could be one of the largest companies in the whole world >> joining us now is collin rush and our phil lebeau. gentlemen, welcome i'm going to start with you, collin that was a pretty bold suggestion from ron that this company in which he has a large stake of more than a billion dollars, so he's a fan he thinks this company can go to a trillion in revenue in a decade do you see that? >> it's pretty aggressive and early to tell, but what we know is that they've been able to

really cool. >> more news from phil lebeau in chicago. a look at shares of american the airline is announcing that it is going to be extending the cancellation of flights between l.a. and hong kong they have two daily flights, one from l.a., one from fort worth the l.a. to hong kong is canceled through march 27th in terms of slow demand for people wanting to go over there hong kong is a big point of connectivity for american partners in southeast asia and then when you take a look at the dallas-ft. worth to hong kong route, that will resume on february 21st. at this point, they see enough demand for hong kong from dallas to begin on february 21st, but hong kong from l.a., they will continue to cancel those flights right now through march 27th back to you. >> phil lebeau, thank you. coming up, the wild ride for tesla continues. where the stock goes from here with an early investor ♪ ♪ ♪ ♪ ♪ high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein

so those numbers will move higher boeing january numbers, zero phil lebeau, chicago >>> the aircraftlon has reported record full-year profit despite the grounding of the boeing. the ceo and joins us here in london before we talk aboutthe challenges ahead, i want to ask you about the past 12 months what were the factors that allowed you to hit that number >> our core leasing was strong we did suffer two significant head winds in our number despite the record profit. we incurred about $60 million in one off costs. in broken and prepayment fees. because of the max and the delayed airbus aircraft. >> a quick question on the boeing max you say you saw a year of debt deleveraging i see your debt dropped in 2018, 2019 can investors expect you to continue on with that drive? >> that is a key metric. we'll continue to drive down the market our expectation is to get to 25%. that we hope will be the next catalyst for a credit rating upgrade to essentially triple b. >> let's talk 737. your goal is to have these do you see appetite to lease any of them? >> no surprise there people want certainty.

phil lebeau is watching the skies, wilfred frost has a beat on it.ou might be surprised how poorly they're doing seema mody looking at travel stocks and robert frank has a look at how bad luxury is being impacted phil lebeau, a bad day across the airlines today >> a terrible day, kelly this is all about the fear that we're going to see clusters of coronavirus like we're seeing in south korea and italy pop up in other regions around the world and that might hurt demand which is why you're seeing almost every airline stock around the world under major pressure the big three, delta, american, united, down 9.5 to 10% in the case of american ryan air, it's under pressure. there's a travel warning that's been issued for northern ireland for people going to italy. it's that kind of thing that have people saying, wait a second, what do you think demand is going to be like, aig, the parent of british airways. if you think it's just exposure to those -- no, those oriented as well. spirit which only flies here in the united states, down more than 10% kelly, thi

phil lebeau has a look >> check out the european airlines because the concern is that that cluster of coronavirus cases in italy could manifest itself in other parts of italy as well and fewer people traveling. ryan air down more than 12% today. also look at aiag the parent of british airways also taking a hit down more than 8%. in terms of the u.s. carriers with the most exposure to europe they are feeling the impact as well out of concerns that we'll see fewer people potentially booking trips to go over to europe talking about delta, american, united all down anywhere between 4.5% and more than 8% in the case of american airlines. by the way, this is also with domestic only carriers they're feeling it or generally speaking almost completely domestic southwest airlines now, southwest does have some exposure in terms of international routes going to latin america, to the caribbean. but generally speaking this is a carrier that is domestic only and, yet, this is a stock under pressure today down almost 5% guys, not a surprise given the fact what we heard from the international air tran

we've got some breaking news right now from united airlines let's get that with phil lebeau. d airlines they are pulling guidance for all of 2020. and that is because of the coronavirus. the company saying there's no way to predict exactly how long this virus will last, whether or not it spreads to other regions. it's sticking with his q1 guidance of earning between 75 cents and $1.25 but beyond the first quarter, the company says it's hard to know exactly what's going to happen, whether coronavirus spreads and impacts demand in other regions. just for some sense of how much united's business has fallen off both in china and trans-pacific, near-term demand has dropped 100% for china no surprise. they killed all of their flights at least through april there will not be demand there looking at the trans-pacific routes outside of china, near-term demand down 75%. as a result united is pulling its full year guidance until it has a better feeling for how this coronavirus plays out over the next several weeks and months brian, back to you. >> phil, obviously, we know the asia impact

