we hear all about the life and accomplishments of tesla. >> tesla is getting -- i'm glad so many people know about hit. he has become sort of a -- there's been a modern revival of him. larry paige referred to tesla as the hero that he has had. probably most people think about elon musk are car and battery and so on, but i today want to talk sort of more about the man and the process that i went through over the last to be honest four years writing the book and i thought i offered some insights from my perspective, like four of them i thought were key to surprises i had impossibly surprises for you as well. the first is the extent of this man's genius. this man invented the electric motor. he invented the long distance distribution of electricity. accord ago the united states supreme court he invented radio. did remote control, robots, the list goes on and these are the basics of our economy. we're done by one single man. there was a quote by the american institute of electrical engineers who said, were we to seize and eliminate from our industrial world the results of mr. tesla's work,

the big issue here is that tesla is burning cash to meet those. goes for the model three like you talked about it had to sort of move heaven and earth to create actually a third production line in the tent to do this so the idea was move that cash nature goals but investors look at this and they say where's profitably profitability coming along how sustainable is this. this is still trust you don't must because he's been you know making big announcements he's amount of a great gesture does he have a photo ops well i mean look at space x. look at what happened with the rocket launch in the boosters that self landed themselves so yes of course sometimes what he does absolutely comes the payoff but you know he has a vision that is very stark and sometimes it hits a wall of reality especially when it comes to what investors expect what they demand and what they want to see out of his company they're going to put money into it and that's the wall that he set in right now especially with a lot of what he's doing on social media those are seen as distrac

back to tesla.it his long-delayed target goal of producing 5000 model three sedans in a week. he went to great length to hit his mark, including a giant tent housing an assembly-line. now, the ceo has the challenge of winning over doubters who say this is not sustainable and needs to address the accusation made tuesday that the model three cars made on a tent covered production line when not is the of the same quality as those made at the plant. we caught up with bloomberg opinions liam denning. >> the company hits their 5000 a week target like they said they would. and i think a lot of a bulls will take comfort from that, but i think it misses the bigger picture, which is, you know, to be a profitable carmaker, which tesla have yet to prove they can be, they need to have sustained, high-volume, high-quality production. and hitting that target in one week at the end of the quarter, kind of in a repeat of what they did first quarter, it does not prove that. it hits a moment in time, one target, but i

brad: tesla was so focused on the 5000 cars per week goal, it came to define what observers of teslalooking for. what is the next milestone or benchmark they will grade elon's performance at tesla? in a month.t we will see the cost of the burst in terms of profitability and cash flow. the big one is, they insist they profitability and positive cash flow but not clear what appeared that is the key. it needs to show it can turn a profit, produced a mass-market car, and become self funding. self funding is the key. brad: profitability and self funding. thank you for joining us. is starting aer new chapter with his new company, he uses similar a.i technology as mobile but for those with visual impairments. mark barton and vonnie quinn talk to him to explain how the company came about. >> we found it this company eight years ago -- founded this company eight years ago and we wanted to assist visually impaired people and built a small device, the size of a finger, touches to the arm of any glasses. it can read to you, identify faces, credit cards, millions of products. test,prince william

last word from the options pits mikes. >> cull spreads into tesla earnings >> carter. >> tesla and acquiretion ahead. >> dan. >> yeah i agree with that square and i think apple sets up good for a hedge. >> all right our time expired off r fotwoweeks have fun "mad money" starts right now >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want the make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. the stock market isn't always a friendly place kit be volatile, painful, and just downright difficult there are tons of bi

>> tesla and square, caution ahead. >> dan >> yeah.h that square and i think apple sets up good for head >> all right our time expired i'm off for two weeks. have fun "mad money" starts right now - [announcer] the following is a paid presentation for the power smokeless grill, brought to you by tristar products. what if we told you it's finally possible to enjoy the char grilled juicy succulent food you love everyday, without the hassle of firing up your barbecue, standing out in the cold and refilling propane tanks? introducing the power smokeless grill. the only indoor grill with smoke extracting technology. watch again as it sucks up that smoke and odor like a vacuum. the five star reviews say it all. people love the power smokeless grill. - i've never used an indoor grill that gave you outdoor charcoal results, ever. - i get the outdoor feeling, taste, and look

