now let's go to tesla, everybody loves tesla, i have driven a tesla, very exciting. i love it, love it, love it. this company seems to do one thing very well, lose money. last year it lost $5 a share, now it's cooking. but tesla went from $18 million in capitalization to $49 million. how can it do that? that's because tesla's got revenue growth. now go back to that growth manager who sneers at ford, he takes one looking at tesla's revenue growth, and he says i got to have this stock, i've got to own it. he's not deterred by the earnings therefore as long as tesla doesn't run out of money, it can keep making cars and charging a fortune for those cars. so eventually it will make a killing. emphasis on eventually. do these growth managers care one wit that ford sold more than 3 million cars last year, while tesla sold 83,000? no, not at all, they don't even care, tesla just announced that it will sell more and more each quarter going forward, making last year's earnings look small. what about 5% dividend yield. that's a sign it's a red flag, they're saying, oh, boy, for

of course not every loan recipit failed tough tesla motors got a loan d tesla is booming.esla was founded by elon musk and the media loved musk. rock star savior, the incredible awesomeness of elon musk. why elon musk is my hero. but he is not my hero because lots of his money came from us taxpayers. i think he is a crony capitalist but an economics professor i respect says i'm wrong. he is a freeloader. >> john i love you but i think you are wrong on this. there are certain things that they get tax waivers on that other companies don't get that we have too differentiated tax waiver with a subsidy. when people say oh they got $5 million if you look into it a lot of it is nevada promising not to tax certain things for a few years or in other cases the customers can wave, lower their income taxes. these are not subsidies. they are not a direct subsidy for tesla got a $4.9 billion loan from the government. >> it's all wrong. they did get a half a billion dollar loan but they paid it back so here we have a small amount of subsidy in terms of -- john: why should they get any? w

>> you guys are talking tesla. i switched it over to something else that's relevant. >> if somebody's looking to good in today -- >> the floor will be the level from which you broke out. and there isn't any valuation, no way to talk about that, no point in talking about it. which, you know what, it leaves some parts of the market out. you can stare at the party with your nose pressed up against the glass and say, why can't i go in there, or just go in there and b buy tesla. >> what could go wrong? >> i'll go first. do i own it? have i any point in the last five years? no. what a disaster. let's start with you. have you bought it? >> i have not. >> you're in the same disaster category. anyone else own it? >> yeah. who's the buyer here? >> there are inkr emental buyers. but i interrupted you. >> explain to me the definition of growth versus value. what does one need to be a growth and -- what is it? >> if you go to s&p 500, they changed that criteria. the growth in value index is -- apple's been in and out of each ca

tesla is a leader in both those areas. we think because of battery cost declines, there will be 70 million evs sold in the early 2020s. and tesla will have a good share of that market. on the autonomous side we think -- everyone considers tesla just an electric vehicle maker. but we think it could be a future autonomous taxi service provider. that taxi service market we see growing to roughly $10 trillion by the early 2030s. if tesla were to just maintain its share in evs and get a 5% share of the autonomous taxi space, we think that could add hundreds of billions of dollars to its market cap in the next five years. when people look at this stock and say it's overvalued, we think it's just started. >> give us the counterargument here. i gather you're concerned about profitability. this company is not really lighting it up there. but amazon didn't make profits for a long time either. >> just to put this in context, historically we've been bullish on tesla's products. where we have trouble continuing to be bullish, it's a tw

but year on year tesla has increased sales by 70%.ajectory and the company's mass production drive has the auto giants watching closely. reporter: these electric cars from california are selling better than other -- ever. tesmer sold 13,000 units in the first three months of the year followed by 11,500 suvs. to finance its rapid growth, tesla has joined forces with chinese investors. chinese internet giant tencent holds a 5% stake and as luck. to secure his position as the world's leading carmaker, tesla teamed up with panasonic to build a $1 million battery production facility in the nevada desert, boring battery costs by 30%. that sets the stage for ceo elon musk's next big move. he wants tesla cars to undermine production -- to enter mass production. it sells for less than half the price of previous models. to top it off the california carmaker aims to increase sales next year to half a million vehicles. christoph: for financial markets reaction let's go over to our markets man in new york, jens kort salese. -- jens korte. sales ar

