dealers are not opposed to tesla, they just want to have tesla franchises, too, is my take on that.tive, in particular a state like texas, which is one of the largest markets in the country, but tesla has still been able to get their vehicles in the hands of customers in those states. buy themtechnically from a tesla store in another state and someone delivers the vehicle to you in texas. emily: tesla does have 35 brick and mortar stores in california 7%ne, and they did mention of the workforce would be laid off in january. what are some of the challenges you foresee with this online only model? >> the big one i think would be will it get past any legal issues? that,t too worried about but as we were just discussing, tesla has been operating for a number of years already, and it has not slowed them down a ton. i think the next big thing is -- buy consumers be willing to the vehicle on their phone or laptop or whatever it may be in great volumes? this strategy works very well when the customer knows for sure that they want a tesla. they can go online and configure whatever tesla they

been ait is obviously tough year for tesla as well.d by the sec and they have gone on independent directors. larry ellison has joined the board. elon musk has been fairly quiet. is there a sense the governance and leadership issues have stabilized? dana: 2018 was such a dramatic year between the autopilot fatality, sec investigation, go private did. tesla was in the news nonstop and everybody at the executive level is ready to focus on execution and stay out of the limelight if possible. the shareholder letter was remarkable in that it was a bit conservative in terms of guidance. there were not any pie in the sky addictions. -- predictions. it was a conservative letter and that will be interesting to see what the tenor of the call is. emily: tasha keeney and dana hu ll. dropbox acquired hello sign. hello sign isn't e-signature company that counts lyft among its customers. dropbox says hello sign will continue to operate independently. coming up, hardware company logitech is on track for growth in 2019 and crediting one moving industry.

two areas where tesla has plans but those vehicles are not yet close to being sold., tesla's dominance, well, it looks like it has nothing to worry about right now. it could be threatened in the next couple of years melissa, back it you. >>> thanks phil lebeau for more on the next frontier for electric vehicles let's bring in adam. >> i want to get right to this report, i thought that was interesting from the gm perspective as well as from the tesla perspective. just the notion, gm a very profitable segment for them, the pickup truck, they want to make sure they have a toe hold in the electrified pickup truck is that really a threat for tesla which does not are a product currently on the market? >> so tesla has monopolized publicly traded electric vehicles since the ipo and they've pretty much all but monopolized market tesla accounts for 80% of unit volume, 90% of revenue, and they've done that without being in the hottest segments like pickup trucks and really a broader utility platform, so if someone can kind of cut them off at the pass and say, hey, we're going t

tesla shares fell 5% in after—hours trading.ever, in a interview with cbs last december, it is clear musk doesn't have much time for the sec. have you had any of your tweets censored? since the settlement? no. none. does someone have to read them before they go out? no. so your tweets are before they go out? no. so your tweets a re not before they go out? no. so your tweets are not supervised? the only tweets are not supervised? the only tweets that would have to be reviewed would be if a tweet had a probability of causing a movement in the stock. and that's it. yes, i mean, otherwise it is the first amendment. freedom of speech is fundamental. but how do they know it is going to move the market if they are not reading all of them before you send them ? are not reading all of them before you send them? i guess we might make some mistakes. who knows? are you serious? nobody is perfect. look at you. i want to be clear, i do not respect the sec. i do not respect them. but you are abiding by the settlement, aren't you? because i res

ross gerber is ready to swat down that criticism the long time tesla bull owns the stock and a teslaoining the discussion wall street journal automotive reporter tim higgins. the firefighters in davey, florida where this happened said they poured huge amounts of water on the fire and it appeared to be out and multiple times the lithium battery would reignite. how should tesla tackle this situation? >> well it seems to be a by-product of the fires with batteries that are harder to put out, but just the same if you hit a car and the gas goes everywhere on the road and it catches fire, it's pretty hard to put out too. it's definitely different challenges in dealing with electric vehicles, moving forward, with accidents that we have currently with gas vehicles but keep in mind, gas vehicle fires happen every day. i think it's, i think it was 100 something thousand vehicle fires a year, so this is not uncommon with cars. liz: in fact let me just say that we did a little bit of research, 2015 is the most recent data that we have but during the year of 2015, there was something like 174,000

this has been the problem for tesla. guy said it before, we thought it was not a demand issue, it was a supply issue so all those premises that you made were based on the fact that if they can produce this car in bulk, and we haven't seen any of that, it still seems to me it's smoke and mirrors. >> yeah. the strategy is in play by the white house, by the way. doesn't this feel like we're kind of changing the conversation intentionally appeared we're creating a distraction? i think the s.e.c. thing is nuanced. i think also if the s.e.c. can be the bad guy and push -- you know, push the mighty tesla or the -- push elon musk to a place he doesn't want to be, they're an easy scapegoat when in fact that's not the problem right now. >>> we do have some breaking news here. msci will increase the weight of china a shares going from 5% to 20%. the index added china last year. it will happen in three steps, may, august and november we were just discussing this huge run in shanghai so far in 2019, part of this in anticipation of th

