musk does not include tesla itself. and there are any number of defenses i think we're going to start to hear from mr. musk in terms of his behavior on that day and way in fact he felt that it was a correct statement to say that funding has been secured. the company citing what they believe -- or were quite a few meetings that mr. musk had had with the public investment fund of saudi arabia in which he was led to believe that they were fully behind the idea of taking the company private and would be a source of funds for that effort they also go on to cite a number of different reasons as well, that the s.e.c. should not have taken this action, because of the harm that it will bring to shareholders of the company itself let me read here one thing that we got, at least from tesla on in inquiry they say it may have been unusual for someone contemplating a buyout but mr. musk did not approach this as a typical take private transaction. they say he had no intention of increasing ownership or control of the company he had no

. >>> the sec is suing elon musk, alleging fraud and saying he issued false, misleading statements musk thinking of taking tesla private at 420 funding secured. joining us, founder of inside.com and early uber investor and andrew sorkin andrew, i want to start with you. musk says his intentions were pure in all this, that he would do it again if he had the tweet to do again, he has said that. what does the sec have to prove, what's your latest reporting >> my latest reporting, david faber has been reporting on it is that a settlement, the bird was in the hand if you will, yesterday morning there was a settlement ready to go it would have included i would describe as cosmetic, it would have included a no admit, no deny settlement. you would not have to accept any real sense of guilt which would help the company in terms of liability for class action lawsuits from other shareholders he would not have been chairman of the company for two years but could have remained as ceo and on the board they would have added two independent directors and there would have been a monetary fine paid by bo

lauren: confident in musk, sec reached settlement but musk lawyers told sec said they weren't interested in moving forward with the agreement. shares to have company plunged almost 12% in after hours and those losses continue this morning, take a look at this ahead of the opening bell, 27544 quote for tesla, down 10 and a half percent. tracee: joining us misty morris, double duty. >> good morning, thanks for having me. what count final decision by musk rather than set it will charges? >> what's i think is going behind the scenes, the lawsuit, the sec is removing musk, say he cannot serve as ceo of a company. my guess is in those settlement negotiations the sec was negotiating that point specifically maybe with a time frame and that's one of the more common issues that the sec pursues, you cannot be the head of the company for 2 years, my guess is musk was not having said and said he would rather roll the dice in a lawsuit. tracee: do you think there's a chance if there to be a settlement. what happens if musk agrees to sec before trial or likely that he could be banned from running the c

government has only sued musk. they actually could also sue tesla. so to avoid that, i think it's time fk m to go as ceo. tesla has to say, look, we --is - musk did this on his own. and we don't condone i and don't come after us. we are cooperating. >> although there has bee a lot of criticism of tesla's board following that tweet. and there is some concern that perhaps the board isn't strong enough to move past tesla and tesla.lly elon musk being >> yeah, so far, the board seems to be sort of the elon musk fan club. there have been questioning about whether they are doing enou c to protect thepany and all of the shareholders. this lawsuit might be the move that it takes to get the board to say, okay, now we are going to act independently and we are not just going to be in musk's corner. we have to look out for the company. and we have to look out f all the other shareholders. >> elon musk just saying that them lawsuit f the s.e.c. is njustified, perhaps a predictable response from him. but wall street seems to be

musk. >> yeah. when i read that and listened to you earlier in morning and realized he turned this deal down, i think he must be going for some sort of insanity defense. this is amazing. what a deal. the s.e.c. did it very fast, but that kind of deal -- that's the sweetest deal ever usually -- i don't understand how anyone could turn this down. david, they got a piece of paper. they have the 5.3 -- 5% bonds that have been the bellwether. they have a november refinancing. do you sticker it with some sort of like, listen, the ceo may be in jail but we need 200 million? honest to god what is he thinking this is a deal people would fight for. they would kill for it >> i know. you keep saying jail, jim, you know it's simple, he's not going to jail. you have to stop saying that >> you know what i mean. i mean that if you turn down that kind of deal, i think the s.e.c. will refer to justice because this is the kind of arrogance that the s.e.c. was just not counting on i think the s.e.c. liked the

sec saying musk knew or was wreckless.ty clear suggestion that he was very much in the wrong. >> we have been discussing the fact that this is a civil suit that musk is the person named in it, not the company itself >> i think it is highly significant because it deals with a ceo that apparently went outside bounds of pro pryty and may have acted more to influence stock price than to inform investors. that is not permissible under the securities laws. >> but how are they going to be able to prove that in other words he had come out afterwards and said he had been having discussions and maybe there was more there is that what this is going to come down to whether there was a deal on the table that he had been discussing with his investors? >> no. i think what it comes down to is that he said financing for this proposed transaction had been quote secured closed quote secured in that context meant that there was a legal right basically to call upon the financing should the transaction go forward he subsequently made it clear t

