you really are following tesla's footprint. is that because they did it right or because to investors and car buyers we can say it's just like tesla. >> they did it right. if you look at tesla as a success story, they started with a vision to produce an outstanding product and then they worked within the confines of silicon valley and really leveraged what we do best, integration of software and hardware together and produced a car with an extremely small amount of money and produced it in a very short amount of time. ten years ago people were looking at tesla with a big question mark. now with a model s outselling all of the other marks in their category, i think six quarters in a row now, it's a success. we involve people from very senior people from tesla early in the process, including one of the co-founders and engineering directors and learned a lot from them and other ev startups, whether successful or not. you've got to learn from success and failure. that's something we spent a lot of time thinking about when we founde

what if tesla shares double again?risk, dan instead bought the october 265 strike put for $8. to make money he needs tesla shares to fall below $265 by more than the cost of that put. or below $257 by october expiration. but spending 8 bucks just to bet against tesla? >> why don't we do better? >> dan, listen to the man. so to spend less, dan then sold the september 2.65 put for $3 and created his put calendar but he did something even better. he made making money easier. >> dreamer he is, with the courage to elaborate and improve. >> between the $8 he spent on that longer dated put and the $3 he collected by selling that shorter dated put, dan cut the cost of his trade to just $5. and now to see profits, dan just needs the stock to drop more than $5 below that strike price or below $260 by october expiration. but it gets even better. >> ding dong, folks. >> because the put dan sold will decrease in value faster than the put that he bought. that means he can do something traders of the past can only dream of. turn time

this is the question over and over today, particularly with tesla and facebook. start with tesla. in an al tesla is being bout by big institutional investors who can move stock prices and buy is aggressively. i think it's just now starting its next leg higher. how high can tesla rally from here? fitzpatrick is two methods of generating price targets. first, look at how much the stock advanced after it hit its last new all-time high prior to the recent consolidation. at the end of last september, back here, tesla had a new record high at 195, pulled back, breaking out above that high four and a half months later. after that breakout on february 7th, okay? the stock ran up a quick 37% before peaking less than three weeks later. if the same pattern repeats, resulting in another 37% move, fitzpatrick believes tesla can rally to $389 before it runs out of steam this time. although that could take many months or even a year, but come on, that would be an amazing move. the second method, simple. you measure the distance from the bottom of the cup, the low tesla made at 177, to the top of

and tesla's big bet on nevada. the desert state, beautiful state, set to build a giga factory there. that's a battery factory, in case you didn't know. wait until you meet the brothel mogul who helped make it all happen. sue in the nyc. >> stocks are fighting back from earlier losses. the dow and the s&p now both close to wiping away the week's losses. right now the dow is up about322 points, the nasdaq up 4, and the s&p up 4 as well. after that jobs report, you can see that on the left side of your screen, things have normalized a little bit at 2.43% on the yield. the dollar heading for eight weeks of gains. best winning streak in 17 years. that, of course, as the european central bank puts in more qe. oil and a lot of the commodities today have been on the down side. ice brent crude down almost 12%, same for stexas international. in terms of other moovrvers, co goldman sachs, boeing the biggest drag, but they've also improved. we want to call your attention to biotech. it's down about 1%, a little less than that

. >> very good for tesla and so i'm very frustrated, given our history with tesla in terms of what we've provided for them. >> tesla announces today its next massive factory is going to nevada. >> today is the only gubernatorial debate on the calendar this election season. governor jerry brown has little to lose as he faces republican challenger neel kashkari. from across the bay to around the world, the stories that matter on "kpix 5 news this morning." new this morning >>> good morning. i'm frank mallicoat. >> i'm michelle griego. time now 6:00. >>> new on this thursday morning, more shaking in the north bay as another aftershock rumbles throughout the napa area. it was a magnitude 3 around 4 a.m. you can see the shaking here on our kpix 5 seismograph. no injuries reported from that or from a minor earthquake that hit the peninsula at 8:24 last night, as well. >>> let's check the roads now with elizabeth. >> it's already pretty busy if you are heading to the bay bridge toll plaza. there was a minor fender-bender already cleared and it was on the span itself. so they switched on the met