tesla had despite challenges a record year last year.e you expecting when it comes to production and deliveries and demand this year? >> for demand, we've really seen the model 3 come through in really surprising ways. it's the top selling premium sedan in the u.s. for the second two quarters. we again in the u.s. saw demand come in really strong and they're just starting deliveries in china and europe. i think we can expect similarly positive picture there. in terms of production, i think there's actually too much focus on production and delivery figures for a company that's really ramping like tesla. at ark invest we're long term investors and looking at tesla as a service company. if we miss production figures by a month or a few weeks, it doesn't bother us so much but looking to the long term and we believe tesla could launch a autonomous service and is the most important market opportunity ahead of it. >> and elon musk focused on production and he said the model 3 would take tesla through production hell. that said, we know the comp

tesla had, despite a lot of challenges, a record year.you expecting with regard to production and delivery and demand? >> we think the model three comes through in surprising ways. it is a top-selling premium sedan in the u.s. for the second two quarters. demand came in strong and they are starting deliveries in china and europe. we can expect a similarly positive picture. in terms of production, there is too much focus on production and delivery figures for a company that is really ramping up like tesla. we are looking to the future with tesla as an autonomous production service company. we are looking to the long-term. we think tesla could launch an autonomous service, that is the most important market opportunity. emily: elon musk has focused a lot on production. he said the model three would take tesla through production hell. we know the company will not necessarily keep up the production levels of last year. they laid off 7% of the workforce trying to restructure. how will that redistribute workflow? dana: the shareholder letters sa

a joke about potentially taking tesla private, taking it off the stock market. he said it was a joke that move the markets, it made tesla stock go up and because of that he was punished by the sec, the securities and exchange commission, because they said that was against their roles for a public company. pa rt their roles for a public company. part of that punishment he had to pay $20 million, he had to step down as chairman of tesla, and the third thing he had to do was from then on get prior approval everytime he wa nted get prior approval everytime he wanted to tweet something about the company that could have an effect on their stock price. and now the sec says that on 19 february, just after 7pm in the evening new york time, he tweeted that tesla will make about 500,000 cars in 2019. the company has admitted, the sec say, that elon musk did not get approval before he sent that tweet, and now, that is why the sec thinks he has broken his court order, this agreement to no longer share that kind of information without getting approval

one of tesla's long-time critics, gordon johnson, slamming tesla ceo elon musk saying quote, based on3 deaths we've counted associated with tesla cars, we believe musk's comments that tesla makes the safest cars on the road is false. vertical group managing director gordon johnson joins me now, along with former "wall street journal" reporter and president of river twice research, zachary carabel, both ready to make guesses on what this announcement will be. gordon, to you first. what are you gaming will be the tesla announcement? >> we think based on them shutting down s and x orders as well as model 3, we think the announcement will be around auto pilot 3.0. with tesla ceo elon musk promising incorrectly since essentially 2015 is full self-drive one to two years out. we think it's auto pilot 3.0 and we think he will probably say something along the lines of full self-drive one to two years out. what i will highlight is at ces this year, waymo's executive says full self-drive is probably a decade away. this will continue to be a promise tesla puts out they can't achieve. liz: all rig

tesla boss elon musk faces allegations of contempt of court. live from london, that's our top story on tuesday 26th of february. is elon musk playing fire again? mr musk is in hot water after he tweeted projected production figures for the electric car company. now he's accused of violating a settlement with us authorities. also in the programme ...how close is close? president trump says the us and china are on the brink of a deal to end their trade war. for financial markets today, the glass currently half empty, the ftse down half of 1%. putting the profits in popcorn: we'll meet the man who turned a cinema snack — into a foodie delight. a new report says the first three years for children are critical — and yet many babies are let down by the state and not ready for school. what is happening where you are? whose responsibilty is it to get the next generation ready to learn? let us know — just use the hashtag bbcbizlive hello and welcome to business live. we start with the news elon musk is in trouble again for another tweet. the us securiti

of tesla and elon's behavior. we think the judge will require the company show that they have oversight of his social media posts, which to us, it does not seem to be there is any oversight in place at all. judge is going to come down hard on elon. ,ost likely, additional fines perhaps social media restrictions, but the worst case scenario of elon having to step down as ceo and leave the company is probably not going to happen. emily: dana, musk supposedly has , there iscenter somebody at the company, a lawyer, who supposedly read his tweets, but tesla never disclosed the name of this person. what do they do and they read the tweets? dana: this person is an in-house lawyer whose job includes monitoring musk's tweets. from correspondence between tesla broilers best lawyers in the sec, he said this tweet on february 19 that the designated twitter center met read -- sent to read them, they draf ted the subsequent tweet after. although, he is still treating without them. maybe he needs more training on what is materia

