let's check back in with cnbc's phil lebeau one last time. . >> melissa just a few minutes ago the cfo of tesla, deepak was asked about whether or not the company still expects to be free cash flow positive in the fourth quarter, which is the previous guidance and he said it may happen by the end of the quarter but the full quarter we may not be flee cash flow positive. certainly they expect to be there in the first quarter. so that's a slight pushout in that area. and just a minute ago j.b. straubl, who is the chief technical officer, was asked about demand for the power wall and he said they're surprised that they're seeing as much interest and demand on the commercial, the residential side as they are seeing. they thought it would be almost exclusively with utilities. and on the industrial side. but they are seeing greater demand than expected on the commercial side. still another half hour to go on this call. we're going to hop back on to it. >> phil lebeau thanks so much for your reporting tonight. it seems like they're slowly pushing out

phil lebeau has the story tonight from indiana. >> reporter: it's a sign of how far the auto industry has come in america. the mercedes-benz r class now off an assembly line in south bend, indiana, in a plant that once cranked out the hummer. >> we're not just focused on the class, the hummer and h2. we're looking at the front windshield, not the rear-view drive. >> reporter: it's built here because the mercedes plant in alabama, which has long been a hub for suv production is long running out of capacity and with the demand running high thanks to low gas prices, mercedes turned the to the old hummer plant for help. >> we're ready to get back to the plant. we love to work here and love how this facility is. we were excited for it. >> reporter: fact is, many auto plants in the u.s. are close to capacity as the industry moves fast to keep up with strong sales. not only in america but around the world. >> the peak hasn't been reached yet. we're seeing average age of the vehicle is well over 11 year ons t the road. >> reporter: made in the u.s. headed for china from a plant humming with a

phil lebeau, "nightly business report," charleston, south carolina. >>> the high-end retailer neiman marcus filed for an offering of up to $100 million but that amount is a placeholder and likely to change. this would be the company's return to the marketplace after being taken private in 2005. >>> coach beats estimates but there's more to the report than meets the eye and that's where we begin with the market focus. the company was helped by the acquisition of the luxury shoe brand but this is the eighth straight quarter of falling sales for the company's purses and accessories. shares of coach ended the day at $31.41, a gain of 3%. meanwhile, beezer homes missed revenue forecast. closings rose in the most recent quarter but shares tumbled 6%. and swinging to a profit in the latest quarter, lower costs offset a decline in revenue despite weaker print ad sales and negative currency impacts. shares up 2.5% to $22.43. >>> zillow saw its shares zoom higher after posting bottom line results better than expected. the company's revenue also grew and topped forecasts. shares rose initially

phil lebeau reports from south carolina a state leading the way in manufacturing job growth. >> reporter: from boeing's assembly line in charleston to the plant in columbia south carolina has become a hub for manufacturing. >> nationally 12% of the gdp of our country is manufacturing. south carolina is now up to 18%. something really really special is happening. >> reporter: what's happening is a result of an intense push by south carolina leaders to attract aerospace and auto manufacturing jobs. helping push down the state's unemployment rate. recently volvo picked south carolina over mexico for an assembly plant that will employee 2,000 people. governor nikki haley says convincing companies not to build south of the border means offering them a better option. >> the way we can step up is certainly costs you can go so far but we can step up on our training with our workforce and we can step up with the business environment and how we proceed going forward. >> reporter: a big reason why made in south carolina has become so popular is because manufacturers like bmw can ship their products

phil lebeau has the latest details. >> hold on to your seats. the performance version of tesla's model "s" has made history. doing so well in consumer reports testing it went off the charts. >> so it really kind of blew up our system really. it scored actually above 100 before we actually had to make some changes to our scoring system to account for this car. it really does everything better. something we aren't used to seeing from carsar at all. >> what's improved with the model "s" p 85 d? it accelerates much faster, it has better handling and is more efficient according to consumer reports. tesla ceo elon musk, the praise validates his vision of building an electric car that also delivers great performance. the company says the model "s" being the first car to receive 100 out of 100 points is truly a testament to a commitment to continually giving our customers enhancements in range, performance and value. and ultimately a better driving and ownership experience. an experience that comes at a hefty price. the model "s" sells well over $100,00