joining me our own phil lebeau and mike santoni as someone who watches wall street, when is the last time -- how would you compare tesla to the price action for a stock of this size? >> for a stock of this size, kelly, a company of relative maturity getting up to $100 billion, it reminds me of some of the tech stalwarts if you go back into the late '90s. a name like qualcomm had extreme vertical moves one similarity would be the market on one level is sniffing out the massive long-running opportunity this technology or business franchise can exploit but it seems to be front loading and people crowding into it all at once. it does remind me interzwrektry of some of those things. a lot of things going on with tesla in particular. which is is a very entrenched set of investors with elon musk and early investors, who simply seem not to be selling of course, you have short sellers getting trapped and fighting against that. and you have retail investors really making a mad grab for this stock as the momentum has carried higher that's the cocktail that we're seeing. >> there's the price on

just before the company announced its offering of $2 billion worth of common stock this morning phil lebeau that from chicago phil >> and, morgan, those their shares were under pressure premarket when the deal was first announced. now they're up almost more than 2% on the day. this is a $2 billion common stock offering that tesla has announced. by the way, elon musk, he's going to be buying $10 million of that stock offering remember, it was just a couple weeks l ago after their quarterly earnings this is what elon musk said when asked about the need to raise more capital >> so we're spending money i think officially and not artificially limiting our progress, and then despite all that, we are still generating positive cash. so, you know, in light of that, it doesn't make sense to raise money because we expect to generate cash despite the level. >> after he made those comments, we talked about a number of analysts who believe, look, this is time to raise it if you're a tes tesla. one saying we would tesla should take even greater advantage of the stock price, raise a larger amount of equity

we have a news alert on the airlines and the coronavirus phil lebeau? >> tyler, you were talking about the chinese economy being shut down or is it essentially shut down well, there's certainly not demand for fights between the u.s. and china american airlines postponing when it plans to resume flights from the u.s. to china now pushing it back to late april. previously, it was going to resume flights between dallas-ft. worth, the hub and hong kong on february 21 that is moved to late april then you have the flights between l.a. and hong kong as well as all the other flights to mainland china they were supposed to resume on march 28th no, now april 23 and 24. not a surprise, given the fact they're seeing extremely depressed demand for flights. >> phil lebeau, thank you. phil reporting on the airlines >>> here is what else is ahead on "the exchange." >>> coming up there's a lot riding on tonight's new hampshire primary as the democrats continue to search for leadership the state of the race, the state of fund-raising and what's at stake. >>> plus no sign

potentially by the middle of the year and then moving into the fall and early next year >> all right phil lebeauthe breaking news on boeing phil, thank you very much. tim i come back. a good question. it's an odd story. does it sort of muddle the boeing story even further? >> well, phil has done a great job reporting on boeing. there is a lot of different headlines. some really are important from a news event perspective in the evolution of the story but not necessarily going to affect the stock. but it's important the time line you get back to production so if there is some sense that this could push it back even more, it's absolutely material it sounds like this is not material and i do think that a lot of of the headlines with boeing including the company goingout of their way to say they're extra thoreau, don't know x or y a lot of that is geared toward regulators they wanted to make a posture in the eyes of the faa. the news is important. i don't think it changes anything in terms of the time line. >> 365 is the level that if you recall when this entire thing started that's where it broke d

let's get to phil lebeau >> brian, not surprising, following the news just a couple of days ago thatouthwest was moving back its plan to return the max until later in the summer united is now doing the same thing. pulling the max from its schedule until september 4th that's right before labor day weekend. essentially taking the busiest part of the year, the peak summer travel season, the max will not be part of that for united we have heard from southwest and united now pushing the max off of their schedule the question is, do we hear the same from american i said the other day, brian, these guys tend to make their decisions relatively close the each other in terms of when they are going to be pulling the schedule of the max down we will wait the see what we hear from american remember, in terms of max, parked right now 14 for united. 24 for american. 34 for southwest which is the largest operator of the max in the world >> phil, quickly, the stock by the way down .6. not moving on this news yet. you just broke it though we heard you on southwest i think it was yesterday where are th

