the tesla model three.a starting price of $35,000, it's the company's first real mass market vehicle. it has taken around half a million orders and the first cars were delivered last week. tesla hopes the model three will keep it here at the top of the electric car industry. but two chinese rivals are already in the top five, as well as nissan—renault. plus the german car giants are investing heavily as they try to put "dieselgate" behind them. one other very interesting fact, how the design of these cars is transforming the industry. the tesla model three has less than 7,000 parts. a traditional car has around 30,000. that makes it simpler to build and less likely to suffer supply chain disruption. when he spoke to the bbc last year, tesla boss elon musk predicted his company would transform the world of transport. i think all transport, with the exception of rockets, will go fully electric. that's why i see the value of tesla as an accelerant, as a ca ta lyst of tesla as an accelerant, as a catalyst in th

more on tesla, coming up.p better than 3%, the most actively traded company in after hours trading, 162 million in shares trading hands. this is bloomberg. ♪ breaking news, metlife second-quarter earnings $1.30, higher than one $.20 expected. aig with second-quarter operating earnings beat estimates come up by better than 1.25%, but commercial underwriting worsened. the decline is higher property losses and second half 2016 increase in loss estimates. julia: let's pick up with tesla. we are still with our two guests. nathan come you said this would be a nonevent. the guidance was all-important. they areave heard his expecting to produce more in the second half in the first half, but very little about the model three. they did say it will be temporarily impacted by labor and costs. how worried are you when you hear that? >> not worried. they reiterated that he will produce 1500 model trees in q3. that is all the market -- model s in q3. we look at $120 million for a new assembly line, so a high cost per vehicle

and tesla shares up by 7.9% right now. crossed 350 yet once again, so we're just about you know, $36 away from its prior 52-week high final word from gene, how would you grade the quarter? any outstanding questions you have over the con trens call >> i'm going to give it an a minus. this is going to take longer than people think to get off the ground, but be a bigger, more transformtive in terms of every day lives. tesla has a pole position on that unanswered questions is what they're going to do in terms of solarcity. xwra >> would you still buy it up 8% or so here >> absolutely. i think this is the most upside of any large cap tech over the next fyfe years. >> the most upside of any large cap technology company in the next five years? >> yeah, i think people are undermating the opportunity here >> thanks so much. in detroit for us. you convinced? >> with my minnesota brother >> you're with him, but you're not. >> tesla, you know what, there is the volatile tiity of teslatt you have to have the patience for this people ha

in new york, tesla was driving the market. can tesla really keep its promises?> at least up the last quarter, they burned less cash than expected. even if they are not profitable, they have enough cash to fulfill protection plans. on the other side, the big russian is if there might be any delays with production. you also have to see that the suppliers will speed up theieir deliveries. the employees of tesla will be challenged. we have to wait and see for the next couple of months if everything goes smoothly. wall street seems to believe so. the stock was up by a good 6%. daniel: we're seeing president trump handing out s sanctions. chinaa next, we hear. surely, he wouldn't want to threaten his key trading partner. are these empty threats? >> what we already see is in certain areas like steel imports to the united states, there happened a few -- by the way on the other side, china is taking a pretty high terrorist imports from the u.s.. now, the new threats include the possibility of intellectual property violations, whatever that is going to mean. bottom line i

check out rally in shares of tesla.he carmaker topping wall street expectations with a narrower than expected second quarter loss shares up almost 6.5%. quarterly revenues doubling from a year ago, deliveries coming in strong tesla says it has more than 1800 daily reservations for the new model 3. it's expecting an increase in deliveries of its model s. on the company's earnings call, elon musk reassured investors that the company can keep up with demand. >> what people should absolute i will have zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year >> joining us now on the cnbc news line is the partner and chief investment officer at tigris financial partners. just first off, your impressions of the conference call which we always get a lot of colorful highlights we shared a few there from elon musk >> it's always positive and upbeat the exciting thing for tesla is that the 3 has finally arrived they delivered their first ones on friday. production will ramp up and pe