>> phil lebeau breaks down the if you remember for us.uess you'll tell us just how accurate that is. >> it is accurate, especially when you look at the non-gap income, or loss, for the second for tesla. add up the numbers and this is how you get to a loss of a little more than $4,000 per vehicle. when you look at the number of vehicles that were delivered in the second quarter, 11,532, you take into account the non-gap loss of $47.8 million -- and we won't get into the debate about gap versus non-gap -- comes out to a loss of about $4,144 per people. but look how the numbers have kaslated wildly over the second quarter over the last couple of years. $4,144 this year. last year, it was a little over $2,100. here's the chart that concerns investors with tesla. it's the free cash flow and how quickly tesla is burning through cash. elon musk said we've still got over $1.1 billion in cash and if we need to raise equity, we can do that although they haven't committed to that at this point. but it's that trend. the trajectory all the way down to

phil lebeau is in denver. phil? >> a good reason to be skeptical.a grain of salt i will deliver after giving you the good news this is the july cpi data when it comes to airfares domestic airfares in the united states down 5.6% last month. that is the steepest monthly decline in airfares as measured by the cpi. in 20 years. and you might be saying to yourself. what gives, what's driving all of this? it is the ripple effect of low jet fuel prices and as you take a look at shares of the major airlines, united, delta, american, southwest. keep in mind they're all benefitting from lower jet fuel prices, meaning that they can be more competitive with low-cost carriers. now for the grain of salt. the cpi measures the prices in reservation systems. prices in reservation systems. it does not calculate baggage fees, reservation change fees, how much you will ultimately pay for many customers. many travelers, so yes, this is good news, keep in mind this is not a measurement of what a lot of people are doing when they're actually flying, because they are payin

phil lebeau is in chicago with this story. >> within the last half-hour the associated press is out with a report. they have gotten a copy of a 2011 study that they say was commissioned by the f p.aa and by study -- people running the studies at nasa basically looking at air traffic control fatigue in the 2011 study. they surveyed 3,268 controllers. they say that the average sleep per day for those controllers is 5.8 hours. but for some on certain shifts, it was just 3.25 hours. here's the scary conclusion in this report, according to the associated press. 1 in 5 controllers committed what they call significant errors during their shift. over half of the controllers blamed those errors on fatigue. we have reached out to the faa for a comment on this report. we have not heard anything. but again, that's scary stuff, guys, in terms of what was reported in this survey in 2011 of air traffic controllers. >> have those errors led to any in-air or on the ground incidents that we know of? >> not according to the report by the faa. there were some that they talk about that might have been some q

phil lebeau is live in chicago with details.y managed to get the door open this time, huh? >> they did. a few months ago that consumer reports said we're having problems getting into our model sp 85 d and the tesla haters said aha, they're having problems with their p-85 d. not too many ratings, look at the rating they've given that car, a 100, mainly because the dual motors means greater performance and it means greater efficiency. here's jake fisher with "consumer reports" explaining why this car is so impressive. >> it really does almost everything better and it's something we all right used to seeing from cars at all. it's more like something you see in electronics. so it really kind of blew up our system, really. it scored actually above 100 before we actually had to make some changes to our scoring system to account for this car. >> actually scored 103 and then they had to modify the calculations. tesla when we notified them about this said the model s being the first car to receive 100 out of 100 points is a testament to

cnbc's phil lebeau's got the details. phil. >> melissa, the july cpi data came out and a lot of people who looked at the airfare data and said whoa, a decline of 5.6%, that is the steepest monthly decline in the cpi data when it looks at airfare in 20 years. part of the reason? the ripple effect from low jet fuel prices. the cpi data is collected from the fares posted on sabre and other reservation systems. and you have the major carriers becoming much more aggressive saying we can afford to be a little more competitive with some of the low-cost carriers, therefore they're dropping their fares just a little bit. but one thing to keep in mind as you look at these stocks, melissa, the cpi data is only on the reservation fares on those systems. it does not calculate baggage fees, reservation change fees, ancillary revenue. if you calculate that in, it's a far different equation. airfares alone, yes, they are dropping. but overall revenue for the airlines continues to go up because of ancillary fees. >> i think a lot of people