so let's find a tesla. >> xiaohua: so this is only tesla brands. >> williams: these are all teslas? vehicle in the city is a black box, automatically transmitting data to the center every 30 seconds. >> xiaohua: for example, the speeds, the mileage, the battery temperature. >> williams: and does that help the government plan for the future? >> xiaohua: yes, public charging points, how many public charging points? and where it is best place for the public charger. >> williams: there is nothing like this in the u.s., or anywhere else. because it's in real time? china is paving the way for the electric cars of the 21st century. and the blue ones are in use? >> xiaohua: yes, moving. >> williams: most of the country's hundred or so e.v. start-ups will be killed off by the competition. but william li thinks nio will survive, and points out, his company met its modest goal of delivering 10,000 cars last year. why are the numbers so small at the moment? "there are always problems and delays when a company ramps up production of something new," li told us. and nio's cars, he added, are all m

this is bloomberg. ♪ emily: the tesla turnover continues. general counsel is leaving after just two months on the job. he is a washington trial lawyer who represented elon musk last fall in his battle with the sec. that battle was in regards to musk's infamous tweet about taking tesla private and having funding secured. since, the sec has kept a close eye on its twitter account, and now they might have more motive to take action. it turns out musk tweeted too soon, tweeting the electric car maker would make about 500,000 vehicles this year. revisedurs later he that to say annualized production rate at the end of 2019 around 500,000, 10,000 cars per week. deliveries for the year estimated to be 400,000. joining us is an analyst, and also craig, covering the company. how big a deal is this given the sec monitoring that supposedly has been going on? >> the sec isn't reacting up to this point, and the company says it is still in compliance with the settlement agreed to late last year, but it does raise questions to your point. musk was supposed

about the number of cars tesla will make in 2019... violated that agreement. the s-e-c isn't specifying what damages it will seek if musk is held in contempt... but has previously sought to remove musk as c-e-o. musk tweeting today that something is "broken with s- e-c oversight." still ahead.. former vice- president biden inching closer to throwing his hat in the ring for another run for the white house.. the clues to his decision that he revealed today.. if you are watching us on the 'kron on' app - our news coverage continues during the commercial break. visit kron-on- dot-tv to subscribe." sarah's last tuition payment, sent off. feeling good? oh yeah. now i'm ready to focus on my project. ♪ ♪ this is why we plan. ♪ ♪ you never cease to amaze me, maya. see how investing with a j.p. morgan advisor can help you. visit your local chase branch. taking a look at stormtracker 4 radar... you can see where the rain is falling right now. chief meteorologist lawrence karnow is tracking the storm. he will have more coverage in just a few minutes. (ken) c-e-o's from so

on the other hand, as we see with tesla, many of the early adopters are all in on tesla. one interesting finding is that even consumer reports admit the satisfaction ratings with tesla are quite high, in part because people want to buy the car, despite the fact they have had problems. once they start driving the vehicles and encounter other issues. selina: thank you for joining us. pinterest is filed confidentially for a u.s. initial public offering. couldsual search site list for the end of june. no final decision has been made on the plans. interest has declined to comment. coming up, the race to the public market gears up for company -- for ride-hailing company lyft. that's next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ sirius xm. this is bloomberg. ♪ selina: will it be the first big tech i feel of the year? lyft could file for an ipo as soon as next week. they will target about you wish -- target ofllion 20 to $25 billion. is bloomberg's ipo reporter and jaclyn.

it aims to complete with tesla -- compete with tesla.ning us now to discuss, the chief technology officer. when will the car go on sale? are you still on track? >> we are on track and start of production is slated for the end of next year, 2020. emily: the car will start at $100,000. is that correct? >> it will have a range of prices. the initial batch of cars we sell will be highly specified, so they will average over $100,000, but we will make progressively more affordable versions of the car available as we ramp up production. emily: you said you think you can bring the costs down to $60,000 ultimately for the car. the model three is aiming to get to $30,000 -- $35,000 a car. how do you compete with that? >> our car is operating in a different sector of the market. unique to compare us with a mercedes-benz -- you need to compare us with a mercedes-benz, not a -- emily: what about the higher and -- end tesla? >> a model s tesla would be a comparative electric model. but we differ in that we are truly a luxury brand. you look at tesla,

at tesla headquarters in palo alto, california, it is 11:00 a.m. here on wall street and "squawk alley" is live ♪ ♪ >>> good thursday morning. welcome to "squawk alley." i am morgan brennan. with me at post 9, wilfred frost, mike santoli. carl and jon are on assignment today. these averages are all low we have been fluctuating between gains and losses, largely losses down 42 for the dow, s&p down 6 points, and nasdaq down on this last trading day of february the numbers for the annual growth hovering near president trump's target the treasury secretary and larry kudlow joined us to discuss thoughts on the current state of the economy. take a listen. >> the fourth quarter was dragged down slightly by the government shutdown. we still had healthy numbers year over year fourth quarter to fourth quarter, over 3%, otherwise slightly under 3%. we have been talking about sustained 3% economic growth and the outlook in the united states still looks very strong. >> not only is 2018 going to be the peak in growth, this growth spurt is going to continue for y