let's get things off with phil lebeau >> and let's show that chart again in terms of where tesla shares are up $160? $160 in one day. look at the volume 43 million shares beinged. that's compared to the average daily volume of about 18 million. so there are a lot of people piling into this stock now. three suppliers you may not have heard of that are crucial to tesla growth u and getting the benefit of people saying hey, i want to play this. let's start with catl. a chinese electric vehicle battery maker. it has just signed a deal with tesla to supply vehicle batteries to tesla in china. two other companies, also chinese, are lithium extraction companies. that's the key to the electric vehicle battery. one being ganfeng. and then finally, we're also going to talk about tianqi lithium corp also out of china. a lithium u extraction company so when people say i want to do a proxy portfolio for tesla, it's really, really tough because of a number of issues. there are a lot of private small companies, but these are three if you're looking to ride the wave in terms of elect rib vehicles, this

phil lebeau with the details. >> the question is whether the tesla shares close over 900. the highest interday is 960. there was a steep sell-off late in the day and it has never closed above 900 right now it is on track for a record close look at what's happened over the last couple of months to the price targets. you mentioned piper sandler out with a new price target. as analysts have ratcheted up their price target look at what has happened back in december it was down to 343. now it's 534 by the way, one other note regarding tesla, late today there was word from a tesla website, seven le these are fans of tesla who track reservations. they say that there are more than 500,000 cyber truck reservations it's $100 just to put down what you would call a reservation this truck is not scheduled to be built until late next year. so if this truck is built, the question is whether or not those 500,000 people will follow through and buy it back to you. >> phil, as you mentioned, there are lots of price target upgrades the average is still well below where we are today and in fac

phil lebeau has the details. >> not a huge surprise given the droves of sales. we'll talked more about that in a bit, issuing a warning saying, look they're just not outlining how much that impact will be at there point keep in mind this is a company with several -- and one of the largest luxury markets in the world it's a big pardon of mercedes plans. they will resume protection of mercedes over there. meanwhile, when you look at the japanese automakers delaying reopening some plants, while toyota will have its plant up and running next week. in the first half of february, take a look at this statistic. during the first 16 days of the month, sales in china, new vehicle sales in china dropped 92%. to quote a couple people ethere, nobody is going into the showroom easy to understand why guys, back to you. >>> yeah, certainly. phil lebeau, thank you. >>> two more companies with updates, coca-cola and lululemon, coca-cola confirming its full-year guidance, but it expense one or two cents shaved off first quarter earnings lu lu lemming saying the majority of 38 stor

our phil lebeau in chicago with exclusive insight on one of tesla's key advantages over competitors.ll show you the data in a little bit first a little about china a number of people have said have they resumed production of teslas in china? i talked to eunice yoon. she said there are local media reports that the tesla giga factory in shanghai, there have been employees seen going in and reports that they have resumed production at that plant to what degree we don't know but certainly that is encouraging news could be one reason why the stock is moving higher today now let's talk about the battery cost advantage data. they basically break down the costs of electric vehicle battery packs and have been doing it for a number of years here is the latest data. look at tesla. the only company that uses cylindrical battery cells. that means they have a cost advantage. they are coming in about $156, $158 per battery pack per kilowatt hour. compare that with pouch packs as well as others, per kilowatt hour tesla is well ahead of the competition and the folks said that is expected to continue

new data shows they have a huge advantage over its competition let's bring in phil lebeau to find out what is helping tesla to keep going and going and going. >> it has to do with battery costs. when it comes to hecht rielectrc vehicles, the better the cost, you don't have to charge as much as the premium it basically is where you're driving. you want to get as low as possible and tesla, the only electric vehicle maker that uses slindry cal cells is way below all the others use pouch, battery cell or prisonmatic. it's a clear advantage according to karen energy research for tesla. a lot of people will say they've got the gig factory. their using cylinder cal cells they point out the fact that begrudgingly, the other auto k automakers are coming around to realizinging that tesla knows what it's doing and is doing it well when it comes to electric battery packs. >> i would say five years ago when i spoke to automotive engineers about tesla, they made fun of it, thought it was something made in a garage today, it's dimpblt. they aren't necessarily going to speak publicly in this way, but