tesla has chosen the site for at least one of the tesla giga factories. preliminary choice we should point out. need to work out an incentive package bringing up the question heard from people. five states in contention. why nevada? why the area outside of reno? why is it being chosen? a couple key factors to keep in mind. already broken ground there. the incentive package, however, the main one. tesla is looking for at least a half billion dollars. $500 million, in order to come leer and set up the giga factory and a location relative to tesla's plant in fremont, just down i-80, five hours away by car if shipping batteriesinto the plant a quick shipment. a work-to-right state here. important as the factory grows and finally, nevada is home to the only active lithium mine in the united states. of course, they're making lithium ion batteries. that's the key factor behind the giga factory. once they open it up and get it production running, tesla is hoping to produce up to 500,000 battery packs a year, by the end of this decade. the giga factory is schedule

i think tesla -- i'll say tesla at $245 is a much better risk/reward than solarcity. >> karen?o overly valued stocks. i guess i go with solarcity. i have some exposure in the solar space. >> josh? >> i would say tesla. i think this is a really volatile stock. the next level of support could be the 200. that's not until $210 a share, which is some 30 points from here. if you're in this type of name, buckle up. you have to deal with volatility. but long term, it's a great one. the cheaper you can get it, the better. >> you can still vote. please vote. >> i agree with everything josh just said. i'm considering -- i would love to see the stock at $200. i know goldman had concern about capital raising. this giga factory is going to be expensive. they have to continue to raise capital. that dilutes existing shareholders. i think this story has legs for years to come. your first entry doesn't have to be perfect. if you buy a little at $250 and it goes to $200. buy more. >> let's close the vote. what did you vote for? >> tesla, 52%. zblv . >>> time now for "pops & drops." walmart, guy?

and tesla stock too, up half a percent. stunning news out of tesla's sister or brother company. we haven't decided what to call it. aerospace industry came out with news, nasa granted rocket ship company spacex part of a major multibillion dollar contract that was expected to be entirely given to an old school name in the industry, boeing. but no! nasa granting $2.6 billion of the $6.8 billion contract to ferry astronauts to the international space station to spacex founded by elon musk. elon joins us in a fox business exclusive. thank you for coming in. >> thank you for having me. liz: what, right away does, this granting of the contract from nasa mean for the future of spacex? >> a vital next step in spacex's next progress. it's about taking astronauts to the space station, transporting u.s. astronauts but for spacex, it's the next step in the technology we're developing, and it means we've got a key anchor tenant in nasa for, as a customer for human transport into orbit. liz: on the screen we're looking at one of your dragon capsules. i can remember seeing the original dragon

would do what it takes to get a deal done. >> we have been very good to tesla. and so i'm very frustrated given our history with tesla in terms of what we have provided for them. >> reporter: he says it's frustrating that tesla has already benefited from california subsidies and tax breaks but decided to go out of state to create 6500 badly needed manufacturing jobs. nevada was considered the front- runner in a five-state sweepstakes for the "giga factory." in fact, nevada had already begun clearing a potential site near reno. u.s. senator dianne feinstein said she and others lobbied hard for the golden state. >> i'm a big fan of tesla's, so i'm obviously sorry because i had talked to elon about it and had talked to the governor about it, and i know the governor made a full-court press. but apparently, it was just too good a deal in nevada. >> reporter: now, the silicon valley leadership group also expressed disappointment saying it had worked very hard to build a relationship with tesla and that hopefully california could benefit from that next time around. liv

tesla as well. getting pushed to the downside. >> the jury is still out when it comes to semi-conductors, financials, but individual names you're not positive on. >> those specific individual names, i think there are names that continue to perform very, very well. big cap tech names, i still like the way microsoft and hewlett-packard is trading. >> you want to be in larger cap names. you look at tesla. tesla's not a small company. the sentiment has really turned on the stock. started last week with morgan stanley, goldman sachs, today it is jap mopmorgan morgan. >> what took you so long on tesla? as the dollar has been rallying, my view is that that takes volatility higher and correlations higher. last week think of all the events we had. we had the fed, scotland, alibaba and triple witching on friday. as a market event we typically see the market trade off after the fed and after triple witching. to sell everything today and say momentum is dead, no. but to say stocks are starting to trade together

