don't miss jim farley on kw"squw box" tomorrow. dan? >> huge piece of news.doption, right so, how do these guys, ford and gm, how do they speed that up? and we all give tesla a ton of credit about the way they built out the supercharging network across the nation, really incentivize people to buy an ev with them. i had a ford mace-e, fully electric, i loved it they don't have the charging network built up it was very, very unreliable tesla has such a huge lead here. and i think tesla's actually really smart to open this up a bigger pie for them works in the long-term. >>> meantime, washington gearing up for cabinet-level talks with china that could have a human impact on trade. options traders are betting this is great news for one of china's flagship companies kevin kelly is here to break down the numbers kevin? >> hi, melissa we saw heightened trading volume in alibaba today with about 2.87 times the amount of calls versus puts and the stock has an implied move of about 3%, and what you saw today is, traders came in and traded a lot of the july 21st, 2023 $

joining the is jim farley.s ford building electric vehicles because it wants to or is being forced to? do you think evs are better than their internal combustion predecessors? >> for some customers they are but not for everyone. if you are pulling 1/5 wheel in wyoming, but three cars in your household and one is short distances or 200 mile range it is a better car. it is dependent on the customer. jack otter: what are the benefits for the person for whom it's the second or third car? >> the components are faced complicated, driveshafts, differentials that break. it's a lot more reliable and less cost after you purchased the vehicle. you don't go to the gas station, the biggest thing is interior is bigger. the engine up front takes a lot of room but it is for specific customers -- it's not a monolith. people like to think about changes like it's going to happen everywhere. that's not happening. jack otter: you reorganized things to take out evs as a separate unit and wall street cheered that transparency but rev

guy: jim farley, ford ceo, speaking with matt miller.hat i heard was volume is going to go up, arbitration is going to go up, prices will probably come down and even the -- unevenly, margins as well. is that the take away? matt: i think generally that is the take away. the panel behind me is still taking q&a from analysts. they are talking about a 17 million event. that may be where they see the industry going. they want to boost their margins on electric arms to 8%. now they lose $3 billion a year on the electric portion. they want margins of 10%. in the longer-term, jim farley told me he thinks cars is not where they will make their money. you could see merchants shrink on the actual metal. it is software and services where the seat growth and -- see growth and fat margins. alix: this is the quietest and ever heard matt miller speak. matt: they asked me to whisper. alix: they also announced some partnerships from lithium. even if the money is made on services, and you need the raw supplies. are these good deals? matt: i have been think

it is part of a new partnership announced by elon musk and fordford ceo jim farley jim farley is joiningwe think will really help our ev customers have a much better experience. >> it was surprising just from the perspective that you all are rivals, i don't know if you want to call take respectful rival, frenemies. how did the deal come about? >> we've been working on it for a couple years we know we're number two in ev sales behind tesla and we know charging is a really big deal for our customers and adoption and we're scaling, basically doubling our ev capacity this year and we'll get to 2 million in a couple years. so this is a big deal for the company and for our customers. and we have about 10,000 fast chargers now and this will double that. so 22,000 fast chargers. it will be the best network in the country for my brand and that is why we were interested in it and we like their locations and charging technology, it works really well. so in '25, we'll put their plug on our vehicle >> and i have to say as a consumer, i think it is great. i love the idea of some sort of standardizatio

but the fact that jim farley did reiterate the $6 billion in free cash flow number the street's looking 2.7, so there's a giant disparity between what farley says they can do and what the street things they can do that's what i care about the reiteration says this could be something with an upside surprise the battery news, look, they had to get batteries, and it's the albemeyer again, continue to win, but it's earnings per share that i care about and cash flow that i care about and david, because i know you're a chartist, the chart, which is horrendous >> is that what makes for a horrendous chart as our viewers now, you're kidding. i have no idea >> the longer term one thing that's interesting about jim farley is he's pre bullish. people don't believe you can make internal combustion and e verk vs and get near what the princess bride -- what musk said mandy patinkin is the real winner here. >> being down in that facility, i'll never forget it just watching and getting the sense for the size and the scale of what they're doing in austin, texas, at tesla. still hoping perhaps they sell a