phil lebeau live in indiana with that. en the report card for june on-time arrivals for the airline industry. and as usual, hawaii leads the list with an on-time performance of greater than 90% of its flights landing on time followed by alaska, delta, virgin america, jetblue, the remainder of those all above 80%. but what's really interesting is when you look at those at the bottom of the list. look who did the worst in june. spirit. and it's not that spirit was at the bottom. it's the percentage of flights that were on time. just 49% of its flights on time in june. united 66%. frontier 67%. envoy and express jet, they round out the bottom five. the industry average, by the way, in june, 74% of the flights on time. just two tarmac delays of more than two hours and no delays of greater than four hours. guys, back to you. >> thank you very much, phil lebeau. when we come back, why youtube could be the biggest winner in google's massive restructuring. top vc roger mcnamara's going to weigh in. plus shares of apple down this mo

so we're going behind the wheel -- behind the disconnect, excuse me, with cnbc's phil lebeau. what's the story here? >> basically what you're looking at here, melissa is a lost investors look at sales numbers and say that's great but it's not helping me in terms of what i see for a future investment. which is ironic. when you look at these numbers, fafrn fantastic across the board in the month of july. all but 1% better than expected. in terms of what people buy when they go into the showroom it's the suvs, the pickups, the crossovers and the average transaction price of just under 33 five is up 2% compared to last year. and many believe it is likely to continue to go higher over the next couple of months. having said that and having looked at the sales that we've seen so far this year and the fact we are now for the first time since 2000 stringing together three straight months with a sales base of greater than 17 million, you might be sighing wow, is this the time to invest in one of the auto makers? well, these stocks have done nothing. you've talked about this at some lengt

where is phil lebeau, on the shop floor. hi, phil. >> hi, tyler. they are actually expanding production of vehicles that will be going over to china. these suvs behind me are coming off the old hummer line here and they will be shipped to china. interesting time to be sending vehicles over to china. we'll look at the business model that mercedes is employeeing, when "power lunch" returns. llo. i am a fully automated investment advisory service. i can help you choose investments. monitor them. and rebalance your portfolio. i can do a lot of what humans can. except have a real conversation. if you'd like that, you can always speak to someone at schwab. they aren't algorithms. try not to hold it against them. say hello at intelligent.schwab.com my name is jamir dixon and i'm a locafor pg&e.rk fieldman most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you'

well, let's our phil lebeau for more. us from the indiana plant, exporting mercedes over to china. what do you make of this, phil? >> it's interesting for the automakers, especially when you look at china. july sales down 6.6%. it is the third time in the last four months that we've seen sales drop in china and year-to-date by the way, they're uhl only fractionally. a lot of people are looking at china and saying will the demand continue that we've seen in the past? one type of vehicle that's still popular there and is still in demand, the suv. mercedes has a big business over there. its sales globally of suvs up 17% this year. and when you look at the china demand for suvs up 47% for all automakers this year, that demand along with the ability to, perhaps, free up capacity at its plants down in alabama is why mercedes has contracted with a.m. general here in south benned to build the r class on the old hummer line. it will be sold only in china. about 10,000 r class vehicles built here will be shipped over to china. it i

great stuff all day from phil lebeau in denver.oil in the market tomorrow and what should investors expect from another big batch of earnings including hewlett-packard, salesforce.com? we'll get those right here on "closing bell." stay tuned. we're back in a moment. visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most. >>> market seeing some big swings today. what should investors look out for? tomorrow let's ask the panel here. we have earnings. we have the fed minutes we're still digesting. obviously we're going to be watching crude. carol, what are you watching? >> i think not just tomorrow but in the coming days and weeks one of the things i'm watching that guy and michael sort avenue lewded to at the top of the show is the momentum names versus some of the higher dividend yield, more boring kinds of stocks tha