tesla's concept, is expected to bring 6500 jobs. >> a serious cost going on with tesla, even up until this morning. >> reporter: governor jerry brown and regulators shifted into high gear, trying to put california in with the finalists, but nevada has one advantage, with the only lithium mine in the united states, a plus tore tesla. plus, the state has no property or income taxes, and is expected to offer a generous package of incentives. ironically, california's environmental laws may have been a road block. >> a very aggressive timeline, certainly there was regulatory issues. the california environmental quality act. >> reporter: tesla reportedly hopes to have the factory up and running by 2017. that's when it's expected to roll out its model 3. they might be preparing a second site for a battery factory in the future. >>> more details now. the so-called gigafactory is expected to make batteries for tesla's cars, and well as other electric vehicle cars. most homeowners who have solar panels still depend on utilities for some of their power. the storage units could enable them to go

where will tesla build its huge new battery factory? tonight len ramirez has the answer. >> reporter: california is still the home of tesla, but the company will announce tomorrow it is going to nevada for the next generation battery factory known as the gigafactory. >> i'm devastated. >> reporter: ted gains delivered a shovel to palo alto last month along with a letter to the ceo says california would do what it takes to get a deal done. >> we have been very good to tesla so i'm very frustrated given our history with tesla in terms of what we provided for them. >> reporter: he says it is frustrating that tesla benefited from california subsidies and tax breaks but decided to go out of state to create badly manufacturing jobs. nevada was considered the front runner in a five state sweep stakes for the gigafactory. nevada had started clearing a potential site near reno. the senator lobbied hard for the golden state. >> i'm a big fan of tesla's so i'moverly sorry. i had talked to elan about it and the governor. and i know the governor mad

kpix 5's len ramirez is at tesla headquarters in fremont. len. >> reporter: veronica, when you talk about the "giga factory," you talk about a big prize that any state or region would want because of all the jobs it would create not just construction jobs to build such a large factory but all the thousands of manufacturing jobs that will stay in the state and put people back to work. unfortunately, all those jobs are now going to nevada. california is still the home of tesla, but the company will announce tomorrow that it's going to nevada for its massive next generation battery factory known as the "giga factory." >> i'm devastated. >> reporter: state senator ted gaines delivered a gold shovel to tesla headquarters in palo alto last month along with a letter to elon musk saying how california would do what it takes to get a deal done. >> we have been very good to tesla. so i'm very frustrated given our history with tesla in terms of what we provided for them. >> reporter: gaines says it's frustrating that tesla has already benefited from ca

like for example, tesla. next, political analyst larry gerston sits down to talk politics in the wake of big news. that tesla spurred california for the latest factory. stay with us. >>> good morning. i'm mike inouye. there's a lot to do in the bay. i call hometown for the first one. mountain view. the city where i was raised raises the roof for the 43rd art and wine festival. fully cracking latin sound in what's been dubbed salsa sunday. as for winers, a new wine tasting event. our parent company will be there. so you won't miss games and the the community stage will hold. houn tan view's got talent competition. i was not invited to participate. moving o where my family had a farm. up there, mike and sally run a bed and breakfast. the apple arkansorchard is wher can go today. you probably want to call to make sure they have enough for you to pick. visit them online. and keeping it about me, i've taken russian language classes. that's not entirely necessary to get in. the 2014 russian american fair is promise

analyst is pulling cold .ater over tesla's projections ♪ >> tesla has reportedly chosen a home for itsium battery. aey are vying to host facility which could create 6500 has one seems nevada with an announcement expected later this afternoon in carson city where the governor will be present as well as tesla officials and elon musk will be there. is the huge undertaking going to hit its goal of half a million i to be produced at this facility? we dug through the demand and published a report higher -- highlighting the risks. great to see you this morning. this report was making the rounds yesterday. there are very few bears out there on tesla. everyone seems to be buying into elon musk's position. the biggest impact is what? >> we are not totally down on the giga factory. when you look at what the estimates will be for electric vehicle sales, around 500,000 vehicles. will beely case, it around 40,000 vehicles. there are a few reasons for that. most manned is coming from the model three. when you look at where it is priced that come it is around 35-40,000 dollar price range. that is squa

