when we come back, tesla hanging on to 200 this morning after the morgan stanley note. we'll talk more about the challenges facing the automaker. but first, delivery drones are here we'll get a live report and a test from the biggest little city in the world in a moment. what will we do now that servicenow put our workflows in the cloud? how about our jobs? [ mimics explosion ] [ mimics explosion ] our jobs. [ mimics explosion ] servicenow. works for you. the flexible class schedules d me tremendously. allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through. >>> leave the regulation to the faa qu4e7b it co achla when it s drones are allowed to do in the sky, nasa steps in and jane wells is live in reno, nevada with a live test and more on why delivery drones are already here >> reporter: they are doing something that has never been done before, flying separa

we spoke to gene munster earlier today, and listen to his take on tesla. >> i am a believer on tesla. think they will turn the corner and capture a juicy growth curve around the electrification of vehicles, which is currently 1% to 2% globally and will be 100%, but 2019 will be a difficult year. the demand question is critical. emily: do you believe tesla will capture a "juicy growth curve?" dan: they need to get through the next six to 12 months. there's no doubt that there is a transformational opportunity when you look out, but the problem and the focus of the street here is that the next 12 months, if they aren't profitable, they have to raise $1 billion to $2 billion more of capital. so i agree with the opportunity in the long-term, but the problem with the stock continues to be profitability ramp in the second half of the year given what we see in terms of ultimate demand here and the expense structure. that's the issue that investors are having with the stock, and even with the email., it speaks to, they need to get on the others of this hurricane-like headwinds. emily: so hard

in a statement soon after the crash tesla seems to blame mister walter huang . they said the driver had received several visual and audible hands-on warning earlier the driver and the driver stands were not detected on the wheel for six seconds prior to the collision. and also no action had been taken by the driver who had a five second view of the concrete divider. >> to put the onus on mister walter huang, to suggest that he could figure out the what tesla's job really is is really unfair. >> yes, hands-free -- >> autopilot is a favorite feature on most tesla cars. takes over the steering and braking lane changes and speed. last year tesla on autopilot kept driving all by itself when the driver fell asleep. chp cars oxidant and slowed it to a stop. how much to trust the system is debatable among tesla owners. >> for them to advertise that future should mean that they have tested it and they could give us guarantees that we could use this feature >> you're not going to rely on technology all the time. you shouldn't. technology does fail. operator does need to b

and tesla tanking.res tumbling on a bull and that analyst calling tesla's situation a code red when investors need to know right now. "power lunch" starts right now >> hi, everybody welcome to "power lunch. welcome to a new week. i'm tyler mathisen glad you could join us here at 2:00 stocks under pressure right now. tensions with iran

years of losses for tesla's short sellers as the stock price moved higher for those longtime tesla bearse david einhorn, the wait appears to be finally paying off, but this is really one of the few bright spots for shorts as the hedge fund industry increasingly abandons that side of the trade overall short interest relative to market cap of the s&p 500 is at 1.7%, the lowest level in 13 years. 2006, before the financial crisis short selling and individual names has become less and less common in recent years as the bull market pulls stocks higher and investors have been warned too many times on their bearish bets so they've been making fewer and fewer of them. the biassed hedge funds have gone out of business as a result, and short sellers may be partially to blame for some of tesla's recent stock plunge. one bank of america analyst writing, quote, it appears much of the pressure on the stock over the past few days and weeks has been driven by shorts pressing aggressively. the firm said that may mean shorts jump on good news, but others seem less convinced and tesla has seen 12-month est

attorney christian picone says tesla and the state may point the finger at each other. >> tesla saying our product worked, there were design flaws in the road or failure to have proper safety barriers in the road, versus california saying no, it's the autopilot problem. >> reporter: now, we did reach out to caltrans and to tesla tonight for reaction to this lawsuit. we have yet to hear back. reporting live in fremont, jean elle, nbc bay area news. >> thank you, jean. >>> it is official. a new ordinance in san jose that targets sideshows got the green light. we told you about it earlier today. everyone on the city council voted in favor of it. from now on it's not just people driving in sideshows who could go to jail. it's all the people watching the sideshows too. you could also face a $1,000 fine. mayor sam liccardo says a big reason these illegal street races happen is so many people turn out to watch it. >>> another laptop theft in lafayette and now the search is on for the thieves who hit the coffee shop in the east bay. it happened at the peet's on mount diablo just off highway 24