everybody loves tesla's product. but to be clear, i don't think they have gotten what they were promised. >> the trading range, if you were able to trade this range, you could make a lot of money. a lot of money. >> no one can successfully do that. >> anything above 360 you have the bulls in control right new no man's land f we break below 300. all bets off, stock will go lower. >> a show after this "options action"s this is for stock traders. >> did a trade on tesla options for that very reason ahead, one surging media outperforming netflix over the last year. do you know what it is the answer later in the show i'm melissa lee, you're watching "fast money" on cnbc first in business worldwide here is what's coming up next. >> as banks tumble, one financial is standing out as a safe haven. >> don't leave home without it. >> charts pointing to more gains for american express we'll tell you how to cash in. plus -- >> be very, very quiet. >> we're hunting for yield because there are four stocks with fat dividends tt haar

tesla were looking for. the next milestone or benchmark that people will be looking for to grade elon's performance at tesla? two things will be interesting, one will be the results that come out in a month. we will see with the cost has been in terms of profitability and cash flow. the other big one now is the company insists that it will get to gap rapid debility and some form of cash flow later this year. that is the key for this company. it needs to show it can turn a profit, produce a mass-market car, and become self funding. becoming self funding is the key here. brad: profitability and self funding, liam denning, thank you so much for joining us. ramle cofounder exhibit of newibabaram is starting a -- to explain how the company came about. we found this company eight years ago. help visual and -- visuallypeople impaired by the people. they can read to you, identify faces, credit cards, millions of products, and more. >> chris william had a test, didn't he? what did he think? >> he was amazed. we try t

that is what has been happening to tesla.lon tweeted to employees that he thinks that they just became a real car company. why did he write that? the model three production level is the transformational car for the company. it takes them from a niche car producer which i originally started selling 20,000 cars per year to an hundred. that to be 12 months from now if they maintain the model three production rate, producing over 600,000 cars per year. that makes them able to fill what is very strong demand. they rolled out the production of the truck next. they are evolving. they view themselves as more of a technology company than a pure car company because they do so solar panels and the batteries as well. >> if you had an order for a while on the model three, does it concern you at all that your automobile was made in a tent outside of the accurate russian mark did we know whether tesla ?as cut any corners >> the overall quality of tesla's cars is very high. the customer satisfaction level is very high. this drink in the car

of tesla were looking for.t milestone or benchmark that people will be looking for to grade elon's performance at tesla? >> two things will be interesting. one is obviously the results that come out in a month. there, we will see what the cost of the burst has been in terms of profitability and cash flow. obviously, the other big one coming up is the company insists they will get to gap profitability and some form of positive cash flow, it is not clear what, later this year. i mean, that is really the key to this company. it needs to show it can actually turn a profit, produce a mass-market car, and, you know, become self-funding. becoming self-funding is the key here. brad: profitability and self-funding. bloomberg opinion's liam denning, thanks for joining us. coming up, one of the world's largest cryptocurrency exchanges is going live with a new custody service. details on coinbase's new customers next. this is bloomberg. ♪ ♪ brad: just last week, coinbase custody accepted its first deposit and is now open f

what will tesla say about potentially raising capital? now in terms of the earnings themselves for the second quarter tesla is expected to report a loss of $2.81 on revenue of just under $4 billion. the implied move in the options market is 7.5% either way. three things will get plenty of attention on the conference call you know that elon musk said the company doesn't need to raise capital but keep in mind they have cash burn and liquidity concerns heading into the second quarter and they did a lot of investing into the production expansion for the model 3 and speaking of the model 3, where do they stand in terms of both production as well as reservations there's plenty of skeptics when it comes to tesla and there's one that's talking about that and his skepticism in the last couple of days he believes this is a company that has execution problems. stock has been hovering around $300 a share it took a hit earlier in the week over concerns about whether or not it was pressuring suppliers because it's running low on cash. as always the con