. >> tesla is expected to reveal where it will build a gigafactory. california was being considered, but the factory will be built elsewhere. alyssa harrington is reporting live. >> the governor is expected to make the official announcement, but tesla will not confirm anything. i did get a chance to speak with people today and they of course are disappointed. rejection is never easy. especially for some state lawmakers who tried aggressively to woo the company to set up the factory here. >> we are disappointed, but it is not the end of the world. >> it is a blow to california says a spokesman for the bay area council. tesla motors plans to open a giga factory to mass high-tech batteries for their electric cars. it is reported the $5 billion plant will break ground in nevada. >> we want to look and see what happened and what this deal is going to look like. what we can do differently to respond and make sure california comes out first next time. >> state lawmakers have been trying to lure shoppers to tesla. >> we provided huge benefits to the bottom li

tesla shares are breaking too. not quite like that, but they are selling off, and whether it's a buying opportunity. the "action" starts right now. >>> live from the nasdaq markets, i'm sarah eisen in more melissa lee. these are a traders on times square. alibaba the biggest ipo of all time. and the two most active stocks today? alibaba and yahoo! while alibaba had a huge day, yahoo! dropped 3%. record volumes. what's going on here. let's get in the money. dan nathan, why the pressure on yahoo!? >> if you were there today, late to the game, stock's been over a hundred percent since 2013. it's well-known it's a way to play expanding value of alibaba over the last few years. stock up 15% in the last month headed into this event. you know, we hear talk all the time on the street, you know, traders say, buy the rumor, sell the news. that's what you got today. >> options action into today, yesterday, for instance, high volumes. >> that does not surprise me very much. what we can see, also, as yahoo! rose, every bit of t

is tesla overvalued?ake a listen to what elon musk had to say about it in nevada. >> i do think people sometimes get carried away with our stock, honestly. and because i think our stock price is kind of high right now to be totally honest. or rather let me put is this way. if you care about the long-term tesla, i think the stock is a good price. if you think at the short-term, it's less clear. >> that statement driving tesla lower by 3% today. this isn't the first time he's made comments about stock price. last time musk cede the valuation was more than any right we deserve. is tesla too pricey and should elon musk stop talking about his stock price? >> of course. ceos shouldn't be talking about their stocks. ultimately this is a stock where i think there's so much good news priced in and now with this that i characterized as a money pit a couple days ago, i think that's what it is. the cost of doing business are going higher, not lower. this is not a stock you should buy at these prices. >> you mentioned

. >> tesla is expected to reveal where it will build a gigafactory. california was being considered, but the factory will be built elsewhere. alyssa harrington is reporting live. >> the governor is expected to make the official announcement, but tesla will not confirm anything. i did get a chance to speak with people today and they of course are disappointed. rejection is never easy. especially for some state lawmakers who tried aggressively to woo the company to set up the factory here. >> we are disappointed, but it is not the end of the world. >> it is a blow to california says a spokesman for the bay area council. tesla motors plans to open a giga factory to mass high-tech batteries for their electric cars. it is reported the $5 billion plant will break ground in nevada. >> we want to look and see what happened and what this deal is going to look like. what we can do diffe resp respond and make sure california comes out first next time. >> state lawmakers have been trying to lure shoppers to tesla. >> we provided huge benefits to the bottom line.

tesla said that discussions with other states in the process are ongoing. we have always said we anticipated breaking ground in more than one site and california was always a long shot because of the environmental review process for construction projects. each state kept the details of their bids secret but tesla said that the winner would office incentives worth roughly 10 percent of the total cost which is $500 million. >>> thank you, nick. san francisco police made an arrest in the fatal stabbing of a promising young teen in the mission district. rashaun remains bought candy at rashaun remains bought candy at the market at 26th and social media may have made a part. he just made the football team at sacred heart cathedral preparatory school with future plans. >> a 4.30 student, never got in double. a kid that told his mom, i will go to harvard when i graduate i will get you out of this place and take care of you, mom. >> a prayer was held before the wednesday practice in daly city. the investigation into the murder is ongoing. >> both the nfl and the 49e

is coming up is throwing a huge amount of money to try to compete with tesla granted i think the tesla is much more clever and will be able to beat g.m. but there's the possibility who can tell you i must have got a lot on his plate you never know things can happen stranger than fiction or you know the higher the valuation the greater. the profit potential the more people are going to try to compete with you and that means uncertainty there you go now if you could advise individual investors about the tools and habits you know to use that that improve it evaluate in the company invest what would you say are the most important to us well you have to be skeptical for one because managements will feed you information and you have to say what if what the management's telling me is not going to be correct and what's my downside how how bad could this forecast turn out that's why i like to own companies that have lower low expectations built into them many of the companies that i own for my clients if growth does not happen the valuations of the companies are not going to change that much an