it is not about car sales with tesla.ut the model 3 coming out, the lower-priced car, and being a success. a vehicle that will sell that will prove tesla is a phenomenon. it ishas the chevy volt, showing a similar range to the model 3 tesla. it is showing a similar price point. though that is on the road, the optimism is higher at about the model 3 which has yet to come off of the production line. >> tesla has a couple of things going for it. the big car companies saw electric cars and hybrid electric cars as something they made to meet regulations. tesla made electric cars cool. the model s is sleek and extremely fast. still has the falcon-wing doors. you take it down scale with , itthing like a model 3 still has a design that makes it look like it is in the model s, but is accessible to people who aspire to drive a tesla or have a piece of the elon musk allure. has become very powerful because of the initial vehicles. people that can afford a $40,000 car can get a piece of it. there is a lot of enthusiasm. chevy, with a

this is the most important thing there is to know about tesla.lls us a lot about business journalism, too. the 10th a look at stocks and market caps on is a proxy for the success of a business. when you look at the run of the companies they they have had and you compare tesla to ford and gm over the last few months, you see a spectacular sprint in market cap for tesla. when you look at the market cap itself, look at these market caps and we will see tesla suddenly surging. nothing has dramatically changed in that short time in terms of auto sales whatsoever for any of these companies. if anything, the auto sales numbers have gotten worse for all of them, but only marginally. i think it's really about this enthusiasm for something yet unseen. julie: we have gotten a little bit more headlines in terms of the ability to deliver on orders, etc., but something we have not heard so much about recently is solarcity, right? what is the status of that deal and what happened to all the doubts on whether that was a good move? cory: it certainly added to the

is the increasing ascent of tesla.oke with bloomberg's detroit bureau chief. >> tesla has more debt. this is more of a symbolic moment where tesla has crossed the line of being more valuable than gm and ford. you have to look at why. investors see tesla as this possible dominator of electric cars, maybe electric storage. they have a lot of businesses with potential. it is a long-term play. with general motors and ford, auto sales are starting to trail down. both companies will make a lot of money this year, but investors are seeing this as the best is behind us over the last 12 months and may be we will put our money someplace else. tesla, there is hope they will grow and get it on been the stock. caroline: piper jaffray put it as optimism, freedom -- defiance, struggling to replicate that symbolizes where tesla is. remind us of the disparity and the number of cars these companies are pumping out. >> g.m. is going to sell 10 million cars this year. tesla, they got a big bump in their stock when they sold 25,000 in a mo

caroline: still ahead, tesla tops general motors., the electric upstart eclipse the american auto institution in market cap. what this means for the u.s. auto industry. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and on sirius xm in the u.s. this is bloomberg. ♪ caroline: the ride-hailing company lyft is now worth $7.5 billion. that is after a $600 million round of financing. perhaps more important is who is investing in lyft. new investors include kkr, asset managers, and a canadian pension firm. they typically provide funding ahead of an ipo. investors have long speculated lyft would be smart to go public before its much larger competitor, uber. tesla hit a new milestone this week after surpassed general motors to become america's most valuable auto company. take a look inside my bloomberg. you can see when tesla pushed past the competition. the white line being the creeping ascent of tesla, now worth $49 billion. it just went past g.m. and ford. for more, we spok

>> this is a stop, tesla, the trades on hope. down because the market says it was as good as it will get a few months ago and it is probably not bad but it is not great. there is no growth. there is a bunch of hope in tesla that the model 3 will take off and the company will get cash flow positive and be profitable. at that point, the model 3 is going to be the thing that makes or breaks the company value because if they do not turn out the financial results after they showed the growth everyone has been hoping for, there is a good question of what we were waiting for. at some point, they do just become a car company selling and building automobiles. hiring people in factories to do all that. they've got to be up to stand on their own feet and not go to the market several times a year for money. caroline: exactly this worry about having to go to the market up withy is showing analysts not being too euphoric. stock mightou tesla be surging. analysts remaining cautious. we have negative sentiment as to where tesla's price target sh

again i have to say tesla was very smart.y start at the high end, develop incredible brand allure, and now they're moving down market. g.m. i think had a terrific car first with with the volt, now the bolt. they buried in the chevy name plate and it didn't take on any allure for consumers whatsoever. >> brangham: what are the other automakers saying? they must be lived. >> they won't say it publicly, but they're tearing their hair out. tesla gets the benefit of every possible doubt from investors and they get the benefit of none. tesla doesn't have profits, you can't measure its stock compared to profits. profit-to-earning ratio, common stock measure, ford and f.m. g.m. have some of the lowest in the stock market. tesla trades seven times the revenue. ford was trading at .3 times revenue. i do feel kind of bad for them. people feel the sun has set on the traditional auto industry and they just are not getting any benefit of the doubt. >> brangham: james b. stewart, thank you very much. >> sure. >> woodruff: africa may not be

