tesla is not going to have at that 46% better market share than gm at that time if gm can do what it says. i agree with kim gm is a show me story. even when they show me the numbers right now and still trades at a low multiple the idea we are going to jump on and get excited about 2030 is hard to fathom because even right now when they put up good numbers, i feel like it doesn't get so much respect. i am with tim, bullish, long they have been telegraphing this, but i thought those were good numbers we will see. i think new cars -- i am interested in how the lyric does which is coming out in 2022. >> does your position change much now that gm has put out targets for 2030 could you put out targets for 2030 it's a long ways off is the point. >> i could i will be 97 i am sure i will have a name tag. the short answer is absolutely not. let's give them the benefit of the down karen mentioned the show-me story. they should move their ev facilities to missouri, the show-me state. i don't know if they are watching, but that's clever. in that period of type you are talking 8.5% growth rate do

but right now gm shares are falling.4.6% as ongoing chip shortage cut into quarter sales and car production. tesla still racing ahead after becoming the first auto company to surpass a trillion dollar market cap shares moving to the upside by 1.6%, of the three gm, ford, tesla, which is the best long-term pick and is there room for more. to our analyst, wells fargo's director and senior equity analyst for the auto sector and michelle, automotive executive analyst with 35 years of experience covering the global auto market. first up what your expectation for for? it'll be a really tough order. they had significant sales decline and even more important that a sales decline in the pickup trucks i think that was the second consecutive quarter and that's where the bread-and-butter is. it'll be a tough quarter and what were looking for is when are we out of this. that's what everybody is looking for. liz: : you have an overweight for ford and general motors. i believe you have an equal weight for tesla. let's talk about ford a

but if you think ford is cheap, gm is cheaper. ford is up 82% gm is up roughily 32 and change i think what we heard was that she is talking to the semiconductor companies much we haven't heard that from ford she thinks that q1 of 2022 things are going to look better. ford is kicking that out phil lebeau said we are looking at a story that will be prevalent as far as chip shortages through the entire 2022 year. i think ford is probably maxed out here guy hit it on the head, 18 to 20 is where the street is as far as price target as far as putting new money to work i would put it in gm for a catch-up trade >> pete, if you had to put new money in the market right now, what would it be >> i would go to ev and i would go to tesla. you like a lot of the various names out there. i like xping, some of the chinese names as well. but this ford number is impressive they were able to separate themselves when we are talking about the semiconductors that was huge for the quarter. their guidance was strong. and the spending i think the commitment

shery: gm's ceo.et more on gm and order earnings and the impact chip shortage is having on the industry -- gm and ford earnings. >> automakers today showed that they have navigated it pretty well, both gm and ford. both beat massively with earnings expectations. they did better than people expected. gm talking about still seeing chips being an issue for them going forward, and i think that was enough to really spook investors. ford struck a more confident tone when they talked about chips. they suffered earlier in the year when there was a fire at the chip factory in japan whereas gm suffered more with the outbreak of covid in malaysia. both at different times of year have taken a pretty bad hit. it's just that now gm is more conservative and ford sees a better third quarter. haidi: do we expect the demand side to continue to hold up? >> it seems that way so far. if anything, there are consumers that have decided to get out of the market or just hold off, so it is kind of building. people say they can

how do they intend for gm to do that, leslie >> that's a good question, scott. chris james, the founder saying on squawk box this morning that gm is quote a triple over the next five years, meaning shares could triple in that time frame. at the end of the second quarter, engine one held about 400,000 shares worth about $21 million. it's unclear they hold now, but it's about 6% of their portfolio as of the end of q2. james emphasized it's not necessarily and activist stake they really do like what gm is doing right now in terms of its transition toward producing more battery elected vehicles the investment idea is on that front. it stems from this white paper they worked on in conjunction with battery vehicles noting that tesla is not enough and that gm is a leader among the incumbent automakers the firm writing quote, gm by virtue has progerhaps the stront foundation, substantial patenting and now it's moves to secure future battery supply now, they have been engaging with gm management, including mary barra exxon, part of an industry in the middle of this clean