of kicking in on friday tesla actually decided to increase the price for tesla cars in china by about twenty percent so if you want to buy model x. for example it does not cost a good hundred seventeen thousand dollars or one hundred forty thousand dollars in china and china off there behind the us is the second biggest market for tesla and tesla likes to build cars in china but that takes time so far every single car being sold for every single tesla car being sold in china is produced in the united states and gets hit by the tariff but interestingly enough the stock of tesla was up by about three percent in the session investors obviously have the opinion that if you can pay one hundred twenty thousand dollars then you can also pay one hundred forty thousand dollars for a vehicle indeed pensacola to thank you very much. british foreign minister boris johnson's resignation over the u.k.'s brock's of a coach not the pound dell more than half a percentage point against the euro european stock market reaction have a remained. british. while called steam just a friendly place for breakfa

tesla going all in on china. shares rallying after it said it would build a new gairm plaplan. >> it could be a summer sizzler to investors and the stock is up 6% in the last week. how do you spell giddy up. >> we're live. it's the nasdaq and times square much more fast coming up straight ahead honey, this gig-speed internet is ridiculously fast. i know, right. we are seriously keeping up with the joneses. i know, right. we are seriously keeping with the anderson's. we are finally keeping up with the ford's. keeping up with the garcia's. keeping up with the harvey's. keeping up with the wahh-the-wahh the romeros. carters. patels. the allens. wah... wolanske's. right, them. no one is going to have internet like this. no one is going to have internet like this. gig to more homes than anyone. not just the joneses'. over here. xfinity. the largest gig-speed network. >>> welcome back to "fast money. >> melissa, when this announcement came out today i immediately heard from people who said, waited a second, hasn't tesl

and tesla both raising price for their cars in china and tesla has just announced it's building a big factor in shanghai so insolent is joining a lot of nations complain to their video loss looking like from the americans first strategy is backfiring spectacularly. yes garrett is absolutely backfiring and i'm not really surprised about it because it just goes to show you all what a lot of people have said from the get go he has never thought that through you can't even call that whole america first concept a strategy that's a big word for what president trump had here and he goes step by step and does not think about consequences he puts in tears he doesn't understand that this can cost him maybe more jobs than it can secure and we're seeing that right now of course he wanted to put terrorists on cars or terrorists on steel and aluminum to secure jobs in certain american businesses but now he's of course chasing away companies who are now the test or couple of days earlier holiday vits and if they move production out of the u.s. into other countries well they're called the jobs well t

is the second biggest market for tesla and tesla likes to build cars in china but that takes time so far every single car being sold every single tesla car being sold in china is produced in the united states and gets hit by the tariff but interestingly enough the stock of tesla was up by about three percent in the session investors obviously have the opinion that if you can pay one hundred twenty thousand dollars then you can also pay one hundred forty thousand dollars for a vehicle indeed yes call it a thank you very much. british foreign minister boris johnson's resignation over the u.k.'s praxis approach not the pound down more than half a percentage point against the euro european stock market reaction have a remained muted british. while called steam just a friendly place for breakfast it may had all life last week the prospect of a soft drag sit in the u.k. maintaining close trading ties to the e.u. seem to meet the demands for more clarity from businesses among them. but those plans seeking to inflict minimal academic damage can stay on the table is very much up in the air ag

tesla, we have reached tout tesla, it has no comment regarding this memo. so it brings up the question regarding tesla and profitability. that's the wording in the memo and whether or not this company can canachieve profitability a forecasted in the second half of this year. elon musk was asked about this report today on twitter. and his response, we're not going to get too caught up in the jargon of how automakers respond, but elon musk's response is only costs that apply to q3 and beyond will be counted and would not be correct to apply historical cost savings to the current quarter that's getting into the negotiation between tesla and spryer as you look at the tesla bonds, this is worth looking at we've noticed they're under pressure this is what people should be watching the stock is highly shvolatile that's what a lot of people are focused on, but the bonds, that's telling you something when you see the pressure they're under now. so again, scott, the wording in the memo, not necessarily that they're in these negotiations with the supplier. >> it's not

liberty. ♪ >>> welcome back, tesla out with their numbers. >> lots of news from tesla, we'll get to theduction and delivery numbers in a bite doug field who's been with the company for five years, he was essentially taken off of the main production of the model three back in may. he is leaving the company, so that's the headline late in the day, not a huge surprise there, now, let's talk about the delivery news that came out early this morning and the qt deliveries, these numbers, especially when you look at the model three, that's the disappointment the street sees here. the 18,440 of the 40,000 were model three. most on the street were expecting 26,000 deliveries, when it comes to the model three. that news took a little bit of the luster off the news that came out yesterday when the company said, look, we have a great second quarter, and in terms of the model three. we hit our goal of producing 5,000 per week 6,000 per week by the end of august is the new guidance for the company. then you have analysts coming out with, we do not think this is operation ali or sustainable. it represe