it is not about car sales with tesla.el three coming out, the lower-priced car, and it being a success. caroline: gm has the chevy volt. already, it is showing a similar range as what the tesla model three will be showing. it has a similar price point. still, the optimism is still much higher about the model three which is yet to start coming off the production line. >> the big car companies had seen hybrid cars to meet regulations. so, they made compact cars and things americans typically have not liked. tesla made electric cars cool. the model s is a cool, luxury car, sleek, and fast. the sport utility vehicle, not as cool but a neat vehicle. there are certain features that luxury buyers who bought portions have latched onto. a model three still has a design that looks like it is still in the same family, but some people just aspire to drive a tesla or a piece of the elon musk allure. the guy has a lot of fans and enthusiasm behind him. there is a connection to the brand that has become powerful because of those initial

coming up, it was a banner quarter for tesla.y's market cap has eclipsed one of the biggest american automotive institutions. the details next. this is bloomberg. ♪ caroline: tesla stock surged to a new all-time high after reporting first-quarter delivery figures that beat expectations and has vaulted the company past one major u.s. automaker. take a look inside my bloomberg. this is in my bloomberg. go into your g library on the bloomberg. type in 7410. you will find it there. tesla's market cap overtaking ford. $48 billion or thereabouts. so clearly this is a monumental moment for the company. david welch is the detroit bureau chief for bloomberg news and joins us with more. how monumental should we be looking at this? the q1 deliveries are strong and showing these hefty targets for the first half can be met. is it all about optimism for the model 3? >> that is what is going on. the sales were good. they weren't fabulous for they were just good, and it is a sign the brand is strong. even the older models can sell , which bodes

you can see when tesla pushed past the competition. being the creeping asset of tesla now worth $49 billion. it just went past g.m. and ford. for more, we spoke with david welch. has more debt that as to the value. this is more of a symbolic moment where tesla has crossed the line of being more valuable than g.m. and ford. you really have to look at why. investors are seeing tesla is this possible future dominator of electric cars, may be a leader in autonomous vehicles and electric storage. they have a lot of businesses with potential. it is a long-term play. with general motors and ford, the problem may have his sales are starting to trail down. not by a lot. both companies will still make a lot of money. gma set another record this year. investors are seeing this as the best is behind us over the last 12 months. maybe we will put our money someplace else. tesla, there is still hope they can grow and give more of a bump in the stock. caroline: the jaffrey analyst put it as optimism, freedom, defiance. these are things the car company

another shows a tesla parking ticket. this was not something that anyone wanted to talk to us about on camera. one employee said he was subject to a confidentiality agreement. >> parking in silicon valley is a bell weather on how the company is doing. if it's on the rise, they are growing and hiring more people than the headquarters can handle. >> reporter: tesla is still looking at orders for 400,000 of its new model three cars, that likely means more employees that need a place to park. near the factory, a housing development is under construction. there are more lots, but even if they are available, they would have to be prepared and paid for. tes-- tesla did not comment on camera but they sent information downplaying the problem. tesla said it encourages and subsidizes the use the mass transit and provides shuttle service and encourage car pooling and ride sharing and bicycling but for now, the cram and jam goes on. >> coming up, renters fight back against eviction in silicon valley. the rally head today this hopes of

will tesla be the player? they just want a seat at the table, a toe in the water position to see how things play out. cory: it helps them get cash out of china. a lot of money is fleeing china on an individual level. this lets the company have investments outside of china, so not as tied to the chinese economy. >> definitely. all of china's biggest companies want a seat at the table and get more capital abroad. it is unclear what the process will be like for tencent, but we are seeing financials having trouble with moneygram. euro net is also saying there will be issues. yes, this is a big deal for chinese companies and a great way for tencent to have their stake in a fast-growing u.s. company. cory: kevin, on tencent, china is the largest car market in the world. do you think tencent, when you do the work on this company, do you look at this as a business that should be in automotive in different ways? >> they are already invested in businessmobile in other ways. they recently invested in the leading auto fin

liz: i don't care, you look at that, you look at tesla, sorry, vw, i want a tesla. mean the look, right? it is unbelievable. reporter: they say it is all about volume! good to see you, liz. liz: sometimes it is also about the look for idiots like me. i think it is pretty. closing bell, is of course 28 minutes away. we're looking at a do you still struggling down 53 points. president trump dispatching top dogs. vice president mike pence and house speaker paul ryan to woo the freedom caucus a yes vote on health carefree dom -- health care reform. freedom caucus was the match that burned up the previous plans of replacing obamacare. could a new firestorm come over details of the gop's new plan? what it will cost you the consumer and the state you live in. former senator george lemieux and former governor jim hodges duke it out. more "countdown" on the way. i use what's already inside me to reach my goals. so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating what's within me with once-weekly trulicity. trulicity is not insulin. it hel