gm, this is gm's highly anticipated investor day.s with that event in michigan with all the latest updates. >> gm's ceo mary boris says it will be able to double its revenue by 2030 thanks in large part to the investment in electric vehicles like the silverado you mentioned in the all electric, 30 different models of electric vehicles coming by 2025, gm plans to go fully electric by 2035. there also focusing on their electric delivery vehicle company right drop a couple of examples here is the ev 600 that went into production a week or two ago. also the autonomous driving company gm owns which is called cruise. the goal is all electric by 2035 i had a chance to chat with gm ceo and i asked her whether consumers are sold on electric just yet, here's what she had to say. >> we have done tremendous research with the customer and they tell us if the vehicle is beautiful, if it meets the functionality they don't want tobias of dan if they need it crossover or a truck and there's the right range over 300 miles and a robust charging infrast

gm ceo mary bara is here in a fox business exclusive, does the secret to beating tesla lie in gm's $35 billion investment in the ev echosystem and is that even going to be enough with news breaking today that toyota and foxcon are putting their pedal to the ev metal. does the key lie in the a sub- $30,000 plus we'll ask mary bara how long she sees the chip shortage lasting, coming up can't miss that but we've got to get to this breaking news about apple unleashing this bushel of new products and services moments ago, the stock look at this , it's actually bucking the trend, what we've seen in the past on apple event days usually we see a sell-off but right now the stock is now up 1% at session highs, as we kickoff the final hour of trade. the many event involves a high ticket item, it's getting an update for the first time in five years. also, apple revealing two new chips called the m 1 pro and the m 1 max, interesting that they didn't really bring up the chip shortage, because they're making their own and the much-anticipated third generation of air pod wireless earbuds with a six ho

but that's one that gm believes they can make. back to you. >> ill if, let me make sure -- you may have mentioned this. did mary barra say when she expected gm to be number one in ev sales. >> nope. >> because that gap between where they are now and where tesla is now and tesla won't go without a fight is pretty wide. >> correct correct. they don't give a time frame for when this will happen. general motors believes as it rolls out more electric vehicles, trucks, suvs, some luxury sedans in there, from cadillac they believe as you see more of these available they will then pick up market share and they will surpass tesla and become number one in evs in the united states as you mentioned, tyler, tesla is note going anywhere this is a huge climb this they have in front of them if they are going to overtake tesla. >> i am going the lose 30 pounds, but i am not going to say by when. kelly, you had a question. >> i was going to say the ultimate open question is this area, the detroit michigan area will remain critical to the ev supply

gm was more exposed this quarter with malaysia plants being down. i would put the two quarters together and ford definitely came out of it with strong chip production. i think it's going to be tight chips and supply chains well into 2022 if not 2023. >> what levers does fort have to weather the storm better than peers? especially as it goes to the challenging transition into electric? >> the key one is pricing power. it has the newest pickup truck on the market. it looks like it lost share earlier in the year because of supply constraints. it has a strong product lineup with the new bronco, the maverick coming up. before you get to electric vehicles, it has a strong product cadence. combined with tight inventories industrywide, it can move the needle on price. caroline: it's lucky that it can. headline says ford sees commodity costs up $3.5 billion in 2021. those were issues we see with metals, what's happening with the supply chain in china. those increases in costs, do you think they can pulley -- fully pass on? >> as long as the chip supply and o

case, i do think gm has transitioned some of their production line. some of these, you know, interactive chips and some of the auto chips that i think are part of where they're coming up short are a testament to where the auto line is involved and developed. but look, i think you have a case here where gm and ford is other automakers are still making an argument, we're not going to see these sales fall off the table, this is a delay not deny or destroy. and we've talked about this as well i think the story with tesla is one where first of all, their ability to deliver well above expectations, in a year when really a lot of others have not been able to do it, is acompan that's focusing on the ev opportunity. and if you listen to the comments, that was why he wasn't as bullish as the valuation or the upside in the stock because they'll really have to focus on the core business and not some of the other drivers in kind of the tesla valuation sphere but look, it's nothing but a good day for tesla both in terms of the performance and relative you've p outp

when did you start covering gm?: we started covering gm over the last six months because my view is that this is going to be an ev transformation story as it gets re-rated. i think what you are seeing in gm is the renaissance in detroit. start to get more of a raise from that. tom: are they going to make a car that america wants, not some fancy thing like tesla, but something you can get the family and? -- the family in? dan: two weeks ago i test drove a bunch of the models. i think it is going to be a game change what they are coming out with. i think the team has done a phenomenal job with what they are doing on the screen tidal wave. they will be a big participant. jonathan: just quickly come up for people who aren't familiar with the stocks you cover, apple , microsoft, docusign, are you expecting them to get a tech like multiple overtime? dan: my view is gm and ford start to get rerate on disruptive technology. you start to do some math, you convert about 10% of gm space by 2025, i think this is a three digit s

