solarcity is preparing for that loss.l, when you seen every company left, right, and center face plant, it is surprising to see an acquisition, especially when the ceo of the acquiring company is the largest shareholder of the acquired company. michael: it was a shotgun marriage in a lot of ways. the fundamental question about solarcity is one of price versus performance. can the solarcity -- solar they performdo better than other solar panels, and can the same type of single be produced somewhere else, like china? we have already seen china take the lead on producing inexpensive solar panels. from my perspective, the existential question is whether or not this company continues to have a superior product that people will pay for. cory: when someone is willing to sell you a dollar for $.50, it is good to be the buyer, not always the seller. do you have solar at your home back east? michael: i don't. on my house inar the bay area because it was so cheap and there were fantastic subsidies available. to that point, mark, the

solarcity was a public company. got financials and detailed financials going back for years and years. they know exactly how the business works. they know what the cash flow networks were and they should not need if they are real analysts -- we will tell you what will happen in the future. only three of them have experience covering solarcity. ice cream at the heavens, that is what i do. dana: it is not clear how does solarcity fit in, is it its own business unit, are they part of tesla energy or are they going to break both of those divisions out or are they one division, no one knows. cory: the numbers can be greatly affected by that. tesla has been a business that has actually negative and poor cash flow results. worse.ty is much in terms of burning through. cost we're going to see savings and synergy and they promised they would be $115 billion added to the balance sheet and 100 million over the next three years. investors want to know if we going to see solarcity this summer, what is happening with the factory

oliver: you are still following solarcity.u arek's where maybe not profitable to the point that investors want you to be or even at all -- at the end of the day, when you are making a promise, stock can go up without being profitable for a long time. in?does that factor gordon: tesla has not been profitable any single year. they were profitable last quarter but there were three quarters they recognized in that to boost their profitability. the expectation from the analysts on the street is that profitability will come down this order. day, teslaof the will have to execute on selling a lot of cars and there's a lot of new competition coming into the markets. will the competition like the volt hurt them and will they be able to hit their targets? if you dive inside the terminal here with -- not a lot of logic to how the market response to tesla. you get an increase and when there is a surprise, you get an 8% decline. people are playing momentum in the stock heading into the earnings and then selling once the numbers surface. gor

joe: what are we learning about the solarcity integration?lly undstood how they're going to break it out if absorbing solarcity in all its debt would be a big drag. solarcity is adding cash to the balance sheet and the cash position looks for good this quarter. amanda: there was concern there would not be real clarity that they they would not break out the numbers clearly. have they done that in a way that will satisfy analysts? >> they are beginning to, but you will hear a lot of questions about solarcity on the call which is at 5:30 eastern. joe: i mention they beat expectations of earnings and revenue. you investors care about current financial performance at all? >> brian johnson from barclays said something similar in his notes today. most large institutional thestors are with elon for long haul. it's really about the value of the company five or 10 years from now, versus order to order. with hime sticking with the idea that he could rival ge in terms of number of employees and size. amanda: we will leave it there. staying with earnings,

solarcity was a public company.ve financials, very detailed financials going back for years. they know exactly how the business works, with the cash flow and metrics were. theyshouldn't need -- should be able to tell what is going to happen in the future. dana: only three analysts covering a tesla have experience covering solarcity. ice cream at the heavens, that is what i do. dana: one of the other questions, is not clear how solarcity fits into tesla. is it its own business? are they going to break both of the divisions out or are they one division? no one really knows. cory: the numbers will be greatly affected by that, not least of which is the cash flow. had negative and noticeably poor cash flow results, burning billions of dollars in quarters. dana: elon musk's promised there thed be millions out of to balance sheet. i think investors want to know what is happening with the factory in new york, what is happening with the solar storage they're trying to do. cory: the notion that the buffalo, new york factory,

