playing into the hands, into the goals of china for its own purposes. we decided it was time for a road trip across europ

could you love must be the answer desk elon musk be the answer -- could elon musk be the answer?se premier wants elon musk to expand the market for chinese cars. tesla just broke ground on a factory in shanghai. this is an interesting new potential role for elon musk is diplomatic liaison or at tesh a of sorts. >> it is easy to forget, but right at the beginning of the trump administration, there was talk, this is going back almost two years, there was talk that elon musk was the perfect spokesperson for trumpian nationalism because he was making products in the u.s., bringing them to the world. that kind of fell apart amid various controversies and elon musk left one of the business councils. can of overtook that, but we have a sort of call is, if that and there you squint your eyes, there is a way to see tesla as a bridge between the two countries because china is trying to bring electric cars, make them a bigger deal in terms of the automotive market and tesla is a big u.s. manufacturer that is growing. so, you never know. on the other hand, there is obviously a lot going on a

coming up, elon musk's hiring and firing spree.ook at what is going on with spacex and the boring company next. this is bloomberg. ♪ ♪ emily: this is "bloomberg technology." elon musk announcement that jobs,is coming over 3000 tesla shares falling by nearly 13% in friday trading. it has been something of a hiring/firing week for elon musk led companies, as spacex is company about 600 people. the boring company has announced it is hiring 80 new staffers. to discuss, let's go to new york with our bloomberg businessweek columnist. you think you made a new year's resolution or something to get the workforce right at all his companies? >> you do wonder. one of the interesting things about elon musk and this interlocking group of companies is that there aren't bright lines between them. musk is famously going back and forth between spacex in tesla, aspects of the tesla operation are located close to spacex, with shared staff. they are two different companies, but at times the lines blur. it does feel like maybe while mosque was looking a

coming up, elon musk's hiring and firing spree.ll look at what is going on with spacex and the boring company next. this is bloomberg. ♪ place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. emily: this is bloomberg technology. 10thmusk announcement the -- that tesla is cutting 3000 jobs. it has been somewhat of a hiring cuttingeek as spacex is its staff as well. do you think elon musk made a new year's resolution to get the workforce right at all of its companies? >> you do wonder. one interesting thing about elon and this interlocking group of companies is that there are not right lines between them. musk is famously going back and forth between the spacex and tesla. aspects of tesla are looking very close to spacex. there is a shared staff. they are two different companies but the lines really blur. it feels like

elon musk said the u.s.-cut for the electric vehicles has been cut in half in july this year, another factor in the 7% layoffs of the full-time employees. we understand right now that the tesla shares are actually down about 7% as of this morning based on the news. tesla also has a number of contract and temporary workers at the factory in fremont, and in the statement elon musk that only the most critical are being retained. katie nielsen, kpix 5. >> that is a stressful morning for them. >>> governor gavin newsom is urging federal workers affected by the government shutdown to apply for unemployment benefits. it is illegal but governor newsom said he will do it anyway and the workers will have to pay back the money when they get the back pay. >>> senate majority leader mitch mcconnell block legislation that would have reopened most of the government yesterday refused to take up the bill passed by the house that could reopen all agencies other than homeland security. dhs is at the center of the fight over th

could elon musk be the answer?t with chinese premier, who says he hopes tesla can become a better promoter of ties between their countries, and he also hopes musk can expand the market for electric cars. this is an interesting new potential role for elon musk as diplomatic liaison or at cachet -- attache of sorts. >> it is interesting -- it's easy to forget, but right at the beginning of the trump administration, there was talk that elon musk was sort of the perfect spokesperson for trumpian nationalism because he was making products in the u.s., bringing them to the world, and that kind of fell apart amid various controversies, and musk left one of the business councils, and news kind of overtook that, but we have a .all back to that if you squint your eyes, there tesla as a see bridge between the countries because china is trying to bring electric cars -- make them bigger deal in terms of the automotive market, and of course, tesla is a big u.s. manufacturer that is growing. there'sther hand, obviously a lot goin