ford and gm on a combined basis in america will probably not hit 100,000 sold.ts five member. >> nobody else could have sold hurts what her thousand cars. just because tesla dominates it now does not mean they always will. one of the things that so crucial to the future is batteries. i might see more about in the future. >> so, i think among legacy automakers that is a good way to put it, battling for their share of the pie i would say ford, gm, volkswagen has been the most aggressive in pursuing electrification goals. those three and then others for some contacts have basically committed $75 billion for battery capacity between now and the end of the decade. that is up from commitments and practically speaking of about zero in 2020. so the industry's hit the accelerator if you'll pardon the pun. tesla of course is also spending on its own batteries. they tend not to announce them in that manner. >> if those guys are ford, gm, volkswagen are leading right now who is lagging behind? >> good question. it feels like the japanese. it feels like the japanese they are

that gives you scale gm set aside $35 billion by 2005, ford, $30 billion.f you look back to the 2002 period, gm spent billions shoring up their pension they spent another $10 billion on acquisitions and returned $15 billion in cash to shareholders. ford, it was a similar type thing, they spent a similar amount of money. this time around what the vehicle manufacturers are doing is putting that surplus cash into product, competitive product. gm and ford are also bringing on part offers in, for battery production honda invested in general motors in their battery technology. these are very different companies with cost structures that have been reduced 50% from back just ten years ago. >> i believe in, quick final question, michael, you can jump in the you care to or if this is out of michelle's sphere is the infrastructure, michelle, going to be able to keep up with all the new nols and new volume that the automakers say they are going to bring to market by 2025, by 2030? and i don't mean just the amount of charging stations but if you bring this amount of veh

look at the likes of gm and ford.ut a mass amount of models over the next four or five years that can transform gm. this is a green tidal wave. only 2% of vs sold in the u.s. are ev's. there will be many winners in the shift to ev. guy: i look at what is happening in europe, i look at what is happening in the states, i look at the energy crisis, making sure we have enough supply and storage for what we are doing. do you think car companies will increasingly be perceived as the solution? the ford f1 50, you can power your house for three days, how big of a selling point do you think that will be? if i was looking at the car and trying to figure out whether it had redundancy for my wider life, that would be fantastic. dan: it is starting to happen among automotive's. what you're seeing gm rollout, ford, a lot of these other ev players they will start to be viewed more and more not just as a car company but as power supply in what you are seeing. you start to see what we are seeing in europe, you start to look at oil pri

about gm?e holders as we can. it is important to get a broad perspective of the culture of general motors has been and is going ford t -- going forward the workers are they all excited about the move going forward it is important to understand how they are going to do that. a big part of what they are also doing is localizing the supply chain which is something we are a huge fan of. bringing these jobs back to the united states or at least where they manufacture, bringing those back there that creates a much more vibrant environmental foot print we have spoken to a lot of people i don't think this is on the list of companies they are particularly worried about right now. >> investment time horizon and what the time will be? >> this entire decade is going to be about this transition. the execution point and near term will be their ability to ramp the platform and can we see general motors or the entire industry find a market that they can execute on >> what do you think the stock is worth today

they think gm shares would triple over the next five years. >> that would be significant phil, a finald on where we are with the auto market more broadly speaking the argument that cathie wood is making is that this is more than just a production issue, there is a structural shift away from gas-powered cars sales have fallen 30% from their april peak already and you wonder if there is going to be a hangover once everyone has gone out and bought a car. like she says, the inventory is now sitting in garages and driveways. i am curious, is the reason why tesla continues to grow, because it also expresses this conference for their cars versus the other models that are out there? >> look, there is no doubt that the world is going towards electric vehicles. the question is, how quickly will that happen right now we are at about 3% of the total market being electric vehicles it's likely to get maybe to 10% by 2025. that's if things grow quickly. then how quickly does it get there, let's say by 2030, 2035 we are not going to see the end of internal up combustion vehicles that's not going to ha