is suing elon musk for fraud.et's get more on this story from leslie picker in new york >>> good morning the crux of this lawsuit is this, the s.e.c. alleges that elon musk made false and misleading tweets in august where he said he was considering taking tesla private at $420, and that funding was secured the s.e.c. says that investors who purchased stock after the tweets but before accurate information was disseminated were harmed. tesla plummeted in the aftermarket when the s.e.c. lawsuit was revealed it's plummeting now. the agency is seeking to ban musk as serving as an executive of a publically traded company musk said that the action by the s.e.c. leaves his deeply saddened and disappointed adding that he has always taken action in the best interests of truth, transparency and investors musk says integrity is the most important value in my life, and the facts will show i never compromised this in any way. the claim reveals conversations with a sovereign investment fund which we know is saudi arabia and a pr

musk they don't know.spired and reaction from industry experts and andrew is coming up >>> the final trading day of the quarter. we'll look where you should be putting your money to work >>> and sports and business collide. michael ruben joins us and he's brought some great guests. brian rollop and the ceo and co-owner of the boston "squawk box. those interviews straight ahead as the second hour of "squawk box" begins right now. ♪ >>> live from the beating heart of business, this is "squawk box. >> good morning. welcome back to "squawk box" here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. equity futures at this hour. dow looks it would open off 40 points and the nasdaq looking to open down about nine points news coming from italy where the italian government set a high budget that will prompt downgrades of italy's credit rating both with s&p and moody's to update in november. back in this country, the federal reserve's portfolio of its treasury and mortgage backed securities has n

it is not present elon musk.ming recreational sales in canada and a growing market in the u.s.. bloomberg tv got inside look at the retail sales in massachusetts. >> the next state in the u.s. to sell recreational marijuana is gearing up slowly. sales are legal in massachusetts as of july 1. by law, it cannot be sold until tested at a licensed lab. to certified products are free from old pesticides. >> the biggest obstacle has been e-labs not being licensed to test it before anything can be sold it has to be tested. testing lab cds analytics has won awards. this ceo runs the leather has been testing is 2016. >> we have 13 or 14 clients in the medical marijuana space. >> clients send flower, concentrates, and edibles to them for testing. before selling to consumers other dispensaries. >> we are testing 60 samples per day. we expect that to go crazy once recreational comes on board. i imagine we will triple or quadruple our samples in the next year. >> the chief science officer overseas testing in the lab. >> a ful

elon musk is forced to pay millions in fines and step down as a company chairman u.s. regulators have charged the billionaire with the wrong saying he duped investors with misleading claims about the company. i'm carl assman welcome to the program the death toll for a major earthquake that triggered a tsunami on the indonesian island of civil way sea as presents and bore than eight hundred the country's vice president has warned the number could soar into the thousands all spittles are struggling to cope with the injured and barge parts of the city of palu are in ruins. combing through the rubble for victims and survivors. medical care food and clean water are in short supply the areas hardest hit. residents have been looting damaged shops. witnesses describe the moment the seven point five magnitude earthquake struck and when the quake hit i was doing my shopping suddenly everything went dark and the walls started falling around us it was horrible. most confirmed deaths so far from the city of palo a provincial capital on sulawesi island but reports remain sparse from

suing elon musk.ities fraud but musk is fighting the power, rejecting an offer to settle with the s.e.c do elon musk and tesla have a fighting chance? and how much of a musk premium is there in the stock is it good or bad if elon musk is removed as ceo but stays with the company. >> i mean when the -- when the se s.e.c. offers a olive branch that's it the end of ma are they'll martha stewart you i think jim mentioned that on squawk -- squawk on the street that said, we are finding out. 2807 has been the line in the sand we are below that now. tim has been right i don't know what the premium -- but i think we'll find out in a very real way i don't think there is any way you can buy the stock without knowing the outcome of this stuff. >> top holders have been lightening up on positions you have seen that in the last filing i know filings. >> from a risk management how can you not. >> you don't vacate. >> you can't hold we with whatever is is coming. you it's 244 i think the stock gets cut in half ultima