phil lebeau. two pieces of news on ford and boeing lets talk about ford, karen. a tough investment for a lot of people a long time what's your take. >> i don't like it phil talked about it the turn around isn't happening. and this was i think europe and china did decently it was an operational miss they called it themselves. they should be embarrassed i -- speaking of embarrassment i have owned gm a long time. i feel mary barra has done a better job of positioning them correctly. but if you're in auto and not tesla you couldn't trade at a worth valuation. >> last night dan nathan's final trade was kbchlt m, the thesis quick on final trades. when some of the money comes out of the tesla maybe to gm or ford >> maybe that goes to gm. >> that makes sense. that holder would be the same holder tesla seems a different holder. >> i mean coming out of tesla into ford. you know what i mean. >> go ahead. >> i think rule of thumb in the full bkts markets don't own bear markets. ford is a bear market. opening below 8.40 >> no incentive on the clarities. >> zero, none. >> i don

fill phil lebeau has more. >> let's start with general motors this company beat in terms of estimatester earning a nickel per share the street was expecting them to earn just one penny per share. when you take a look at ford, remember the uaw strike was in there the first two weeks of october. it cost the company $3.6 billion compare ford versus general motors ford also reported earnings. they didility yesterday after the close of business and in ford's earnings this was not a good report at all it missed in the fourth quarter due to poor execution. they've had a number of problems with the explorer launch it lost $1.7 billion in the fourth quarter and guidance below estimates. when you take a look at shares of ford, as one point it was down more than 9% as analysts are saying where is the growth going to come from from ford guys, back to you. >> phil lebeau, thank you. as we speak, we've got gm vehicles parked outside of the new york stock exchange. they had their meetings here as well and we've been very focused on the electric vehicle movement and how that's been powering tesla. i

phil lebeau has it >> we'll talk about tesla in a bit. this all has to do with the consumer report's annual auto brand rankings and list of top picks. remember, this is based on owner surveys as well as actual testing done by consumer reports. and here are the top three brands this year according to the killer reports porsche, genesis and subaru. and they are representing the model 3 as a top auto pick they say that there is better reliability especially since the model 3, they improved the production line. they noticed an improvement in the reliability as a result. as you take a look at shares of tesla, consumer reports has moved the ranking of the tesla brand- -- moved it higher. so that is the consumer reports annual ranking of auto brands. guys this, is one of those benchmark studies every year because it is owner surveys combined with testing done by consumer reports >> let's not make it an oh, by the way. especially has history goes, it is a stunner because of where they have ranked this company and cars in the past. >> correct and

comments if you want to characterize them from the head of the faa in london >> thank you very much phil lebeau reporting today from chicago. coming up u with almost all the results in, south bend mayor, pete buttigieg, is on the verge of securing potentially a surprise victory or at least a tie. in the iowa caucuses the support he's been getting somewhere else though may be even more important to his chances of securing the nomination we'll explain. plus, a good rule of them for n investing is when your grandmother and your cab driver start asking about a hot stock, that probably means it's at peek but that may not be the case for tesla. the retail interest in tesla coming up u. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. >>> pete buttigieg and bern

the s&p 500 if were even in there but still up 25% and with this correction, was it inevitable in phil lebeauhere with more >> and it was inevitable that we would see some type of pullback. will it drop down to 400, 300? nobody knows for sure. when you talk to the analysts, they can't even do a valuation a couple things were part of the reason why you saw shares of tesla tumbling it was downgraded to a hold. and woe nt even do the price targets because for everybody they are all over the plate. you also have a tesla executive in china saying that some of the model deliveries from the new plant in shanghai, they may be delayed, obviously that plant is closed down like so many other plants in china as they are dealing with coronavirus and then you have a slowing china mar debt overalket overal. and nobody is not sure what coronavirus will do for the demand for vehicles in china is it a blip, will it have a big impact on the any? that is what people are wondering including those looking at tesla jchb mo general motors beat the street and held its capital markets, basically an analyst day where t

could be one of the largest companies in the whole world >> joining us now is collin rush and our phil lebeau. gentlemen, welcome i'm going to start with you, collin that was a pretty bold suggestion from ron that this company in which he has a large stake of more than a billion dollars, so he's a fan he thinks this company can go to a trillion in revenue in a decade do you see that? >> it's pretty aggressive and early to tell, but what we know is that they've been able to take double digit market share in the premium market for vehicles so the possibility for them to take 10 or 12% market share in the overall is totally feez bable at this point. then when you translate that into revenue sh it's a little high but the earnings power is substantial and there's a lot of sensitivity towards upside on margins there that we think can translate into appreciation on the shares from here >> if you go back, phil, to october, september of last year, u you would not say that tesla was a rocket ship of a stock >> not at all. >> it was a oi >> can question becomes what changed. >> and what has driven it up