tesla shows us the road to the future. the world's leading electric car maker cut its losses and pushes into fifth gear with a big jump in sales. live from london, that's our top story on thursday the 3rd of august. elon musk‘s company says it's had more than half a million orders for it's model 3, but how long will it take for tesla to turn orders into profits? also in the programme... delivering a blow to australian retailers? internet shopping giant amazon says its going down under to open its first warehouse in the country. and as the dow surged through 22,000 off the back of those apple earnings — attention today on the bank of england's rate decision and forecasts for growth. and juggling business with pleasure. we speak to the boss of cirque du soleil on how to walk the tightrope of balancing finance, safety and magic tricks with global expansion. and as brazilian footballer neymar looks set to become most expensive footballer in history — moving to french club paris saint germain for a record breaking 262 million d

tesla -- many of the first customers are tesla employees including elon musk himself.his is another story i'm incredibly excited about. that is a solar roof. in europe, we go crazy over this. aarlet: it looks exactly like regular roof tile. in fact, it looks like a high-end one. we are guessing this is probably not elon musk. julia: but look at that. if the aesthetics are a turnoff for you, that looks like the future. very interesting. scarlet: it rains too much in new york. still ahead, china is trying to stabilize their trade relationship with the u.s.. we have the latest on that. from new york, this is bloomberg. ♪ scarlet: this is bloomberg markets. i'm scarlet fu. julia: i'm julia chatterley. relationshipgood with the united states when it comes to intellectual property. but still an investigation has raised the risk of tit-for-tat retaliation by beijing. u.s. officials are gearing up great to have- you on the show. the message from beijing has been "not guilty." we defend the fact that we are not intruding on intellectual property rights. retaliationrisk of at th

amazon or tesla? >> amazon. >> amazon. >> i will go for tesla, it is wider here. if i could give you a speech now, would you take yellen's speech or draghi? >> draghi. >> draghi. >> draghi. jonathan: who is at jackson hole next year, chair yellen or chair cohen? >> gary cohn. >> gary cohn. >> gary cohn. jonathan: that was an easy one. it has been great to have you on the program. thank you very much. from new york, that will do it for us. we will see you next friday. 5:00 p.m. in london. for our viewers worldwide, you are watching "bloomberg real yield." ♪ ♪ best, theon bloomberg stories that shape the week in business around the world. ceos turn on president trump who lashes back. >> ceos are going to be reluctant to get too close to trump. who knows when the next outburst to get this was not enough you to withdraw, what would be echo -- be? from europe and japan surprised the city upside.

tesla headquarters in palo alto, it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ >>> good morning, ceo henry, a lot to get to with age today dow setting a new record high, hovering right above 22k today breaking through that psychological barrier for the first time ever yesterday, as you know, the blue chip's on track for the 33rd record close of the year. investors can thank apple for the latest move. it's coming off the best day in about six months overall on the markets, henry, earnings have been good. really good. and yet the s&p's been churning around these areas 24/7ish for weeks. what's happening there >> step back a little bit, the s&p has had quite a run, seems like that can continue far while. valuations have hit a level that we are getting very close on many, many measures to the peak in 2000. talked about this for years, as you have astutely pointed out, valuation is worthless as a timing tool. but, in general, it does often predict long-term returns. and i think you have to look at that and say, wait, this

amazon or tesla? >> amazon. >> amazon. >> i will go for tesla, it is wider here.f i could give you a speech now, would you take yellen's speech or draghi? >> draghi. >> draghi. >> draghi. jonathan: who is at jackson hole next year, chair yellen or chair cohen? >> gary cohn. >> gary cohn. >> gary cohn. jonathan: that was an easy one. it has been great to have you on the program. thank you very much. from new york, that will do it for us. we will see you next friday. 5:00 p.m. in london. for our viewers worldwide, you are watching "bloomberg real yield." ♪ ♪ emily: he was tapped to be heir to the softbank empire. arora was raised the son of an indian air force officer and he came to the u.s. for grad school. in 2004 he got the job of a lifetime. larry page and sergey brin hired arora to help move google into an online ad powerhouse, making him one of the most sought after tech execs in the world. a decade later he was named softbank president with a plan to eventually make him ceo. but as son's retirement approached, arora said it became

one stock that is rising is tesla.esla shares are soaring after second-quarter earnings beat wall street expectations, losses narrowed more than expected. using ak has been conference call to talk more about his international plan. we expect to keep the majority of our production in the u.s.. but it makes sense to establish a factory in china and europe to soak up the markets there. just to sell cars in california, but around the world. betty: it is always odd listening to conference calls, it sounds like he just woke up. we have a reporter here to break down the numbers. it is interesting, he mentioned the model y. curious to hear about that because it seems like something new there on that call. >> they had hinted the model y would be a new platform, new architecture. he walked that back today and said his team old him back from the cliffs of insanity and the model y will share attributes with the model 3. that was new, that the model y will not be its latest platform. betty: that will help with the costs. ms. byrne