dani: ford ceo jim farley there with bloomberg's matt miller on competing with tesla.'s get you your first word news with adrian wong in hong kong. adrian: accident biden says he and house speaker kevin mccarthy had productive talks and agreed that u.s. default is off the table. the two met at the white house for over an hour but has still not reached a deal. treasury secretary janet yellen has warned that is highly likely that department will run out sufficient cash in early june. >> i felt we had a productive discussion. we don't have an agreement yet, but i did feel the discussion was productive in areas that we have differences of opinion. we are going to have the staff continue to get back together and work on some of the things that we had talked about. adrian: turkish president recep tayyip erdogan has won the support of a nationalist rival, boosting his bid to extend his rule. the longshot third candidate sinan ogan has asked his supporters to back erdogan in sunday's run-off. ogan was eliminated from the first round of voting with just 5% of voters backing his

just like jim farley may not believe this, but he's the face of ford. to a tesla brand, you may or may not still be loyal to him because of tesla -- because of twitter. >> charles: a series of price decreases and a price increase. there was some concern, you know like inflation. if you think the price is going down, why buy one today? you think that was a mistake? >> he was caught in a catch 22. the federal government decided to put that tax credit in. the vehicle had to be produced in the u.s., which not all of them are and the batteries had to come from the u.s. if you didn't meet the two qualifiers, you didn't get the tax credit. the price point had to be lower. they kept changing the rules from the infrastructure law so he lowered the prices in order to need the tax credit. if you're over $80,000, you don't get the tax credit. he still wanted to use that tax credit that he had lost and he got it back. >> charles: is tesla still the company to beat? feels like they're number 1 by far in this says. >> not in china. china has beat them a couple months

. >> melissa, in this call, which is about halfway through, the q&a has just begun, and jim farley isatic, very emphatic, i should say, that the company is in a form -- essentially remaking itself, and it is not only going to hit these projections, but it is going to remake the business we'll talk about that in a bit you mentioned they beat the stree street, earning 63 cent as share. the street was at 41 cents a share. and there's the performance of each of their divisions. $26.6 billion from ford blue the commercial vehicles in ford pro earning $1.36 million. and the model e losing $722 million. here's farley on the conference call talking about his plan for that division to break even. >> we're on track this year towards a contribution margin approaching break even in model e. and for our first generation products to be ebit margin positive next year >> you mentioned the guidance, yes, they reaffirmed 2023 guidance, with free cash flow coming in about $6 billion and the ev decision, they believe it will lose about $3 billion, that's what they told us about a month and a half ago, re

i think jim farley said he was on a vacation with his family at lake tahoe and the kids were seeing superchargers he had to acknowledge they could not use them. he basically acknowledged this is hard to build but there is a lot of players trying to build right now. keith: and the tesla supercharger is the cream of the crop. it was number one in the jd power survey of car chargers. getting access to that 12,000 network in the u.s. and canada gives ford a competitive edge. you have to believe that others will follow. charging has become the biggest roadblock to adoption of electric vehicles. so, if you can smooth that out for consumers, more of them will buy ev's which is why tesla and ford struck the deal. matt: tesla's pumping out a surprising number of vehicles. it will be half a million this year. when is ford expected to pass tesla in terms of ev production? keith: well, it will be a long time because tesla has 60% of the u.s. market for electric vehicles. ford was number two last year, but distant. fortis planning to be at a 600,000 ev production rate by the end of this year. they said they w

your conversation with jim farley, is there any discussion about how to drive shareholder return? g right now behind me. they are talking to investors, they are talking to analysts about how they can boost that over the next few years. they see a different world. it won't be about the vehicles. if it's not about the shell of the car that's going to make the money. you can see margins come down on the actual vehicle sales. it's about the software and services. that is where they see their growth coming in. they have an example in ford pro. their commercial arm in serving plumbers and electricians across the country. the prophet there has been a level that is exponentially higher than what you get in car making. they want to turn the whole thing that way. tom: matt, thank you. futures up too. it's about a yields, 10-year gilts three basis points higher. we do not have further curve at version but still set at 61 basis points. shows a tension friday and today. there is just a higher rate regime here. lisa: two year yield is the highest about two months. that is where we are at as we r