phil lebeau will be on that call. what went wrong. what can we expect to hear, phil?ay long. this is all about the guidance for the third quarter and for full-year production and the numberth

she talked to phil lebeau about bringing companies into her state.his break. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? today. let's see where the real action is. >> good morning, carl. we're watching a smaller cap stock. lum nicks up. biotech doing well across the board. the nasdaq up about 1% today. strength there. luminix up. netflix, keeping an eye on that stock. up by about 4 % in the early trade. again, netflix shares showing a bit of strength here in the early part of the session. >> thank you very much. president obama is hosting the first ever white house demo day. entrepreneurs will showcase their successful projects. kate rogers is live at the white house. she has that story for us. >> reporter: good morning. as

our phil lebeau, as well. i'll have more at the top of the next hour.ned. >> after this week's market volatility, investors are turning to look at next week. the focus could be on twitter. it holds a board meeting and topics will be finding a permanent ceo. julia boorstin with details next. >>> welcome back. a look now at where tech and social stocks finished up the week. facebook added 1 1/2%. twitter about the same amount after all was said and done. netflix and amazon fractionally lower. we're taking a look at twitter in particular because next week could be a big one for the company. julia boorstin joins us now with a preview. julia? >> well, kelly, twitter has a board meeting on thursday, and selecting a permanent ceo is sure to be a hot topic. those sources tell me it's unclear if there will be a vote on a new ceo. today twitter shares zig-zaged in and out of positive territory ending the day up nearly 1 1/2%. this after hitting an all-time low just $21 on monday. now, twitter shares have been under pressure as investors await the appointment of a

let's join phil lebeau on what to expect. >> these are going to be strong numbers for the month of julyn you look at what's driving it right now, this is truly a market -- i know we've talked about this about a market being in the sweet spot. but it really is an auto market in the sweet spot in north america. look at all the markets coming together to make it not only strong sales but profitable sales for automakers. you've got a very healthy economy. you've got a relatively low employment. and you've got low gas prices which is encouraging a lot of people when they're going in to buy a new vehicle, to not buy a small car. or even a car at all but to drive an suv. as you drive home that point listen to the stat that truecar is putting together. they have run the data for the month of july and for the first time ever in north america, trucar says that bmw sold more x-5 suvs than the 3 series. think about that the 3 series has long been the bread and butter in the u.s. they're saying in the month of july the x-5 has sold more. if that happens and most expect that to. what, this will be th

phil lebeau joins us live from chicago to break down the numbers. l, when gasoline prices are down, people will buy an suv. >> reporter: the general feeling is we want to ride high in america. they are expected to stay there. take a look at the four major automakers in the united states and by that we mean the four largest. all were better than expected between 1% and 3%. the key thing to keep in mind. crossovers, utilities and pickup trucks. that's why they did better in july. i want to talk about honda. we've talked about how the lineup was a little old, a little stale. they were lagging in terms of sales. it's starting to come around for honda now. they did better than expected with sales up. the crv, sales up 11.4%. people are willing to pay at least $33,000 for a new vehicle. kelly blue book says the average price under $33,500 up 2% compared to a year ago and if we look at fiat, ford and chrysler, we may see something today and we still might. all three of the big three stocks up more than 1% for the day. it's only happened seven times this yea

phil lebeau, these numbers are mind boggling.ld some of this borrowing come back to haunt the carmakers? >> i think people are always worried you'll have people taking on too much dote and taking out bigger loans than they can afford, though we should point out, we really aren't seeing that at this point. latest data shows that in the second quarter, there are $932 billion in open auto loans. that's an increase of $92 billion compared to the same quarter last year. dl dlen kw delinquencies are virtually unchanged. who's borrowing and what are they borrowing? subprime, deep subprime, those are the riskiest credit scores make up one-fifth of all of the open auto loans out there in terms of the dollar value. super prime, those with the best credit, also make up one-fifth. what you have in the middle is the rest of the market. bottom line, if you look at dealership stocks, people are worried that you're going to see too much borrowing by people who cannot afford their auto loans. but the delinquency rate is still well below the histo