. >>> plus tesla tanking after elon musk announces job cuts and outlines a difficult road ahead. is this stock too risky to own >>> first we start off with the market rally the dow up 350 points on signs of peace during the trade wars china offers a way to eliminate the u.s. trade imbalance industrials leading the charge we've seen this story before, so can you trust the trade deal hype if so, does this put the fed back on the playing field this year >> we were just sampling a little prince there. >> tonight is a historic night but we'll save that for a little bit later. there were a number of questions you asked at the top of the show and i think i remembered a few of them. can you trust this rally i thought it would fade 100 points ago so clearly i was wrong on that. if there's any glimmer of a trade deal maybe we get back to 2710 on the s&p which if you recall was a pretty big level of support. past support becomes resistance. that's the upside. in terms does it bring the fed back on the table? my opinion, i don't think they have been off the table. maybe their language is suc

the cheapest model, $34,000, elon musk is saying he needs to sell -- $44,000, elon musk says he needs cheaper cars, but he said if he did that too early, tesla would die because it would undercut itself. expansion will be costly. china of course, elon musk was in the country to open up that first factory outside shanghai. the e.u., they got the green light to start selling cars there and there is more a petition from daimler and other companies, the parent of all wagon, which will hold out 50 ev models over the next several years. terminal, thenhe i will send it back. talking about the share price fall. tesla's share price is in white. i want to zoom in because it had been the biggest market cap for u.s. automakers for the past half year or so, but gm now pitched that after it lost something like $67 billion friday. thanks. as we have been reporting, vietnam looks set to host a second summit next month between donald trump and kim jong-un. that comes when vietnam is starting to feel the effects of president trump's trade war with china. but the prime minister told us that the governme

how important is it as a stabilizing factor for elon musk?an open question as to whether or not this was a missed opportunity on tesla art and you are seeing some analysts particularly as much. when you have someone who back in october when oracle was having an analyst day, larry ellison was referring to my friend elon musk and coming to his offense and talking about how the media was getting it all wrong and how they were covering him and how they were covering tesla. clearly, he was planning a stake in the ground at that point as someone who was kind of a tesla booster, who really believed in the story and believed in, as he put it, his friend. he was reliever to come to their defense. as a real open question as to what extent he is going to check elon. we don't know about their relationship and perhaps he is the sort of stature that he would feel comfortable doing that, and as friends perhaps you would be able to be a check. but it's an open question we will see how this plays out once actually joins some meetings in the board confronts th

the memo sent to all employees, elon musk said the company was cut 7% of the workforce.expensive for most people. we are up against massive and transit competitors. tesla must work harder than other manufacturers to survive. elon musk added that remaining employees after will have to do more work to increase the production of the model 3. one technician we spoke with said that it is okay with him. he said he had not seen the email but was obviously worried to hear about the cuts. but i do not mind doing extra work. >> it worries me>> there is no one to drive and what is that mean for us. >> the first is a shuttle bus driver driving tesla and placing the central valley to fremont. is not an employee, he is concerned about the impact the jobs could have on him. the memo sent out this morning does not specify went up cuts will be made. and fremont, allie rasmus ktvu fox 2 news. >>> a group of oakland teachers meeting at oakland tech as part of a sick out to protest the ugly labor dispute. teachers and effective high school that one middle school are rallying and will walk t

a lot raised after the earnings report let's move on to tesla elon musk announcing he'll be slashing the workforce by 7% and wrote the road ahead is very difficult. musk said q4 profits will amount to less than what tesla made in the third quarter. the stock is down 11%. >> i'm not sure we see too many days where tesla shares go lower than 10% in one day. this is much more significant than that. kelly, it comes down to this the question of sustained profitability. they expect to be according to elon musk slightly profitable in the fourth quarter but not as profitable in the third quarter. what happens this quarter, q2, 3 and 4 as they don't ramp up sales or try to ramp up sale of the model 3 but bring in a lower priced version of the model 3. remember the average model 3 right now sells for north of $50,000. they would like to it be south of $40,000 for that mass market version. question is can they get the cost down there so they can do that profitably. >> how do you do that? >> you need be more efficient. they hired scores of workers they erected a tent up at tesla where they added