thank you as always to nbc's phil lebeau. here is the thing.t could have been a lot worse we could have been down as we were earlier in the day. plenty of stocks were down hard, including a wall of shame worthy quarter from viacom cbs that sent its stock plummeting, and norwegian down near 7% i understand the weakness of norwegian. they needed to cancel cruises in asia and the publicity from the epidemic is about as bad as it gets but viacom-cbs i found that astounding. a two plus two equals five situation, including, including, including, including right here, our set, our show. our set, our show. right here our set, our show, you, me i now feel it's more like two plus two equals three, which is why so many large investors just gave up on this thing. i think we might have to break out. i don't know if you remember i think when we have to break out the "mad money" wall of shame again if things don't improve at that terrible horrible no good very bad situation. it's been a learning experience for investors who want to chase deep value, including

we appreciate it, phil lebeau in chicago today. >>> the global coronavirus case tops 80,000 and cdc isrging americans to get prepared for a potential spread here. hi, meg. >> kelly, case numbers are not rising in the u.s. except for among americans evacuated from the diamond princess cruise ship the cdc's doctor said it's not a question of if the coronavirus will spread through the united states but when and how many people will have severe disease. she said she spoke with her own children this morning, saying she doesn't think they're at risk right now but as a family they need to prepare to significant disruption to their lives. prepare for potential school closings and investigate the ability to work from home, this as health secretary testified at a senate hearing today that the u.s. currently has a stockpile of 30 million surgical masks but needs ten times that many, kelly. >> yeah. meg, as you say that, i mentioned this but it's not just health care industry that needs or uses these masks. a neighbor of mine that works at construction can't get his hands on one and the whole indu

moment in the meantime, we are getting breaking numbers on boeing order s and deliveries we go to phil lebeau >> the month of january for boeing was a shutout for new airplane orders. there were zero new aircraft orders for boeing in the month of january this is the late nest a string of months we've seen going back to the grounding of the 737 max back in march last year. several months since then the company had zero new orders. they delivered 13 aircraft last month including six 787 dreamliners. there are no deliveries going on of the 737 max because it is grounded far point of reference, in january, airbus logged orders for 274 commercial airplanes back to you. >> phil, thank you let's get back to the q&a with fed chairman jerome powell >> as part of this demographics of wealth examined the connection between race and wealth accumulation over the past quarter century was the result of an analysis of data collected between 1989 and 2013 due to a federal reserve survey of consumer finances more than 20,000 heads of households were interviewed over e those years. hispanic and black wealth lev

phil lebeau in chicago no one's feeling the pain of tesla's recent surge more than the shorts, losing5 billion in total in five weeks roger mcnamee is here at post 9. >> i got my butt kicked. couldn't happen to a nicer bunch of people. it may be the battery driving the business but it's jet fuel that's driving the stock it feels like, well, 20 years ago, right for those of us who have been around a while, the late '90s saw that kind of action and it's fun to watch i can't imagine owning the stock because who knows, right it's so wild and this is what makes markets great, right because at the end of the day, it's about buyers and sellers, and the shorts, they can sit there and give you 100 pages of good data. you look at this and go it's an incredibly high priced stock, well disscovered and it has fan who support it it's a cult-like situation and wall street kweet ggets these fe to time. at the end, it comes back down to something realistic when does that happen? not until a lot of people have been burnt to a crisp. >> given your history, your pedigree, comparing this to 20 years ago.

. >> we've got some breaking news to tell you about united airlines phil lebeau with the details. >> matching what we've seen already from delta, waiving ticket change fees for those people who are flying in northern italy between now and april 30th so people who are going to milan, venice, who want to change their flight because of the coronavirus, united will be waiving those ticket change fees we've already seen this from delta. not surprising we've seen it from united. back to you. >> phil, thank you market turmoil has fed watchers upping the probability of rate cuts this year, maybe even next month. steve liesman back at headquarters with more. >> maybe not a maybe there pressure is growing on the fed chairman to react to the mounting threat of the coronavirus from former fed officials. of course from the president especially now from markets. 68% probability now of a cut next month i can tell you that was down below 30% or down below 40% yesterday. 66% of a second cut in june, 53% of a third cut in september. yesterday formerfed chair suggested she was concerned about a possibl