phil lebeau in chicago. get yourself a pen or pencil. got not one, not two but 15 analyst upgrades to tell you about. those names ahead on "power lunch." >>> and we're keeping an eye on the energy market as we count you down to oil's close this tuesday. stick with us. you're watching cnbc, first in business worldwide. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any sympt

phil lebeau, thank you for that.et to our guest host this morning, talk a little more infrastructure with pulitzer prize winning columnist tom friedman. you're desperate for a better laguardia, too, right? you've got to be. >> you know, andrew, i took the train up yesterday. i mean, and you get off at penn station, and you try to get on those escalators -- >> i'd kill this. i was a new jersey transit commuter for years in new jersey. it's a disgrace. >> those escalators, i think they were invented before suitcases. because you squeeze your way off the train. >> it's when america was thinner, too. >> no, no. it's dangerous. i mean, new jersey transit and amtrak, they bring two trains in on the same platform. you've got 7,000 people trying to go up one staircase. god help us if there's a problem. it's a disgrace. you've been all over the world. i've traveled enough. america's a joke when it comes to infrastructure. i'm sorry you're hitting a hot button issue for me. if i dropped a piece of pizza on the floor in dubai a

. >> we're looking at some of the big biotech movers boosting the ibbt today and phil lebeau is live in charleston, south carolina, which is a growing hub for manufacturing. phil? >> reporter: brian, there are more than 7,500 workers at this boeing plant in north charleston and not a single one is a member of the machinist union and guess what? south carolina's governor says boeing is better because of that. we'll take a look at issue of right-to-work states, the growth of manufacturing jobs when "power lunch" returns. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second...boom, you had your first accident. now you have to make your first claim. so you talk to your insurance company and...boom, you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car, plus depreciation. call and for drivers with accident forgiveness, liberty m

thank you very much. >>> let's get to phil lebeau. he has a sector chip on the automobiles. >> like everybody else, they are under pressure today. take a look at general motors now trading under $30 a share, down 3% on the day. ford has generally been holding up relatively well relating to general motors and the other stocks over the last couple weeks. even it is down 2% today. tesla, a pure momentum stock in many ways, down 9% in the last two days, down almost 3% today z it trades at $236. the one stock up is fiat chrysler. this stock has defied conventional wisdom, down on up days, up on down days. that's the case today. fiat chrysler up a little more than 1%. >> the dow is still down 270 points. but i want you folks to watch the russell 2000. that is a big index of mostly small cap and nearly entirely domestic u.s. stocks. it is down but only .3%. the dow is down 1.7%. if you're talking about a global route and currency concerns, many investors may be looking to those companies which sell and buy only right here in the good old usa

let's get to phil lebeau live in chicago. i didn't think a perfect car was even possible, phil. >> i'm not going to get too caught in the weeds here. they are careful to say continuous a perfect car. but it is the only car they have ever given a 100 to. in fact, it broke their rating system when they were doing the test for. this is the tesla model s p-85d. that is the high-performance version of the model s. because it has dual motors it can do so much more. it got the highest score ever according to "consumer reports." greater performance because of those dual motors. and extremely efficient. here's jake fisher with "consumer reports" talking about why this car is so special. >> let's be frank. this car is $130,000. this is not a vehicle that a lot of people are going to be able to buy. but what this is is this is a glimpse into the future of the automotive industry, a future where cars are going to be extremely energy efficient and extremely fast and extremely comfortable and roomy and give you all the features and safety f

let's get to phil lebeau with a breakdown of the numbers. hi phil. >> hi, kelly.ong numbers across the board from the automakers. take a look at the four largest automakers, keep in mind all of these guys were up 1% to 3% better than what wall street was expecting with gm leading the way with a 6.4% gain last month. crossover utility vehicles the story of july auto sales. they were strong for nearly every automaker leading the way, honda crv. these are the top cuvs sold last month. crv up 11%. escape up 10%. look at the nissan rogue, up a1%. again, those were among the most for lar of the crossovers. the average transaction price, what people are paying when they go into a hoe room. according to kelly blue book just under $33,500. roughly in line with where it was in june. compared to july of last year, up 2%. incentives which is always a concern, slightly higher. not a real big kick. take a look at this wall. this says it all. for the first time since 2000 we're seeing three straight months with sales, the sales rate, i should point out, above $17 million. again,