for me, that's tesla. now, last year tesla managed to rally from $32 to 250 bucks. an incredible run. but in 2014 it has been a bit of a roller coaster ride. they lost some momentum and peaking at 250 and dropping down to 180 in may as the shareholders started to flee based on worries of valuation. since then, tesla has come roaring back in the extraordinary fashion. it's trading at 286 bucks a few dollars below its all time high. i think jordy nelson could relate. his value took a major hit last year when aaron rodgers the starting quarterback for the pac broke his collarbone and was out for eight games. nelson's performance did falter. many questioned how much more success he had left in him, but he dug in his heels came with back with a record setting year. i think this year could be another record year for jordy and for tesla. now, ceo elon musk is to tesla what jordy nelson is. he knew that tesla would revolutionize the industry, and despite being knocked down by the media he gets up and delivers. tesla is a vehicle, they have tremendous growth trajectory, buye

i drove to boston recently and saw a guy sitting in his tesla. okay?e was still sitting there before i filled up and after i filled up. i just don't want to spend half an hour to an hour to get to boston at the gas station. >> if you haven't been involved with tesla on a run-up, the 5% move in a stock with almost 25% short interest now, great call by the analysts, $400 target. now is not the time to jump in here. stocks have been great if you owned it. good for you. now, if you don't own it, i wouldn't jump in here on this plus 5% move. >> one by one, more shorts will capitulate at fact it's a stock that doesn't want to go anywhere but up. >> you don't want to be short for sure. >> i'm surprised to hear weiss drives to boston and doesn't fly private. >> i was come from newport. >> otherwise you wouldn't be caught dead on the road. >> it's a trading vehicle. not investment. the biggest risk to tesla, if oil was $125, yes, fundamentally i could see it. but the renaissance we're seeing domestically, falling oil prices one of the biggest challenges they're

today the governor of nevada will announce the tesla motors will build the highly sought after factory outside reno and nick is outside the electric carmaker's fremont park. >> this will machine a big deal for the state of california, of course, that is because we know that nevada governor is expected to make the announcement this afternoon on the plant if -- i his state. tesla will build the factory to make high-tech batteries for the cars in nevada after months of working with several states. a press conference is scheduled for 4:00 p.m. in carson city where the executives and different nevada state leaders make a major economic development announcement. california lawmakers say building the $5 billion plant in nevada is a blow to california. >> we have provided huge benefits to their bottom line and i am devastated the factory was not landed in california. >> it will create 6,000 jobs or more and tesla said that discussions with other states in the process are ongoing and we have always said we anticipated breaking group at more than one site. california was consider add long shot b

. >> tesla is expected to reveal where it will build a gigafactory.california was being considered, but the factory will be built elsewhere. alyssa harrington is reporting live. >> the governor is expected to make the official announcement, but tesla will not confirm anything. i did get a chance to speak with people today and they of course are disappointed. rejection is never easy. especially for some state lawmakers who tried aggressively to woo the company to set up the factory here. >> we are disappointed, but it is not the end of the world. >> it is a blow to california says a spokesman for the bay area council. tesla motors plans to open a giga factory to mass high-tech batteries for their electric cars. it is reported the $5 billion plant will break ground in nevada. >> we want to look and see what happened and what this deal is going to look like. what we can do differently to respond and make sure california comes out first next time. >> state lawmakers have been trying to lure shoppers to tesla. >> we provided huge benefits to the bottom lin

its factory near reno. >>> speaking of tesla. is a twist to that story. that is just one of the stories we working on. in the next hour we will tell you how a brothel owner helped seal tesla's deal. and a a startling new study suggests the amount of sleep we get or lack thereof may cause our brains to shrink. how scientists think it effects daily lives. those are some of the stories coming up on mornings on 2. dave. >>> i'm looking at sal because you are watching the east shore and everything else. >> what your answer should be i have a big enough brain it doesn't matter. right now 80 is not doing well. i will tell you why. we can still see. it looks like in the last few minutes they just opened. no, still there. westbound 80. keeping an eye on it here. west 80 at the 580 interchange. they have taken awaif the injured people. however, traffic is backed up big time. i can put it on a map here. you can see the slow traffic coming through. all the way up from richmond as you drive all the way down from richmond as you drive down the