tesla announcing it plans to raise $2 billion through a stock offering phil lebeau is back with us frome looking at it. there it is right now. down a little more than 4% it's a $2 billion common stock offering by the way, the underwriters, they also have the option to taking in another 300 million, buying into this, which would raise up to 2.3 billion. elon musk, the ceo of tesla, says he will buy $10 million from this common stock offering. meanwhile, director larry ellison says that he will take or buy $1 million from this offering the price that they're buying at, $767 remember, it was just two weeks ago when tesla reported fourth quarter earnings during the analyst call elon musk was asked about would he be considering raising capital right now? seems like a smart thing to do the stock at the elevated levels where it was at even then. here is what elon musk had to say at that point. >> so, we're spending money i think efficiently and not artificially limiting our progress and then despite all that, we are still generating positive cash so, you know, in light of that, it doesn't make

if the schools are closed in china, if the factories are closed in china, if we saw as phil lebeau reported that january car sales were down 92% in china, if we can't get parts for production here, there's a chain effect and a bit of a contagion that will slow other economies. if this goes on through a couple of quarters, yes, it can certainly lead europe and other places into recession and threatens a recession here. >> joe, what do you say? >> well, i think also where we were going into this year fairly pessimistic on growth or at least relative to what most were seeing, i think the world can avoid a recession and u.s. is an important reason why but again, our baseline is not a recession but i think again to the gentleman's point, the duration of how long this persists not just in china but how it spreads around the world that will be a key point whether or not it goes into the second quarter. >> let's listen any way to what larry kudlow said a few moments ago. >> if you're an inforvestor out there and you have a long-term point of view, i would suggest very seriously looking at a stock m

. >>> now to phil lebeau >> gm is going to be hiring 1200 workers this spring as they ramp up production at two plants in lancing michigan adding 400 workers at the grand river plant for the cadillac ct 4 and a of then at the delta township plant they are adding 800 workers and a third shift so they can increase production of the chevy traverse as well as buick enclave. what is interesting about this, this is a case of the company saying look we still see strong manned demand out there special on crossovers, that's why they are adding the shirt shift when it comes to the enclave as well as the traverse. gm adding 1200 work thers spring and workers at two of its plants in lancing michigan. >>> let's talk about the banks i mentioned a notefrom mike mayo banks have gotten hammered this week mike mayo is out with a note today. he cut price targets on every big bank in his coverage universe citing the obvious, really, interest rates we have told you what the ten year is doing. really all along the curve, how rates are just dropping like a stone. he takes -- bank of america goes to 40 from 42.

. >> we want to get to phil lebeau, because airlines have been the hardest hit sectors today.wn 25% in the last five days, and coronavirus fears have sparked the selloff, it follows months of bad headlines on boeing this morning, we're hearing from spirit systems, and phil lebeau joins us from chicago. >> not a surprise that we see a loss for the fourth quarter earnings reported by speirit thi morning. the estimate on the street was for the company to earn $1.65 a share. it came in earning 79 cents a share. revenue coming in at $1.96 billion. in the fourth quarter, because the 737 maxx production schedule had been cut by boeing, that meant spirit aerospace took a $34 million hit in the fourth quarter. remember, they're building the fuselages for the max at the company's facility in wichita, kansas they have about 100 of these that have been built but not yet delivered out to boeing in the pacific northwest. their 2020 guidance, they're not giving it right now, given all the uncertainty surrounding the 737 max. as you take a look at shares of spirit, no surprise here this stock

phil lebeau as more details. >> it's not often you have a secondary offering and the stock moves substantially this is what has happened. it mentioned the dilution rate k will be buying $10 million worth of stock remember, it was just two weeks ago after tesla reported fourth quarter earnings he was asked point-blank, are you going to raise some capital? he said, no he with we don't need to raise capital right now. keep in mind how the shares were dipped when they initially announced this the company also had the 10-k come out today, and they are good going to raise expenditures by a sizable amount, but that's one thing that's overlooked by everybody as they announce this stock offering guys, back to you. >> mike, what do you make of the act in the stock >> somebody sees it as a bit of a 20% off sale, right? i don't really think it changes the story, which is that the very dedicated, true believer community is well behind this. i mean, $2 billion is nothing in terms of the market value to be able to absorb something like this so keep in mind that's kind of how it goes. the story starts to get