>> watching your special tonight, mel and watching gm investor day >> jeff mills?f i think it's turning >> dan nathan? >> i am with him on the amazon 3,000. i am watching generation gamble tonight. >> guy adame >> i'm not i am watching the yankees. >> i knew it you can watc "mad money" with jim cramer starts right now >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to educate you but teach you. if a company is doing well and stock price stops reflecting that, then sooner or later you get a relief rally,

up with the new direction of the company. >> well we're really excited about gm's focus on ev and the going through. we've worked with them over the last number of years and we're really really excited to jointly announce this partnership together with gm that they're going to be transitioning not only quicker from internal combustion engines to electric vehicles but doing it with silicon carbide enabling that broader range. it's a great announcement, we're super excited about it, it's a strong partnership that'll last decades. >> well greg lowe, certainly we're taking a look at the stock , wolfspeed, new york stock exchange trading, up by more than 1% today, and certainly, i know you're going to have a couple, you've got two factories in north carolina, you're looking at another one i believe in the new york region. real quick before i let you go. >> absolutely, you know, so we started building that factory in new york, actually, two years ago, and it's going to come online in early 2022 and with the chip shortage that's been happening in the auto industry, we're bringing that capaci

i think, look, it relates to the reactions i think we've seen in gm and ford.d i'll bring it all the way full circle to your question here the interesting thing that you're seeing is a difference in management teams gm, i think a lot of the street expected both gm and ford to come out in beat and raise i think the street punished them ford, on the other hand, they beat earnings expectations they raised guidance as well and i think that's what the street was looking for you see a move of 4% to the up aeside that's exactly what the street is looking for i think in 2020 tesla went effectively it went vertical i think you've seen it take a pause in early 2021 as you had effectively a catch-up trade between gm and ford as tesla had a market cap that bested the rest of the major oems i think you have an interesting trade happening. the hertz and uber deal created massive upside market cap for tesla. and at some point in time for solid management teams you have to believe that if one is true, does it create an opportunity for ford to have sort of this follow-through,

i can do this better and gm sped past ford and never looked back.exactly whaut's happenin right now. elon musk has proven that you can build electric cars at scale and there is market for them gm and every car company is going to be a fast follower. they announced they'll spend billions of dollars and sell electric cars for less and the question is is elon musk disciplined enough to press the advantage now that he has it just talking for me, i know more about elon musk's personal life than i know about my brother's personal life. they just got hit with $137 million judgment for having racist work policies in one of their plants he's someone who spends most of his time talking about going to space and trying to thumb his nose at california and say he's moving to texas because he thinks california is too mean to him. that doesn't seem like a disciplined ceo. and going forward, the question is, if you have to bet, do you bet on the disciplined company or do you bet on the company that's run by this really entertaining, great character to watch but you'

is what are your thoughts on gm with gm doubling their revenue by 2030 and if you think the stock is autos >> it's true when you look at tesla, they have so many different angles that they can improve profitability that you can't compare that with a gm gm would love to be compared and get that multiple. it's grossly out performed g plrks. i would say it's still a good investment i believe they are not getting credit for their autonomous drive, technology package. >>> sticker shock. check out our image of the night. you are reading this one correctly. 7.59 a gallon. we'll break down the pain at the pump when fast money comes back. so, salesforce customer 360 unites your marketing, sales, commerce, service, and it teams around her. so they can deliver a great experience from anywhere. ♪ (whistle) ♪ firefighter maggie gronewald knows how to handle dry weather... ...and dry, cracked skin. new gold bond advanced healing ointment. restore healthy skin, with no sticky feeling. gold bond. champion your skin. >>> welcome back to this special edition of "fast money." crude has been on a tear n

ev market right now gm is third in the u.s. with 9% of the market.a daunting task to catch tesla. mary barra says they believe they will have a portfolio of evs to do that >> we start to launch all-new technology and all new battery chemistry and there is a steady stream between now and 2025 we'll have hay-volume segments as well as truck segments so the way that we'll kaptcapture that number o leadership position is what we do every day, to have widespread portfolio and the funkality and the price points that are important to them. >> as you take a look at general motors over the last three months they did a lot say nine months ago when they got credit for the investment in the ev market and it's not done much because of the ev market. mary barra believes they're in a better situation in terms of the chip situation she'll be talking about that today, but the bottom line is this they plan to grow their revenues through services and subscriptions and scott, we want to see more of this interview go to cnbc pro. the entire interview is there, and we tal

gm sells 9 times more than next year's earnings. dow and gm have the environment and it helps them feel good. they never -- there's never -- they didn't have enough reason toss do it in doing business for business is good for their stocks because of the usg funds it has the added advantage of being good for the world mary bara and jim fitterling can care about we have the fang naysayers a fund manager was saying it's good to get in often the reflation trade. that could be right. this manager said you had to throw out the tech stocks because it won't work in a current inflationary environment. i keep coming back to the principle source of requirements you know how we solve labor shortages? how we've always done it, with technology you know which companies don't have good sources off the coast? technology the cloud stocks don't tell me they're wrong here i've heard people say the government should step in and sort out the supply chain mess i wish they could solve the logistics problems they should subcontract this out to amazon. faceb