look, it is not about car sales right now with tesla.odel threethe coming out, there lower price car, and being a success. you are talking about a vehicle that will sell for 35,000 or $40,000. caroline: gm has its share of chevy volt. the road,h that is on the optimism is still much higher about the model three, which is yet to start coming off the production line. that's right. the big car companies had seen electric cars and hybrid cars to meet regulations. americansthings typically didn't like. tesla made things cool. these cars, people have latched on, particularly luxury buyers. you take it down scale with something like a model three, it still has a design that looks is fore model s, but it people who aspire to have a tesla, a piece of elon musk allure. he has a lot of fans and enthusiasm behind him. the brand has become powerful because of those initial vehicles, and people who can afford a $40,000 car can get a piece of that. a chevy that looks like a compact minivan, not so much. caroline: let's remind ourselves that it is now n

tesla is saying it will take roughly 45 minutes to fix.hey are doing this out of an abundance of caution. this is an automaker gearing up to make the model 3. they seem to have caught a manufacturing bug they want to fix quickly before it causes any trouble. caroline: talk to us about the model 3. this has fueled the share price in recent weeks and months. the hope for a more price-edible car coming to the market, but a lot of focus on whether they can really hit the numbers. dana: what you saw with the share price today is that the word "recall" freaks everybody out, even though auto recalls happen all the time. a voluntary one is very different from a mandatory one from the federal government. this was a voluntary recall that tesla put out. it notified customers. 53,000 are affected. most of them are u.s. owners. you do not want to see a lot of recalls happening when you get ready to manufacture it higher volume. in context, this is a fairly minor issue that has not impacted anyone that we know of. this is not takata. this is not gm igni

tesla stock jumping on the news. we talked to kevin carter.ew york on bloomberg's selena -- >> tencent has a process where they look for the best and fastest growing companies and make an investment in it. they have a large portfolio. they have invested in lyft. they're really turning their plan to take ownership of this world of connected electric vehicles in the future. they are not the only players in china. baidu has been investing. alibaba struck a partnership, so it does not come as a surprise. >> the idea is that these are financial investments, not partnership small but maybe a place at the table? >> it is unclear at this point. partnerships and sources are telling me they would not be surprised if there were partnerships. wechat is great for tesla to have their feed in. they have 900 million users. cory: they really want people texting more while they are driving. [laughter] cory: $82 billion investment on the balance sheet, so it matters. it will have a small percentage, but it is a legitimate investment. what you think they want out

short tesla for a long time.ot sure what his position is at this very moment in time but he has been a vocal critic for valuation. >> i think the appropriate it term is road kill for the shorts. the big three monthly auto sales numbers across the board are out. what is your takeaway? >> reporter: they're not very impressive. a couple of things to keep in mind, we knew that march -- it was a weird month compared to march of last year but the numbers as you take a look at the major automakers, with the exception of ford, they came in lower than expected. gm was up 1.6%. the expectation close to an increase of 10%. keep in mind a number of automakers did cut back on their sales of fleet vehicles, vehicles that go to rental car companies, corporations, et cetera, they're the less attractive of the new vehicle sales out there. so that's part of the factor that's here. the other thing is that you're looking at a market right now where you have used prices falling. so for people going out into the showroom might sit the

surprise you that tesla did overta ke a com pa ny it surprise you that tesla did overtake a company made a profit at one point it did overta ke a profit at one point it did overtake the value of general motors and ford? that's the investors speaking with their wallet, isn't it? that is doing something new. there's a new competitor by g m, the chevrolet alt and it looks good, it is cheaper, it works, its extender lead to a vehicle and it is excellent. i have been told i have to wrap it up. i want to ask you very briefly, diesel car sales, are they going to go down do you think? they may come back up depended on the regulations. everyone at the moment is trying to see what is going to happen. regulations have been passed, it diesel, the 2017 but a comeback. a great three, always a pleasure, thank you forjoining us on this friday will stop. we are also talking about aianb. it is is improving the security of its app and website after a bbc investigation found people's homes had been burgled by scammers using stolen accounts. the bbc spoke to three people who were robbed after they adver