elon musk smoking weed and drinking plus energy, one of the worst-performing sectors this week, but the chart master says it looks so bad it's good. he will tell us where he's seeing the biggest buying opportunities, but first, you start with trade wars heating up and apple could be the next victim and the stock falling as the company warns the impact tariffs could have on a number of their products and let's go to josh lipton in san francisco for all of the details josh >> apple, like many companies, did formerly submit comments to the ustr spelling out what's the proposed duty on $200 million worth of products imported to china. apple saying the proposed tariff lifts covers a wide range of apple products including apple watch and homepod, and the mac mini and apple pencil and cables and charges. apple telling the ustr and it increased the cost of the u.s. operations and disadvantaged the company compared to foreign competitors and apple saying it is difficult to see how tariffs that hurt u.s. companies and u.s. consumers will advance the government's objective with respect to china's

musk misled investors. it wants to bar musk from serving on the company. the top executive. he is the brains behind the operation. not only is he the public face, but analysts tie tesla's market value to investors belief in him as a genius and innovate or. shares fell --innovator. sharing fell 17%. tesla's board says it is fully confident in musk. going private fiasco is one of several causing several to question him. remember the live broadcast? he took a quick hit. he says he doesn't really partake. it is not good for ambition. >> he knew what he was doing. >> he called a british cave diver involved in the thai soccer rescue a pedophile. shareholders do not like that behavior. >> a bumpy ride. >>> a tragic end for the missing boy with autism. a body discovered in the creek on thursday is believed to be maddox ritch. he took off running last saturday on a walk with his father at a park in gastonia, north carolina. search crew found the body about a mile from the park. the local police chief says the community is heart broken. fbi investigators will try to determine the caus

tesla is absolutely elon musk., he's driven his incredible space business forward when people said it wouldn't work, he has guided tesla to a dominant position in electric cars, it is hard to imagine it without him although the board would be wise to find some adult supervision, find somebody who can take the reins and say, be careful. a twitter nanny! i think rory should do it! he would keep elon in line, definitely! let's move on. time is running out to save the north american free trade agreement. president trump famously called it the ‘worst deal in history‘ — blaming it for the loss of millions of us jobs and vowing to shake it up. he has already got mexico to agree to new terms. but there‘s been little progress with the third partner, canada — amid reports he refused to meet prime ministerjustin trudeau for talks this week. let‘s look at some of the big sticking points. canada imposes import taxes or tariffs of between 200% and 300% on foreign milk products and president trump says this isjust too high. he ha

musk is saying -- sec is saying musk fabricated these claims. the penalties are pretty steep. >> we are talking about fines that could be levied against him. we are talking about the potential ban from serving as a officer of the company, removal of his influence over tesla. big applications for the stock, big implications for the director of the company. what is telling is how quickly they brought it. it turned around very quickly, which gives one the impression that the sec thinks it has an open and shut case. usually these things take a long time, but they honed in on a specific set of tweets, things that elon musk and others at tesla said about the company, and the impact on the stock. it happened over a short period of time, really a few words he uttered, and whether he had the justification for saying them. it is an interesting case. the sec makes the case that he, one, either had no justification for saying what he did, or if he did, he should have known that the information he had was not enough to justify saying that funding was secured

musk he has settle.ecutives, they give him a chance to settle before they announce. he has refused to settle and this is pretty close to an open and shut case. his funding was not secured and he really has no grounds for disagreeing with the sec that his statement was materially false. and because the sec is not willing to settle, i suspect this is the reason, they are asking the court to prohibit him from serving as an officer or director of any public company, and that would include tesla. that is the real shocker here. , it's notost musk clear there is anyone else who could run this company. this is a real threat to shareholders. a tesla without musk is going to trade at a much lower value. whether he has taken his first step toward settling. tom: explained to us who matters on the board. that silicon valley, venture capital, all of us migrate to the name murdoch james murdoch, rupert murdoch's son. but who does john coffee pay attention to on the tesla board? it could be murdoch or it could be someon

elon musk is forced to pay millions in fines and stepped down as the company chairman u.s. regulators have charged the billionaire with braun saying he duped investors with misleading claims about the company. and to leapfrog buyers munich to go to the top of the polluters legal recovering from two goals down against labor who isn't to seal a thrilling comeback victory. i'm carl kasell and welcome to the program we start with some breaking news the death toll from a major earthquake that triggered a tsunami on the indonesian island of sue the way sea has risen to more than eight hundred the country's vice president warns the number could soar into the thousands large parts of the city of new we have been reduced to rubble rescue workers are now scrambling to reach trap survivors as hospitals struggle to cope with the injured with power and communication networks down there still little news on the numbers of dead and more remote areas. correspondent. is here for us he's in jakarta he joins us with more on this story max the death toll is rising rapidly so far the confirmed