he has more news on tesla, phil. >> mike, take a look at shares of tesla this stock was selling off for most of the morning, but the selloff really accelerated once there was a report, oh, about an hour and a half ago that tesla eliminated part of the production process a park called break and roll we're not going to get too technical with you here. essentially, the break and roll part of manufacturing a vehicle is where the vehicle towards the end of the assembly process is put through a series of tests, some with a diagnostic machine to make sure that the vehicle meets not only that the brakes are working, the vehicles, the wheels are in alignment, but that it's meeting specifications tesla has confirmed that it eliminated this break and roll test as it was doing the production surge of the model three. now, tesla says it did this because the test is redundant, and also, it does check the braking of all model threes and did for all model threes that were built in the last week of june the company issuing a statement to us within the last hour saying every tire we build goes through ri

panasonic, the exclusive supplier of batteries to tesla said it was unable t determine how much of the cobalt used in the tesla batteries had come from cuba it suspended its canadian supplier after reuters asked about the cuban cobalt. >>> coming up, atlantic council ceo fred kempe will talk trade,

of tesla also announced that about ten percent of the four thousand employees off tesla will have to leave the company so cash flow liquidity those are the big issues right now a tester those have been mostly created because of the model. by a tester the production off that model all of this has been taking extremely long and also got very very expensive and yes i can tell you investors there are very frustrated but if tesla can't be profitable with electrical billeted how will that impact electability in all the attempts here in europe. well we have to face it monica i mean when you talk about e-cards or hybrid cars those are still considered by many as a lecture us when you look at the markets here in europe or also in germany most of the carmakers are way behind tesla was at least able and we have to give those credits to tester in the united states to create sort of for a high but this is not the case with other car makers here in europe this also has to do with the infrastructure because charging station this is a very very big issue just in berlin where you are for example you

it is the least expensive model tesla has to offer.here is a ton of demand for this thing, and yet, tesla has not been able to produce these in the numbers that they wanted. that has kind of led to this weird, bifurcation which has happened, in which you have tesla bulls who believe in this company and the electric car aficionados, and you have a lot of people in the auto industry saying this is crazy. i mean, they are losing tons of money. there is no hope to get this thing out, and everyone was looking at this 5000 car goal, which tesla managed to hit at the end of last month. jason: and this story really takes us inside what it is like at the company, which to say the least, is a unique culture. max: yes. there were four reporters who worked on this story, led by tom randall, who had access to an array of tesla designers. he talked to 20 of the key designers and engineers on the model 3. and i think what comes through, and also what came through in the interview with elon musk that is part of this story, is this is a company that is

essentially, tesla had sent a buyout to some of its flairs key components for tesla you look at thatple said, what's interesting is the wording that suggests tesla was linking those efforts to be profitable in the second half of this year. tesla responded by saying, we asked fewer than 10 suppliers for a reduction in total capex product spend that began in 2016 but are still not complete any changes with these suppliers would improve our future cashflows, but not impact our ability to achieve profit ability in the third quarter we're not going to talk about the stock here, we're going to talk about the tesla bonds, the reason we're showing you the tesla bonds is because that's what worries people, when you start talking about the ability to improve your profitability through these negotiations, that's what's spooked not only the tesla stock investors, but also the bond investors you saw that with the move we see in the bond yields rising up as bond investors are clearly worried. tesla reports earnings on august 1st, i talked with a number of people in the auto industry. almost everyo