i i'm sick of amazon, i'm sick of tesla. but believe it or not, the market is bigger than those two names and i think we have to start recognizing the massive number of stocks that are doing well, that are entirely in bull market mode. the dow gained 2 pointses, s&p 500 gained .08%. i think we should start with t catca catcat cat piller piller was a rill do. now it's at 97. what happened? first donald trump was elected president and because he's pro oil and gas and drilling and he's also pro coal. donald trump can't say cove coa. plus if trump can pass his infrastructure package, admit d admittedly something that doesn't look very promising for this congress. but it's impossible to subject how many people have been laid off, but the number is substantial. caterpillar has gotten a hold of its dealer network. they had that chronic problem that forced the company to discount it's products dramatically. it's solving the really intractable supply chain issue. and the global economy has changed, particularly china. 50% of the comp

ford makes 88 times the number of vehicles as tesla. in terms of revenues, ford's reve nu es tesla.d's revenues are 20 times tesla's. we we re revenues are 20 times tesla's. we were trying to do a graphic yesterday to illustrate the difference. it is hard to do profit because you are trying to compare a loss with a profit. it is amazing but it is about the market being really excited about electric cars. the problem is, elon musk asked to mmp the problem is, elon musk asked to ramp it up. there is excitement surrounding electric vehicles. the markets believe this is a game changer. can they deliver? the markets expect them to ramp up production and deliver a large number of vehicles. companies like tesla, that are highly rated, if they don't deliver, udca big sell—off in their shares. they don't deliver, udca big sell-off in their shares. we have to talk about warren buffet. he is very well known as being perhaps one of the world's most successful investors. he has had coca—cola in his portfolio since the beginning. he has a 9% stake. he is the biggest investor. i wonder if it is a

first we start with tesla, the stock on an absol

. >> tesla owners, get an email from the electric carmaker, up next to voluntary recall just announce. >>> an update on the racially charged shooting spree that happen earlier this week in fresno, just when the suspect has shown no remorse, and said to answer the murder charges. the four on 2 will be right back. >>> the brain a former nfl star and convicted murderer aaron hernandez will be turned over to the center of possible brain trauma, how -- high profile attorney josi baez accuse the examiner of illegally holding the nfl star is brain which he said the family has arranged to be given to boston university for concussion research. medical examiner released his body to the funeral home but without the brain according to via -- according to the the lawyer. >> we don't of competence in the medical examiner's here and there is no reason for them to not have confidence in the world renowned ct unit at boston university. >>> hernandez serving a life sentence without parole at the time of his death, he was discovered hanging from a bedsheet wednesday night in his cell, his death has been

tesla as of right now, tesla is worth more than general motors.s more than ford motor company. that's quite a development when you think of it. i know we've been harping on this. but who would have thought that tesla would come from nowhere and be more valuable than general motors and the ford motor company. liz: i mean, ford last month made nine times more cars than tesla. tesla has more than $2 billion in losses over the last five years. stuart: you know what? peter, you put your finger on it. tesla's not a car company. okay. they sell cars. they're a technology company. >> they're a technology company and look for them to make big steps into technolog and battery, they're building batteries for their own car. those people don't sell your gm, it trades at a five times multiple and a yield. that's a great stock. but it happens at a very different business. stuart: following your president's town hall, which i say is a very positive event for business, had a very positive view on the economy, how about this? it's a pew poll, reputable organization

coming up, tesla got a vote of confidence from tencent.ll look at what it means for the model three launch next. an, elon musk has unfathomable road ahead to get these cars to market. this is bloomberg. ♪ cory: this week revealed that tencent bought a 5% stake in tesla at $1.8 billion, the first step in a larger partnership in the future. and tesla have no detailed cooperation plan at the moment. the news.k jumping on we talked to kevin carter. tencent has a process where and'd look for the best fastest growing companies and make an investment in it. large portfolio. they are charting their plan to take charge of this world of electric vehicles in the future. aidu has been investing. alibaba struck a partnership, so it does not come as a surprise. cory: these are financial investments, a place of the table. sources areips and telling me they would not be surprised if there were partnerships. wechat is great for tesla to have their feet in. feed in. cory: $82 billion investment matters. eight $2 billion investment matters. 100 inent has mad

i think tesla has a strong narrative. i meant what i said. i admire tesla. i admire elon. elon. just so spokes don't think this came out of the -- that there is no relationship. there is a bit of a relationship there. it is a friendly one. it has nothing to do with my tweet had nothing to do with tesla, per se. i just don't happen to think market cap is a particularly meaningful way to value whoes goi what's going on in a company, because investors have 1 million different reasons for buying a stock and 1 million different kind of investors. it ballooned into a huge, big deal on twitter as these things do. tesla has a narrative. >> you watched the products and the technology pretty closely. let me ask it this way. i remember back after apple came out with the ipod. i was looking at the stock and they said they would have to take over the computing industry to justify the trajectory this stock is on. it turns out they kind of did that. amazon is trading above $900 a share. that's because it is eating retail at-large. how big does tesla have to win with the prod duck, wi duc