ford chief jim farley says while current ford owners will have to get a tesla adapter to use them, new fords will be manufactured with standard tesla charging connectors. tesla ceo elon musk added ford owners will eventually be able to access tesla's chargers through ford's app. >>> a live look at oracle park where san francisco state is having their commencement ceremony right now. go gators! they are celebrating 7,900 graduates from the class of 2023. this will take a little time, but it's also a big night not just for the students, but family and friends who supported them. >>> meanwhile there are some newly minted degrees out there for a unique group of graduates from san jose state university. as len ramirez reports, they were the first to get their diplomas from the school's first 100% online program. >> reporter: well, online classes have been available for a long time, but the pandemic really led to an explosion of online classes here at san jose state and many other schools as well. it became a game change changer for students who had dropped out. >> never imagined i would be

ford president and ceo jim farley says the deal will more than double ford's charging network as thef electric vehicles in 2025. >>> the little mermaid is making a big splash at the box office. disney's live action remake starring hallie berry is expected to earn more than $117 million this memorial day weekend and the fifth largest memorial day weekend opening ever. >>> the fast and furious franchise's tenth installment "facility x" takes second place in marvel's guardians of the ga galaxy volume three rounds out third this holiday weekend. that's your cbs money watch this monday. i'm erica brown in new york. >>> big changes in california as one of the country's largest insurance carriers is expected to stop offering new homeowners insurance policies in that state. elise preston has more. >> reporter: hail wildfires and flooding. it's the unofficial start of summer and homeowners in the golden state are in the grip of weather whiplash. >> you can never be complacent. >> now, state farm says it is no longer accepting new applications for homeowners insurance. and the insurance expert

i talked to jim farley hanging out with a bunch of executives and they're all trying to convince wallheir plan to build two million electric vehicles in 2026 with a margin of 8% is feasible. now wall street has found that very hard to believe because their margins so far on electric vehicles are negative 107%. they have revenue this year projected for $3 billion in e.v.'s and losses projected for $3 billion in e.v.'s. so it's a really tough task, especially considering the fact that there is so much pressure on prices and farley says that pressure will continue. listen to what he had to say. >> prices will come down, thankfully for the customer, after all these years of tight supply. >> how much do you think prices are going to come down and what is going to drive in a? >> we are assuming in our plan this year and next year 5% reduction, it's in between where we were maybe in 19 and where we have been. i don't think we are going to go back to the days a couple years ago of 100 days supply. most people are in the 50 day supply range. i think the natural discounting for someone who is a

here's jim farley on "squawk box." >> we really like the tesla standard from a customer standpoint when how easy it is to plug in, if you drop the cord, the tesla system is more robust the other standard is great, and we'll have adapters for that, but we also really love the locations. >> in a nutshell he's saying tesla has built a better mouse trap when it comes to charging stations if you take a look at where ford is in terms of its ev market share after the first quarter the thing to keep in mind about 7% of the vehicles sold in the first quarter were evs it's still a very small part overall for the industry of the market having said that, when you look at what's happening here, ford is basically saying to their customers, we want you to have as many areas to charge up in the future, about 50% of the super chargers will ultimately be available and from tesla's standpoint, guys, remember they've already told the biden administration they will open up their network to other vehicles in order to access the $7.5 billion in federal funds for adding more public chargers and, think about th

matt miller has been busy because he also sat down with the ford ceo jim farley about that company rampingev production which include striking a number of deals to buy lithium for batteries. he joins us now from the ford production plant in michigan. i thought you were going to wear a hard hat. tell us about the ford lithium partnership that was made public today. how critical is this to meeting ford's goals? matt: it's very important. last year, ford sold in the u.s. about 62,000 electric vehicles in total. in 2026, they want to sell 2 million. they got to ramp up substantially in the most difficult part of that is scaling up battery production. in order to build the batteries, they need a lot of chemicals and minerals like lithium. they need nickel, cobalt and getting those things isn't particularly easy especially since 80% of that refining process currently sits in china. ford has made a number of deals, three on lithium. they want to get that refining done in north america and south america. in canada and mexico and chile, that's key to keeping costs down and that's the biggest part o