. >>> a major announcement from elon musk. why he says the company is being forced to cut 7% of its workforce. ♪ they say you should always listen to your heart. and where better to do that, than the island of ireland? after all, your heart is the best compass there is. so get out there and fill your heart with the stuff that keeps it beating. fill your heart with ireland. >>> tesla is planning to cut 7% of its workforce. in an email, elon musk says these cuts are needed to make the company's cars more affordable and popular. we have reaction from employees in fremont. >> reporter: elon musk told employees in a companywide email that the road ahead for tesla is very difficult. they need to sell more of this particular type of car the model three. a car carrier full of him right here. he said that tesla needs to sell more of these cars and sell them at a lower price point. right now they cost $44,000. the price needs to come down to 35,000 so more people can afford it. in order to lower the price they are cutting 7% of the work

an email to place this one, ceo elon musk says that the cuts are needed to make the cars more popular and affordable. aly raisman is outside tesla with more information. >> reporter: the memo from elon musk, the ceo of tesla does not specify where the cuts will come from, weather from their offices and factory in fremont, or their corporate offices in palo alto are sell more model trees at a lower price in order to survive long term. right now, the standard model trees cost about $44,000. elon musk says the price needs come down to 35,000s of people can buy them and make tesla a viable company long-term. they turned a profit in the third quarter but an early audit says their profits in the fourth quarter were not as high as expected. the memo sent to all tesla employees this morning, elon musk said the company must cut about 7% of its workforce, 3000 full-time employees. saying" while we have made great progress, products are still too expensive from most people. americans massive entrenched competitors. tesla must work harder than other manufacturers to survive.". they will have to d

so it was elon musk is a lwa ys kind of zone.s is, look, if i wa nt to access to it. what is is, look, if i want to make is affordable, i will have to cut costs. tesla has been hugely successful in many ways. is it surprising to see them how to make this announcement? now tesla is facing a loss of more competition. when tesla first started they were the newest game in terms of electric ca rs. the newest game in terms of electric cars. “— the newest game in terms of electric cars. —— and not more. now there are more companies making electric cars. there are tech companies that are now hooking up with automakers, traditional automakers, and they are really investing a lot of money into the electric car market. tesla, right now, has two tried to ramp up its production and try to make itself into a mass market, mass—producing car company, some idiot has not had much experience in —— have to try. it will be a tough road ahead for tesla. no pun intended. samira hussain there. a work by the graffiti artist banksy, which appeared on the

mentioned, people like stephen hawking and elon musk have said that ai can destroy society. mankind goes away, doom and gloom. they are smart people, and they are afraid of change. we have to impress change. the caucus has a bill called the future of ai, and robin knows, these are two words you barely here in d.c. -- bipartisan and bicameral, house and senate with the same bill. all the bill does is say, hey, congress, take some time, put it panel together, look at how washington, d.c. is doing, the federal government and it i, and make improvements. bipartisan and bicameral. let us start quickly embracing the change because this is the world's future. drilled -- ed to brian: how do we make ai more accessible so that markets can take up skills and get involved in science? rep. kelly: for me it comes to prioritizing what we think is important. education is very important. -- youe used the term don't have to get new money, just rework the money. megan: dust off a budget? rep. kelly: yes, and i think we need to seriously look at that. we also need to look at our student loan pr

elon musk was fined by the fcc.brought on independent directors, we don't how independent they are. larry ellison has joined the board. elon musk has been fairly quiet. is there a sense that the governance and leadership issues have stabilized? dana: i think that 2018 was such a dramatic year, between the autopilot fatality, the sec investigation, the go private bid. tesla was in the news nonstop and everybody at the company is just ready to focus on execution and stay out of the limelight. the letter was a bit conservative in terms of guidance. there were not any pie-in-the-sky predictions. he didn't hear anything like we will unveil the model y in march. it was a conservative letter and it will be interesting to see the tenor of the call. probably a bit more conservative. emily: after a flurry of tweets, elon hasn't treated since the q4 investor letter. quite on the tweet front. dana hull from bloomberg, and tasha keeney, thank you both. coming up, we continue earnings coverage with microsoft. will cloud demand fo

c-e-o elon musk says it's unavoidable... as tesla tries to reduce the >>> tesla is laying off 7% of its workforce, more than 3,000 people. >> the ceo, elon musk, says it's unavoidable as tesla tries to reduce the sticker price for its mass market electric car, the model 3. investors reacted with a big selloff. tesla stock fell 13% today closing about $302 a share on the nasdaq. a bay area business professor sees the layoffs as standard growing pains for a startup like tesla. she notes that tesla ramped up labor quickly to try to meet early production targets and now it may be doing a reevaluation. company has done a lot for this community" tesla laid off about 9 percent last j >> the big challenge here is that while they're doing this a smalr labor pool? >> you never like to see anyone lose their livelihood, though. ultimately that's the worse possible scenario. why don't they just, you know, lower their profit margin? >> at the same time how many people do they have now that they're still going to be lejob know what? this c