this is the message elon musk tweeted toto 22 million followes last month.nd here is the response of u.s. regulators who have charged him with fraud. >> mosque's statements misled members of the investing public to believe it was virtually certain he could take tesla private at a price of $420 per share, which was a substantial premium over the share price at that time, because funding for this transaction had been secured, and the only contingency remaining was a shareholder vote. the market reacted to this information at the tesla stock price weekly traded up. we allege musk's statements were false and misleading because they lacked any basis in fact. reporter: on the day of musk's tweet last month, tesla shares shot up, forcing nasdaq to suspend trading for an hour and a half. that caused huge losses for short-sellers, investors who buy a company stock hoping that it will fall. tesla called the allegations of fraud unjustified, and said he had always taken action in the interest of his investors. tesla shares fell nearly 12% after news of the fraud charge

they're too cozy to elon musk. it was that comment, several others during the interview, where you got the feeling kimbal musk is like, my brother is a good guy and trying to do well by the company we're really not going to talk about that it wasn't surprising i watched the interview and thought it's kind of what i would expect there this is what critics have talked about, there's not a strong board, a strong, independent board that is saying, hey, governance is first and foremost and that means when we have to be tighter on elon musk or on his actions or on how he runs this company, we will be tighter. >> let's bring in somebody who has become quite the critic of elon musk, his behavior, and things that have gone on at tesla. the former analyst, gene munster. what do you make of this that there is a criminal probe into tesla over these tweets? >> i first think that we need to take a step back and look at the big picture here this probably was anticipated because they run side-by-side. i'm not surprised to hear it,

no, i said musk is tesla.nk this is a situation where he is a great visionary, of the downfall or demise any great visionary has always been a go and arrogance. i think he is showing today that he has both. heard from ross gerber, and he said he would prefer a settlement. what a settlement bring about a better outcome for the company overall? of course, but i think missing the bigger picture. the ability not be able to generate an operating profit. you have this massive amount of debt. as i talked to a before -- to you before about this situation, in terms of raising capital or equity has been there because of muska division. i think that game has changed, and that is the problem. it is not so much the sec, it is the fact that this company has and allte as a concern, of these distractions at to that end at a higher cost of capital. we have thousands of model threes set to work their way to customers this weekend. with the performance of the company picking up words be enough for them to be able to raise capita

in fact, elon musk didn't actually have the money.t, he elon musk didn't actually have the money. in fact, he hadn't even got around to asking any investors to put up the cash, and saying you have funding when you don't, well, according to be sec, that is the definition of fraud. —— the sec. as nobody gets away with that, even charismatic space explorers. neither celebrity status nor a reputation as a technological innovator is an exemption from the law. for his part, elon musk is called the lawsuit unjustified and said it left him deeply saddened and disappointed. but elon musk‘s credibility with investors is increasingly wearing them, especially after he smoked marijuana ona especially after he smoked marijuana on a radio show and provoked a libel suit after sending emails to a journalist accusing a british cave diver of any child rapist. not to mention the fact that has let itself has been struggling to hit its production targets. when you add in a lawsuit from america's financial regulator, well, it is enough to make even mr musk‘

at the time he made the statements musk had not secured funding. to the contrary, we along that he had not even discussed key deal terms including price with any potential source of funding. >> reporter: as for the go private share price of 420? >> we along that musk had arrived at the price of 420 by assuming a 0% premium of what tesla's then existing share price, and then rounding up to $420 because of the significance of that number in marijuana culture and his belief that his girlfriend would be amused by it. >> i thought that tweet wons usual and probably not a good idea. we don't expect to get our formal communications from the leaders of companies through twitter. >> reporter: she is an ethics expert. with the s.e.c. now seek an injunction to block elon musk from becoming a director or executive of any other company, she says they're sending a strong message. >> there's an attempt to reset a standard of behavior and a norm that we have seen previously but maybe has been eroded by ceos using social media. >> reporter: so the big question, wil

losing musk could be a top blow.0 billion market value and belief in him. tesla shares fell 12% overnight. musk is speaking out. he calls the s.e.c. action unjustified and saddened and disappointed. integrity is the most important value in my life and the facts will show that i never compromised. the board of tesla is backing musk. this is one of several actions much musk questioning -- actions of musk questioning his leadership. he had a podcast and smoked marijuana on the live broadcast and the samurai sword and he called the british cave diver involved in the thai cave rescue a pedophile. some say he is stretched too thin. he has spacex as well. some think he should have a chief operating officer. >>> a tragic end for the search for the missing 6-year-old boy with autism. the body found in the creek is believed to be maddox ritch. he took off running with his father at the park in gastonia, north carolina. the body was found a mile from the park. the community is heart broken. the investigators will try to determi