>> the tesla chart, the price chart.e 100% you know, target schmarget we want our automatic electric fleet of taxis don't you want that in everybody wants that. >> sure! >> i want a jettisson car with e same sound -- >> i'm making you the jetson car -- >> i am not going long yet -- >> she's completely right, the future is going to be tesla cars -- >> sure, but you have to -- hold on -- >> everywhere you go you're going to go on your app, say tesla car, get me. it's going to pick you up and take you there. >> the thing i don't understand is, let's assume that the future of the world is ev cars -- >> yes, and bitcoin. >> and let's assume the world is robotaxis, okay? but let's start with ev cars what percentage of the market does tesla have to be to make all this work? because it sounds to me like we're talking that they're going to own 50% of the business, which is a huge part of the business i don't know that -- there's very few industries where somebody literally, unless you're facebook, controls 50% of the business so

we have a phoner on tesla, colin rush will join us here a tesla analyst. us. >> good morning. thanks for squeezing me in. >> how much do you want tesla to raise? >> you know, as much as they need to pay for this china factory. that's the big concern here is what the cap x number really looks like this year and how they fund that given the working capital needs. obviously they used about a billion dollars in working capital in the first quarter as they had lower volumes and some of the positive working capital dynamic unwound for them somewhere a billion and two billion. >> how should equity investors take a look at this? >> you know, this is really going to put a near term bottom in the stock if they do finalize the raise. this has been one of the major overhangs over the last couple weeks with the stock the autonomy bank had some impressive targets the reality of that, we're all waiting to see and then really the real story for tesla is how it looks in the second half this year. and we think there's some meaningful upside to that should they be able to ke

and china, how much does that weigh on tesla or continue to weigh on tesla as they work towards openingp a facility, a final assembly plant in shanghai. they say thaef l they'they'll h ready by the end of this year. whenever you see these auto plants being put together, they rarely open on time. how much does that impact potential sales or delivery in china, and then separate from that, if this trade war heats up, kelly, is that going to further hurt demand within china for tesla vehicles, or does it lead the government to take actions that could hurt tesla, maybe hurt other automakers as well who are selling vehicles over there, just a lot of unknowns. >> charlie, wall street is losing faith in tesla, this is adam jonas bear case scenario. you explain, tesla is trading about 30 times earnings per share of about 6.50 so if they get a toyota multiple, that's a $59 stock. >> and we were at 11 bucks per share to start the year. now we're at 6.50. i don't know how you can anchor this thing based on that, and you know an additional problem for teslais that they just issued all this stock and

this is what was left of walter wong's tesla after ieof last year. wong was killed. the 2017 model x was on autopilot at the time. his wife says it was his dream car. the family believes the autopilot feature is defective and likely causof his lane of safety, pointed him at a fixed concrete barrier and then accelerated almost 10 miles an hour in three seconds. >> reporter: they say he complained about his tesla veering into the same barrier at the exact location of the crash and that he brought his car into the dealership several times to report a problem with the autopilot function. the grounds for the suit, defective product design and intentional misrepresentation. in a statement soon after the crash the company said, quote, no action had been taken by the driver who had a 5-second view of the concrete divider. the driver received several visual and audible hands-on warnings earlier in the drive and the driver's hands were not detected on the wheel for six seconds prior to the collision. >> trying to put the onus on mr. wong to suggest he should figure out what te

another worrying call on tesla and consumer reports, warning about auto pilot feature in the tesla and they will speak to us first about it as "power lunch" begins right now let's bring you up to date on this sell-off on wall street right now. the dow and the s&p having their biggest drop since may 13th. that's not all that long ago about ten days or so dow falling 445 points at session lows and looking straight in the eyes of its fifth straight week of losses. i mentioned oil a moment ago and crude is down almost 6% right now. on the benchmark 10 year treasury, get this hitting lowest levels since back in december of 2017. there you see it 2.306. over to you, kelly. >> tooiyler, thanks bob pisani is tracking the money flow on the floor of the new york stock exchange. rick santelli in the bond picks in chicago brian with more on the big drop and steve liesman on the fed fallout. three things that chair powell said were improving are getting a lot worse now. bob, let's start with you. >> the important thing, kelly, take a look at the s&p 500 the bulls keep telling me to calm down, we're