phil lebeau joins us to explain. what's going on here? >> kelly, it's been a long time since we've seen mobileeye and tesla whacked like this. these have been the two high flying auto stocks. tesla, this is not surprising given the commentary the company had after recording 2q earnings. all about the fourth quarter and what's happening as they ramp up production. remember, they have brought down their guidance for 2015 deliveries lowering it down to between 50 and 55,000. it was previously at 55,000. it's all about the challenges of expanding that production line as they get ready for the model x, this is the model x. it will be coming in the third quarter. the goal here by lowering production a little bit, making sure that they have a clean launch of the electric suv. as for mobile eye, boy, they posted earnings this morning. blew away previous estimates. they were stronger in terms of revenue and earnings and they raised their guidance both in terms of revenue and in earnings for the full year 2015. i jumped on this conference call this

." >>> we're getting numbers from chrysler this morning, our phil lebeau has some of that in chicago.carl, as we speak, a conference call with sergio marccione, the ceo of chrysler is being held where he's going over the latest numbers for the u.s. division only. last week fiat chrysler reported global results for second quarter. for the u.s. division, the profits slipped in the second quarter down to $598 million. revenue $22.6 billion. up 11% year over year and the adjusted net income came in at $726 million. there's a conference call going on, we're on that call. we'll hear what sergio has to say. always provocative comments, especially from a man who has been very blunt, carl in saying this industry needs consolidation. we'll see if he has anything to say in that conference call. >> we'll be listening, phil. >>> solar tech company sunrun has opened for trading at the nasdaq, under the ticker symbol, run. shares are just under $12 right now. let's talk to fishes on cnbc, the sunrun ceo, lynn jurich. you have $300 million in new capital. how much scale will that offer? >> you know,

we want to get to phil lebeau in chicago with a news alert. >> true car is out. they are expecting a robust month. general motors edging closer and ford now trading under $13 a share. both of those in part because of their exposure to china. take a look at shares of fiat chrysler which has very little exposure to china. it was up yesterday and today it is slightly higher. this is an indication that china is really what's hurting some of the stocks. >> thank you very much. so phil's point, 17.2 million is a pretty nice rate. >> you know, i'm really more interested in some of the other stocks. it's an indication that the u.s. economy is actually doing pretty well. i think we're going to rotate. but stocks perhaps return 5 to 10%. >> cramers words but actually in this return to buying that we're seeing today those stocks are out performing. >> not all the stocks are overvalued. but i think in general we will see a rotation into names that are more undervalued and more traditional value investing. i think we will eventually come back into favor. >> thanks for joining

phil lebeau joins us from the denver international airport with the answers. phil. >> reporter: tyler, thank you very much. one reason we're here in denver is because this expert has already instituted a lot of nextgen technologies. you're probably saying to yourself, what is next jep and why do i care. you do care about it if you travel. it's a series of technologies. they're gps-based. in four or five decades most of the routing of airplanes has been radar-based. nextgen makes it gps based. it's not only in the air but at airports. it will hope friday improve congestion which lee to delays. the worst delays in the country, newark markets, laguardia, jfk. critics say nextgen is going to be too clotly and it will be effective. >> the problem is we're paying for it now. it just allows them to buy the wrong things faster. >> reporter: let's bring in michael huerta. he essentially runs the faa. he joins us exclusively from washington, d.c. you heard the criticism from michael boyd. what do you say to those who look at the nextgen system and say, you know what? it'