yes, it looks like the tesla battery factory will be in reno and not here. that means somewhere around 5,000 jobs will go to reno, which has been on a hot streak lately, landing businesses like apple powering a data center there with solar panels from sun power. but tors sla still has its headquarters here, along with a growing factory in fremont. reno can probably offer a better deal when it comes to money, and a battery factory is likely to be a tough sell when it comes to environmentally conscious california. here's how senator diane feinstein reacted when she heard the news today. >> well, i'm sorry about that. but nevada's a good neighbor. we have a lot in common. so, you know, i wish them well. i'm a big booster for the product. and i think the all-electric automobile has a very robust future. >> the bay area council also weighed in on tesla's move, saying, quote, we continue to believe california can be the central place for tesla's growth with many future opportunities to see that happen. it is likely tesla will continue to grow and hire here in the

there you go. >>> by the way, one of the key men in bringing tesla to nevada is a brothel owner. no, it's not really what you think. jane wells, what should we be thinking about this? >> actually, it is really what you think, mandy. what do electric cars and prostitutes have in common? lance gilman. we first met him two years ago. you have to be the most diversified businessman in america, wouldn't you say? >> i have a diversified portfolio. >> that's in 2012 and lance gilman is a long-time developer who also owns a ranch outside reno. he's on the commission and also on the city council. almost $100 million of infrastructure already put in, a freeway and a railroad for distribution purposes. that's where tesla is moving in, and it's a place, he says, where business is to business friendly, they can get a building permit in 30 days or less. >> it's all developer built with private money. there are no bonds, there are no state funds, there are no federal funds. >> tesla will be moving into an industrial center where tenants include already walmart, toys r us, petsmart. reno's econo

prior to that, tesla is doing just fine. >> okay. let's see this, they've done these capital raises every year since their ipo. they will have to raise more capital for this gigafactor. if they bring a deal soon. this is potential catalyst, why wouldn't you bring a deal when the stock is at an all time high. they sold stock if 2011 at 28. they sold it at 92 in may of 2013. why the heck wouldn't you still stock at 276? >> we'll see how the stock reacts in the days ahead. right, that itself the key? is there when they sold stock if pay, 2013, elon musk bought $100,000 on the print. >> got a question out there, send us a tweet at "options action" action. we changed our twiths handwitte handle. here's what's coming up next. >>> "options action" traders are expecting a $26 billion move for apple shares next week and we'll give you the best play. plus, talk about a bank job. >> this is too much. >> pike doubled his money in less than two weeks in banc of america. now he's got a way to make even more. we'll explain how when "options action"

our investors having second thoughts about tesla? be reacting to ceo elon musk's own comments on the company. plus, we told you about this iphones.n the another bug in apple's latest products. we will to you what is wrong this time around. stay "in the loop." ♪ >> tesla shares have hit a bump in the road after surging more than 65% so far this year. they have dropped over 7% so far this year. public admission that the shares may be overvalued. after he made those comments, two analysts came out with their own cautious reports. shares could be worse. less than $200 while morgan stanley thinks tesla could be worth $320. not so fast. morgan stanley managing director adam jones joins us more. great to have you back with us. report, which is shortly came after elon musk himself said look, i think my shares are a little overvalued, sent the stock tumbling down about 10%. did you expect that kind of response? therefore be very with crediting one report or a reaction.for that it was a rough day for the markets. a lot of tech stocks were down

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we have news on tesla. phil lebeau is back with that. >> tomorrow there's an event in nevada with tesla at this event, they will officially not saying what this is about, but there are reports from dow jones that tesla has chosen nevada as the location for its new gigafactory building lithium batteries. it's a $6 billion investment expected to bring 6500 jobs. now we are being told by dow jones that nevada is the site for the gigafactory. tesla is not confirming the report but we know tesla will be at the economic development announcement tomorrow in nevada. so read between the lines if you want to. we know nevada is the site for the gigafashionry. >> battery is the holy grail of those cars. >>> speaking of phil lebeau, steve liesman, phil lebeau was on ten minutes ago talking about for the first time -- i'm sorry, it says it right here we have steve liesman. >> but he's not there. >> look at that. >> prioritize this for us, everyone is pointing to a different fundamental thing right now. we have the jobs a