gm and boeing both out >> hey, joe. is a beat on the top and bottom line. earning 1.52 a share, well above expectations for a profit of 96 cents a share. revenue a little better than expected, $26.76 billion just a smidgen above expectation. 10.9% profit margin for the third quarter. margin is going to increasingly be the story within the auto industry couple other notes they have a $700 million benefit from their settlement with lg chem for the chevy bolt battery fires. they said we're going to take a billion charge over a couple quarters, and then a settlement, $700 million benefit there the company is saying that it is approaching the high end of its guidance the guidance was set just a few weeks ago at investor day between 11.5 and $13.5 billion for the year don't forget coming up next hour, you do not want to miss this interview first on cnbc we will be talking with gm chair and ceo mary barra coming up at 8:30 this morning an interview a lot of people will be looking forward to let's shift gears and talk about boe

>> number of units tesla versus gm or ford. it's the quickest category in terms of automobiles and ev, what that means, but the silicon standpoint going into it but you are dealing with a smaller base i think that's the point certainly if you go through tesla's filings and risk factors, they highlight the semiconductor shortage as a potential risk for their company as well. >> jared, great to speak with you. so guy, how do you trade this? >> qualcomm, i saw that headline $12 billion buyback is not insignificant. if you look where qualcomm traded down to, that's where we bottomed out in march. i think qualcomm is interesting. but amd probably do stand to win. i have been shocked how they get their projected numbers. i think texan is the one you have to watch out for. >> karen, did you get worried about gm when you heard jared talk about the long, long, long, more than a year lee time? >> a little bit. i am always worried about gm i am concerned broadly this is a long time for everything at some point i do think, even for long le

gm's discontinued its gas guzzling hummer in 2010.the market the cost just about $80,000. phil lebeau is here. phil, how is the ev? >> it was impressive, shep i had a chance to drive it in the proving ground, gm's facility northwest of detroit. put it through the paces we're not going to tell you whether to go through rocks or rutts, you do what you need to do this is the area you can do. it held up it allowed me to do the crab walk which is where you drive diagonally this is strange to get used to it's hard to really tell you what that sensation is like but people will use it when they have to get around something that's blocking their path on the street i think this is a really good ev for general motors to come out they need it right now >> yeah, gm's bolt had a lot of issues with the batteries. is the company confident that will be the case with the hummer >> they think that this will be a far different situation than the bolt in part, because it's a different battery system, shep completely different battery system far more advan

gm discontinued the gas-guzzling hummer back in 2010, but now -- now it says it, too, will be back onst just about $80,000 phil lebeau is here. phil, how is the hummer ev >> reporter: it was impressive, shep i had a chance to drive it in the proving ground, gm's facility a little northwest of detroit. and they said, look. put it through the paces we're not going to tell you whether to go through rocks or rutts, you do what you need to do and this is the kind of area where you can do that. and it held up it performed it even allowed me to do the crab walk, which is where you drive diagonally, which is a little strange to get used to. this is an example of the crab walk it's hard to really tell you what that sensation is like, but people will use it when they have to get around something that's blocking their path on the street i think this is a really good ev for general motors to come out they need it right now >> yeah. g gm's bolt had a lot of problems with the battery is the company confident that will be the case with the hummer >> reporter: they think this will be a far different

consumer discretionary in the lead with ford and gm driving that sector today. the nasdaq is up 1%. 1.5% so far because of this rally and this comeback we have seen s&p 500 is looking at the best week since august going into a friday, of course we have that to get through. >>> welcome to the "closing bell." i'm wilfred frost with sara eisen and mike santoli we closed off the highs but still up a full percent. one sector is negative y utilities. coming up double line's jeff sherman to discuss today's rally and how the key jobs report could impact critical levels for treasury yield just stephanie link still with us and priya misra joins the conversation mook, to you and how we finished the session, slippage into the close. keeps that debate going about have we answered the question of the bottom yet. >> exactly we talked for days how you didn't have the mad flush. but i think you're encouraged by the traction that the market found over three days. needed new bad news to get it lower. it always feels tricky and see both sides into the technical moment the rally stopped where if you sai