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. >> netflix and tesla, my goodness, does any buyer of or decembe tesla look at evaluation ratios orry? both cases they qualify as a bubble. guaranteebble doesn't they'll underperform long term. likely. it awfully emily: are netflix and tesla in a bubble? two stocksse are based on theired s.aluation those three stocks are the exception. companies like andly, -- microsoft, google facebook, those companies have earnings and enormous earnings growth and earnings margins. some of the tech giants are really expensive. all of them. emily: you summarized here netflix as a religion. cracks in the foundation and now people are asking questions about it. expound on that. >> you put tesla and amazon in that religion bucket too. stocks ande are investment stories that you believe or you don't. with those kinds of narratives if you have these points like an earnings miss, it called into question the entire belief of the faith system. emily: could this religion analogy be extended to other big cap tech stocks like facebook or like apple like alphabet? like amazon? all ofe's nuances within these re

the american car company tesla is planning on building a huge manufacturing center in europe. seems to be in talks with two german federal states as it explores building a so-called good factory here in europe more negotiations taking place in the netherlands the facility will assemble batteries as well as vehicles for them to. reach a decision about the location by the end of the year just recently tesla announced plans to build a large factory in china half a million cars will supposedly be produced that each year the comic was recently struggled to meet delivery targets for its most mobile three. i'm going to see beardsley is look further into the issue and joins me now in the studio steven first of all what is a geek factory and why would tesla want to build one in europe so gigafactory is using the term that basically the quantity of electricity that's tesla wants to create to make a effective battery for an affordable car so instead of kilowatt hours which we often talk about for utilities this would be electricity in the amount of gigawatts you want to produce massive a

emily: coming up, tesla is reportedly requesting cash back from suppliers?n a profit, or hurt future operations? this is bloomberg. ♪ emily: tesla alarms investors yet again as a report surfaces that the company is trying to get refunds from suppliers. mondayhares fell on after the release of a memo showing that the company was requesting a return on a meaningful among of payments from 2016. the report says that tesla called on all suppliers to help the company turn a profit. many doubt that the pace of 5000 model three's in one week can be sustained. here to discuss further, max chafkin from "bloomberg businessweek". worst of all, did they not think these emails would be linked to the press? max: you have to think that they were expecting this. tesla also confirmed to "the journal" something like this was going on and elon musk tweeted about it, basically clarifying some of the accounting issues around these potential refunds or rebates, or whatever. so yes, i think this was planned. it is part of their strategy to try to do everything they can together fin

. >> from apple to tesla we talked a lot about tesla asking suppliers for cash back to cover costs forny responds in a statement that negotiation is a standard part of its procurement process, with a now stronger position with preproduction ramping, it is a good time to improve competitive advantage. shares are down in a pretty good take, tesla below 300, awfully close to six week low today, below both the 50 and 200 average. >> i am conflicted i own a tesla model x, love it, think it is a transformative vehicle, think elon musk will change the world i think this company and stockholders are in for a world of hurt. there's a potential cash crunch at the end of the year, and have the ceo and chairman, seems literally unstable some comments he has made on twitter are not fitting of the ceo. i think it is bad news when you look at potential capital crunch and ceo who has gone off the reservation in terms of some of his public communications. >> and how bad are your relationships with suppliers, i'm guessing this was a supplier that leaked the story to "the wall street journal. that's not

. >> netflix and tesla, my goodness, does any marginal buyer of netflix or tesla look at valuation all the story? in both cases they qualify as a bubble. being a bubble doesn't guarantee they'll underperform long term. it makes it awfully likely. emily: are netflix and tesla in a bubble? >> look, those are two stocks that never traded based on their valuations. you either believe those companies are going to be big or you don't. you do not care what you are paying in price to trade earnings. those three stocks are the exception. if you look at companies like microsoft, google and facebook are not terribly expensive stocks. those companies have enormous earnings and enormous earnings growth and earnings profit margins. profit margins are coming down for those companies, at least at facebook and google. some of the tech giants are really expensive. not all of them. emily: you summarize netflix as a religion. showing cracks in the foundation and now people are asking questions about it. expound on that. >> you put tesla and amazon in that religion bucket too. either those are stocks and i

tesla has become the market leader. can the established automakers catch up?: yes, i think so. when you are talking about google earnings on the news, you are buying a great company with google at this point. you probably get waymo for free and the cloud for free. emily: when i talked to ruth porat about that, she was very optimistic about waymo's prospects, but they have no idea when it will be a contributor to revenue. idea. they have no and look at baidu in china. it is the same thing. you just put a couple thousand dollars per car, multiplied by ae number of cars -- it is map for the market. i think you are getting that for free on the google side. some of the key components of automated vehicles, you see that manifest in the research coming out. you were doing this kind of statistics before most people . now there's a lot of competition. jamie: we are a moving target. we try to keep ahead of the competition. .i will be a big theme this is the fourth year we have had a large woman's conference. this past year -- we are excited about that -- emily: i like t