elon musk was tweeting he will be going to shanghai sometime soon.here is a big question about model three demanding europe. they will begin deliveries in february, so everyone is waiting to see what demand for model three is there. then they have a whole product pipeline of the semi truck, the pickup truck, where are they going with those cars? emily: what does the competition picture look like this year for tesla? you have audi, porsche, other companies that are ready to go with new models. gene: that first take, you would say it is going to be more competitive in 2019. i think that is the incorrect conclusion here. the answer is some of those questions at companies, there are five major companies that announced first time ev's that will be available in 2019, but the reality is they will not ship many of those. 90,000 deliveries for tesla in the quarter, collectively those five new entrance probably won't ship 90,000 for the year. in other words, it is headline risk and what you will see is the fate of tesla the next year will be more dependent on

elon musk says "there's a very difficult road ahead." the company says it will hope that the cost of savings on that will let it make the tesla model 3 for cheaper, so the called low-cost model, which so far is not very low cost. part of the problem with tesla is its tendency to spend money on things other than making the model 3. last week, elon musk announced he would build a new factory in china, despite analysts and reporters are fretting about where exactly this money is going to come from. we were talking about this at 5:4 but a little story for you, a little friday story. i was doing some routine research yesterday about a date that i wanted to pull out of the archive of my tv show "press:here" and discovered entirely to my surprise that today is the ten-year anniversary of that television show. we have a clip from ten years ago today, of course this normally runs on sunday morning, ten years ago it was a sunday morning, that's steve wozniak, my very first guess on "press:here." >> i remember that. that was a big get. you were exc

elon musk says that tesla needs to sell more model 3. this is the car carrier full of them, behind us and that it needs to sell electric cars at a lower price point. now the standard model 3 costs of $44,000. he said the price it needs to come down to $35,000 so that more people can buy it. in order to lower the cost, elon musk says the company must cut 7% of the workforce that, or 3000 full-time jobs saying, while we have made progress, products are still too expensive for most people. we are up against a massive entrance to competitors because of must work harder than other manufacturers to survive. we talked with tesla employees heading home to the overnight shift earlier this morning. they were concerned to hear about it up cuts but are unsure about how it may affect them. email this morning did not specifically say where they do cut that would be made. suck i am hoping i am not one of them. that is pretty much it. i just started and i really like it. it is enjoyable. tested to know you could get laid off that fast and sent home that

in an email to employees ceo elon musk announced 7% of the full time workforce will be cut. musk says tesla has to become more "cost competitive" with other car makers, and that means bringing down production costs. right now the most affordable vehicle is the model 3 which costs 44- thousand dollars. but for the company to be viable and make more sales, they need to drop the price to 35-thousand dollar, thus the cut in the workforce. this is the second layoff in less than a year. in june 9 percent of the workforce was cut. (anchor) taking a live look outside-- overlooking downtown san francisco. (anchor) time now to check on our weather... with meteorologist mabrisa meteorologist with our weather... to check on time now (anchor) francisco. downtown san overlooking look outside-- taking a live (anchor) was cut.workforce percent of the year. in june 9 in less than a second layoff this is the workforce. the cut in the dollar, thus thousand the price to 35-need to drop the price to 35-need to drop the price to 35-thousand dollar, thus the cut in the workforce. this is the second

people filing for unemployment and earnings from amazon. >>> elon musk says a electric pickup truck thismer will be unique and unlike anything else on the roads. musk has long included adding a pickup to tesla's lineup. he talked about what to include, all wheel drive, torque and suspension that adjusts for load. tesla has plans to have its next vehicle, the cross-over wead for sale next year. >>> google disabled an app after revealed it violated apple policies much in the same way a controversial facebook app did. the app for ios and android phones gave users gift cards in exchange for tracking their internet usage. in a statement google says the app is completely voluntary and always has been. it's been up front with users on how it uses their data. those are cnbc headlines. back to you. >> i wonder how up front. is it in the small, small, small print? >> we're tracking you. >> where i am. >> got an app for that. >> 4:41. coming on "today in the bay." kari, talking boult that rain falling down right now? >> roads are pretty wet as we get a live look outside in fremont, 880. still some