maybe the best thing to happen to tesla is he does get pounce -- bounced from the ceo spot. to answer your question, yeah, the stock traded pretty well it had every opportunity to trade down to 280 and stay there and it didn't do that. so you find yourself in the bottom quarter of a range it's been in the last couple of years. maybe for the first time it's taken fire on the long side and makes sense. >> part of the reason that you're an investor in tesla is because elon musk is going rogue. he's going rogue on electric vehicles, on the decarbonization of the electric grid you're in it because this guy is a change maker that said, if you take him out of the ceo role, he's still going to tweet this is going to happen. he's proven it he doesn't care about those rules. so investors in this, number one, need to know that this is going to happen. number two, need to understand that you're betting on somebody who doesn't want to follow the rules and is going to break the rules. that is to me why tesla is valuable and why the stock didn't go down today >> hold on a second. first of

that's what tesla's argument is going to be. lauren: melissa, thank you for joining us this morning. you like tesla, you think it's an up-stock, we'll take it. cheryl: president trump is set to land in hanoi in just hours. he's gearing up for summit 2.080 with kim jong un. that starts tomorrow. lauren: ed henry is live from hanoi, vietnam. hi, there, ed. >> reporter: good morning. it's interesting because kim jong un is already here on the ground. he had a pretty long journey from pyongyang to here in hanoi. the train ride is two and-a-half days just to get here. he's now on the ground, gone to his hotel. he's got his deeing gas statio . president trump will be landing here in a couple hours, a journey of 8,000 miles from washington. you've been hearing from democrats back in washington, you've been hearing from the mainstream media raising questions about will the president give away the store, will this be a whole lot of photo ops, not a lot of substance. that may have been the case in singapore where it was breaking the ice b

are you a co-founder and owner, not yet still a part of tesla.rther along in the adoption of electric vehicles than you thought we would be back then and does tesla's head start, is it critical for the way the industry goes from here? >> well, when we first started tesla, there were no electric cars on the road none had programs to develop them tesla started a revolution and you know on the one hand, of course, our sfwoel is that every car will ultimately be election trick. on the other hand if you think about starting a new car company and the idea that in ten or 12 years, we'd already be selling 2% of the cars sold in the world, electric cars, it's amazing. on the one hand, i want them all to be electric on the other hand, i'm amazed at how well they have done already. >> is tesla's success crucial to where it go es from here it's been synonymous with people's mind, the company has failed several times to meet its own ambitious targets years over years. >> well, tesla is still one of the few companies in the world that's making just electric ca

i'm not invested in tesla. if i was, i would be very worried about his deportment he runs a public company, he has a responsibility to the public my situation was totally different. there was -- i have to be careful with what i say, but the boyne line is the s.e.c. is abusive in their conduct i've said that publicly, you know, and i will only tell you a little story it's all true, and i have a witness to the story about a year ago, price waterhouse sponsored a seminar in palm beach. the guest enter was mary jo white, head of the s.e.c. when my case was brought. i went over to her, introduced myself and i said you're lucky i'm a gentleman, i'm not going to attack you in public, here's a sealed envelope with the question if you answer the question, i have give $100,000 to your favorite charity she said she was game. what's the question? your staff responded if mr. cooperman would like to settle a five-year bar from the industry, admission of guilt, and i told my lawyers i didn't go to hard varied or yale, that's

it shows how dependent tesla is on china.w weeks back, elon musk going to china, unveiling this money feel that will be the site of a factory. this company needs to do a lot of business in china to have the future that it's ceo wants it to have. emily: i have a chart looking at tesla's revenue in china over the last several quarters. tesla's revenue third four in china, about 6% of global revenue. do you expect that to significantly increase with this china plant? >> definitely, and tesla needs it to increase. the demand for electric cars, china is the biggest market by a lot. some of that has to do with subsidies the chinese government is giving to buyers and the fact that there are really low-cost electric cars in china, but if you want to look at a market that is embracing this technology like nobody else, that is china. and obviously this is a huge market, if tesla wants to be a leading global manufacturer, it needs to have chinese sales role commensurate with the size of the market. emily: so what types of tariffs might

second quarter of next year tesla shares, again, are down this this morning. brian, back to you >> all 3.5%. frank holland, thank you very much see you in a bit now to vietnam where president trump is holding a high stakes summit with north korea's leader all in a city that became an important symbol of america's problems in the vietnam war. aim-on-joining us now from hanoi. >> we saw his motorcade winding its way through the hanoi streets. we're expecting president trump to land here in hanoi in just a couple of hours, and all of which begs the question, just what should we expect from this summit meeting between the two world leaders? a couple of things right off the get go for this relatively hastily scheduled summit meeting between the two leaders. one is the issue of verification the united states side, brooen, is going to push for some verification that the north koreans have taken steps that were discussed in the singapore summit between the two countries last year, and will look for proof that those steps have actually occurred. also on sanctions, the