. >>> a deadly tesla crash, blamed on autopilot. what happened in the moments before the car slammed into the truck. the eerie similarities to another crash. >>> this is decades in the making. the first look on the progress of a suicide barrier, designed to save lives on the golden gate bridge. >>> a state past one of the strongest abortion laws in the country. california is pushing back, with a planned major boost to planned parenthood. >>> we will keep them there until we can revive them. >> tonight at 7 pm, lives frozen in time. why some are not warming up to this subzero i did. >> i would not spend a dime on it. >> watch the news at 7 pm on kpix 5. >>> ♪ a tesla crash involving its autopilot feature, raising more questions tonight about whether the technology is really ready. kpix 5 looks at who is to blame for his failure. >> reporter: this is now the fourth fatal crash involving a tesla with autopilot turned on. the details of this one, autopilot crashing into the side of an 18 wheeler, the car going underneath and getting the

. >>> is tesla in trouble? why some analysts are calling failed production goals a code red. >>> you already know about the high cost of living in silicon valley. why bay area cities top out the list of the wealthiest workers in the country. >>> the new kpix 5 news at 7:00 starts right now without false alarm in san francisco that led to very real emergency response. i am ken bastida. >> and i am elizabeth cook. several city blocks were blocked down as police scoured the area for a shooter. >> reporter: there were 2911 calls from this building today. the first was about a man in the street with some kind of weapon. the second was about a possible active shooter. police never found anyone with a gun inside this building. now, they are working to clear up the confusion. >> a lot of action. just working on the normal day. they came in with police officers, and evacuated us. >> reporter: hundreds of potrero hill employees evacuated their office building on rhode island street follow possible active shooter. the bom

tesla could get caught up in it. we will talk about tesla.nario that could tesla down to around $10 a stock. analysts target around 230. that's coming up next. this is bloomberg. ♪ vonnie: from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is bloomberg markets. let's talk tesla. analysts at morgan stanley delivering another blow to the company today, slashing their worst-case in our price target to just $10 a stock. that's down from a previous estimate of $97 on concerns the electric car maker is basically seeing a saturated market and the worries over china and the company's growth plan are persisting. us is our bureau chief. let's walk through the worst case scenario. the tesla story and one is the china story. is the concern at morgan stanley that tesla is going to rely on china for the bulk of demands going forward could ultimately get cut off from that market? >> i think it is. maybe not totally cut off but there's not enough growth in china to offset softness and a market that's gone pretty soft in europe as well.

autopilot is a favorite feature on most tesla cars. for them to advertise that feature should mean that they have tested it, and trusted it. >> reporter: tesla has not commented on the new lawsuit. they did blame mr. wong saying that the driver did not have his hands on the wheel for six seconds prior to the accident. in san jose, rib orting for kpix 5. >>> santa clara and the 49ers have fought each other for years. >> now the city is crying foul over work done on levi stadium. wilson walker tells us why. >> reporter: coming up on 5 years in santa clara for the 49ers, it has been a troublesome cohabitation for the team and the city. the latest dispute? the alleged labor law violations. >> he thought paying prevailing wages meant not going to the home depot parking lot picking people up. >> reporter: this is described as waitstaff by stadium management. he has given the 49ers a notice of default on their management agreement. >>w, we findtthere has been this potential, massive violation of state law. >> reporter: late today, the 49ers i