over the weekend, tesla announced the shortage and ipo and the outlook from gm.ally rare on a day where everything is down so hard. >> there are a lot of moving parts going on. on gm, a meeting with investors this week talking about plans to move to electric vehicles and self driving cars. in advance of that, we have people familiar with the matter tell us that the focus on the self-driving part of the business, they are looking at, and that is the self-driving robo taxis reaching potentially $50 billion in sales down the line and expect to start charging next year. the other piece is engine number one, the firm that managed to get board seats on exxon mobil. they disclosed in the first quarter that they had a stake in gm but the wall street journal reporting that they came out with a white paper backing gm's push in the self-driving technology. alix: a bit different than what they did at exxon. ipo news. david: let's take tesla before we get to that. the numbers are so staggering. talking about more than 240 thousand vehicles in their latest quarter. that 20% in

that's because tesla has done well in terms of sales year-to-date up 97% gm, just 0.1%.utperformance of gm now coming back closer to tesla in the last month or so finally, cathie wood we know she's a tesla investor she tweeted over the weekend, they sold -- one interesting thing to note. while evs require more chips than standard internal combustion vehicles, there are a lot of thingsthat go into the chip supply. but wall street has taken notice that tesla has tdone a heck of a job managing its chip simply and that was certainly shown in the third quarter with deliveries exceeding expectations >> still interesting about watching her tweeting about her top holding. i'm curious how you're processing the blend of varying headlines regarding the chip shortage both gm and bmw had hopeful commentary about supply or at least margins versus say audi and honda today. >> right and i think it partially comes down to where are you getting your chips and how are you prioritizing those as you are getting them not all chips are the same for all automobiles and the relationships are dif

gm's cfo is coming up later on "fast money.ing could take a hit because of the recent spike in energy prices and later wyndham hotels & resorts ceo talking about travel demand we'll be back in a couplofmitee nus. >>> energy was the worst performing sector today as oil pulls back from its recent rally. let's go to mike now for a broader look at energy mike >> yeah, wolf, pretty long term. it's a 20-year chart of the energy rector relative to the s&p 500 as a whole this really aggressive spike into that '08 high when we had peak oil concerns, $100 plus crude oil prices then a long-term descent part of this is the growth sectors of the index growing much faster. really dramatic low right here that's when we got to below 3% of the s&p 500 so aggressive bounce but looks like if you believe in some form of mean reversion, maybe energy has a little bit of a window for renaissance. this is why you have some bullishness structurally perhaps for energy for a little while. in terms of the impact on consumers, though, i think we have to pl

we are talking about gm, electric vehicles. you are deeply thoughtful about the role of the retail investor. you made seismic changes to the way they are running their business. they are looking at exposing certain assets in oil and gas. as a shareholder, pleasing to you? is this what you intended? jennifer: we are still a shareholder at exxon. the change will take time. the first piece is getting capability into the boardroom. they are independent directors. they are in the room now. our hope is exxon is looking how they are changing how they make money, how they are successful in years five and 15. we hope to see some different capital allocations. romaine: maybe we will see those. i think what engine number one was able to do on the exxon pipe opened a lot of people's eyes to the power that smaller investors can have. i'm curious how others can look at what you did and use it as either as template or a guide to approach the relationship to other companies. jennifer: we founded engine number one on the idea that we take the d

. >> and then you have volvo, gm saying they're going to launch 20 new evs, but early 2028 david, ijver this engine one. >> i was listening, like a lot of people, "squawk box" that had a great group of guests. mobile e. of course they're sup supportive making the point that this company is going through a radical transformation so that by 2030, gm will largely be an electric vehicle company i met with the sustainable officer last week, they're not just taking it seriously, this is their imperative. don't you think if you were -- look at that they had big numbers, tesla. >> your point is good, though we hope to have enough grid remember last week in germany, they were running out of coal. we talked about natural gas. do you know what's going on in cole the price of coal has gone through the room >> hey, listen the investment club that owns union pacific, this company is a clean coal company. that seems oxymoronic, but they have the cold is -- >> back better than ever. >> can you believe what david just said. >> the reason it's going up so much, because there's so little of it, there a

i'm much more interested in the quality stuff right now and stuff like gm that i feel is quality and cheap. the xlf which gapped open and everything there is working and those are quality names. so that's the way that i'm thinking. >> so, jenny, i want to know how you're thinking about it and josh brings up some important risks that still remain and they're undeniable what i wonder is whether the improving covid news and that situation trumps everything else and that you get a more open economy and truly the other side of the pandemic and whether that is just more important than everything else. it seems to be where marco kalonovic of j.p. morgan is going who all, but dismisses higher inflation certainly as it relates to oil and certainly as it relates to interest rates because he says the market can withstand 2.5% ten-year and the cyclical recovery driven by the covid situation improving and i know you're shaking your head, doc, and i'll get to you, too, on the other side of jenny he says, and i quote, we believe the recent pullback is an opportunity to buy the dip in cyclical asset