over the last few months as wall street realizes the company's being advantage in battery packs phil lebeau has the details. >> this is new research from karen energy research advisers when you look at this, this is a huge advantage that tesla has. first of all, how much their battery packs costs have come down 42%. it's now down to $156 per kilowatt hour. how does that compare with other automakers well, because tesla is the only one that uses cylindrical battery cells, it comes in at $162, everybody uses the pouch pack or prismatic cell pack. if you look at shares of tesla, elon musk has been hitting this part very hard that the battery is the key to the growth at tesla. they'll be holding a battery day in april when you'll hear more from his vision about the batteries in the future. the reason i'm showing this to you is because gm and volkswagen are widely considered to be the two u established automakers for at least a couple years, if not long ir. >> big deal here, phil, is this new vertical integration that tesla wants to go through. now they share that -- i would imagine that they wa

phil lebeau has more. >> we continue to see how far the coronavirus will spread and how much it willt's why we take a look at all the major airline stocks, started with american, delta, united, southwest, all under pressure depending on the carrier between 2% and 6%. when you look at delta specific, i want to look at delta because they came out with an announcement, they're atting parts of italy to the waiver cancellation fee liss. if you're scheduled to go there and want to change your reservation because of coronavirus, they will do that will we see that in other parts of europe. american airlines, the stock is trading below where it was when it came out of bankruptcy back in 2013. an all-time low, under $24 a share. finally take a look at shares of boeing, inching closer to $300 a share, under pressure under continued concerns amongst everybody that, as we see this pullback going on with the market, that it's hitting all the stocks including dow components like boeing guys, back to you. >> phil, thanks. lets get a check on the semis. josh lipton has been tracking that group >> che

. >> and serging surpassing $700 new hi phil lebeau has more. >> tesla sings it make no sense, look athis chart just today jumping more than $100 surging to a record high again, tesla up $122 i mean, seems loony. up to $773 and clearly momentum players moving into here and some short covering going on two kwat lift catalysts today. raising price target to 808 and arc invest raising price target to 224 from $,000 to $7,000 a share. short covering for tesla short interest down to i think 18.1%. up closer to 22%, 23% a month, a moff na ago. in january shorts lost $5.84 billion. all discussed tomorrow monning on "squawk box." don't miss it exclusive with longtime tesla bull who said for some time elon musk is the magic man and he will lead investors to the promised land that's the case today with tesla shares jumping $122 just today. >> phil, thanks for that worth reminding, a firm holds shares as opposed to just an independent broker mike, the run we see people say short covering, what stage are we at in terms it of outstanding amount >> gone so far beyond what can solely be explained by

that their analysis is linked with what's going on with gm and ford there was a fabulous interview phil lebeauo of gm and there was a moment, listen, more of a rhetorical question your stock has done nothing. look at tesla. the answer is that gm has growth as a matter of fact, they're down a lot of regions. ford saying things are bad about europe and there's elon musk doing a jig that he's opening a big plant in berlin. you've got on the one hand electric vehicle growth, on the other hand the companies are all claiming growth at the top of the gm release but you know what it doesn't matter if they're not buying it. >> ford is having a very tough go of things, as they continue to try to cut costs and adjust and putting up numbers obviously that we're not particularly strong china is still a challenging market for them. >> they talked about poor execution. >> yes >> take a look at the execution of musk. it's great execution >> you know, they made that unexpected leadership change at ford a number of years ago at this point >> yes >> i'm not sure, certainly hasn't shown up on the stock price yet.

phil lebeau has more on that for us and always a lot more >> reporter: a heck of a morning, david atwas down under $700 very briefly down to like $699 now it is back over $750 what a wild ride this has been in fact, if you take a look at the stock, we are giving you a one-week peek at the stock, you know, as you take a look at what it's gone through it is now down more than 20% compared to where it was at its high point on wednesday. as david mentioned, some of the tesla stores or all of the tesla stores in mainland china have been temporarily closed. they've been closed temporarily since sunday they have 24 stores in china it is the closure of those stores plus the potential impact on the giga factory over there shutting down production it has analysts saying do we really know what we can expect out of tesla in china in the first quarter? frankly, that is not just a tesla question but for the entire auto industry as you look at tesla over the last month remember that a big part of its business is still here in north america. this is the interesting factoid. when you look at the esti