the document alleges tesla's autopilot feature was defective. it pointed him at a concrete barrier and accelerated almost 10 miles per hour in three seconds and drove him into the barrier zzzzzz. >> are the vehicle was traveling 70 miles per hour at the point of impact a.passerby pulled him from the car but it was too late. i think they knew there were problems and glitches with the auto pilot. >> reporter: a preliminary report from the ntsb said the vehicle did not detect the driver's hands on the wheel in the six seconds before the crash. >> i think there is a lot of confusion about auto pilot which tesla encourages just by calling it auto pilot. it is not an automatic pilot. it's a fancy cruise control. >> reporter: while tesla declined to comment on the today but they say owners have engaged on this highway roughly 85,000 time. it was on this same stretch that walter huang noticed a problem on this stretch a couple of weeks ago. >> help wanted to show me. are with this lawsuit they say they want to prevent another tragedy like this one. >> t

nearly a decade in the after hours and we'll bring you the latest and plus the bears are out for tesla and a top analyst says the worst-case scenario for the stock could be as low as ten bucks a share, yes, ten bucks. we will also talk to that man you just saw, by the way we'll start with the markets as the u.s. temporarily easy restrictions on huawei and if you think you heard the story before you're right because despite the volatility and headwins, the s&p 500 is right back to where we started at the same level we were exactly two months ago so is this truly a market now, and this is our wheel house stock picking. >> our producers is playing a little we're stuck in the middle for you. so what would you be picking here in a world where so much stuff has sold off lows? >> and we spent a lot of tomb talking about semis and some of the things are most exposed to trade. the stock i was more bullish on and higher up and this is a stock that's been destroyed in this last month essentially the extra leg down here's what we've learned from management and we got post first-quarter guidance an

. >>> a pregnant california woman is hit with her own tesla. why she blamed the company for sending her into early labor? >>> the warriors are less than 24 hours away from making team history. we are in toronto where the warriors are settling in for game one. good evening, i am elizabeth cook. one day befoect stands beforeju for running over people he believes are muslim, community members packed a room in solidarity with the islamic community. ray medina is live in sunnyvale tonight. >> reporter: this is where the suspect is accused of slamming into the pedestrians as they crossed the street. a few blocks away was the gathering of unity. >> i cannot believe it. i was in shock. this really happened. >> reporter: to april 23 crash left many muslims on edge in their own community. >> we were shaken up. >> reporter: the fears enough to keep her family, including young children, almost isolated. mech i don't go out too much. due to your religion? >> yes, because of how i look. we are dealing with a crisis here. this is anti-muslim bigotry. >> repor

today tesla released a statement that said in part tesla drivers have logged more than one billion miles with auto pilot engaged and our data shows when properly used by an attentive driver who is prepared to take control at all times, drivers supported by auto pilot are safer than those offering without assistance. >>> 600 teachers, counselors and nurses plan to walk off the job in union city and south hayward. >> this is the first strike in that school's district history. they'll be hitting the picket lines monday to demand a 10% raise over two years. new haven unified says they don't have the money for this and their teachers are the highest paid in the county. >> we want to support our teachers. >> these teachers knew what they were getting into. >> i feel ready to go and anxious and nervous. >> officials don't know how much the repairs will cost but it also happened last saturday night as well. >>> coming up next, a kpix 5 original report. >> a company in the east bay is freezing human bodies in hopes tell one day bring them back to life. >> it's a sterile environment. think of it a

new at noon, tesla is now facing a wrongful death lawsuit. >> family of the man who died when the tesla crashed into a highway barrier says the company's software is not safe. >>> live in the newsroom with the emotional plea from the widow today. it was 38-year-old, his tesla slammed into a highway barrier in march of last year. >> walter's widow collapsed in tears after recounting the events that led to her family's greatest tragedy, the death of her husband. >> we miss him so much. not just family, friends miss him a lot. >> reporter: in march of last year he was driving his tesla model x when the car slammed into the barrier while the driver assist or autopilot feature was on. people helped pull him out, but he later died from his injuries. according to a preliminary report, federal investigators found the vehicle did not detect the driver's hands on the steering wheel the six seconds before the crash and the tesla's speed went from 62 to 70 miles per hour saying there was no braking or evasive steering prior to the impact. they argue tesla's driver assist or pilot auto software was