>> tesla >> that's interesting too.ompany that formerly had a ceo with two jobs that what you had in mind. >> nas true too. >> it is very interesting, and the momentum for square is obviously remarkable, but also, this response to the great numbers blow out numbers is a really good measure of how good the results have to be to impress this market after hours with a pop like 3 or 4%. they were great. >> i forgot that square went public at $9 a share. >> oh yeah >> and a tremendous amount of skepticism surrounding square when it came out too it still seems like a crowded field. >> blue apron would be an alias in terms of the overall public perception right now >> nap too right now john, just bringing you in here, when itcomes to square and fitbit, buyers here, are you investors of these companies >> little bit smaller we would go, but what we find interesting, what you've been talking about, kelly, we have a better than expected and a not as bad as expected and the markets still taking both of those in stride. taking them

people are attracted to tesla for the idea and the hope, the optimism of tesla.o deliver. once he gets those two matchup, it is possible that it is worth what people are paying for it now. carol: two brothers, i love the story. you probably haven't heard this but it is crucial to the internet. crucial. is absolutely this is stripe. founded by brothers in ireland. they are now in silicon valley. they specialize in the backbone infrastructure of online payments. they have done a deal with amazon, another big step, their company is worth a shade under $10 billion trade this is a brutal industry. everyone knows from their credit card fees. they have built something that has relied -- for so many transactions. americans spend billions of dollars every day online. so much of that is going through their payment processing. what i love about their story is, these brothers are interesting. patrick graduated at 16 and got into m.i.t. based on his sat score. they have an unusual company. i think it is time silicon valley heard a different story. oliver: a lot of smart guys

by and hold amazon or tesla? subadra: amazon. krishna: amazon. matt: i will go for tesla.ider here. jonathan: if i could give you one speech now, you could take away the speech and do whatever you want with it. would you take yellen's speech or mario draghi's? subadra: mario draghi. krishna: mario draghi. matt: mario draghi. jonathan: who is at jackson hole next year -- chair yellen or chair cohn. subadra: cohn. krishna: cohn. ee.t: is three for thr cohn. jonathan: guys, it has been great to have you with us on the program. thank you very much. from your, we will see you next friday. to our viewers worldwide coming up and watching "bloomberg real yield." -- to our viewers worldwide, you have been watching "bloomberg real yield." ♪ ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. vonnie: it is called 30 p.m. in new york and 5:30 p.m. in london and 12:30 a.m. in hon

if you look at tesla, that issue has been hammered.makes me wonder why people were buying in, in the first place. so many people warned about it. >> again, there is a lot of things to like in the tesla story. i'm certainly not going to talk about the motivations of the other buyers, but we take a very bond-by-bond, credit heavy approach and you have to look at risk versus reward. for a lot of these issuances, they are not in balance. jonathan: many people have come out cautioning what happened in a credit market, maybe some complacency. the federal reserve likes to talk about valuations, but they usually talk about stocks. should they look at the credit market? >> i think they look at a variety of products, commercial real estate, auto loans, credit markets. and a lot of the speakers have alluded to the fact that they are easy right now with the tightening of credit spread. it is something on the top of their mind when it comes to tracking financial stability and this is something that we will be looking for in yellen's speech later th

the brand-new tesla model three.ig question is, will this be just another electric car, or a car that will change the future of all cars? ♪ ♪ emily: a big takeover in the cable tv business. discovery communications agreed to buy scripps network, the parent of hgtv and the food network. the deal is valued at over $14 billion. this could help discovery cut costs come again negotiating leverage and expand internationally. tesla continues to fall after unveiling its model three. however, optimism about the electric car has contributed to the shares climbing 53% this year. elon musk said ahead of friday's events that tesla took in over 500,000 deposits on $1000 apiece. will the car live up to the hype and appeal to the masses? ouring us now for more is reporter who covers everything tesla. elon musk drove up onto the stage and jumped out like a rock star. what are the reviews so far? >> the early reviews are very positive. this is part of the tesla dna. it feels like a tesla. it was designed by the same design team. you l