scott: isn't the other possibility with tesla, and i don't know, but the appeal of tesla is mostly rangei mean, they're cool looking cars, and they've got cool technology, it's the range, you mentioned, you know, 80 miles on a leaf, and 300 on a tesla, or whatnot. how soon until bmw, or mercedes, or one of those tesla competitors catches up on ev rage? karl: twenty-twenty, in the next two years, you're gonna see about four or five, minimum, new cars at the market that are gonna have at least 200-plus mile range, and they're all gonna be from well-known brands with big dealer networks. scott: can tesla survive that? karl: we'll see. [laughing] scott: alright, i got one more question, i'm up against the commercial, but i got one more question for you. karl brauer of "kelley blue book," what was your first car? karl: my first car was a 1969 plymouth gtx with a 440 in it. i grew up a muscle-car guy. laura: do you use something like an auto-pilot? do you let the car take over in that sense? karl: i trepidatiously will use auto-pilot. i will use auto-pilot, and i sometimes struggle with whethe

terry nationals are scrambling to protect their bottom line tesla is the first u.s. car maker to high prices in china and also says it's opening a new factory in shanghai all to escape donald trump swore off tariffs. and a call for a complete. trade we talked to the man behind the petition saying no more poles . this is your business update it's only a week since the latest charges from china and the united states but national's already scrambling to supply chains to the good spell for the u.s. do not pass through china and the first american carmakers are raising their price on the chinese market to make up for the high. test is the first american company announcing that it's raising prices in china the move comes in response to beijing's decision to impose tariffs on a range of u.s. products. china is the world's biggest car market tesla cannot afford to be priced . plans are already underway to build a factory in shanghai which would enable the company to avoid tariffs in the future . germany's b.m.w. is also planning to introduce price hikes in china that's becau

tesla is our cover story.could take the theme of the year, i think the other most important business story of the year is elon musk and the model 3. everybody knows that elon musk is an entrepreneur. this is an incredible story. he met his match in the making of the midsize sedan. jason: this is a guy who was able to successfully launch multiple times into space, and yet what is really tripping him up is making a car. joel: a car, and it all boils down to this. it is a do or die moment to make this car. and he hit the numbers. 5000 per week. he got that. now he has many thousands more to make, potentially in china, at a time when tesla's burning through cash. on the horizon, we have a bunch of new entrants into the market -- electric vehicle market that will be coming out with electric cars. that wouldn't really be happening without elon musk. carol: up next, from arkansas to manhattan. how bank of the ozarks became one of america's top construction lenders. jason: and investors eye a supersized $2 trillion va

at what point, maybe it's soon, does the bmw catch up to the tesla? i mean, if my bmw electric car can go 300 miles, i'm real interested. >> we're working with other car manufacturers to make them go long range and an affordable price. next year you can buy cars that go 200, 300 miles and they're still on the higher end. our technology hopes to bring down that cost for everybody. i think in the next few years we're going to see an explosion of options in -- >> do you think that will have a significant impact in the number of cars that we buy that are electric? >> dramatically. so the growth is already 50% every year for the last six years. it's not going to slow down. what we're seeing -- >> do you think it spikes. >> 60% every year is -- >> i know. that's pretty big. >> very fast. >> but i mean the fact that the very heart of the car is going to be significantly improved. maybe that's the last obstacle entry for some people. >> yeah, that's right. right now we still see half the auto manufacturers truly believe and really going for it and half are no

tencent already owns 5% of tesla.hat type of chinese investment in that company to fund some of that expansion. question for you just thought that here. this is diving into the bloomberg terminal, taking a look at teslas three cash flow. is belowhat cash flow the red line here, $1 billion in the most recent order. $2.7 billion in free cash at the end of the first quarter. furtherahead, how much do you think they need to -- they can go to try to fund this thing? year, that begs the question of realism on whether they can actually hit that. steve: they got time, 500,000 unit to give, i think that target is a little bit stretched. you know elon musk, he has really grand plans for the company, for his companies. so it's going to take some time to build up the cash. from our perspective, some of our analysis suggests that if you look at the model three, they probably have to produce more than 10,000 units a month just to meet some of the current cash needs in the u.s.. beyond that, it's really going to be expensive for the