joining us now to talk about all things elon musk is tim higgins. a reporter with "the wall street journal." first of all, tim, elon musk dealing with a defamation lawsuit, and then this big financial investment. >> it has been tough times for elon musk, and this was going to be a key part of the plan to the private. this would be the plan that he unveiled on twitter and 17 days later said nevermind. and, that fund has really shown signs that it wants to get more and more into electric cars. >> what do you think, though, that tweet, taking the company private, mentioning that funding was going to be secured by the saudi's. what role do you see that playing in their decision to take the company private? >> we saw that there was unhappiness in some of the statements during the time in saudi arabia. but it was very clear that they had been kicking the tires if you will on the electric car company. lucid was a very interesting one. there are several chinese backed electric car startups in california. and this one is particularly close with observers. be

t e b thatt musk's most loyal fans are not as concerned. joel wyrek has owned two model s's and sees the pot smoking as just one of musk's eccentricness and it's just who he is. >> you've got a guy who is inventing flame throwers and selling them and let's dig a hole with his boring machine. he's so out there with his creativity compared to yourself and myself you've got to let those guys go. they're in a different world. i'm okay with that. >> reporter: the air force is looking into this incident because musk has security clearance and one of the terms is to avoid the use of marijuana. it could end up costing musk some very valuable contracts. in fremont, len ramirez, kpix5. >>> nike sales are spiking tonight following the release of its controversial colin kaepernick campaign. according to research firm edison trends, nike's online sales rose by 31% immediately after the ad was unveiled. industry experts say this is proof that the campaign is a hit with the company's core customers who tend to be younger and more diverse than people who a

elon musk is caught on camera smoking pot on a podcast. kpix5's len ramirez is live at the tesla factory in fremont with the latest in a series of strange headlines involving the ceo of len? >> reporter: that's right, elizabeth. a lot of people are shaking their heads about this. musk is known as a maverick, but he's all the figurehead and face of the company behind me, a lot of employees and shareholders depending on him. many wonder now not so much what he's smoking, but why he's doing it. >> it's tobacco and marijuana in there. it's all it is. >> reporter: by the time the smoke cleared on elon musk's now famous pot smoking interview tesla's stock was plunging and two more key executives were leaving the company. >> alcohol is a drug. it's been grandfathered in. >> it's a killer. perception is everything. >> reporter: san jose state lucas college of business professor dr. howard comb said this picture will compete with the image of musk as an innovator and visionary in the eyes of the public and on wall street from now on. >> if people p

it could end up costing musk some very valuable contracts. in fremont, len ramirez, kpix5. >>> nike sales are spiking tonight following the release of its controversial colin kaepernick campaign. according to research firm edison trends, nike's online sales rose by 31% immediately after the ad was unveiled. industry experts say this is proof that the campaign is a hit with the company's core customers who tend to be younger and more diverse than people who are protesting the ad. >>> expect delays in the bay bridge tomorrow around lunchtime. caltrans is getting ready to implode the last two remaining piers on the old eastern span. the chp will conduct rolling closures on the bridge between 11 a.m. and 1 p.m. the pedestrian and bike paths on the bridge are already closed. >>> here's a previous look at the implosions of the bridge. caltrans has a multi-step process in order to have a minimal impact on surrounding wildlife. >>> bay area commuters will soon be able to reload their clipper cards right from their smartphones. this is part of a nearl

founder elon musk. >> the press conference due to start. and melissa lee will continue the coverage of tesla, the s.e.c.'s news conference which as we said starts soon melissa over to you. >> thanks guys so much to cover "fast money" starts right now. marilyn story breaking just the last few minutes s.e.c. sues tesla ceo elon musk for fraud. check out the stock, down by 10.25% in the after hours session. you are looking at a live shock shot the s.e.c. about to hold a news conference in washington, d.c. we bring it live as soon as that gets started meantime we have coverage around david faber and phil le poe at a tesla dealership in california david let's start off with you. >> thank you, melissa. let's set the scene for people at this point so they can understand where we are. about an hour ago we got the news the s.e.c. was charging elon musk with fraud, misleading statements, false statements that led to a move in tesla's stock price that they describe at least was for the before of perhaps defeats short sellers