kpix 5's maria medina has more. >> reporter: tesla, there is a new kid on the block. the honda clarity. within days of tesla handing the keys to the first owners of its model 3, honda debuted its new electric car. >> reporter: what do you think about all the electric cars that are coming out? >> i think it is wonderful. >> reporter: potential electric car owners say the more options the better. >> i think it is great. i don't think it happened fast enough actually. i was expecting it to be a bigger market at this point in the game. we have been hearing about electric cars for 30 years. >> i think it is great. >> reporter: besides honda and tesla others come out with electric cars. but he tells kpix 5 it was tesla that changed the game by coming out with a good looking car and its features that made it appealing and attractive. >> the cars are pardon the expression, a bat out of hell. quiet. comfortable. a delight to drive. >> reporter: the future is here and silicon valley is in the driver's seat. >> i think it is exciting. i am glad. >> reporter: don't be surprised i

to meett expected tesla this deadline, which they have done.stion is, what does the production ramp look like and can they exit the year making 5000 cars a week? they talked about production health. what other challenges to the face, and can they clear them? another thing investors will be paying attention to is cash flow and capex. tesla is spending heavily. how much more are -- how much more are they going to spend? there are -- there was a lot going on at that company, right now. vonnie: what is the breaking point for investors? imagine he does not meet the 20,000 a month at the end of the year, we don't see much cash flow or that it is negative. investors don't seem to care about metrics when it comes to tesla. the care about elon musk and his conviction in the future. dana: you have to look at who the top shareholders in the company are. must himself and a bunch of loyal long-term future focused investors who are thinking about where musk is going to be, 10 years from now. they recognize this is a high gross company that is constantly inve

over the weekend tesla delivered the first model 3s. phil lebeau has more on the two new electric vehicles trying to make carmakers and buyers rethink what it means to go green. ♪ >> reporter: tesla has finally rolled out its model 3. in front of a throng of tesla employees at its plant outside san francisco, ceo elon musk delivered the first 30 model 3. >> we're going to work day and night to do right by the loyalty that you've shown us, thank you for doing that. >> reporter: now that tesla has delivered the first 30 model 3s, the real challenge comes. producing a half million vehicles next year. as tesla ramps up its production, its racing to not only fill reservations for the model 3, but also win over car buyers who traditionally look at a mercedes "c" class or bmw 3 series. >> tesla definitely can compete with mercedes-benz and bmw because it does have that elevated image. it doesn't necessarily have the product lineup that a mercedes or bmw has but in terms of people wanting to pay a little bit more, it could definitely capture mo

tesla has incredible cash needs.a growth company that's talking about building additional factories. the bond market receive this and are they willing to wait for eight years? one of the risks involved, how are they rate -- what are the risks involved? how are they rated? all of these questions have to be answered. >> i think once interesting about tesla and something that is important to note is that the shareholders own the vast majority of the company. elon musk has a 20% stake. fidelity has 10%. when you are thinking about raising money, you don't want to dilute the shareholders. questioning the share price being so high right now. but they definitely have cash needs. they inherited solarcity and all of solarcity's debt. going forward, the amount of debt is going to be something investors should watch carefully. tesla, according to our reporting has been offering 5% on the nose, a little bit above the junk debt we look at here. in a worlde a lie a world quite a lot in where rates are increasing. will it be enough

tesla shares gaining in late u.s. trading.pany burning through cash less than analysts expected. the burn rate was still a quarterly record, and almost double what tesla went through in the first three months of the year. we will bring you all the latest headlines from the conference call. joining us to break down the results, kevin, who covers tesla for us. all eyes on model 3 and how production difficulty will impact the results. what do you think the highlights are? kevin: i think the cash burn is probably at the top of the list. i am not sure there are a lot of numbers in their. just from the perspective of being second quarter, haven't really gotten to model 3 production ramp. solar roof contributing revenue just yet. this is a quarter that the smaller than expected loss is a good thing, smaller than expected cash burn is a good thing, but there is a lot of heavy lifting to do until model 3 generates cash flow for the company. emily: talk about the heavy lifting, elon has talked about going through production hell in orde