china is a big, important market to tesla.ling to build a factory in shanghai and are trying to get around the trade war. if tariffs go up on imports, that's going to make the cars out of reach for the average chinese consumer. at the same time, we are starting to see signs of a slowdown in the global auto market in general. there is no longer a tax credit for tesla vehicles in the united states. there are a lot of serious questions about demand. we hear a lot about tesla's competitors, but it doesn't really have head-to-head competition. theler -- tesla has been first mover in electric vehicles for a decade now. we keep hearing about german automakers coming online, but there is not really a lot of other offerings for sale in the united states just yet. the plan for tesla? how is it going to deal with this? >> that's the billion dollar question. elon musk just managed to raise $2 billion. there is talk about autonomy and an autonomous fleet. he promises the company will be back to profitability by the end of the year, but a l

let's talk tesla.falling for a sixth day in a row, trading at its lowest level since december 2016. this as any group lowered the price target to $191, highlighting -- citigroup lowered the price target to $191, highlighting lingering demand. trudellster and craig joining us in new york. right, i am looking -- craig, i am looking at recommendations on tesla. it is a fascinating chart, because it has not increased in terms of the red barometer on the graph. what has plummeted is the price on the yellow line. look how much the share price has declined in tesla. you are looking at the 12 month price target and it is not keeping pace with that. do you anticipate it catching up at some point? craig: i think the spread in the chart suggests for all the piling on we have seen for the past few days, we have some more to go. there are folks on the street that are still too high with stock, and it is problematic, given what the citigroup analyst said this morning, that sentiment is a real problem right now. the

tesla really needs sell some cars in china.ther thing that happened is that elon musk sent an email to his staff talking about hardcore cost cutting. on some level that's good if you're an investors because you don't want your company wasting money but tesla is supposed to be a growth story. the automotive industry, reshaping transportation and it's hard to do that when you are cutting costs. the question becomes is this a growth story or kind of like a mid-sized car company that really isn't going anywhere? and that's where the bears are landing. taylor: david, talk to me about some of those bears. what's the downside scenario? david: the downside scenario, as max says is that they'll never really be able to be the major central player in electric and autonomous vehicles that they have promised to be. partly because every other major carmaker now sees the potential in those markets and is working very methodically to compete head to head with tesla but they are ahead in a number of key technologies as one of the analysts you q

tesla's balance sheet has been a problem for a long time.his at least kicks the can down the road a little bit for them. >> how expensive is this financing? obviously the equity is the most rational path to go down given where the share price still is their existing debt is trading at pretty high yields. >> that's right. the unsecured debt which is not apples to apples comparison trades north of 8% this money we're going to have to see where the conversion rates come in. i think this is probably going to be a harder financing for them than it's been in the past. i'm not expecting today's enthusiasm to last much longer >> robert, investors perhaps liking elon musk is putting his own money to work in the stock. >> he's putting $10 million in to buy stock so that gave the stock a boost today. one of the issues with tesla as it relates to disclosure is how much stock has he collateralized for margin loans he hasn't sold any stock, he owns 20% of the company. he doesn't have any liquid source of wealth to buy more stock. what he's done is he's le

coming up, tesla's problems keep adding up.ne analyst says the carmaker is about to face hurricane-like headwinds, next. ♪ aily: tesla stock took beating monday over growing concerns of the company's road to profitability. described tesla's predicament as a code red situation and slashed its price target by $230. concernd he also has about the underlying demand. off, it comes down to demand. the model three demand has not started to uptake in the u.s.. down toe, it all comes profitability in the second half. that is really the issue here, the concern on the street. it is really the perfect storm forming for tesla which is concerning us more and more. honest, 230,o be that is kind of bullish, isn't it? now, this continues to be a difficult stock in terms of getting your arms around valuation. if profitability does not come in the second half, they will have to raise $1 billion to $2 billion more of capital. we are why right now cautiously optimistic that they can get through this period. i will tell you right now, some hurricane