suing elon musk for fraud over his going private tweet. tyler. >> melissa, the senate judiciary committee expected to vote any minute now on the nomination of brett kavanaugh. ylan muy is on capitol hill waiting for the vote. >> that vote was supposed to begin about three minutes ago now but there are still several empty chairs in the committee room you can see some senators have been huddling together in small groups whisper being to each other, talking on the cell phone because the margin of error for republicans is so small. there are two republican senators who remain decided lisa murkowski and susan collins of maine and two exactic senators undecided weighing whether to cross the aisle and vote for brett kavanaugh. the senators are heidi heitkamp and joe man shun there is also speculation that perhaps jeff flake who it had come out in support perhaps his vote is not solid. so a lot of back room dealing here, a lot of conversations going on, tyler and no vote just yet. the words of senator john kennedy may be the best to describe this

of fraud it says musk. president visits germany at a tricky political time as well as economic but german turkish business relations are on track. and hold. an extreme drought in australia a shortage of wool pushing up prices. and let's do business u.s. regulators have accused tesla c.e.o. elon musk of securities fraud in a complaint filed in manhattan federal court the f.c.c. said musk knew or was reckless in not knowing that he was misleading investors in a series of tweets last month musk told his more than twenty two million twitter followers that he would take private at four hundred twenty dollars a share and that funding had been secured tesla shares surged. when the plans fizzled musk is one of the highest profile executives accused by the f.c.c. it also seeks to bar him from running public companies which would include is more from. the chargers a big blow. to the company at this point of thought. shareholders will be very difficult. to keep his job as chief executive for a lot of investors on wall

filing against elon musk. we'll debate it and see.was formerly on the fbi's most wanted list for hacking and now he's helping companies fight back against the rise of hackers so what advice does he have? and former cleveland browns player joe thomas, the future of the league, colin kaepernick and his new venture off the field. that and much more coming up on "power lunch." i hope you're hungry - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account to

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more on the sec going after elon musk.loomberg. ♪ caroline: live from the world headquarters in new york, i am caroline hyde. of how theapshot u.s. stocks closed today. we are flat on the quarter. joe: the question is, "what'd you miss?" caroline: facebook takes a turn for the worse. they discovered a certain -- security breach that hit nearly 50 million account. there is of a euro crisis, italian assets come under pressure after a budget deficit target was set to threatens financial stability. sec is going after elon musk for his tweet about having funding to take the company private. must also called a stir in may with a bizarre call taunting wall street analysts in favor of different questionnaires. >> we will go to youtube. these questions are so dry. it's something we will solve within a month. next. if people are concerned, they should not by our stock. i'm not here to convince you to buy our stock. are you guys going to let porsche be due to market with their supercharger? >> ask questions that are not boring. carol

moving on to business insider, and elon musk. should elon musk be given a chance on this? been talking about this decision by the securities and exchange commission, the equivalent of the financial conduct authority, and the decision to sue the boss of tesla on charges he made these misleading statements in tweets. we talked about how damaging it is to the company, the shares have tumbled, but how damaging is it for elon musk personally? he has to acquit himself with the sec and come up with an absolutely bone a fight reason for why he was let down and why there was a change of mind —— bona fide. when he says there was a possibility of someone from saudi arabia coming in at... but he hadn't. i know, but he should have stepped up to the plate afterwards and said this was my idea, but it is not going to happen, but he didn't. to be fair, there was a statement released a few weeks later, tesla announced it would not go private, and a friday night press release, as we were talking, timing is everything, elon musk explained that funding for the deal had not in fact been secured

tesla ceo elon musk hiring a high-powered attorney after musk was sued by the sec, alleging musk misledwho are he tweeted he secured funding to take tesla private. he hasn't. tesla lost $15 billion in market value about, a quarter of market cap since that facebook tweet that elon musk sent out in august. let's bring in ltm wealth portfolio manager and jonass max ferris. does musk stay or go? >> he's fighting it. he's going to stay in some capacity. it might not be officially an officer or directoror executive of his own company. i don't know what to say. this is the most amazing story in business all we're. if not the decade. because it captures so much craziness in the world of technology. and the geniuses running companies and live in the world, like celebrities where they have 20 million twitter followers. executives who used to run general motors didn't have fans like this. liz: you wouldn't see lee iacocca tweeting out. >> no. it goes their heads and corrupts them. ultimately they were genius nerds and they have fans and want to be cool, and they're making weed jokes and hanging ou