will come from the integration of solarcity?l they get at costs? with a be able to sell more of the shingles? and the second thing is, some of the other services they are talking about, whether it is ridesharing or autopilot, how quickly are those going to roll out? that is part of what people are looking for, not just the equipment, moving the metal, but other services that will be internet based in technology-based. cory: ivan, what is the biggest risk to the stock? if you look at the stock price of the last year, it is not as exciting if you look at the last six months or 3-4 months. when you think the preeminent risks is for this business? >> that there would be a softness in sales for the model three and overall softness and all the vehicles. so the risk is the public stops buying teslas, but so far the demand has been strong and delivery amounts have been hampered by production and not demand. cory: let me push back on that. in the last seven quarters, four of them has seen sequential declines from vehicles sold, so isdoes

integration with solarcity?ing to be able to sell more of the shingles? and the second thing is, some of the other services they are talking about, whether it is ridesharing or autopilot, how quickly with those roll out? that is part of what people are looking for. not just moving the metal, but other services that will be internet and technology-based. >> qantas first-half earnings drop 7.5% as overseas competitors rolled out more roots and airfares fell. your main rival virgin australia also just announced last week about these direct services from australia to china, hong kong, and maybe even a southeast asian city. how do you see international affairs going now, and how will that impact your yields? >> we already compete on more than 50 routes. we massively outperform our competitor. our results indicate that. we have 62% market share, 86% of the profit pulls here in australia. both our qantas and jet star business are the two most profitable airlines in the australian market. internationally, our business i

solarcity is installing on homes that end up getting foreclosed. they are not doing deep enough credit checks. elon musk said they may have to build the model 3 and they must ask for more money. he said it will bring the company close to the edge. the model 3 will start rolling out in july. 5,000 cars a week by the end of the year. here's your pop quiz. when will the model 3 start rolling out? >> never. >> the answer is not july. the reason is when musk says it's going to happen this time, and i'm being very serious, it never, ever, ever happens at that time. he misses it every single time. we can reasonably say it's not july. >> in fairness, i did say never. we shall find out. >> 5:18 right now. for a french artist you can be sure his day is off to a rocky start. yeah. look at that. he has chosen to spend the next week inside a block of stone. the lime stein rock has been specially designed with a body slot for him. it's in the middle of the contemporary art museum in paris. some find it silly and others are stone cold jazzed by the idea. >> they

tesla says they are expecting significant benefits from the common nation with solarcity.ects the merger untile earnings "noisy tesla's new products have the ability to prove themselves, uncertainty remains." joe? joe: what it you miss? election -- what did you miss? -- marine le pen, france.in let's bring in the international government executive editor, joining us from the d.c. bureau. i want to start with -- what is happening with macron? it looked like he was going to be in the final runoff, but that seems to be reversing again. before we get to le pen, why fortunes and hamon's flipping again? it's not really surprising in some ways that we should see all the front runners and second runners alternating positions. macron made a statement where he referred to the actions of france and the french government during the time of when of june was colonized as a crime against humanity. some of the actions the french government perpetrated there. that did not go down well. madeinland france, le pen huge hay out of that, saying that france was sick of having to apologize for it

tesla and solarcity need a lot of help.n underdogs in congress -- the company's they are competing against 10 to the big donors to congressional leaders and now elon musk has a to the president. it gives him an edge. caroline: do you think he is putting money behind his relationship? if he lobbying or looking at tech help -- tax help? he has fun toy just about everybody. because of the nature of his company, particularly spacex, which does a lot of government business, he has given to democrats and republicans. he is very logical and opportunistic about these things. with stuff like global warming in particular, elon musk has dedicated his whole life to fixing this problem. if he really thinks he can convince trump about some policies to curb global warming, he is going to take advantage of that. caroline: that was bloomberg businessweek. while elon musk is facing minimal backlash from his letter to president trump, there has been another tech titan not so lucky. uber's ceo. uber became a mockery on social media, leading hi