story, tesla in china. they will become the first foreign automaker to open a factory in china and forgo a joint venture arrangement. electric carmaker are planning to build a factory that could produce 500,000 vehicles year. the deal is a huge blow to the tree campaign against china for president trump. they are planning to circumvent tariffs under the trade disputes. joining us now from new york is ivan. and also with us is matt who covers the company for us. matt, how big a blow is this to president trump or insult? >> i think tesla is probably hoping right now the president trump does not view it that way. the difference between this and the harley davidson situation was that harley was manufacturing in the u.s. and made an announcement that it will move to manufacturing in europe. this is something that tesla has telegraphed. it must brought it up last year in november. this has been part of their plan. i think it is different. that said, we are in politically dangerous waters once you start talking ab

tesla then raise prices on their most expensive s. and x. models by about thirty thousand dollars tesla founder and c.e.o. elon musk having to squeeze some publicity from the cave rescue in thailand despite and doing nothing is going to develop a little tiny submarine that was reported but he was in shanghai today to talk with chinese government officials including a meeting with the mayor of shanghai where he announced that tesla will build a plant in the city of note is that china will not own any part of the tesla plant we've talked talked about that before about china demands the they own part of it but after construction begins the plant may take two years to build and being completed in twenty twenty or twenty twenty one after that it said they will take five years to ramp up production to a goal of five hundred thousand vehicles per year that is of course assuming the continued growth core three mains on target and here to talk tesla and other auto industry news is the car coach lauren fix who is also the president of the north americ

in terms of shares of tesla, it has been a rough week.ock was trading at just over $360 a share after the q2 deliveries came out on monday morning. look where it's at right now under $310 a share down roughly 14% and the big issue for wall street analysts right now, it comes down to what's the production rate that can be sustained for the third quarter, particularly when it comes to the model 3 yes, they hit their production target of 5,000 model 3s in the last week, in the one-week period in the last week of the second quarter and can it be sustained and we heard from an analyst like brian levy and i'm not sure it can be sustained and we're still waiting to hear from other analysts as they weigh in, although it will be interesting to see how many of them weigh in on that or if they wait until we see tesla's earnings in the beginning of next month. it was an active day to say the least, melissa >> phil, what's interesting is the bulk of the decline that we've seen in terms of taking a look at the one-week performance and whatever recent t

china is biggest market for tesla and tesla likes of the cars in china. every single tesla car sold in china is produced in the united states and gets hit by tariffs. stocksks for tesla went up from the present but investors and had the opinion that if you could say $120,000, you could also pay $140,000. >> back to brent now for more on the rescue in thailand. brent: four more points haven't rescued from a foot in of caves. a total of eight have been brought out successfully. the team went missing within two weeks ago when they ventured into the caves and became trapped by rising waters. >> on the road to recovery after more than two weeks in darkness, these if it is -- ambulances headed to the hospital. it marks the end of the s second day of high-risk rescue operations. >> we rescued for more of the points. we rescued -- started our rescue around 11:00 a.m.. theree now all safe. >> the prime minister has been persrsally with h all eight of e boys rescued so far.. on monday, they painted 50 -- a visit to the cave site. divers are racing against the clock

a wild tesla miles producing in germany germany b.m.w. wants to build cars in hungary the premium come eight or is besting a billion euros in a new factory that a thousand workers will construct vehicles with combustion engines as well as electric and hybrids b.m.w. chose the location due to hungry infrastructure the proximity to many supplies and the highly skilled personnel that factories in germany are working at close to full capacity right now. and some say automation and digitisation present a horris an area the factories of the future could wipe out millions of jobs others say your sorts of new positions will pop up the try telling someone who's been working for the same firm for decades. here at german electronics giant polish workers are still operating the machines but those machines are capable of doing many tasks on their own how will it be in the future technology is developing at a rapid pace and that has a direct effect on the working world more and more jobs can be performed by robots especially in traditional manufacturin