emily: what about the higher end tesla?er: a model s tesla would be a comparative electric model. but we differ in that we are truly a luxury brand. if you look at tesla, they are high-tech, they are beautifully engineered, they are very disruptive, and they are a premium price, but you only have to get inside a tesla to realize it is not really a luxury car. it is a premium car, but not a luxury car. emily: have you told that the elon musk? peter: not yet. emily: give us a timeline on production. peter: we are starting production and casa grande in arizona in late 2020 and we gradually ramp up production throughout 2021 and 2022. we ramp up from just a few cars to 50,000 units a year within two or three years. emily: when does the first car go on sale and hit the road? peter: effectively early 2021. emily: so, the saudi private investment fund, which is also an investor in tesla, is an investor in lucid. peter: absolutely. emily: explain that relationship to me, given that tesla is your competitor. peter: well, all i can s

also, news from tesla overnight.is reportedly preparing a new leasing program for the model three. that comes as tesla tries to boost demand electric says that employees will be able to release a model three within the next two weeks. no word on when consumers will be able to do that as well >> can we mention, by the way, real quick this elan musk e-mail not e-mail, but tweet. >> the tweet that he put out overnight? >> first, he says there will be 500,000 cars created in 2019 then several hours later he says that actually i'm wrong. it might be about 400,000. there was a settlement about whether you were allowed tweet or not and whether thereby oversight of the tweets in advance of tlem going out. had the market been open during this period, there clearly would having a meaningful problem. overnight you could argue there's a problem in the futures that people are trading on other exchanges and things. >> this is known as forward guidance >> he says there is not. >> it's not whether you think it's forward guidance or

tesla has billions of miles in autopilot.hink, 8 billion, we with hardware one and two cars driven today. that is an amazing advantage and will get them across the finish line to autonomous driving. in that case, it's important to have an engineer at the helm of the company that is willing to invest in that opportunity. emily: this was on a podcast with you. were you satisfied with the answers he gave you on a range of issues? tasha: again, we were happy to highlight the autonomous driving piece. it is great to have a company like tesla where the ceo understands technology well enough. he spends a lot of time with the autopilot team to be able to answer these questions. i think that is not the case with traditional auto companies. there's a lot of education the needs to be done at that executive level at other firms. we were happy with the outcome and happy got to spend time with and happy to talk about this story of its more we have been focusing on so much. emily: tosha keeney along with y craig trudell, thank you both. the

investigation was going on worked that investigation with elon musk and tesla.hey got it resolved he became general counsel in december he's wanted to go back to his previous law firm in in december he's decided he wants to go back to his previous law firm in washington, d.c. says it's not a good cultural fit at tesla so as he leaves jonathan chang has moved up. he's been at tesla for seven, eight years now and immediately has the skeptics saying a-ha there must be something nefarious going on why would the general counsel leave after two months keep in mind, we've seen a lot of executive turnover at tesla, and this is just in the last 12 months not even going back over the last couple of years by some estimates more than 50 executives at the vpo higher level have decided to leave the company. bottom line is this, kelly elon musk is not an easy person to work for. he even admits he's not an easy person to work for he is demanding, and in many ways that is likely a contributing factor to not only this general counsel deciding, you know what, i'm better off going

tesla shares, investors seem to andmmune to this soap opera the never-ending news flow coming outof tesla of his erratic behavior so it will require the companies show oversight of his social media posts, which to us it doesn't appear there is any oversight in place at all. we think the judge is going to come down hard on you on -- elon. most likely additional fines, perhaps social media restrictions but worst-case and aerial of -- scenario of elon having to leave the company is probably not going to happen. supposedly has a twitter center. -- sitter. there is a lawyer who allegedly reads his tweets. what does this person do and did the person read the tweets? >> this is a lawyer in house at tesla whose job includes monitoring musk's tweets. we know from correspondence that were disclosed yesterday, this tweet on the 19th, this designated sitter read them, met him at the fremont factory and they drafted the subsequent tweet together. this person is doing their job, but he is still tweeting without them. maybe he needs more training in what is material information and what the agreement sa

all in on tesla.ne interesting finding is that even the consumer reports admit the satisfaction ratings are quite high, in parts because people just buy the car despite the fact they have problems once they start driving the vehicles and encounter mechanical, other issues. selina: thanks for joining us,. chester dawson interest filed -- pinterest filed for u.s. public offering. they could list for the end of june. no decision has been made. pinterest declined to comment. coming up, race to the public market gears up for lyft. why the company hopes to make it to the finish line before uber, of next. check us out on the radio. this is bloomberg. ♪ selina: will it be the first big tech ipo of the year? bloomberg learned the company will target a valuation of $20 billion to $25 billion, with a roadshow march 18. that could put the company ahead in a race to go public before the larger rival, uber. joining us is -- also with us is olivia celeste. what are the benefits in risk, as far as being the first one

the tesla model 3. openers are saying we've got problems with the fit and finish and the glass may be fracturing, we still love driving the car. >> when they work correctly. phil, thank you. phil la bowl with that news. obviously, nothing automaker is under the gun like tesla is from a production standpoint. the story is built on that i couldn't believe this number 40 executives since 2016 have left that company, as well >> yeah. >> that's in an overhang this is an overhang. what do you do with this >> they're important executives. they lost the head of procurement to the lyft. and they lost somebody who worked for him to lyft, as well. it's like looking at a hedge fund where they keep turn over talent to me, i can't bet against it. it's a battleground stock because of the way it trades but on the other hand, i was looking at bmw, they'll be fully electricing in two years less than two years. so competition will come on the market i don't believe they can sustain valuation. >> coming up, a viewer wants