the big focus on tesla's model three production, and whether the car cuts into the sales of teslas luxurys. and the square continues its banner year with a better-than-expected quarter. first our lead, apple's shares surged to record highs. the figures called and analysts concerns that the new iphone may be delayed. in a phone call with ceo tim cook, he told me that more users are waiting to upgrade to reports about the new iphone. he said it feels like the rumors are much larger and more frequent this year than in the past. we do believe that has created a pause. it is likely larger than previously. we broke down the guidance and earnings with the julie ask. and our bloomberg gadfly cheryl. >> there is a lot to look forward to hear. on the one hand, the market is going to grow about 50%, so over the next five years, so there is a lot of upside in that market. there is a lot more to come with the smartphone needing a bigger ecosystem in people's homes, a lot of upside to come with things like virtual or voice assistants, and then there is all of the services they sell, whether it is apple

tesla said to be one on wall street today. beating expectations last night in ramping up production which has the stock up 6% right now. aetna also beating estimates. the hbo hack may be more than initially thought. hackers stole internal company documents. it is tom brady's big day. he is turning 40 years old. not all celebration, though. a new statue honoring the quarterback is going viral for all the wrong reasons. joining us to talk all about it, fox business network dagen mcdowell, guy benson and political analyst kirsten had witnessed here. good to see you. >> mrd grilling the guy in the green room. about what he thinks about a whole host. >> i know how you feel about russia, but i beg to get everybody's take on rush's press conference and what the president is trying to do with legal green cards. any thoughts? >> i think it is basic common sense to say if we are going to have people in this country as immigrants, let's put people at the front of the line who speak english, who have skills that can contribute to our econ

tesla started deliveries of the long-awaited model 3.ny said it has taken more than a half a million orders of the electric vehicle with people forking out deposits of $1000 each. so, will it be -- will of the car live up to the hype and appeal to the masses? take a look for yourself. >> the very first tesla model 3. 30 new owners are getting the keys to their cars tonight at a celebration at the factory in fremont, california. the big challenge will be keeping up with demand. the model 3 was unveiled to great heights last year. tesla's inroad to the mass market with a base price tag of $35,000. elon musk has reaffirmed they will be turning out 20,000 model 3's per month by the end of the year, and 50,000 by the end of next year. even elon musk admits it will be a hard task. elon musk frankly, we are going : to be in production hell. welcome, welcome, welcome to production hell. [laughter] where we are for at least six months, maybe longer, i look forward to goingg alongside you through hell, and if you are going through hell, keep going

case 5.at that. >> in tesla's case it tells us people are blinded bipartisan the tesla buzz, the teslahe fact that this company is junk rated. negative cash flow they went out with a bond that has protections you expect from an investment graded company >> some of those interestingly very much in favor of tesla in this case, you had kind of a whole part of the business that was sort of sequestered away from what bond holders can have in terms of securing this. >> these bonds are unsecured you can only look to tesla or solar city to pay them back. what they did is they said we're allowed to incur secure deshts in the future subject to some limits but we can lean up, give ten plants out in nevada outside of the covenants let's say this deal closes monday they could go out with a deal on tuesday and leaseholders would have nothing to say about it >> it's the first bond offering. >> they've gone out with three or for you series of convertible bond low interest debts obligations but can get converted. >> what i find so interesting if you want to points to the fed for fed for anything, i wou

would you buy tesla now, 347?omas edison, brought america to the front of the space race and electric vehicles and the lithium battery rechargeable battery. i own general motors and ford because they have a huge dividend, and more fairly valued. elon musk is unprecedented. the company is overvalued. >> i used to call him pt barnum. we have sparred about this. i called him a showman, pt barnum, i think the man is a visionary and he has succeeded in putting his vision in place. >> and in the pocket, we have advanced manufacturing in the united states, not old-school manufacturing -- >> do you know what pt barnum set on his deathbed? what were the day's receipts? he said it, he did. thanks for being with us, see you again soon. politics, money and politics, donald trump unveiling a radical plan on immigration which gives priority to people coming into the country to skilled workers. andy partner is with us, former ceo of restaurant chains c ke restaurants. doesn't our society still need a lot of low skilled workers t