charlie gasparino on what elon musk might say when he hops on tesla's earnings call. less than an hour to the closing bell. let's start the "countdown." liz: we have this breaking news on the situation in venezuela. just moments ago, venezuelan president nicholas maduro said he has decided to close the venezuelan embassy and all his country's consulates here in the united states. venezuela is right now being roiled by a coup as the opposition leader, juan guaido, declared himself the interim president. president trump has recognized and supported that opposition declaration, leaving maduro to kick all u.s. diplomats and staff out of the country. now, i need to tell you that ramping up the entire situation, secretary of state mike pompeo is now saying the american diplomats need to stay where they are, do not listen to maduro, stay in venezuela, because the u.s. doesn't recognize maduro anymore as president. pompeo is also offering for the united states to send food and medicine to the embattled nation as soon as we get any more details on this from venezuela, we will

tesla ceo elon musk announces they will cut 7% of the workforce. that amounts to 3100 employees.he company can support the size of its current size -- can't support the size of the current staff. >>> oakland administrators say school will be open today. their kids will have classes but teachers will be walking out. >>> a funeral takes place today for fallen davis police officer natalie corona. the service is set for 11:00 this morning at uc davis. it will be followed by a 40-mile procession to officer's core own's hometown of arbuckle. >>> they'll launch a full investigation after a new report claims president trump told michael cohen to lie to congress. according to buzz feed news, mr. trump personally directed his long-time attorney and fixer to lie about negotiations to build a trump tower in moscow. >>> number 6, we are following your friday commute. unfortunately, it's not friday light in pleasant hill. we have an earlier accident that's been cleared out of lanes. the slow traffic remains on to 242 and 680 back to highway 4. >>> number 7, did he mrk us cousins suits up as a

in an email to employees ceo elon musk has announced he will trim the workforce by 7 percent. he says tesla must become more "cost competitive" that means lower production costs and increased sales. right now the most affordable vehicle is the model 3 which costs 44-thousand dollars. that price must be brought down to 35-thousand dollars... and laying off staff is the only way to do this. this is tesla second layoff in less than a yaer. in june 9 % of the workforce was cut standup dan kerman/fremont :43now not all of the layoffs are expected here in fremont but across all locations the company has. right now the full time workforce is estmated at 45-thousand which puts the layoff total at about 3,150. in fremont dan kerman kron 4 news. a live look outside right now... we get our first look at the four zone forecast with meteorologist mabrisa rodriquez shower chances will continue across the north bay on friday and saturday as the storm track shifts north. a weak boundary will move into the sf bay on saturday morning, bringing a chance of showers for parts of the bay area. dry

elon musk can cry or smoke during an interview. can women do that? no. >> what do you think? #fundingsecure. >> realistically, we are on a continuum of integrating women into different roles in different businesses. while we are on the path to carving that opportunity out, we are held to a higher standard. >> i am wondering if we are --ng this to the detriment our detriment, societies detriment. melissa meyer was so picked apart. where is she now? >> there has to be acknowledgment that we are not all uniform. one woman does not equal the next does not equal the next. there are different styles, our personalities are very different. that doesn't mean we can't come together and produce something that is excellent. in fact, it means that we can come together and do great things. >> the other thing that has changed in the past year, i'm starting to see this. we are seeing more men stand up and call these things out. >> ice -- i think it is exciting to see more men stand up and talk about these issues. amazon. is talk about worried about you standards for

elon musk sent an email saying the cuts are necessary. reaction from employees at the assembly plant in fremont. >> reporter: elon musk told employees in a companywide email that the road ahead for tesla is difficult. they need to sell more of this type of car the model three. a car carrier full of them here on the road. it said that tesla need to sell more of these cars and it needs to sell them at a lower price point. right now they cost $45,000. the price needs to come down to 35,000 so more people can afford it. the company must cut 7% of its workforce or 3000 full-time jobs. we have made great progress but our products are too expensive for most people. we are up against massive competitors and tesla must work harder to survive. we spoke to some employees heading home after the overnight shift. they were concerned to hear about the job cuts but were unsure about how it would affect them. the email didn't say where those cuts would be made. >> i am hoping i'm not one of them. i just started and i really like it. just to know that you