phil lebeau has the details. >> shares with tickling $350 the last time it was at this level, you haveber 11th. that's when they told us the 737 max would not be ungrounded in to 19. a big part of the move today, credit suisse moving up to $367 from $321. they cite the fact that we're in a positive news flu on the max return boeing is targeting the max to be ungrounded and possibly returned to service by the middle of this year. today the cfo was at an investor conference in new york and he said the production schedule of 57 per month -- remember that is the target they wanted to hit at the end of 2019. he says that's not likely to happen until 2022. remember, this is a company that they're moving closer to getting this plane ungrounded. the next big hurdle is a certification and that may happen in the next few weeks although remember that eats competitor airbus, it reports annual earnings tomorrow morning. we show you this chart because this shows you that there truly has been a divergence between these two stocks in the last year typically they trade in tandem not the case in the las

i hope the president backs off a little >> the airline continue to cut capacity phil lebeau had the headline earlier and joins us again good morning, phil >> i know we have the opening bell in a couple of minutes. let me run down the news this morning. united airlines out with a reduction in schedule for japan, singapore, south korea, no surprise because of a drop-off in demand. it's also extending how long it will not be flying in to china from its hubs in the u.s. going out to april 30th. when you look at the airline stocks, they're all expected to open up anywhere between 3% and 4% lower this morning. it brings up the question and jim, you touched on this on your show last night, where is the floor here these may be wellrun companies southwest airlines a good example but hunter kaye with wolf research, a bright analyst with airlines out on the street has a note "it is difficult to find a floor for these stocks on a valuation basis. that's where we are with the airlines, guys, as they bring down their schedules for asia-pacific and china already cut completely, do they start doing that for

. >> shares of american airlines sinking to all-time lows phil lebeau with more on how it's being impacted. >>> fr. >> it's the entire sector right now. down another 6% to 9% depending on the stock today you mentioned american it's down more than 8% today meanwhile, southwest the least affected today of all of the major airlines here in the united states. for united airlines, it is reducing its flights to japan, singapore, and korea take a look at iag, the parent of british airways today it said it cannot give guidance for 2020. why? because of the uncertainty created by the coronavirus under major pressure today then you have alaska airlines. it is waiving change and cancellation fees through march 12th joining jetblue in waiving those fees you're primarily talking about people who are flying here in the united states. a few flights that might go down to the caribbean but that's the united states so the pressure continues for the airlines >> why don't they get any reprie reprieve >> because nobody has any confidence they know how much traffic is going to drop off 37 remember that's the br

instead of leaving our country, leaving our shores, they'll stay here >> get to phil lebeau right nowpact on global air carriers. i didn't think about boeing. insult to injury, right, phil? >> yeah. and joe, we're going to start first off with the european airlines and then we're going to transition to the u.s. airlines as you mentioned how bucking ham today downgrading the seven carriers all down to neutral but in terms of european airlines they're getting whack and that might be a sign of what's to come in terms of the u.s. carriers and how they're handling the coronavirus if it spreads. first off, lufthansa, they're seeing if they can move some of the workers to part-time status, all in an effort to cut their costs. also, klm, another one, the parent airline of air france and if you look at what these guys are doing here, same thing reducing hiring due to slower business in terms of the u.s. carriers and their exposure to europe, strictly in terms of seats in the second quarter, this is the estimate according to raymond james. american and united 17% of their seats worldwide going

fill lebeau joins us with the latest with this ongoing saga. good morning to you, philmorning, andrew. ryanair ceo michael o'leary wrapped up his conference call with analyst as we show you shares of ryanair. they posted a solid profit for the third quarter, under $100 million. it's the comments from o'leary people are focused on. ryanair was supposed to get its first 737 max back in may of last year. it's not going to get it until october of this year that's the expectation at this point. but michael o'leary thinks this delay ultimately could work to ryanair's advantage over the next several quarters. >> i'm going to sit down with boeing, we do the schedule, delivery schedule based on what they will achieve and update our market with traffic growth at that time. what it means certainly for this year and next year is slower traffic growth that's probably good for underlying yields since we're the one who deliver -- we're the owner that grows most and fastest in europe and there's probably upward momentum in our favor and less capacity pressure in europe. >> take a look