>> how do you view tesla's goals, gene, the cyber truck as well as the lower cost car, in light of gm'som yesterday and ford's plan for the f-150. it seems its competitors are going gung-ho on ev. this has to impact your margin >> getting to the core question around sustainability of this massive growth and potential they can grow at 50% compound for the next ten years gm's comments. they have had a two-day analysts' day. they talked about doing $90 billion in nine years. tesla should be around $700 billion in ev revenue at that point. in other words, if you take gm's guidance and say they are going to achieve that guidance, their electric business will be 15% of the size of what tesla says. they are all estimates so proof is in the pudding. i would say as a company that has been around for a long time, general motors, understand their excitement around being an ev company, but the substance of the target falwell short the bottom line is they will be losing market share in the new ev world >> gene, for a long time we had to sit and watch to see if elon musk was going to tweet, do someth

gm just took all of their cars back and has to fix all their ev cars.nobody has been able to scale electric vehicle production. we're seeing lucid finally rolling out at 16 $5,000 a car, and maybe 20,000 units. we're seeing enormous demand for electric vehicles with soaring gas prices and consumers really taking it on the chin at the pump, so this is the best of times for tesla, so i think the challenge for them is exactly what was being discussed is really how fast can they ramp production in texas and i think that's what i want to find out today. you know, like where are they at , are we going to start production by the end of the year? where is cyber truck that's a big part of the equation because they have tremendous orders for it and semi trucks so that's what i'm looking forward to is hearing a little bit more about that and then elon musk this morning was tweeting about full self-drive beta testers getting a lot more testers out on the road so this is an exciting time for tesla. lauren: we're looking at the cyber truck and i don't doubt elon musk

jonathan: and those stocks have had a great year, microsoft and alphabet, as well as gm.idea of electric vehicles and what the future holds, how much they expect to derive revenues from that, they want to be viewed like tesla. then the share price has a much higher ceiling. jonathan: it had been positive after the numbers but is now negative after a stellar year so far. we will catch up with mary barra a little bit later this morning. from new york city, alongside tom keene, lisa abramowicz, i'm jonathan ferro. yields are up on two with a curve that is flatter for chairman powell next wednesday on radio and tv. this is bloomberg. ♪ >> don't miss out on the bigger picture here. fundamentals are good. >> it's possible to go faster and things are wrong and therefore it goes higher. >> inflation is going to get worse before it gets better. but we are going to see these supply chain issues easing. >> we are a long way from stagflation. >> this is "bloomberg surveillance." tom: we are on radio and television and it's a different hour of sla

then out of a sudden, gm pops up in the last six months, and it is a big focus.h companies get pushed into that new regime? have they also started to cover ford? jonathan: i think that is coming next. lisa: ford shares are up more than 80% year to date. so if you take a look at what is being priced in, it gets very curious in terms of who could potentially catch up tesla and their moonshot. tom: and they are selling more of them than the hydrocarbon one. there it is, jon. folks, you've got to understand, none of us drive. lisa: speak for yourself. [laughter] jonathan: one of us does. not you, but lisa does. lisa: i will say, i do think the move to electric vehicles will be really interesting. where are you going to target? where are you go -- to charge it? where are you going to charge your electric comer? tom: it is all going to get solved in glasgow. jonathan: you know what i levin this show? when we have conversations and no one knows what they are talking about. down 0.3% on the s&p. tom: it is like a marriage. his "surveillance" more like a marriage or more