employees, quote, i think we just became a real car company we'll talk tesla after the break. >>> tesla releasing production figures for the second quarter they had some good news, but they had some disappointing news to some as well. let's get right now over to phil lebeau >> we'll talk about deliveries and then we'll talk about production and this will give you an indication why the stock is moving lower. came in just over 43,000 vehicles it model 3 component of that was 18,440 the consensus most on wall street were expecting them to deliver a little closer to 26,000, 26,500 this comes with the news over the weekend that they didn't hit their target delivering 5,000 model 3s during the week of june there's a picture when he said hey, look, it looks like we're finally becoming a real car company. overall production 63,339 vehicles that's roughly in line with what analysts were expecting. the model 3 production in addition the company says it will be at 6,000 per week by the end of august. good news, right ual, not all analysts are buying it they see this tent, this burst of production

owe for the reasons mike laid out, tesla is a perfect one to buy one, sell two.t's hard to own them. i think mike's ranges are good i'll let carter talk to that the only thing i'll say is they may hit that 5,000 target and they may miss it next quarter. and then they also said they don't need to raise capital and they may so this is one of the ones mike said worst case scenario you get long 265, it's a scenario where you better be prepared to have losses or buy it down there. >> i think they will need to raise capital. i think 30% of the float is short in this thing. so if this thing does drop, call it 80 bucks from here, right, down to call it 270-ish or something like that. you are going to see some people covering those shorts for sure in fact, actually when the stock was trading around that level it was about 22% shorted. so we have some sense of who has shorted it since and who would be buying it if you made a move back down to those levels. >> sort of put this year's low is 250, right? happened in april. just to put that level in perspective, eight years ag

coming up in the next hour, tesla sets its sights on china. how big of a blow is this to president trump's trade campaign against china? a brexit blow. what the divisions mean for tech investing and reporting in the u k. will shoppers want deals on chicken or strawberries on amazon prime day? why the tech giant is betting on groceries for its biggest promotional day of the year. its foot --anding footprint in china. the first foreign automaker to open a wholly owned factory in china. the electric carmaker is planning to build a factory that could produce 500,000 vehicles a year. tesla follows harley davidson interesting plans to expand out of the united states under trump's escalating trade disputes. joining us now from new york is ivan and matt from bloomberg .usinessweek how big of a blow is this to president trump? tesla is hoping right now that president trump doesn't view it that way. the difference between this and the harley davidson situation was that harley was manufacturing in the united states. something that tesla has terrible -- h

the least expensive tesla starting at $35,000. now, here we are more than two yearatng t eltric, abody in the u.s. or canada can bypass the reservation process. tesla opened up the model 3 online configuration. they offered them to place an order for all configurations except for the standard battery pack which is not planned to enter production until the end of the year. starting today, electric says the model 3 design studio should be available to everybody, but tesla is still going to prioritize orders for reservation holders. >> thank you. >>> new developments in the effort to extent b.a.r.t. service to san jose. according to the mercury news, a second lawsuit has been filed over a parking lot impacted near s.a.p. center. the lawsuit alleges vta which managed the projects, failed to adequately plan for lost parking and construction impacts near the venue. prevus a 13ceng garage pe i the final plan. the vta did not respond to comment about the new lawsuit. >> still ahead, we'll talk about a disturbing trend in california. hate

. >> elon musk, tesla, ceo, went n there, sent a minisub. tweeted great news they made it out safely. one of the world's most popular soccer team, manchester united tweeted our thoughts and prayers are with those affected. we would love towell come of the team from wild boars futbol club and rescuers to old tratford this come offing season. no doubt they'll take them up. abc news will air special "20/20" on the thailand cave rescues triumph in thailand. airs at 9:00 here on abc 7. >>> moving on to other news. the man accused of shooting and killing an unarmed security guard in san francisco, pleaded not guilty today. >> and for the first time we are hearing from the father who was there, when police arrested his son, cardell coleman. melanie woodrow live in the newsroom with more information. melanie. >> of this is really devastation for two families. victims' family and suspects' family. cardell coleman saying he didn't coooe his son thisy.ccy,d imis >> t mor heou as he lost his life doing his job. >> the security guard face timing with his