tesla needsy, and it to increase.r electric cars, china is the biggest market by a lot. some of that has to do with subsidies the chinese government is giving to buyers and the fact that there are really low-cost electric cars in china, but if you want to look at a market that is embracing this technology like nobody else, that is china. and obviously this is a huge market, if tesla wants to be a leading global manufacturer, it needs to have chinese sales role commensurate with the size of the market. emily: so what types of tariffs might tesla face once this truce wears off? >> we don't know. it would be like a tit-for-tat situation where the chinese government would be responding to the trump administration. you could imagine an automobile tariff, that was talked about last year. there is also a cutout that the chinese government made for electric car manufacturers in the country, where before manufacturers had to have a local partner, now the chinese government is saying it is ok for tesla to open a factory on its

emily: tesla is obviously in the lead.g competition from competitors, audio, mercedez, and what companies should tesla be worried about? cathy: every car company and board room in the world said my goodness. they need to be worried about everybody. but we see in the u.s. is so much progress. general motors is great. nissan has been around for a long time. gm and nissan now have over 200 mile cars that are affordable. that is really big. ford has historically been a laggard, and now it is moving forward on making an electric f-150. i don't think there is a car company in the world that is serious that is not investing seriously in electrification. emily: how far are we out from mainstream adoption and fully -- mainstream adoption of electric cars and fully relying on charging stations? cathy: we have a million cars already. we expect 6 million or 7 million in the next five years or so. which is a lot. bloomberg new energy finance says it's going to be 10% of sales in 2025, but an inflection point, on the s-curve, we're look

part of that punishment he had to pay $20 million, he had to step down as chairman of tesla, and thewas from then on get prior approval everytime he wa nted get prior approval everytime he wanted to tweet something about the company that could have an effect on their stock price. and now the sec says that on 19 february, just after 7pm in the evening new york time, he tweeted that tesla will make about 500,000 cars in 2019. the company has admitted, the sec say, that elon musk did not get approval before he sent that tweet, and now, that is why the sec thinks he has broken his court order, this agreement to no longer share that kind of information without getting approval from the financial bosses at tesla. so once again, elon musk has found himself tweeting his way into a lot of trouble. the next generation of mobile phone technology, 5g, promises much faster downloads. it was the main buzz at the industry eventin was the main buzz at the industry event in barcelona. 0ur was the main buzz at the industry event in barcelona. our technology correspondent has more. 5g, the future of fa

this comes as tesla tries to boost demand for that sedan.able to lease a model 3 within the next three weeks no word on when consumers can lease. >>> elan musk is walking back a prediction for just how many cars tesla will make this year musk tweeting tesla made zero cars in 2011, but will make around 500,000 in 2019 musk, then backtracking that tweet with a new tweet saying, "meant to say annualized production rate at the end of 20 19 probably around 500,000, ie, 10,000 cars a week deliveries for the year still estimated to be about 400,000. meant to say, dom. back over to you >> frank holland, thank you for those. let's get a check on the morning's other headlines outside of business. nbc's phillip menna live in the new york newsroom with the latest >> dom, good morning the trump administration wants to pull funding for california's bullet train dot officials announce plans to cancel nearly $is billi1 billio aside for the rail project it wants the state to pay back the money already spent. california hasn't provided its own promised fundin

i thought that was very important for tesla.on't know if there's a bit of catch-up with this situation, but it's very hard to speculate on this, and i don't think i want to put something into the public realm in terms of what would happen i certainly feel like this is going to be addressed and will be addressed very seriously. >> what about, colin, are there -- the things bears point to where it's heavily subsidized and -- in terms of the market number in what you can produce and how charge, do you give them the benefit of the doubt on those things >> there's a couple of things that we're looking at in terms of the competent tiff environment. you know, certainly in terms of the competent tiff response, we've been disappointed with the other oem's and what the products have been we've been looking at the operating system at the key lever and the key benchmark for -- drawing the component cost down. you can hit these numbers which they've already got a pretty healthy lead on the order of four years with the model 3. looking at som

with tesla, we'll see if it was engaged. >> are they compelled to tell you if was not all. >> in this type, no. >> gave the last temperature check and sprayed. firefighters learn add valuable lesson. >> about 10 minutes into the incident we use add truck company to lift the vehicle partially so the hose trans could be in order to cool it effectively with water, we used hi-lo jacks to do that and it was effective. kiet do, kpix5. >>> in a statement tesla said, "we have been in touch with the local authorities to learn the facts of the incident and offer our full cooperation." >>> a mudslide in the oakland hills has slowed traffic to a stop near grizzly peak. the sce there is no word when the road will reopen. >>> a devastating mudslide wiped out multiple homes. today home owns are saying the could have done more to prevent it. anne makevec is >> they have a lot of questions and they need a lot of help. >> my life is gone. i have to build from here. every day it's a new day. >> susan gordon was on the second floor of the house that slid across salsaulito boulevard and into another one o