car, take a look at the numbers right now, down $3,000 the msrp to 4295 for one of the models and jim farley little and not just because he's losing $3,000 a profit, listen. >> the more you cut prices when you cut them aggressively the resale value for people who bought at higher prices is awful. we have been able to contain a lot of the price cuts but i think it's a worrying trend. jeff: somebody who says it's not a worrying trend the guy he competes, he runs another electric company and elon musk says it's tough with new lines especially major technology shifts. ford's overall strategy with ev's is smart. electric f150 has high demand. musk cut the price on his model 3 which com competes with the mach-e, cut of $450. he's been cutting down with prices with ev's. total of 42ev's are now on the market and that tends to have a depressing effect on prices and the problem is price now is for a lot of people in terms of getting into an ev. the average electric vehicle is almost $59,000 the average gas powered nonluxury vehicle $44,000. so b discrepancy and as i pointd out earlier, i soon will be

good job jim farley i appreciate it. from montana says this, do you ever get upset at gutfeld for picking on you so much. here's the good thing. gutfeld is on so late and i have to get up so early i miss most of the digs and disparaging comments and he's short and that's an equality thing meanwhile weep feature some of your e-mails on the show and perhaps down the line a special gift. be sure to follow us on social media and write us there twitter, facebook instagram and rumble to reach me personally yes many different ways. that's it for today -- for us tonight catch me on the radio from 9 to noon and download the podcast governor ron desantis lawrence jones according to my tv guide is next lawrence the ball is yours.

they've known that for a while not surprising i saw the news and thought this is jim farley saying if ain't playing he knows that within china, the electric vehicle market is where it's at and where is ford strongest when it comes to electric vehicles? xhar shall vehicles. that's what you're going to see them focus on much more in china. so they've been losing their market share for a steady rate over the last several years and as that has happened, jim farley has said, let's refocus. yes, it's the world's largest auto market, but if you're not competitive and not winning, you got to find the areas where you are and that's what they're doing in terms of readjusting and so these cuts part of that. >> another busy day on your beat phil, they don't make any other kind see you soon. >>> a news update with contessa brewer hi. >> good morning, everybody >>> turkey's presidential election will be decided in a runoff after president erdogan pulled ahead of his chief challenger but fell short of an outright victory the second round vote will determine whether the nato country remains under the

this is jim farley from ford's conference call.is that we are not going to price just to gain market share. we will always balance a healthy profit road map in the first generation of products, it's pretty challenging we didn't know what we didn't know four years ago when we designed them. >> such great audio quality. thank you for that >> he's a clear speaker. by the way, i find that he has really laid a road map down, but he didn't raise. and mary bara raised for gm. what was the percentage of raising if mary barra raised and the stock didn't go up why set yourself up? why not just say, here's our game plan and not create false expectations, because mary barra's stock should have gone up didn't happen. >> right now, ford is up 1.4%. tesla's also up 1% obviously, well, well off its fairly recent highs. >> farley raised the price of the "e," the lightning f-150, pretty dramatically, and there's been no balking at all that's the truck that america wants, and people want electric. what's most interesting in the conference call is tha

ceo jim farley said. the reasoning is due to ams importance as part of the emergency alert system. this comes as lawmakers introduced a bill urging the national highway traffic safety administration to require am in new vehicles at no additional cost productive but not a lot of progress after the break where debt ceiling talks stand tonight with a june 1 deadline quickly approaching and coming up tonight at six the days of twitter's headquarters in san francisco, maybe numbered what ceo elon musk has to say about whether $1000 was sold last night at a gas station in hayward. the fantasy five ticket was purchased at the chevron located on industrial parkway southwest right near whipple road. the player was the only one in california to pick all five numbers, which were 14 1925 30 39 so, boss so far, nobody has come forward. the winner has 180 days to claim the prize. state tax officials today released just how much revenue has been collected from the sale of cannabis. total revenue from first quarter returns comes out to just over $216 million. about half is from the cannabis excise