is stock is off 10%, but it elon musk really facing the music. saying that this would happen. automakers talking about cost-cutting and cutting expenses, so anyway we have the bond price, which stocks are off, but it might be decent for bondholders as they think this is good and will preserve some cash. the bond price at $.88 a dollar. it was interesting because according to our bloomberg intelligence analysts, they were wasng 70% of their model showing a single b. this is hardly a distress credit. they are looking at $.30 or so in the corporate world if that was stressed. so more than 3000 employees laid off and that is something that will perhaps boost profitability here. guy: we have earnings coming up, is this a pre-warning on those earnings, what will we get out of that? taylor: interesting point. elon musk has talked about wanting to do positive for a clash -- positive free cash flow in the fourth quarter. so they finally got some positive free cash flow of about $74 million. next quarter that should be around lower. maintaining that positi

elon musk warning the road ahead is difficult for tesla.everal thousand workers will lose their jobs. tesla will cut 7% of the full-time workforce of 45,000. musk says preliminary results indicate fourth-quarter profit will be less than what the company hoped for the third quarter. they hope to make lower-cost versions of their model 3 to appeal to the mass market. workers havect been let go at foxconn's most important iphone factory in china. the seasonal worker cuts aren't deeper than previous years. they are just taking place significantly earlier. cbs and walmart reaching a multiyear agreement for walmart to keep taking part in the cvs pharmacy network. cvs said walmart was leaving its caremark network over a price dispute. up ratherkets moved sharply yesterday on a report from "the wall street journal" that stephen mnuchin had recommended or would recommend to the president he back off on the china tariffs. the markets gave back if there amount -- a fair amount. welcome now j brighton and paul richards. what should we make of this? rep

model three deliveries fall short and ceo elon musk says the company has gone from production hell to delivery logistics hell. toflix makes the decision cave to the demands of saudi arabia as it hires a new cfo and plans for a big drop of shows january. the bombshellry, news that apple cutting revenue outlook for the first time in two decades, blaming weak demand in china amid the ongoing trade war with the united states. apple dropped a hint that iphone sales were sagging in november with the decision to stop reporting unit sales. here is some of the early reaction on bloomberg television when the news broke. >> they will still hit an all-time high in earnings per share this quarter. profits per share are still going to be better than ever, even though revenue will decline for the first time in a long time and unexpectedly, they have hit a real speedbump in china and with the iphone. >> people have watched apple closely for a long time and have known the wall will hit at some point. it has just hit in a harsher way than people expected. and whatate earnings corporate say about china,

elon musk was promising 500,000 sales in 2018. he missed the mark largely because making that model three was way harder than he anticipated and took all of last year to get to the rate of being able to turn out 5000 model threes in a week. all of that work has it, analysts saying why is cutting the cost of the model three with people wanted to buy the vehicle and they been having a hard time making it, the price to continue to be as high as it is. >> we know why it says is cutting the price. some of the tax credits will be going away. they want to get people in to buy them now. is there concerned that there is demand for tesla vehicles that is slowing down? >> they haven't been delivering these vehicles in europe or china. they say they're going to start that next month. they have talked about holding a factory in china. a factory in europe. it as part of their growth plan that they think they can get to 1 million vehicles per year in 2020. we also haven't seen lower-cost versions of the model three hit yet. this is at $35,000 ve

selina: in that announcement, elon musk said it will be a difficult road ahead. what are some of the turning point we are expecting to see in 2019? reporter: they need to get this $35,000 car that they have been promising since march 2016 out the door. until that is out, they will be in trouble. that's what people have been waiting for for years. they already sold the higher priced version to everyone in the u.s. that they can. selina: dan a whole, great job breaking this news. netflixesponding to price hikes by lowering the cost of subscription spread they cut the price of the entry-level ad supported product by 25% to just six dollars a month. last week, netflix raised the price to 13. lawyers a month -- dollars a month. top tech leaders joining at the world economic forum. the top themes of this year's forum, next. if you like bloomberg news, check us out on the radio. listen at bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪ selina: investor bill smedes says financial euphoria episodes are a common occurrence in the market. along,e a new one

vonnie: elon musk announces plan to cut the workforce by 7%.ay 28 and no end in sight for the partial u.s. government shutdown. how long will impact show up in future economic data. moving,bloomberg market china said to be offering a path to eliminate its u.s. trade imbalance. we go to washington for the latest. let's get a quick check on the regiments -- the major averages. the majorholding for averages come down the s&p both at 1.2% some earnings news and there is welcome the nasdaq up 1.1% and we did see some treasuries selling the yield on the tenure of to 2.70% after that. amanda: we are keeping an eye on the consumer. take a look at the u.s. consumer sentiment read inside the terminal here from the university of michigan, and what you are looking at is a low not seen since 2015 on consumer confidence. missed every estimate out there and this is the lowest level for sentiment since donald trump took over as president. is also a separate on personal finances of the current view at a one year low. one possible reason for that is the sheer nu