there are still questions about the solarcity deal. cory: that is tom giles and mark rogan.ou do after you create the tesla model s? if you are the former lead engineer, you start your own car company and call it lucid motors. the first lucid car is the air. it is electric. 1000 horsepower. slated for full production in one year. he brought it to our studios. i asked him about taking his experience with tesla to start his own company. >> the goal was to prove the viability of the electric car and show the benefits of going electric to prove it was not just possible, but an electric car could be superior to its existing internal combustion engine counterparts. superior in so many ways. instant torque, comfort, so many dimensions which have not been perceived possible. cory: torque alone, that initial speed from the tesla model s and roadster, fantastic pickup. >> the roadster proved that. it was transformative. it exploded the myth that an electric vehicle was like a golf cart. cory: yet the issue of reliability, distance, also started to loom large. >> range anxiety has been

to get these cars on the market, and in serms of the massive lo between -- lost between tesla and solarcity, we saw a massive $1.25 billion. there is no plan for the press release to borrow more money or so more shares, which would dilute current shareholders. there was big news. the chief financial officer is bailing from the company and the old cfo is coming back to fill the job for the time being, but issues continue for this company, with no plans to raise cash announced in the conference call today. cory johnson, bloomberg news, san francisco. surprises --f quite a bit of surprises and that narrower lot. coming up, more earnings. mineralsls -- oz discusses their third-quarter results. we will talk about how these rising copper prices and what we see is the -- at the outlook here now that copper is that a 20 month high. >> england 30 in sunny singapore. fromone half an hour away trading -- 8:30 in sunny singapore. only one half an hour away from trading. >> nissan has announced changes of the top. the current co-ceo president -- ceo, president, and chairman wally be remaining -- will on

what about the solarcity growth? this is a company that has shown an epic disrupter ability. they're breaking and changing every outdated industry rule. david and melissa -- cheryl and melissa will have the numbers. cheryl and david. my goodness. hi, melissa. it is still not clear whether the all-clear sign has been given to finish the dakota access pipeline. breaking news, we know, we're told by william la jeunesse it is the protesters who set the camps on fire in order to avoid having them be bulldozed by the officials who said you got to get out. get out of the encampment. they have been protesting this for a whole bunch of reasons, environmental and, of course, the fact that they are the sioux tribe and different areas that matter to them. it will aid the surge in u.s. production by 8.9 million barrels every single day. that's according to the latest numbers from the eia. what does that mean for energy markets in the economy and jobs? jeff girard, ceo of the american petroleum institute. take this one chunk at a time. good to see you. >> good to see you. >> that's a lot,

money as we saw right now, they're losing money more than expected part of this because of their solarcity incorporation. this is another elon musk company. they incorporated into tesla. it is now no longer tesla motors but just tesla. was that a smart move or not? >> high capital cost embedded to it. the stock had a huge run-up 50% the last few weeks. they will end up doing another capital raise with the stock at this level. that is another way to subsidize the business. david: i see. >> he alluded to that before. this is really tough, given the fact they want to use the same production line to do the model 3. they have had production issues. david: right. >> they will need to raise more money. david: remember all the years amazon was losing money. we know what happened to them. adam is looking more at the numbers. go ahead. reporter: this is really important. tesla vehicles in production have the hardware necessary for full self-driving. so in other words, every car they're producing now going forward is capable and they say full self-driving. the stock still continues to gain up1.6%. da

they're saying basically let's see how that works, solarcity.s funny there was an article about -- warren buffett, that iowa is the saudi arabia of wind. i find solar is not as powerful a theme as we thought, wind more powerful though we had an article about north carolina in terms of not liking wind, ge doing wind, these alternative power models are not as compelling given the fact that there is really natural gas falling through the floor. too warm. it was 70 degrees. >> yes, it was. we'll talk a bit more about some oil and natural gas prices as well as the dollar, interest rates and, oh yeah, that stock market which will begin trading about five minutes from now. ♪ 's not just a car, it's your ily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amang. and her mobile weddinguces business.tte at first, getting paid was tough... unnow she sends invoices, seeswd and-ta-dahaid twice as fast for free. visit quickbooks-d-com. th*trade you see thin your way. ♪ ♪ you ha access to the right information at the right moment. ♪ ♪ and e

