michael regan. tesla shares closing in on elon musk's goal of 420 dollars a share.n august 2018, he tweeted he sought to take tesla private at that level. the most recent stop surge came from report that tesla is considering cutting the price of its china-built sedans by 20% or more next year. this senior research analyst and director at oppenheimer joins me now over the phone. a 300 $85 price target. he has an outperform rating. let me get your take on the share price. at $404, what is fair value of that company? aboutst we have to talk what's going on with the company . not only did we get rumors around price cuts in china, but were seeing cars in the lots outside the china facility. the company promises a significant cost reduction out of that facility. that facility is ramping on schedule. they do get the synergies and efficiencies they have been expecting. the potential for material improvement in the cost structure is higher. ,s we think about the price cut that may be indicative of where their cost structure will shake out. you look at a $385 price target now

current period we are vonnie: our thanks to bloomberg's michael regan.s is bloomberg. ♪ vonnie: checking u.s. markets now after some poor economic data. we had manufacturing data and contraction for a fourth month, although it should be noted that rbc's tom porcelli says nothing to worry about. 2/3 of 1%. down the biggest drag there is apache. -- serene him -- the sarin well is down to lee. well is down significantly. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in with the bloomberg first word news. here with the details, ritika gupta. ritika: president trump is reimposing tariffs on steel and aluminum from brazil and argentina. he accused the countries of massively devaluing their currencies, and said that is not good for american farmers. he again called on the federal reserve to cut interest rates. won't be trump represented wednesday in the house judiciary committee. i house counsel criticized the committee before demanding a foronse -- the committee demanding a response