. >> to be fair, he is the same gentleman who once told phil lebeau, i think my stock is overvalued.emember that day. >> what can i say? he did make the shorts. he got the shorts going on that by making that comment. >> that was some time ago. >> look, he knows how you to run a stock. he would be a fabulous analyst. >> i think he is doing okay. >> he is doing okay. >> i think so. >> you think his life is good, better than ours. >> it is like excesstential with you? >> he is offering 4 million shares. they priced at 60. why would they do that first of all? >> look. the stock is overvalued. we all know it. they have put it in the hole. there are a lot of people who are asking, very retail people that are asking at jimcramer on twitter. there are people that say, i love the burger. there is a good opportunity to buy stock. that's what they want to do. you have to get the shorts to cover on this block. the shorts are so huge. that's what they are betting. you give them that juicy, sounds like the burger. you give them that opportunity. maybe the shorts would take it and clear them out. t

phil lebeau is down there with the details. hi, phil. >> reporter: hi kelly. the boeing plant just north of charleston. they are building six dreamliners here inside this plant right now. a massive facility that is picking up speed as they bring more people onto the workforce here. when you look at south carolina, it's not just boeing. it's not just bmw. but it's a collection of businesses, especially in the auto and aerospace industries. look at the benefits that the state has fraepd those two industries. it is now 18% of the state's dwchlt dp. auto and aerospace are the two top industries. and south carolina's unemployment, which was at 11.7%, has dropped all the way down to 6.6%. it's still above the national average but it has come down considerably in part because of the manufacturing jobs that have been added. and one other thing that doesn't get enough attention from the outside press looking at south carolina, it's the infrastructure. the port of charleston is the fastest-growing port on the east coast. it is currently being dredged, made deeper. that

phil lebeau has the numbers, plus a look ahead to tesla which reports after the bell. i'll give you a couple minutes to cool off. two of my favorite characters in the auto industry, probably the two most provocative in terms of what they mike say during conference calls, because they both are holding conference calls today. fiat chrysler, last week they released their second quarter earnings for globally. now they're going to agreed down with greater granularity. that means we get to hear from sergio marcione. he runs what's going on in the u.s., and a lot of questions about where he plans to take this company, and specifically what he's seeing in terms of the demand going into the next year to two years for some of the key brandt like jeep. that conference call is coming up a little later on this morning. then after the bell, this is the one -- i'm already get tweets and e-mails. what do you think we'll see from the second quarter for tesla. we will see a loss. we know the estimates are out there. that's not as much of a focus as what we're going to be hearing from ceo

phil lebeau will look at the auto sectors and the airlines this morning. ith the drop in crude oil prices we ultimately will see good news in terms of prices at the pump. in terms of the auto stocks, look at gm and ford. we expect that to continue what we saw last week. gm well likely to trade well under $28 per share. the low 28.82. morgan sent a price target of $27 per share. the key thing to take away from this new coverage, earnings and cash flow are highly dependent on china. that's why they're setting the target at 27. what about tesla? it held up relatively well, this morning, it's indicating it could be down as low as 213 a share. as for the airlines, jet fuel prices should be moderate, which should go good news for the airlines, that sector as well has been under pressure almost all of the airline stocks when you look at the airline index were down anywhere between 5 and 8% last week. we should point out, when you look at the s&p 500 sectors the airlines are one of four that are in this month still positive. we'll see if that changes a little later

phil lebeau has more on the push for number one. he joins us from north charleston south carolina.rleston north carolina is there? >> reporter: i don't think so joe. anybody who's familiar with aviation realizes that this is a critical part of the growth not only for boeing because we're here on the floor of the boeing plant where they're building dreamliners hinted dreamliners behind me. i look around here and i see six different ones that are in the midst of production. they built three at this plant. what we're seeing in terms of aviation and auto manufacturing in south carolina is atrue boon that has gone on for years. look at the aerospace jobs in south carolina versus other states. there's no comparison at all. there are a few other states that are starting to ramp up their addition of jobs including alabama. but when you're talking about aerospace in south carolina it's not only boeing. this gets most of the attention. but it's all of the suppliers around here. in fact, we caught up with one, uec electronics, a component supplier. they are tripling their backlog over the las