i am banking with jim farley the ceo. it's a big position for the trust and i only wish that i owned more listen to me, when i listen to eddy cue asdy today, i'm reminded that the lifetime value of an apple customer is worth more than any stream of revenue from any other consumer product company maybe ever it's just part of why apple is the stock to buy and the market wide weakness that i am predicting while this debt ceiling wrangle goes on. from fintech to cyber security, we've got a big show out hear at the cnbc summit in santa barbara on "mad money," we're always looking for a way to capitalize on a rise of sustainability initiatives across the globe after a recent acquisition, carrier is set up to do just that getting the latest from the ceo. >>> then i've called in, you've called in, we're all asking about what is the deal with sofi two years after its spac debut, i'm going straight to the source to get the answers to the questions you keep asking and palo alto after the bell don't miss my post-earnings exclusive wi

that said, jim farley, the man who approved those price cuts for the mach e says he's worried about havingt because he loses profits. listen. >> the more you cut the prices when you cut them aggressively, the resell value for the people who bought at the higher prices is awful, so we've been able to contain a lot of the price cuts, but i think that it's a worrying trend. reporter: elon musk says he is not worried. he tweeted this. he says it's always tough with margins for new vehicle lines, especially when there are major technology shifts. he says i think ford's overall strategy with ev's is smart. the electric f-150 for example, has high demand. that's absolutely true. the problem though is price, stuart, in addition to losing money, electric vehicles average cost right now a little less than $59,000. the average cost for a non- luxury gas-powered vehicle, $44,000. you know, my old friend sergio m arkioni, used to be the ceo of fiat chrysler, said please don't buy my electric cars. i lose money every time i sell one. stuart: [laughter] that tells a story, jeff, and it's a good story too

owners of electric ford vehicles will soon be able to use tesla charging stations ford ceo jim farleyesla ceo elon musk announced today that early next year all 12,000 tesla superchargers will be operational for ford vehicles. farley also says next generation forward tvs will come equipped with tesla standardized version of its charging purport. alright kind of gloomy out there. this is a live picture. you can see the ferry coming in and jack lenin square. you see the sailboat that on the estuary and you can see that ridiculous amount of fog and low clouds that have infiltrated the bay right now and on their way in and filling in livermore valley and out towards concord. so we are in a pattern here that we talked about all week and it's very similar each day. i think right through the weekend, so barry, a holiday weekend is going to look like this. so if you are lucky enough that bottle rock tickets, bottle rock tickets like i do not. but if you do, you're going to need jackets for sure. in the morning in the afternoons and in the evenings too, so i mean, it's not gonna be cold. this

under the agreement announced by ford ceo's jim farley and tesla's ceo elon musk on thursday on twitter, current ford owners will be granted access to more than 12,000 tesla superchargers across the u.s. and canada starting early next year and, guys, that news supercharging the stocks, as well. both of those trading higher on those headlines. >> all right, and in the week it's ended on a high. thank you. >>> why texas' republican attorney general could be impeached by his own party. >>> how a nurse i is (vo)o) when y you live wiwith moderato sesevere crohnhn's disesease oror ulcerativive colitis,s, yoy can be f full of rememinders of youour conditioion. never knowing.g. always wowonderin. you weren'n't made f for uc r crohn's, but gugut focused d entyvio i. enentyvio workrks at the s sitee problem m to block certaiain inflammamation-causg celllls from entntering the e. ininfusion andnd serious a allc reactionons can happppen duriring or afteter treatmen. entytyvio may inincrease risiskf infefection whicich can be s se. alalthough unlnlikely, a r rif pml, a rarare, seriousus, potetential