tesla.illing to have a joint—venture partner -- tesla. is the right in saying american companies are being hurt to the tune of 300 billion us dollars? well, i think $300 billion might bea dollars? well, i think $300 billion might be a slight exaggeration. i think if you add up over the last 20 yea rs think if you add up over the last 20 years maybe i hitting close to that number. at the reality is that china was right to be somewhat protectionist ten, 15 years ago. their industry was in shambles. they really needed to have that infant syndrome where you protect your industries. but right now that sort of protectionism is hurting the country. a lot of western brands that i talk to are now looking towards indonesia, or sri lanka, or even africa to invest, because they are concerned about unfair trading practices in china. in corporate america, the boss of drugs giant merck has resigned from the business panel led by donald trump over the president's response to a violent white nationalist rall

. >> north bay family gets a tesla, an unwanted tesla after it ends up inside their home. >> a brand new heat wave ahead. i will let you know when it hits 108 degrees. plus tropical storm harvey and where it is headed next. the hot button issue within the mt. diablo unified school district >>> well some say it is class warfare in the east bay. the hot button issue within the mount. diablo school district continues tonight. if the plan goes through, the district will be split into two. sam brock joins us in pleasant hill where that meeting is just now underway. >> reporter: this meeting started an hour ago. we have seen meetings before but that is not what is going on here. they are listening for recommendations for a state board recommendation. it will take five schools in walnut creek and peal them off and form a new district. as you look inside, those people in the orange shirts, those are the folks with north gate caps which is the groups petitioning for the new district. it is about governance that they can have more control over their own resource. some say this is a blow to div

in terms of tesla, i know you cannot talk about tesla the company itself, but in general does it reflectength in the market or weakness of the market now? are we seeing companies taking advantage of yields while they still can and the central banks raise rates, or is there so much cash anyone can bring anything to market? rachel: we will acknowledge that this is an early stage company that got the big launch of the model three. it is 18 months out and they are collecting deposits for it now, but they are using the money to build the capacity to build that car. that is pretty venture like in terms of use of proceeds your i proceeds -- in use of proceeds. i wouldn't call it characteristic of the things we have seen year to date. actually, the backlog of deals in the market is quite light. m&a is running well below the pace of 2016, 2015. in terms of tesla financing, the thing that jumps out is covenants are pretty challenging these days. we are not getting the same we did 15otections years ago but that has been the , trend. michael: is that what you are seeing as well, people putting more

liberty mutual insurance. >>> shares of tesla higher at this hour.l has all of the details for us from chicago. hi, phil. >> so much of the conference call yesterday after tesla posted earnings was in regards to the model 3 and what type of demand is out there for this vehicle. we really hadn't gotten an official update in terms of reservations the company says that it has 455,000 current reservations, people who put down at least $1,000, that's in comparison to 325,000 shortly after it was launched april of last year. they did note there have been about 63,000 cancellations, people who have said i don't want to wait or don't want to put $1,000 down, whatever the reason might be. that's how much cancellations they had at the same time, the other question that came up quite a bit on the conference call, how quickly tesla can increase its production its target is to build 500,000 vehicles next year and that's a huge increase, almost a five-molfive five-fold increase in terms of this year. that's why musk made it a point to say during the conference cal

. >> by the way to talk about cars, tesla into the mix in terms of acquisition for apple. the other thing that's interesting is it all hinges on the next iphone. that's why they boosted the ipad sales in the quarter. heading towards the rollout, it better go-be -- be good. stuart: very powerful on wall street, david, tesla could run out of cash making the model 3. that's what you're referring to, isn't it? >> that would be a pretty happy marriage if they need cash,

the tesla model three. price of $35,000, it's the company's first real mass market vehicle. it has taken around half a million orders and the first cars were delivered last week. lots more in 20 minutes' time. that is in world business report. we are also in canton mississippi, where workers at nissan's factory vote this thursday and friday on the right to form a union. ahead of the deadline, tensions have escalated with the union describing it as "one of the nastiest anti—union fights" in us history. if successful, this would end an historic 14 year campaign to unionise the plant and would be a major breakthrough for the united auto workers union's efforts to organise the south. the bbc‘s michelle fleury is there, a full report in 20 minutes' time. we will have all of the other business stories as well. thank you. some more stories in brief now: a natural gas explosion has killed two ina a natural gas explosion has killed two in a minnesota school. a construction crew was working nearby. they are trying to