musk and host joe rogan smoking pot together.his episode, tesla's stock fell by 6% by the end of the day. it's the latest episode in a string of incidents that has some questioning whether the tech mogul can keep this up. dan simon is "outfront." circumstances that a joint? >> reporter: he is one of the world's most successful ceos, with a net worth estimated at more than $20 billion. so when elon musk started smoking a joint on comedian joe rogan's podcast, people noticed. >> probably can't because of stockholders, right? >> i mean, it's legal, right? totally legal. >> okay. >> how does that work? do people get upset at you if you do certain things? it's tobacco and marijuana in there. that's all it is. >> reporter: it's just the latest bizarre incident for the high profile ceo of tesla and spacex. he's had a couple of turbulent months. >> alcohol is a drug. it's been grandfathered in. >> reporter: on the same day the podcast was published, tesla's chief accounting officer announced his resignation. he did not cite the incident.

phil lebeau h more on the legal side facing musk and his company. >> reporter: elon musk finds himself in a fight with the s.e.c. that could cost him had his job runni >> the securities exchange accuses musk of making false anl ding statements when we o he tweeted about taking tesla private with funding secured. he never had a deal locked up. >> we allege that musk statements were false and misleading because any lacked any basis in fact. >> musk calls the charge unjustified andays he is always acted in the best interests of investo. now knows investors are wondering about musk's future. since he reportedly balked at a settlement with the s.e.c. that would have allowed him to stay on as ceo. with that deal dead, the s.e.c. wants to ban musk from running any publicly traded company. >> if the s.e.c. is willing to agree to something less, the case is probably resolvable. but if he walked away from that youre probabl right he might not be willing to agree to anything reasonable. >> for ilts part the board of directors including musk's brother says it supports the embattled ceo. >> this pu

gordon: it had to be musk. the board came out yesterday, shockingly to us, that he had the full support of the board and had high credibility. and he just accused the cave a -- of being a pedo, then vonnie: let's have a look at the on on bloomberg-- at ddif the bloomberg. if you on musk is removed , can tesla achieve the evaluation that it has now? up production. people are getting those cars and we want -- and they want those cars. if there is a restructuring under chapter 11 andook, they produce cars don't make money producing those cars. there's a lot of accounting shenanigans being pulled, ask yourself this. as a car company, do you want to buy another car company that produces cars that lose money? navigate consulting, who we respect quite a bit, put them at in bottom of the heap ranking their technology versus others. i don't think there's anyone willing to step in and take this over. when elon musk is removed and people really see the books, why are they not allowing somebody to come do that? stock tradi

elon musk forced to pay millions in fines and stepped down as company's chairman u.s. regulators charge the billionaire with fraud saying he misled investors with tweets about the company. i'm carl aspen welcome to the program we start with some breaking news the death toll from a major earthquake that triggered a tsunami on the indonesian island of sue the way sea has risen to more than eight hundred the country's vice president warns the number could soar into the thousands large parts of the city of do have been reduced to rubble rescue workers are now scrambling to reach trapped survivors as hospitals struggle to cope with. injured with power and communication networks down there still little news on the numbers of dead in more remote areas. we welcome correspondent max walden in jakarta for more on this story max we heard the death toll rising rapidly so far those confirmed deaths there all in the city of palooka what we know about other affected areas. yes today there was an update from the disaster management agency and it still seems that very little pretty fro

they want to bar musk as serving as a director of a company. musk calls it unjustified.has expanded pharmacy business, united house has company. buy a bloomberg has learned that united health will pay the billionequity firm $2.5 . kkr and blackstone are among potential buyers for extracting in anressing and it interest investment that could total $3 billion. that is your "bloomberg business flash." david: it has been 10 years since the financial crisis and many agree it is more secure now than before. wall street's biggest names way in and this is what they had to say. >> we probably have another 18 to 24 months minimum in the cycle just on the back of the adrenaline rush from trump's policies. >> from the u.s. economy perspective, the chances of something happening in the next 12 to 18 months is low. we have 15% to 20% as you get , and the months chances go up materially. >> despite the rally, the market is pricing in more risk david:. . is johnoining us rogers. you saw the last one and it was not pretty. give us a short synopsis of where we were and how it got to where

dana: the board supports elon musk.who thinks otherwise does not understand who this board is. the board is made up of close friends and venture capitalists. this idea that there's some kind of corporate governance of foot, it is not really happening. unless large shareholders start pressuring the why, this board will not move on him during they have made their support heard very clear in your list statements. he has the support of the board. he seems to have support of investors for the most part. is there something that changes if there is criminal liability here somewhere? we have to cross that bridge when we come to it. if he is wrought on criminal charges, i would imagine that would be a big concern to investors. but we are not at that point. it is speculative to say anything otherwise. julie: in the meantime, where are we on production. there have been some recent reports that production was ramping up successfully for tesla. what have you been hearing? dana: i think they will have a pretty strong quarter. audi un