i'll send it back to you >>> we're getting ought so sale numbers from gm. >> they're a smidge weakere of the auto makers are going to report good numbers for the third quarter. gm sales down 32.8% compared to the third quarter of last year check this out average transaction price, $47,467. up $8100 compared to third quarter of last year gm says it's seeing inventory improve in the third quarter or going into the fourth quarter, i should say full-size plants are still operating but to what degree they expect to come in at 13.5 million vehicles, gm. the third quarter of last year, the sales pace was 15.5 million vehicles >> wow phil, thanks i think we can all read between the lines on that one. >>> let's get a check on the markets with the nasdaq trying to avoid its longest losing streak since august of 2019. mike, you've been pretty resolute in making the point that, even though the drawdown, year to date, has been mild by historical standards, there's been a pretty good reset in the market >> the average stock really has done nothing for five or six months starting in early june, you

lauren i'm always amazed with the push for electric vehicles, gm's case, all that way 2035. there to match all this? >> no. honestly i don't think 2035 will be it. remember as the next administration comes in, whenever that may be they will have a different initiative and we've seen this before whether past administration what is they want but 2035, sure you can have electric cars. everyone should have electric cars. you can have that option but if you drive across this beautiful country from coast to coast, i've literally been in every state, it is fine when you're in big cities or suburban areas. you look at some rural areas no way electric applications will work. they will have to have the infrastructure which is not there. remember, we can't put this load on this electric grid. the electric grid is a big part of it. like saying everyone has to suddenly go hydrogen. it pace great solution. there is no infrastructure to build it. to buildout the electricity, all those superchargers, trillions and trillions of dollars, who will pay for this? we come back to that, you say th

tagts are aguess eff today, gm's ceo said her company can absolutely catch up with tesla.

i think gm is the closest to them on full self drive. but if you look at the chart, it looks perfect. there could be a double top issue around the 900 level, but he can pull that lever again on another stock split. i wouldn't put it beyond him he can say it's about energy storage. and he could talk about another coin he wants to get behind. there is tremendous amount of levers that the other car companies don't have so, yes, you have to hold your nose and just buy it >> dan nathan, does this quarter confirm or affirm tesla's run we have seen in the last few months >> it's interesting. the options market was only implying about a $35 move in either direction on a $865 stock. that's minuscule so the run-up from the may lows, you talked about the stock being up 15% in the last month alone, it reminds me of that run into netflix last night what were they going to do to get this stock going higher. we already had deliveries and that sort of thing the stock is at 865 it has a $865 billion market cap that has market cap of global autos if you t

gm still down by about 4% after the semi conductor issues. i am alix steel, have a great wednesday. this is bloomberg. ♪ mark: i'm mark crumpton with the first word news. u.k. chancellor is promising to cut taxes on fuel and flying. in his budget speech today he said he wanted to encourage more people to take short-haul flights within the u.k. so it would reduce passenger duties. it also would undermine the u.k.'s efforts on tackling climate change before the top 26 summit. belgium is warning poland not to treat the european union like a cash machine. belgium's prime minister said today its counterpart was playing with fire. it accuses them of threatening world war iii for insisting that poland respect the independence of the judiciary. iran's deputy foreign minister says negotiations

meanwhile, gm also gave a gm also gave a warning crunch, saying the shortage could last until next -- >> i think this is a really interesting example. when we first talked about set tightening, we were seeing a steepening yield curve, but now we are seeing long and rates really plunging, and that is a sign people are shifting the focus on what will be the impact of all these paired accommodations. yesterday, we had a big rate hike mocha -- rate hike move coming out of brazil. canada also seeing rate hikes. we got the ecb today, and it seems like a sign that traders are getting worried we will see an impact on economic growth. tom: you talked about inflation. that is a consideration central to the ecb and that debate. we have a line dropping, spanish october consumer price index rising to 5.5% year on year. the estimate was for 4.6%. 5.5% versus the estimate of 4.6%. europe has been less impacted by some of these inflationary pressures, but this clearly points to the fact that they are far from immune and this will be central to that conversation with christine lagarde of the ecb. what

gm was from detroit, manufacturers and import scars fromei numerous foreign countri. is honda a greater security risk than gm and the supply chain issues thatsu much more differet because of the location of its headquarters the simple answer is no. moreover for some of us, the principal sum of us principled and free trade which has somehow become passÉ recently but there are still very valid reasons based on the comparative advantage theory and since proven practice to have facilities in many locations the global nationalal security agencies generally either i the manufacturers operating worldwide as trustworthy andnd healthily partners and supply chain difficulties. and the lack of services great work has been done in the last commission i believe. i received comments from a high-ranking government officiat in the topic. they've championed the work being done to implement and make operational this yearop the firt spectrum and plow through. those are imperative and congratulations are due. tsthey are also some work was being done on the lower three gigahertz for the p