tesla looks to raise $1.5 billion. new u.s.nflation numbers for janet yellen to chew on, where does it leave the central bank now? we start with the big issues, nerves gripping the market. >> the reach for yield is apparent in every asset class. we know the insatiable chase for yield continues. >> we should watch for buoyancy getting to a tipping point. >> it doesn't surprise me this hunt for income or search for yield has reached into the high-yield market, at the end of the day you have to ask if i'm being fully compensated for the risk. >> bond funds have to be buying credit somewhere whether it is high-yield or high-quality effort, they have to get to where they can earn in treasuries and as consequence you have a natural buyer for it. >> i'm nervous and for everything there comes a point in investors cycles where the return on capital is better than -- more important than the return of capital. >> a lot of the people who got it right at the beginning of the rally are saying, this cannot go on forever. scarlet: one of those

. >>> taking teslas to the masses.he company unveiled a new plan that could put all of us behind the wheel of a model 3. we'll explain how it works, and how about a live look from our mt. tam camera. can you see it's clear up there, but, of course, we do have some overcast conditions around the bay. meteorologist mike nicco is co the energy conscious whopeople among usle? say small actions can add up to something... humongous. a little thing here. a little thing there. starts to feel like a badge maybe millions can wear. who are all these caretakers, advocates too? turns out, it's californians it's me and it's you. don't stop now, it's easy to add to the routine. join energy upgrade california and do your thing. >>> check out what's going on at the golden gate bridge. clouds opening just a little bit here. they have been a little slow everywhere and that's going to be the case every day this week as we settle back into a summer pattern, morning clouds and afternoon sunshine and temperatures will be a little bit below a

tesla spending $1.6 billion in the second quarter. signaled spend heavily to bring the model 3 to market, so they still have $3 billion in cash on hand to give them to the end of the year without having to do any kind of race. emily: let's talk about production. he did say over the weekend when they unveiled the model 3, that he would be going into production hell. what is the trip through hell mean for investors? >> well, i mean, the trip through hell is on everyone's's mind. what does he mean? is there a supplier issue or a snafu? there was nothing in that any earnings report. emily: he is saying they can get through 5000 model 3's a week by the end at this year? is that possible? >> that remains to be seen. the cars that were handed over to employees were largely handbuilt so now they will begin the true beginning of mass production. 5000 a week from 30 or 50 is pretty steep. everyone is wondering what the ramp looks like and are there any potential roadblocks. and what does he mean when he says hell? they are sticking to the aggre

like amazon prime, like netflix, the product that is tesla, the car, is loved. whoa, it's almost impossible to tell how much money tesla makes per car, if anything nor is it possible to define the future of the company. it could be the next amazon, a tech company that sells cars in other words, the homework kept you out of the stock, not in the hazard of the business what are we supposed to make of these? just suspend judgment when we find something we love with a stock attached to it i'm stuck on the second part of the test it's been a mistake not to only those thee for certain but at the same time, tesla has kept you out of many loser i wish i had an answer maybe just sake some real mad money and buy one of them. that's been my view for some time, even as i always say you need to know your own risk tolerance, no matter the fact is, some stories flunk the near-term fundamentals, even as they triumph over the long-term. you have these three that have already done so. for all i can tell, the third will, too. jerome in ohio, jerome >> caller: how are you doing, bu

this gives tesla another cash cushion as they continue to ramp.urious what they do the next time they need cash. is this a one-time thing? are they going to continue to go back or is it back to equity the next time? caroline: clearly the demand is there for high-yield. talk about how the ramp is going. big lines to meet if they will get production out when they need it for the model 3. >> so far, all we know is they turned over roughly 30 cars to employees and made about 20 others we saw at the big launch event last month. when the next cars come out, everyone is waiting to see whether they will hit this run rate which is supposed to be 5000 cars a week by december. that is a steep production ramp. there is a lot of validation testing that needs to go on. while musk apparently had a blue model 3 with him in new york this week, you are not seeing it on the roads yet. it will be a while before we see the cars. didink the reason tesla this now is the early reviews of the vehicle have been very positive. get the money while the buzz is still very stro