always at least ten level have flying cars and death yeah tesla is working to be the most innovative and reading the first car on the market but now it will be fifty and it will drive fifty it's coming into question just as the website describes its model acts as the safest quickest and most capable sport utility vehicle in history and with its falcon wing doors and its panoramic view going from zero to sixty mph in only two point nine seconds there's no question it's a highly desirable s.u.v. but this week a new jersey man says his model x. tesla is the reason for his accidents using its auto pilot feature air carter says while his hands were on the steering wheel the car misread the lines on the road sending him into the median in a statement a tesla spokesperson says since we launched the on a pilot in two thousand and fifteen we are not aware of a single instance in which auto pilot refused to disengage according to the tesla vehicle safety report listed on its website the electric car company claims their vehicles are the safest cars in the world and that more than one billion h

you also need to see tesla negotiate outright ownership of the factory.ther car company has to ,ave a joint venture structure so it will be unique to see the vision of china towards ev's and leverage the tesla platform. caroline: when will this come on tap in china? there are plenty of promises and we see elon musk slightly under liver on timings. >> he certainly has had someone looking over his shoulder the past couple of months in terms of the tweets and public statements, but the 10k out this it this year about and early next year in 2020 with the factory coming online. i think that is pretty ambitious, but we assume lay 2020 it would come online. according to the 10k, there's no government approvals. it this year and early next yearthere is no t would be paid for. romaine: two big issues, one is and he has shown he cannot get up to the scale. the other issue is competition. you have smaller players, but players that have a little more nimbleness than what companies in the u.s. would have. the smaller players have better access to capital in china toda

those people that are true tesla fans will not leave tesla, no matter what.ally have a horrible experience for them to leave. and many people even had accidents with auto pilot still go back to that brand. he does have a great loyalty which i have to give him credit for, but overall, when you look at the competition, you have to realize that either he's going to have to sell this brand off because he's lost his $7500 tax credit and it will continue to be cut in half. by the end of this year, he won't have the tax credit available. so it's going to certainly lessen those people that were interested in buying that car and they are going to look at other options. my guess is that at some point he will either sell the brand off or he will have to do something. right now it's very hard to raise money when you look at some of these financial reports. they're not -- david: lauren fix, great to see you. please come back and see us. >> thank you. david: could you be getting more money back from the irs this tax season after all? a dramatic reversal of the headlines fr

this is in the 50s i would say tesla. >> you like tesla? >>, no i don't like tesla at all.be a little more stability that way not a big fan of tesla at all. apple seems like they're getting away from the autonomous driving, so i don't really know where tesla fits in. it's very, very expensive. >> they have the technology and all the miles driven. >> i know it's been kicked around for a long time i don't think it's a dumb idea whatsoever when you think about it, it's considered this -- >> it's not a dumb idea. >> thank you >> it's the supply chain and billing out this huge manufacturing sort of thing. i could tesla could probably use the help they're building model threes and tens their opportunity is to go mass market in china. you know who knows how to go mass market in china tim cook does. to me, listen, i think ultimately tesla is going to have to license their software and license what's good about whatever they're doing it's not going to be an auto company, but i could see apple doing that. >> i like activision blizzard. gaming is growing at a rapid rate esports viewer

tesla to buy mechanics calle technologies and all-stack deal.ltra capacitors and store and deliver energy quickly analysts say it could be a way to reduce making electric vehicles the shares fractionally higher i talked to people about this how the innovation that tesla, one of them, far ahead of the ev rivals, battery technology and not need to charge so often, i was wondering whether it was a worrying sign as if their own innovation now lagging i think that this is a - >> speeds it up. >> small acquisition to keep them ahead of the curve and even though some people caught up and competition is higher than it was, the general level of innovation and technology for tesla apparently - >> really did your homework. >> you will that capacitors. you knew that already. >> i don't know the word. >>> chlorox jumping. the company also reiterated the full 2019 joutd look and did warn it expects tariffs to hurt profits per share this year. i think the big story here is actually the margin improvement for clorox and investors were pleased to see them pass a

tesla is saying that is not true. it happened in new jersey when the tesla model was in the right lane of the highway. the driver says the car mistook a set of white lines on the roadway for a new lane. >> whether it is autopilot not, you are responsible for your actions. >> the system was used in an environment that was not anywhere near ideal. it is something the driver did not expect. the driver triedan accident. >> police said the car went off the road next to an offramp, jumped a curb, hit some signs and ended up in the grass. the driver says the car would not let him steer, but tesla is disputing that saying it is not aware of any time when autopilot refused to quit. >> this afternoon, it is a case of man against machine. it all went down at the tech conference right here in the bay area. >> i sometimes listen to opponents and wonder what do they want? would they prefer poor people begging for money? >> we agree that poverty is terrible. >> ibm's robots squared off in a debate in san francisco yesterday. the top