tesla is one of those companies where. you would have to grow at a rate of something like forty percent per year for the next five six seven years in order to grow into that valuation i look for companies when i'm buying them that maybe have to grow at about a five or six percent rate to justify their valuations and even then in an economy that is as weak as it is that's still challenging right five percent is it does count it certainly does count now i'm glad that you bring up tesla because i want to ask you basically on about high growth companies like tesla you also have amazon facebook there's many many others but you know from this is hard to figure out a value so how do you do it from a valuation perspective you know with some things that are really out there like a tesla or say in amazon you might try to imagine what might this company be like fifteen years from now what percentage of the total retailing market might amazon have and would they be it as a normalized margin at that point in time now take that and then

but it looks like the tesla battery factory will be in reno, nevada, not here. and that means somewhere around 5,000 jobs will go to reno, which has been on a hot streak late l la lately. tesla still has its headquarters here along with a growing factory in fremont, as for why? reno can probably offer more money. we caught up with senator dianne feinstein when she heard the news. >> well, i'm sorry about that, but nevada's a good neighbor. we have a lot in common. so i wish them well. i'm a big booster for the product, and i think the all electric automobile has a very robust future. >> the bay area council also weighed in on tesla's move saying we continue to believe california can be the central place for tesla's growth with many future opportunities to see that happen. it is likely that tesla will continue to grow and hire people here in the bay area. it is good news for reno, which is growing and developing a strong tech workforce, but california will grow too, and tesla is likely to power a lot of that growth. jessica? >> let's hope so, thank you, scott. >>

anything that can stop tesla from rallying higher?ore on that in a moment. >>> netflix meets fashion. a first cnbc interview later in the hour. "squawk alley" continues in just a moment. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. >>> forget selling may, wall street heads back to work, sell in september might be the mantra. dominic chu explains. this hasn't been the case the last few years but might this year. why do you say that? >> hit the

. >>> tesla shares on the move at this hour. the electric carmaker choosing nevada for its $5 billion factory there. it's a battery factory. but the question why there. we sent phil lebeau just outside reno soon-to-be home to that tesla gigafactory, phil. >> the gigafactory where they are moving the earth and getting things ready here. it will take about three years to put it together. we're in sparks, nevada about 15 miles east of reno. a lot of people are saying why reno? why put the gigafactory here? it makes sense on a number of different levels. first of all tesla wouldn'ting coming here unless they could get a huge incentive package. that need to be finalized with the legislature. but estimation is they'll get at least $500 million in incentives from the state of nevada. the location is prime how it is relative to the tesla plant four hours to the west down i-80. that's where they build all the electric vehicles, the model s, model x and model 3 coming out in three years. this is a right to work state which will be importa

for tesla? >> definitely not tesla, not for me. i think solar city, this is the premier rooftop play in this space. things that people haven't priced in. that gets sold off with tesla quite often. that's a name that i think is interesting. >> and down 4% today. to me, it doesn't have any of the sizzle that solar city does in terms of valuation. it's not cheap, definitely. but seize an opportunity to buy. >> tesla down 9%. for a trade. >> i think tesla could retest that 225 level that we talk about. that's where it gets interesting to me. >> and twitter, they price these two converts that they announced last week. the deal didn't trade so well. so there was some hedging going on. i think that exasperated some of the weakness in that name in particular today. >> let's stick with the nasdaq sell-off here. biotech taking a beating falling more than 1%, and the xbi sink mortgage than 2%. are there some names right for buying? great to see you. >> thank you. >> this is not as sharp of a decline or pullback that we've seen compared to oth

what is the demand for those cars, those teslas never takes off?will they consider selling those batteries to other vendors? >> yes, yes and that's the whole idea. these batteries are not strictly for tesla. they will be for other electric vehicles. they will be using the energy that they create or develop within this giga factory to sell to energy companies. there is a component being used for energy. yes, some are calling this a moon shot but tesla believes there will be demand. >> phil lebeau from nevada tonight. >>> and coming up on the program, it's the time of year many fans can't wait for, the kick off of football season. we'll go inside to the big business of the nfl. >>> google is about to make a lot of parents happy after reaching a settlement with the federal trade commission. it's refunding at least $19 million to settle charges it unfairly billed parents for app purchases made by children without an okay from mom or dad. kids bought goods while playing a popular game. >>> from video games to the gridiron, the 2014 season kicks off toni