tesla's inroad to the mass market with a base price tag of $5,000.as reaffirmed they will be turning out 20,000 model threes by the end of the year and 50,000 by the end of next year. he admits it will be a hard path. >> we will be in production hell. welcome. [laughter] welcome to production hell. for at least six months, maybe longer, i look forward to being -- if youyou in hell are going through hell, keep going. emily: some say the model three could be as transformational as the iphone and it may well be the most daring feat yet for elon musk. just another electric car or a car that will change the future of all cars? event the that company reported record earnings and it almost doubled the $622 million it went during the first quarter in the lead up to the rollout. covering all things tesla as details of earnings emerged. >> across the board they spent they wouldy said spend a lot but they spent less than investors were feared -- were fearing. they installed the solar roof. the fears of cannibalization were not as realized. let's talk about the

. >>> tesla reported a narrower loss than expected in second quarter results. they posted a beat on revenue which climbed to 2. $8 billion speaking on the conference call, elon musk tried to ease investor concerns about production saying the firm was on track to achieve a 10,000 unit production week by the end of 2018. you may remember last week or early this week he talked about production hell. shares of tesla rose around 8% in after hours trade phil lebeau has a wrap on the results. >>> shares of tesla moving higher after hours up more than 6% after the company reported a smaller than expected loss of $1.33 a share. revenues beating the street at 2.$2.7 billion most on wham street weall stree expecting 2.5 billion. most analysts on the call with tesla focused on the production of the model 3, which the company is in the midst of ramping up production. the company expects to deliver 1,800 in the third quarter and then 5,000 per week by the end of 2017. and then at some point in 2018 hit a production schedule of at least 10,000 vehicles per week here is elon m

tesla boosted its debut bond $1.5 $1.8 billion from billion.n musk meeting bond buyers earlier this week and reportedly putting on the charm offensive. here to discuss what the deal could mean for the company joined by our bloomberg news reporter who covers tesla. this is fascinating. while the high yield debt market has had perhaps a bit of a shaky week we've seen demand pour in for this high yield bond. so much to the extent that actually they didn't have to pay too much of a premium. and that actually scaled it higher so the deal went well. >> yeah. the deal was up sized which was great news for tesla and they need cash as they ramp up the model three and the factory in nevada and con to expand sales and service operations. they went to the bond market and the bond market responded. > how important is it? it means perhaps delusion, a slight bristling of the investor base. this is widening the capital market access now. >> i think it was a really interesting move. your top share holders were probably getting a little tired of being delude. el

here's what happened in tesla.t our final trade yesterday on this show we did it because of the buying of the 3.20 and 3.25 calls the stock was around 3.17. the stock ramped a little, got to 3.24, 3.25 and on those earnings traded through 3.50 tuesday the stock was trading -- the options, the 3.25 calls were trading right around $7.50 yesterday you were able to pick them up for under 10 bucks and they went to $24 i didn't buy that low, i didn't buy it down there but there's plenty of money in here to make some pretty good bucks luckily that's what we did not an easy one though because of all the hoopla around tesla and what elon musk does when he works his magic much like steve jobs with his reality distortion field. this is a fabulous trade this is a trading stock, not an investment i don't own it long term todd called this at 190, hands down best trade on the board he's been right. tesla's been on fire. >> good stuff. >>> let's move on to two calls of the day today couldn't make our decision because they were bot

along with tesla.secret time for that technology people are doing testing, not sharing data the actual performance of these vehicles is uncertain now, except the folks that see those inside >> to put in context the current valuation of tesla, what kind of market share do they have to have three years from now for this to make sense >> for this to make sense you have to start thinking about numbers in the high single di t digi digits whether they make progress with the semi truck and the commercial vehicles -- >> that would be comparable to what -- what auto manufacturer would that be comparable to. >> looking at names like bmw, ford, similar market caps to where tesla is now they have a lot of ground to make up in terms of number of cars, if they're disrupting the market and capturing a percentage of market growth which they've done in the luxury vehicle market, it starts to make sense but very hard to do the numbers now. >> colin rush, thank you >> thank you >>> when we come back, shares of choice hot