with the combined businesses of tesla and solarcity, we saw $960 million burn in the first weeks of the. h 1.25 billion dollars. that would dilute current shareholders, but there was big news. the chief financial officer is bailing from the company and the old cfo is coming back to fill the job for the time being. the cash flow issues continue for this company with no plans to raise cash at least announced in the conference call today. cory johnson, bloomberg news, san francisco. one coming through from the ministry in china saying we are going to preventing large fluctuations when it comes to the property market there and they are going to keep differentiate property curves in cities, too. that is what we have coming through from the ministry of housing. coming up, what is going on out there. what is giving twitter's chinese rival a boost. we will have a look at that and get a full market update as japan heads into its lunch break. ♪ >> it is 10:29 in hong kong. i'm paul allen was the first word headlines. south korea's central bank left its policy rate unchanged for an eight month as

the solarcity deal was a turning point for us.n terms of allocation of capital, and we thought was a mistake where they put capital. now the story is shifting back to the autos. it moved in front of us, but i think you're right, this is an incentive driven story, and we have to look five, ten years out. but at some point you have to come back to reality, are you generating real returns on capital? we don't see that. >> collin, thank you. >>> hp inc. beating the street on the top and bottom lines. revenue rose 4% from a year earlier. shares of l brands taking a hit after issuing first quarter and 2017 guidance that fell short of expectations. the parent company of victoria secret saying comparative sales are likely to fall 20% this month. down 13%. >>> jack in the box reporting a first quarter profit and revenue miss. the results due in part to lower than expected sales and margins of the qudoba franchise. >> just heard all the publicity about the soggy tacos at jack in the box. remember? >> yeah. you had it. you had it. >> some mo

i raised my work to account for more debt from solarcity. david: who is buying the stock?retail large also i thinkbut the short activity can get very erratic with this name, too. those are two sides on the short movement. it can cause a lot of volatility. definitely not ailing people want to buy and hold. you have to really put up with the volatility and say i believe in elon musk or i don't believe in elon musk or electric cars and you put your money elsewhere. depends on the investor. david: as an institution, you have certain obligations to the people you are managing money for. is this a long-term hold or more speculative? >> probably depends on the time horizon of that fund, of that institution. if you are more bullish in the long-term, it is a very nice name to in theory let it gradually compound over time. there is a question of more competition coming from the germans in particular, and we have not seen tesla go through a recession yet. it is going to be interesting to see how their sales do, that cash flow does. remember that will have to build a lot more factorie

they own solarcity. >> produce money. david, i'm asking you, you need to suspend a lot of your critical judgment and faculties when you read this. i'm asking you to do that. just as when he said i was most likely a simulation, i ask you to approach this in the same way approach the spirit of calling me most likely a simulation. 50% chance. >> that's very high. >> we're going to hedge our bets and assume you're real for now. >> yeah, i don't know. i don't know. the brian krzanich said i was -- >> guns, those guns are real. >> hardly. augmented reality is me. >> we'll count down to the opening bell and take one more look at the premarket busy thursday morning shaping up. more "squawk on the street" from the nyse straight ahead. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to

there is still questions about the solarcity deal. >> who knew that we would be talking about cars? very much. it is all about cars. who knew? vonnie: indeed. thank you. san francisco is the place he is at. test the former chief engineer will join bloomberg technology. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. for over a century, they had been offering unique jewelry design to discerning customers, including elizabeth taylor and grace kelly. bloomberg pursuits got a sneak peak inside the exclusive shot. -- shop. let's have a look. ♪ tucked into a winding walkway jewelrye is a small shop that has been doing business for over a century. you are likely to miss it if you walk by. the doors are often shuttered. in 1866 fromopened my grand-grandfather. a long time ago. [speaking italian] ♪ >> he draws inspiration from the rich history and jewelry of macau which is a long time -- of the macabre which is a long time at session. >> it is the story of life. >> he is also an avid art collector. although he is not want to brag, he will tell you that luminaries