yearly this year, tesla began developing a site near reno, nevada.the company offers choices among solar, geothermal and wind energy. nevada, no state income or corporate taxes. in june, tesla's ceo elon musk talked to cnbc about how several states were competing for that plant. >> a lot of people think we're trying to put the screw toes various states to get as much as pbl. that's actually not our goal. really, our main concern is to make sure that the giga factory, the strained battery factory is ready when the third generation car is ready. because if we go in, design the car and wait, we tool up to produce the rest of the car which is also a big expense, but then there are no factories to supply it, it will be a terrible outcome for tesla. we might fail as a company. so that has to be paramount in our decision making. >> now, tesla is aiming to finish construction on the gig da factory by 2017. that's when it plans to roll out its third vehicle, the model three, which has a 200 mile driving range. he hopes to reduce battery costs by 30% by bringi

up to rand tesla's "giga factory."ns call for the $5 billion battery plant to be built near reno. but lawmakers now have to approve a package of incentives to close that deal. it includes various tax breaks and other enticements totaling up to $1.3 billion over 20 years. tesla's ceo elon musk says the plant is a big deal for the state of nevada and the future of his company. >> the "giga factory" is really vital for the future of tesla in order to produce the affordable electric car which is the goal from the beginning. it will be bigger than the sum of all the [ indiscernible ] factories in the world. >> even though the state is offering up more than $1 billion in incentives, the nevada governor says the plant will generate $100 billion for the state over 20 years. >>> grand designs are in the works for the new presidio parklands project in san francisco and now the public is getting a peek at what's to come. five design teams are competing for their concepts to come to life on a landscape that will cover the tunnel r

still ahead here tonight, the tesla factory. where will they build batterie a competition for thousands of jobs apparently ended. >> also tonight a real phenomenon the drought could be making it worse. why tree limbs fall more in the summer. >> sunnier and warmer weather is just ahead i'll have theccu-weather forecast coming up in just a moment. and a high school band that came home without instruments. what's happened to snacking? how did it become absent-mindedly eating one after the next, after the next? so predictable and so unsatisfying? what about pulling up a chair, a stool, a beanbag, and actually tasting our food. we are a creamy cheese that still believes in the beauty of a knife, in the elegant swipe of a . . . swipe. of course, that doesn't mean you can't dunk us or scoop us up. enjoy every single, sol-i-tar-y bite. the laughing cow. reinvent snacking. >>> abc7 news is reporting from concord >> scare me to death. >> concord's sue taylor thought it was another earthquake. the noise when it dropped a limb in the middle

still ahead here tonight, the tesla factory. where will they build batteries? a competition for thousands of jobs apparently ended. >> also tonight a real phenomenon the drought could be making it worse. why tree limbs fall more in the summer. >> sunnier and warmer weather is just ahead i'll have the accu-weather forecast coming up in just a moment. and a high school band th >>> abc7 news is reporting from concord >> scare me to death. >> concord's sue taylor thought it was another earthquake. the noise when it dropped a limb in the middle of her backyard. >> that is when my friends and i hang out. >> this expensive barbecue took a hit this week in a home in walnut creek. the culprit, also, in oakland. >> is there any indication this is drought related? >> none of us are sure. >> john is an arborist and says sudden limb drop seems to happen more when hot weather turns cool. >> it's called sudden, or summer limb drop for a reason. because there isÑç no obvious reason to the layman's eye. if you're an arborist, you can look at it. maybe a branch has not as good o

tesla continues to amaze. these are big products.k about europe, going back a sec, there's no tesla there. there's no major -- there's no silicon valley there. i mean, this is what germany needs to do. they have bmw, a great company, where do they put up a factory? >> south carolina. >> or mexico where they send them up the union pacific. there's factories in an amazing little place where they pay $5 an hour, but demand in the country? no. demand in our country? musk -- how many people are going to -- 5,000 -- what's the number? the unemployment is going to be 2%. parts with 2% unemployment, getting used to that. we have demand in the country. >> very exciting. forgetting about stock price, looking at the larger picture, i guess, of tesla, what it's been able to do so far, and gigafactory, cars, proliferation there, self-driving cars, separately, but partially, but the lifyfts and ubers. >> exactly. kids would -- when you have kids that are college age, i mean, the world shifted. it's stanford, it's occidental, uc berkley, just we're