jim farley says it's been using software as a service. >> digitization changes a lot of that we haverates for physical service like repair and also the software revenue, which we now have in like three buckets, it's very clear the stuff we're going to ship to vehicles. we've never had that chance to have an annuity over the course of a whole economic down cycle >> remember ford is in the process of selling or producing about 600,000 evs this year, expect to get up to 2 million by 2026 more than a few on wall street are questioning whether they can ramp up production there a big part, ford building battery plants in the u.s. many question if they can ramp up production that quickly >> i don't think everyone is going to have full-size trucks, electric commercial vans i don't think people are going to have the same electric lineup we do. these are segments that we know really well and we have already proven we can conquest it's true, we're going to see more price pressure on evs >> take a look at shares of ford what you're noticing is this is a company that's down considerably from wher

she was his antenna and i noticed he usually followed her advice a jim farley fdr had complete faith in her judgment and her ability to observe just maybe a few words about eleanor and the white house years. well, i think a lot of people talk about her observation. they don't talk about her understanding of policy and how to get it through. you know and if you look at some of the landmark pieces of legislation that came out of the white house, i mean especially in well in the two sections of the new deal, you know the in the first one hundred days, i mean fdr puts the economy act forward and it fires all the women who are married to federally employed men eleanor leaps to her pen is blanche would say and in the same paper side by side tails her husband, he's wrong. he backs down the women get their jobs back, you know their problems with the social security act. eleanor goes in behind the scenes and tag teams with francis perkins to get part of the social security act through if you look at the national youth administration, which is the first form of a americorps, this is totally el

elon says he's going to be using it as his main car >> well, jim farley reminds me that of our party,red by the f-150, and he told me to power the entire tailgate of an eagles party. i may power a taylor swift concert with my f-150 that's on order. >> are you going to go see taylor at any point? >> she's in boston >> i passed up on it >> do you have any extra tickets? >> i had a lot of extra tickets. >> i do have a 17-year-old daughter who's going to be back in town. >> i had ten tickets >> ten >> wow >> what'd you do with them did you sell them? >> oh, then i have to say something too? can't i just go like that? >> it's 12 seconds >> micron is a name we're going to watch too in the chip space, jim. they're investing in japan on some next gen chips. this is not that far from the 52-week high as well >> sanjay, one of my favorite ceos, of micron, is drawing a line in the sand he did tell us as recently as the washington correspondents dinner that he did think we were getting near the end of the chip glut, and when he's committing this amount of capital to japan, and people don't know i

ford ceo jim farley, when we were at the ford capital markets day in deerborn earlier this week, he said to come back, especially as you see the greater inventory out there. he didn't put a percentage on it let's estimate 5, 6, 7% reduction in prices overall for the industry one last chart, we're going back to october of 2019, you might be saying, why are you showing us this that's because it is that time every four years we get the uaw negotiations and yesterday the president of the uaw said the actions of the big three in particular for what they have been doing when it comes to certain plants as well as investments in evs is criminal should be an interesting call when the contract comes up >> sounds luke a good way to kick off the negotiations. phil lebeau, thank you very much >>> all uphill from here still to come this morning, teams and social media u.s. surgeon general warning that online sites pose a significant mental health risk that needs to be addressed so should the government intervene? jon fortt is here to weigh in with "on the other hand. that's next. and today is the nint

your man farley, jim, a jocular relationship, musk and farley. >> i'm so glad farley is doing this they've done by far the worst in china. mary barra, gm, has done much better he had a good quarter and nobody seemed to care this is really much needed david, he was getting his butt kicked in china. he's a winner farley he raced well this weekend, by the way. i think, david, when you see that, what you recognize is what carl is saying, china is a lot harder than we thought, let's get out if we can't win. that's a big deal to see farley admit, you know what, we're not winning in china, we're not going to lose in china i like that. >> really quick, guys, let's touch on depot today down in the premarket but off the lows of the morning. the company posted its worst quarterly revenue miss in about 20 years, citing lumber deflation, bad weather, software demand they expect comps to go down two to five. transactions down 4.8, jim how much of this was a surprise? >> the california aspect -- one-fifth of the country is california we should all be able to figure out the weather is bad, whatever there