those subsidies have limits the first 200,000 cars sold and tesla has already crossed that limit. scott ramona, the service that lets you charge up electric cars, sort of the modern day gas station. he's calling changes to the federal tax credits. and amy hall, thank you for being with us. talk to meboreak but there needs to be changes and what we are doing with these cars. >> yes, subsidies if they are properly night. nothing in nature works that way. in an appropriate ramp down is h cut zero in an industry that clearly has consumer report that's not a great idea. >> what would affect your business as well? you kind of depend on electric cars being out there. >> yes. the growth rate last year this year is around 40%. >> what do you mean by 40%? >> 40% volume growth in terms of cars sold. >> really? >> yes, it is staggering. >> that's better practice. >> the subsidies are not going to go from 7500 to zero. i saw today on tesla's website that those subsidies are going to go down from i don't kno know -- 7500 to half way and half way again over a period of about a year. it is not fl

in terms of the electric market tesla dominates. if you look at sales last year, they're way ahead of everybody else but keep in mind the model 3 deliveries last year and model 3 was basically only delivered in the u.s. and canada last year, that's why you had the big surge in sales relative to their competitors in the u.s they're likely to keep that lead in 2019 and '20 but we'll see what happens after that and speaking of deliveries, there was a report a couple of days ago that got a fair amount of attention. a reuters report essentially saying that there were major job cuts at a delivery center basically a holding staging area outside of las vegas before tesla vehicles are then sent to the respective locations well, a lot of job cut there is. the reason why keep in mind they're not going to be delivering as many vehicles in the united states now that model 3 production is ramping up and shipping those vehicles over to europe and starting to ship them to china before the shanghai plant comes on order and that's why it didn't move

tesla bought "maxwell technologies" for 218m in tesla-stock. >>> tesla bought a san diego battery manufacturer8 million worth of tesla stock. maxwell has developed lithium ion capacitiors which may help the tesla batteries. >>> a new report shedding light on hackers and the information they've stolen. rords just last year. identity theft resource center put out numbers today. that hacking is up about 126% compared to 2017. and analysts say signing into facebook makes you vulnerable so the question is what do you do? you probably heard this before. have a strong password for every website and online account. if you have more than one password, use a manager and keep a close eye on your financial accounts. >>> well during yesterday's halftime show, a lot of people were talking about maroon 5 front man adam levine, including the marketing group for the state visit california. the account featured a tweet of levine shirtless with "california" on the abdomen. they said thanks, adam, we'll take it from here. they released another version of the tv ad inviting the rest of the world to come see califo

though tesla would not confirm the driver works at tesla, there is a linkedin page for a man of the same man who works as a maintenance auto technician. this is the third time they have responded to calls involving tesla. on saturday night an outdoor fire broke out at the plant. >> we're able to determine some battery modules were involved. not so much a complete pack, but modules that were being disassembled for recycling. >> firefighters say they have special precautions to take care of these battery fires. saturday night, tesla actually provided a forklift and some bins which the firefighters filled with water in order to submerge the batteries. with this crash that. >> had plenty of water available at nearby hydrants. live inavid louie, abc 7 news. >> thank you very much. >>> now to a story of a burglary, car left, a jaw-dropping video on the cloud. >> and a mother's profound disappointment. abc 7 news anchor dion lim brings you the story that you'll see only on abc 7 news. >> i'm afraid to go into my own house. >> yeah. >> so that's a lot to take away from me. >> to understand this

gm does ten times the sales and has less of a market cap than tesla. that has to work itself out over time. >> yeah -- [talking over each other] >> go ahead, liz. it is a little questionable why he chose to make this announcement today. it seems an awful like he's trying to deflect, you know, attention away from his sec problems and the debt repayments. we'll see, but look, i couldn't agree with gary more. there needs to be an adult in the room. i love elon musk in terms of his inventiveness, ingenuity. he needs a manager. >> lauren just tweeted us. she said tesla lowered the prices to get reservations to help raise money, distract from the sec, which liz just said, and still take a loss on every single vehicle, which is a very interesting point. thank you, lauren. david: absolutely. lauren knows what she's talking about. >> she does. david: christina, does he say anything about production because that's been the bug-a-boo with tesla for a while. they make big plans and promises but can't deliver the number of cars. >> right now it is just a picture an

the chance that tesla has come a lot of the magic and tesla is they were able to get as far as they haven able to get. it is very hard to start a new company. you've got a lot of things against you, a lack of dealer network, a lack of brand recognition, and all the cash i get eaten up from designing, building, and bringing it out, so it is a huge hurdle to bring a car company to market, so having amazon put some money in is a big vote of confidence, but it also says something about what we are seeing here, it is the race to put money into future automobile, future transportation startups because there is a belief that change is occurring. >> we know amazon ceo jeff bezos as he personally contacted the founder of rivian rivian to invest in the company, say look like he's going to be very vested in seeing their success. wall street journal, tank and automotive reporter, thanks for your insight. >> thank you. >> reporter: we want to go once again to oakland, elicited for president barack obama at the addresses the crowd at an event for his foundation called my brother's keeper. >> i thought