beatene: tesla has estimates as it starts model three production.arsips just over 25,000 since march, keeping it on track for 47,000 to 50,000 in the first half of the year. shares are up 30% thanks to anticipation of the model three and the news that tencent has taken a 5% stake. facing a new tax evasion and money laundering investigation spanning five countries. authorities arrested two people and are looking into dozens of other suspected of concealing swissns of euros and accounts. france, germany coming u.k., and austria investigations also underway. it has surprise not just the bank, but also swiss authorities. the boj's first tonkin survey is out later this hour, with the weaker yen. that is true a with the index rising from 10 to 14. the survey is expected to show sectors are optimistic about the coming quarter, reflecting stronger exports and fiscal stimulus. scotland's first minister says her timetable for a second referendum on independence from the u.k. is the right one and she will keep pushing for a vote. not discussit would a date whi

tesla shares can closer record $314 this week.his year they are up about 45% where gm and ford are both down about the fundamentals in perspective here, lester tesla's revenue was $7 billion in general motors is $167. lea: coming up in an exclusive interview, president donald trump's health care reform still his top priority. >> to health care is going to happen at some point. if it doesn't happen fast enough, i'll start the taxes. the tax reform and tax cuts are better if i can do health care first. lea: will ask ivan siegfried, gop strategist at the giuliani presidential campaign with the gop needs to do to get a health care bill signed into law. a look a u.s. stock market futures higher by 20. s&p higher by two. nasdaq higher by five and we've been seeing oil prices on the rise as well. here's a look at oil now. oil is higher by 29 cents at $53.60 a barrel. you are watching "fbn:am," your first look at morning markets and breaking news. stay with us. ♪ ♪ here's something we bet you didn't know. nearly half of all cancers can be

you are buying a computer when you buy tesla. that's working for him.map. >> this is a company that will bunk $2 million. they are getting to a place where they will be cranking out vehicles. >> i agree with you. the point is, the market doesn't care. we've seen that. it used to care about production. number, it doesn't care. >> i would imagine a tenfold increase in this mark cap. have you as to make the leap that it is a what a technology energy company? >> yes, precise. >> elon musk was over a ten-year period, too. number one, it should be a 10x because of the risk you are taking now. think about it. to me, you are making a bet on the getting oil out of the electric grid. so if you said, okay, is tesla going to be the exxonmobile ten years from now? potentially. i mean, that's the bet you are making. yeah, i don't think he is that far off. >> is the exxonmobile, gm, apple, kind of company rolled in one? >> now you got steam jobs. >> those are like five and 12. >> today. >> you got to put a very, very giant number on the rest of it. >> it's interesting

tesla's sales were 25,000 in the quarter. any good news on tesla tends to shareholders in rapture.e it as confirming the brand is still strong. as they are waiting for the keep -- the cheaper model, that is good news for tesla. you have the detroit automakers, we are showing a month of were softerthat than expected. it is on par with last year. we are not going to see a lot of growth. there are more incentives being spent to keep sales going. inventories are rising. it is not a bad market, but tesla has growth to it. speak: right, i want to more about the detroit automakers and the global automakers. one more question on tesla, does the fact it exceeded forecasted deliveries, can it continue to do that, or is this one outstanding quarter? david: they've been growing sales pretty well at tesla. there is enthusiasm for the brand. it is really different than the mass market of automobiles everybody else is doing. these are very expensive, luxury cars. they are doing well. buyers been taking some away from porsche and bmw. it is not huge growth, but it is sustainable and stable. vonnie

let's get to tesla.e, you just came from the new york auto show where tesla is not participating. >> right. liz: but they've come out with big news about a huge semi truck. i can't imagine how much that would cost. but elon musk is used to being attacked by all kinds of groups but now an investor group is saying he's got too much power that there needs to be a little tweaking with leadership. >> yeah. i mean, the accusations that there are people on the board who are too close to him, which was exacerbated with the combination with solar city. but, look, they said before that they were going to pursue independent directors. they're doing that. this is i think to a degree elon musk being elon musk on twitter. liz: he said fine. if you don't like it. buy ford stock. go ahead. get out. but, ross, you have called it. you have been supportive of tesla saying all those haters out there, they can hate all theyant buthe stock will continue to rise. it recently was at $300 a share. and yet the haters are still th