big earnings call for elon musk. they will hear if he has enough cash to pay the $920 million that comes due in those convertible bonds. he has to pay that in cash -- liz: march 1st? >> something like that. in march. the stock isn't above 360, there's a good chance it's not going to be above 360. liz: 306 right now. >> you never know. this is a volatile stock. it could go up to 360. they will see if he has back-to-back profitable quarters. remember third quarter was profitable. will the fourth quarter be profitable? then they will really focus on guidance going forward. where tesla has its biggest challenges, not in the fourth quarter of -- the fourth quarter, it's in the first quarter of this year, meaning now. does it have enough cash on hand, does it need more capital. a lot of people say it does need capital. i will tell you, people at tesla were indicating to me that at least for now, they wanted to stand pat, that they thought they had enough cash on hand to pay the 920. there's a debate about that in the marke

. >>> new layoffs at tesla now, ceo elon musk says in order to make cheaper mass market cars they have no choice. that means pink slips are going out to about 3,000 workers. the company is keeping the most important contractors and temps. investors didn't like this news. tesla stock fell 13% today closing at about $302 a share. kpix5's julie watts is outside the tesla factory in fremont for us. >> reporter: this is the second round of layoffs in just about six months, but this one comes after what musk called the first meaningful profitable quarter in the company's history. >> we've just tomorrow the workforce you did a great job and we're ramping up production for the model 3. now we're going to let some of you go. it's a very tough decision. >> reporter: but administration professor tammy matson sees the layoffs as growing pains for a startup like tesla. elon musk thanked employees, then said the work force would be cost to keep the cost of the model 3 down while ramping up production. >> the big challenge here is while they're doing this can they increase the volume of production on

. >> reporter: elon musk described the new giga factory as just another example ofmmitment to ta the tesla founder was here insl shanghai to attend a ground-breaking ceremony for their plant which is about a two-hour drive from here. in tweets before the event, musk said the company aimed to fish construction this summer and start model 3 production by the end of the yr a reach high volume production next year. he added that it would focus on the model 3 and the y serving the greatest china region. this factory will produce affordable versions of thmo ls for greater china while the rest and higher cost versions would be produced in the u.s. for the worldwide market. company plans to produce approximately 3,000 modelve 3 cles per week here and ramp year. 500,000 vehicles per the announcement comes at an uncertain time in u.s./china relations, when trade tensions are high. but musk says that the move is going to be good for the company because it's going to help reduce some of that risk, reduce some of the expenses and some of the tariffs. >>> meantime toyota is promising to expandof t

. >> reporter: tesla ceo elon musk told employees in the company wide email this morning the road ahead for tesla is difficult and they need to sell more of this type of electric car and the tesla model three. the moe moe e-mails to employees said that tesla needs to sell more of these cars and need to sell them at a lower price point. the standard model three costs $44,000. the price needs to come down to $35,000 so more people can afford it in order to lower the price, elon musk said the company must cut 7% of its work force or 3,000 full time jobs. part of the memo said our products are still too expensive for most people. up against massive competitors and tesla must work harder than other manufactures to survive. we talked to employees heading home after the overnight shift. they were concerned to hear about the job cuts but unsure how it might affect them. the email didn't say where the job cuts would be made. >> i'm hoping i'm not one of them. that's pretty much it. i just started and i like it. it's enjoyable. just to know you can get laid off that fast and sent home that quick.

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. >> elon musk and spacex is one step closer to blasting into space. the company performed a hot fire test of the falcon 9 rocket at kennedy space center in florida. it's targeting a february launch. meanwhile, the company is also dealing with a clean up effort in texas after 50 miles per hour winds toppled one of its rockets. elon musk tweeted about the incident saying it will take weeks to repair the damage. the rocket was a prototype of what they're building to transport cargo to mars. >> how are we doing now? >> snow, ice, rainstorm. >> everything. >> now a quite, typical, midwinter. that's going to be the story. very cold and with that you get the lake effect snow. so a few areas under winter storm warnings including western new york, the plateau between syracuse and watertown and the snow fall totals, the highest off of lake eerie. some could get a foot of snow. 2 to 4 inches down to grand rapids. so for today's forecast, the wind chills are very cold with wind chill warnings in a few spots. the high temperature is only going to be 5 in minuneapo