elon musk waselon musk was unco. he did not let an accountant say it was too expensive and make cool electric cars. that is why his friend is so powerful. to get manufacturing going -- that is why his brand is so powerful. to get manufacturing going, he has to get a real manufacturing executive and a coo who holds that person accountable. elon is not a manufacturing guy. romaine: aren't there other cool electric cars coming to market? we saw jaguar, audi, mercedes-benz. -- those carsnt are coming out and that is why this is an inflection point. elon has debt due by the end of 2019. $1.8 billion that has to be paid. he has vehicles he wants to make that will cost money. if he does not generate serious positive cash flow he will have to raise money. and yes competition coming in from german carmakers who have pretty good brands when it comes to selling cars with people -- to people with a lot of money. up andto get production he has real competition. this is when he has to operate. he has to get this company going . st

but nothing surprises us when it comes to elon musk anymore. maria: are we going to show you the podcast and show you how it all went down on podcast coming up. we have senate judiciary committee member, texas senator ted cruz joining us this morning and talk about kavanaugh hearings yesterday which don't let me begin. [laughter] maria: former speaker to have house newt gringrich is here and ceo of craft heinz. we will got right into it. it is job's day, estimates are calling for jobs added to the economy in the month of august, 191,000 jobs with tun employment rate kicking down to 3.8%, those are the expectations, this comes after president trump touted the strong economy at campaign rally last night in montana. >> this is an incredible time for our nation, we have the best economy in history, the stock market is at record highs, unemployment is at historic lows and more americans are working today than ever, ever, ever before. [cheers and applause] >> we have new deals being made, we have a deal we just made with mÉxico, that's a fair deal, i

what will help is profitability and musk says the future quarter looks bright.h. dan simon, cnn, san francisco. >> it is interesting because musk represents a brand, right? he is a visionary, he inspires so many people. but when people are investing their money into a company, they want to know that the stability is there. and i think that what he is finding is that you can't square the circle by doing one thing with another. >> you can only work 100 hours a week for so long. >> yeah, before that grinds on you. >>> coming up here, it is probably one of the most cindy lating mysteries of this week, who in the white house wrote this op-ed in the "new york times." we're just as curious as you. and we'll take a look coming next. oh! oh! ♪ ozempic®! ♪ (vo) people with type 2 diabetes are excited about the potential of once-weekly ozempic®. in a study with ozempic®, a majority of adults lowered their blood sugar and reached an a1c of less than seven and maintained it. oh! under seven? (vo) and you may lose weight. in the same one-year study, adults lost on average up

buzzfeed says musk did not provide proof of the claims.ly planning to sue. >> dan simon, thank you so much for that. now, in a companywide e-mail yesterday, musk wrote, "we are about to have the most amazing quarter in our history. for a while, there will be a lot of fuss and noise in the media. just ignore them. results are what matter." >>> well, registering to vote and presenting i.d. when you're ready to cast a ballot sounds simple, but for a lot of people, this is more complicated than they expected and more complicated than you might expect. >>> professor, litigator, role model, dissenter. of course, we're talking about supreme court justice ruth bader ginsburg. she's earned those titles during her groundbreaking career and now the new cnn original film "rbg" takes an intimate look at the personal and professional life of the justice. >> fought very hard to keep women out. i had an alumni walk up to me, and he says, i'm not going to shake your hand. i want to know why you're here and why you decided to ruin my school. >> i know that

hermela, this all started with a tweet musk sent out this summer... elon musk will no longer respresent tesla shareholders...on saturday.. the ceo quit his job as chairman of the board of directors... as part of a settlement with the securities and exchange commission.in a lawsuit filed thursday... the sec says.. musk grossly mislead shareholders in an august 7th tweetsteven peikin/co-director of the secs enforcement divisionmusk's tweets were false and misleading. in the tweet.. musk said this.. "am considering taking tesla private at 420-dollars. funding secured."tesla has been publically traded since 2010...going private means current shareholders would have a chance to sell their stocks at a higher price..the sec says.. that tweet drove up stock prices.steven peikin/co- director of the secs enforcement divisionat the end of the trading day on august 7th, tesla stock closed at $379 per share, up more than 6% from its price just prior to the initial tweet.the sec lawusit alleges that musk lied to shareholders..because according to the commission.. t