by the way, tesla with the -- don't forget, tesla opening a huge plant in china.y valuable, 100% owned. tesla, they can't keep those in stock, remember when the bear case -- china didn't want them? au contraire. >> i love when you speak french. >> thank you. >> gets me every time. >> dow's up 42. let's get to bob pisani. >> good morning. happy monday. transports are leading because of that trucking deal but overall, let's call it sort of the reflation trade is back a little bit. take a look at the sectors right now. energy's up. oil has made a complete turn around. 52 to 46, back to 52 again. nice moves up in the industrials and tech all leading here. defensive names utilities, consumer staples lagging. gold is lagging again. the reflation trade is back on a little bit. look at the energy stocks. every day they had come back. a lot are at two month highs now. you have hess and you get the small moves every day and suddenly you have nice moves and again total u-turn for bomost o the big names. we need them to contribute to the overall earnings package because we're

you were an early investor in tesla and briefly took over the ceo role when tesla was undergoing someanagement shakeups. tell me, i want to talk a little bit about that later, but compare the opportunity you see in construction to the opportunity in electric cars that you saw. >> well, thanks for that. it's a pleasure to be here. look, we're doing what silicon valley does best, which is bringing technology into a very large market. in a lot of ways it's similar to tesla. elon has done a fabulous job by taking on a really big industry and doing it differently. one thing they're doing at tesla that we're also doing is taking the responsibility to do lots of things ourselves. they make their own batteries, they make their own engines and that's what we're doing. we're going to be fully integrated. we are fully integrated and bringing some technology tools that are not common in the industry. >> simplify it for us, what katerra does. it seems like you're taking processes that people are doing over and over again, repeatable supply chains, construction materials, parts of building plans an

and i think the tesla story is really good. >> wow.is in mind, are we buying tesla right now? >> well, yes. the shortened. >> i'm long. >> the short answer is yes. they've done everything necessary in order for the stock price to continue to go higher. just you want one little proof positive, look at the way they've priced that secondary. look at the way the stocks traded afterwards. again, my argument has always been, the people that own the stocks, the institutions that hold the stock are not setting it here. they will sell it at $80 if it gets that low, i don't see it happening. they will take profits well north of it. they are not getting out of it. meaning the stock levitates higher. >> yeah, you buy the stock because it is a storied stock. it's great to see him get on board here. because this has been the game the whole time. you can't get a valuation. have you as to buy into the story. it takes faith. it can be rocky. it's working out. >> shifting to the fairway. final stradz, with the masters under way in augusta, they're picki

tesla again having a very strong session.to talk more about what is going on with tesla. ceo elontweet from the musk making fun of those who had shorted his stock or questioned whether it was worth its value. record,it surged to a boxing its market value passive that, past the century old rival ford. old school giving way to new school in terms of the electric car. if we go to the bloomberg, we can see that there are a number of analysts i'm not convinced the stock is worth at this level. you see a technical chart in terms of targets versus where it traded below the actual price. this chart ise on it signals that it might not be a stock that is going to meet targets at this point in time. so if you are an investor, you might want to be careful going forward. at least today. betty: stormy weather in short bill. did -- isnder the under the u.s. microscope but tokyo's reasons it to argue that it should not be criticized probably because it is making money from investment in the u.s. and hence creating jobs. let's bring in our ec

>> that's exactly what shares of tesla have done. but if you're worried about next week's earnings, we'll tell you how to protect yourself. the action begins right now. >> let's get to it. the nasdaq 100 posted its longest monthly winning streak since 2009. and the index hit high after high this week thanks in part to blowout earn gs from amazon and alphabet soaring to record highs. it ain't over yet, next week the big kahunas, apple and facebook, facebook hitting an all-time high today, both stocks implying big moves with potential to spark a more than $40 billion shift in market cap next week. should you continue to bet on big tech, and which is a better buy right now, apple or facebook? let's get "in the money." >> i think earnings we saw last night from amazon, from google, from microsoft, really shouldn't lead you to believe we're going to have any massive surprises next week. the way investors are positioned, we knower that overweighting these things, they're massive gamers, driving that massive outperformance in the nasdaq, th

tesla's notable accomplishment. next. 35hound lla toix ero >> happening now the cocoa gorella foundation says it has collected $35,000 to fix the roof of cocoa's pen workers stay the leaking during the winner storm that story you can find tennessee home page fv a new. after allegations he belittled employees, most women more news next. . >> t jue fhti toeepisse afr t "bck . >> the judge fighting to keep his seat after the brock turn he is case is getting support from the top law enforcement fishl in santa claira credit union, judge aaron%ky received backlash across the world processor sentencing turner tos is six months in jail for sexual assault on the stanford campus there has been a movement to recall%ky and more than 50,000 signatures are required to put it on the june 2018 ballot. >> pool the a lot based tesla has surpassed general mortgagor mosters as the most valuable the mark in the u.s. tesla tesla has a value of over $51.3 billion that's scheidtly higher therapy gm in terms of the global auto makers the te