lots of developments as far as elon musk is concerned.tart of a new week. after the central bank made moves to prop up economic growth by cutting the amount of cash banks must hold as reserves. alongside the comments from?the fed's jay powell on friday — that gave investors room to breathe after a tough start to the year. in the uk it's a big week for uk retailers reporting how they fared over the crucial christmas period. ones to watch this week, the big supermarkets, sainsburys, tesco and morissons, alongside retailers including m&s and debenhams. how did they fare and will those predictions for the retail bloodbath play out in reality? lawrence gosling, editorial director at what investment? magazine is with me. hgppy happy new year. to you too. the markets are getting in the mood, last week it was all serious declines, what a change in sentiment, starting on wall street? new year, new optimism. we still have the backdrop of the trade wars between china and the us, which is a bit negative. in the uk we are preoccupied with brexit and w

elon musk has been reluctant all over the last year to say he wants to raise new capital, either news to start generating the cash that the business needs to go forward and pay off that debt and not refinance it. and start using the money the model 3 is generating to keep the business going and grow in the world. cheryl: do you think he needs to raise money, though? >> most analysts agree that he probably does need to raise money in the next year or so. you've got to remember, tesla is a growth story or has been a growth story and in order to do a lot of that growth it costs a lot of money, we're talking about a new factory in china, a new product coming out called the model y, a compact fort spot utility vehicle, plans for a factory in europe. that costs money. cheryl: the layoffs may not be enough. what about the scandals that have hit tesla? are we past that, whether it's his behavior, the self driving technology issues, crashes, deaths in the past with the vehicles, do you think that's behind? >> last year the pressure has definitely come down a little bit. the third quarter surp

we're following a major announcement from elon musk. in a tweet the ceo said come monday tesla will no longer be taking orders for its lowest-range versions of its model s and model x. now, higher-end versions of both models will still be available, and they'll come with a higher price. tesla did not respond to inquiries from us or cnbc as to why the s and x was pared back. >>> well, take a look. pictures from a popular pizza restaurant in pacifica have gone viral, leaving many customers in disgust. a customer posted these images of a papa murphy's showing filthy conditions including an e time being. >>> well, it may have saved his life. a surved a shark attack near san luis obispo by kicking the shark. it happened offshore at montana de oro state park yesterday not far from morro bay. the shark bit cal poly student nick weckner on the leg. it came from beneath him and chomped down on his ankle and thigh. he believes it was a 15-foot great white. >> head of the shark was like this big. the body was -- i saw 80% of the body and it was ju

elon musk says the price needs to come down to $35,000 so that more people can buy them and make tesla and -- a viable company. the prophets in the fourth quarter were not as high as expected. in that memo sent to all tesla employees, musk said the custom me -- the company must cut about 7% of its workforce. while we have made great progress, our products are still too expensive for most people. we are up against massive competitors. tesla must work harder than other manufacturers to survive. in that same memo this morning, he also mentioned that federal tax credits for people who buy electric cars are being phased out this year and next. elon musk said that is another reason they need to reduce the retail price of their vehicles more affordable. >>> 5603. happening today, and one day sit out planned by oakland teachers to protest a labor dispute. this morning at 8:00, teachers from five high schools and one that middle school will gather at oakland tech. then they will walk to the oakland school district offices to hold a rally. the teachers union, by the way, is not behind today's de

chief executive elon musk say the cuts are an effort to reduce the price of the model 3 sedan. told workers tesla made a lower profit in the last quarter than in the third quarter n.june the company cut 9% of its workforce. >>> "boston globe" reports that supermodel gisele pinchin is in an argument with the environmental minister saying she's a wad citizen saying she should support brazil's. gisele fought back and said deforestation to lead brazil past the point of no return. "usa today" says a pennsylvania police department is gaining national attention after asking people if they want to get drunk for free. so officers can learn how to give sobriety tests. the department says there has been an overwhelming response. in a facebook post the police department said volunteers had to be between the ages of 25 and 40, in good health with no history of drug or alcohol abuse. >> and our philadelphia station kyw says the eagles alshon jeffery surprised a second grade class after a student sent him a left of support. she sent it after jeffrey dropped a pass in the eagles playoff loss l