. >>> a news alert on tesla. chicago with details and this via tweet from elon musk tweets. >> when elon musk tweets, people pay attention. he tweeted "tesla's semi truck unveil in september. team has done an amazing job. seriously next level." they've talked about this for some time. this is not a surprise for those who follow tesla that they will eventually show us some type of a semitruck. whether or not we get details about actually manufacturing that truck and going into the semi market, that's a whole different question. we'll get that in september. one other note, guys, as you take a look at shares of tesla, mark the calendars, wednesday may 3rd after the bell, that's when the company will be reporting its quarterly earnings. back to you. >> i'm sure there will be a lot of questions about the truck, phil, the number one question for people will be what sort of body will this truck use, will it be able to use what is being used for any of the cars they have in production right now or complicate their assemb

danon: tesla shares passing 300-dollars. for the first time tesla is bigger than ford.a is bigger than ford. there's a big article about it in the new york times today. ford, 100-year old company. you know the story. honk honk, big ol wheels. tesla, brand new, sexy company. big difference between the two companies is tesla doesn't have pensions. they do 401k's. they've got a lower cost structure than someone like a ford does. record pace of auto sales in the united states slowing down. so ford is slipping right now yet the pace of electric vehicles is picking up so that favors tesla at the point in time. tesla is valued at about 50-billion dollars and they're within striking distance of general motors. gm and ford have had strong profits and very healthy balance sheets recently, but tesla is something else. they've got that exposure to automated driving. they got that exposure to the electric vehicle.danon: mark cuban with some advice on kids being able to save money. pretty good from a billionaire.black: i like mark cuban. and some people like donald trump for his art

>> obviously this is going to be tesla. so is it, it's tesla. it is.olutely correct. >> is that viewer your mother? >> no it's not my mother. >> why tesla? >> tesla is, if we're going no win this game it's a big trade. if you look at tesla we have just broken a three-year range. in that range it was 100% range. we broken out another 100 in the world of technicals will put you at $600. >> isn't this also heavily shorted stock bit of a risky pick? >> if you're going to win this thing you can't go the dividends we're going for absolutely return. if this thing hits we're talking a 600 possible double next year. >> flash crash is not the kind of name we want to have in this draft by the way. >> we're trying to avoid our crash in tesla but i'm staying true to the family here. >> next year i'm going to suggest an xl. on the clock now is alisha's angain ls back to you. >> all right. tesla i was a little worried. >> this is not julio jones you're not picking someone, you're picking a 4-2 wide receiver and a 4-2 wide receiver is going to get hurt and not win tha

. >>> behind the wheel, tesla beats expectations delivering a record 25,000 vehicles in its last quarter. >>> plus, washington watch. president trump draws a hard line on dealing with korea, this as he prepared to welcome china's to the united states this week. "worldwide exchange" begins right now. ♪ let's get it started let's get it started in here ♪ >>> good morning, a warm welcome to "worldwide exchange" here on cnbc. i'm wilfred frost. >> and i'm susan lee in for sara eisen. a new month, new quarter. >> that's right, let's have a look at what markets are doing on this the first day of the second quarter of 2017. of course, it comes off a day of slight declines on friday. about 0.3% for the dow, a little less than that for the s&p and nasdaq. and they are called higher, about 28 points for the dow. dollar points for the s&p, nasdaq got about 9 points high. the dow rising 4.6%. the s&p 5.5. the nasdaq placing its best performance since 2013 up nearly 10%. the small cap index slightly underperforming. but the rally slowed. the s&p finished flat. the dow lost nearly 1%. and the nasdaq g

this morning, tesla passed four in terms of market value.loomberg reports tesla is now valued at nearly $48 billion. even though it is the smallest publicly held u.s. car maker. tesla's scheduled to start production of the new model 3 by july. apple is considering selling a bundle of premium tv channels. texts report the bundle includes hbo,show thyme, and stars. they are available on apple tv already, but you have to buy them separately. right now, if you have all three premiums, it costs $35. we're waiting to see what kind of discount they give us to bundle it together. an inspiring story of determination and unbelievable will. coming up next, we'll show you what this incredible 8th grade don't let dust and allergens and life's beautiful moments. flonase allergy relief delivers more complete relief. flonase helps block 6 key inflammatory substances that cause all your symptoms, including nasal congestion and itchy, watery eyes. flonase is an allergy nasal spray that works even beyond the nose. so you can enjoy every beautiful moment to the