but huang's lawyer say the majority of his criticism for tesla. >> tesla appears to be beta testing its software on live drivers. >> reporter: tesla declined to comment on the lawsuit but shortly after the crash happened, the company said, "the driver had received several visual and one audible hands-on warning earlier in the drive and the driver's hands were not detected on the wheel for six seconds prior to the collision." walter hua frn was 38 years old. he left to children behind. we did not hear how much in damages this lawsuit will seek. reporting live in mountain view, scott budman, nbc bay area news. >> scott, thank you. >>> he attacked someone at a bar then took off. police in walnut creek are reaching out for some help. take a look at these photos here. investigators say this guy smashed a glass into someone's face at a walnut creek bar on april 17th. at this point they're not telling us the name of the bar but are asking if you recognize him to give police officers call. >>> a bay area tech billionaire announcing another big donation. salesforce ceo mark benioff and wife are

coming up, tesla tumbles again.n premarket is analyst gene munster notes sales risk. more on that in today's bottom line. now it's time to go to break. ♪ david: it is time now to look at three companies worth watching this morning. first of all, i'm watching corelogic. corelogic is the organization that collects data and sends it to the u.s. government. turns out the justice department investigation, really examining a charge that they are getting together and inspiring to make sure you can't negotiate your commission when you go to sell a house. that is something people have been complaining out for a long time. we will see. it could have profound effects through the real estate industry. alix: and it could get done? david: it depends on what they find. alix: i see. munster talked about the ramifications of tesla in the region. >> the reason why the stock has dropped is the china piece is now more in question. i think there is risk that teslas are tariffed going into china, and there could be consumer backlash agai

tesla hiding the skids after tesla warned the clouds are getting darker for elon musk and his companythe stock briefly dipping below $200 phil lebeau joins us to break down tesla's breakdown. >> if you look at why tesla tumbled today, 19 in the last 20 where it moved substantially lower, let's start with the web bush note. they dropped the price down to $230 but the language in there where they questioned the demand for the model 3 and they said look, it's going to be a ki kilimanjaro hike in order to achieve profitability, that had people saying what exactly can we expect from tesla when it comes to the financial performance. their estimates are pluning. how quickly have they gone down? go back to december 31 last year the consensus out there according to fact set back in december, it was at what, $6.47. february still holding up pretty well people expected a profitable year for 2019, $5.68 then first quarter deliveries dropped to $4.12 and opapril wa disaster most of the analysts said they're going to lose money this year now expectation is tesla to lose did 1.15 for 2019. it's down

scenario after web bush said tesla is facing a code red tesla stock turning around, down 40% this yearshould the bulls start worrying? joining us now is joe osha at jmp securities and philip lebeau with us. phil, sort i'll go to you firstr sort of a scene setter this company promise add huge ramp- ramp-up and autonomous taxi fleet. what happened? >> they've clearly lost momentum and started when they said, look, we're not going to be profitable every quarter starting in the fourth quarter on first quarter reported a lost, we may not be profitable until the end of this year, people really took a hard look at what's happening both in terms of production and in terms of demand out there and when you look at demand, this is what gets at the heart of the note from adam jonas. is there enough model 3 demand to get what they're expecting for the remainder of the year until they get to next year when they expect china to have the new shanghai plant and won't have to deal with tariffs from vehicles shipped to the united states you add that along with everything else that happened, whether or no

tesla planning to raise $2 billion to replenish its cash. they filed to sell 2.7 million shares and about $1.3 billion in senior convertible notes. to talk about this, i want to bring in cross as it reporter luke kawa, and our analyst covering the company. why the sudden change of heart? >> tesla had a terrible first quarter. cash fell to the lowest position in three years. any executive wants a good buffer. it is scary to be close to the razor's edge, especially with projects in the docket. emily: how could musk have underestimated so much how much tesla would need? luke: that is a question that should be asked. the overwhelming sense is relief, that he was able to come to his senses and realize there was a need for this to happen. that is essentially what wall street was saying, which is why you see the reaction in the stock. but correct me if i'm wrong. we almost seem to need to go back to the well, because this doesn't do much more than close a working capital cap. in terms of ambitious plans they might have going forward in different bu

we talked about the tesla affect a few moments ago.k about what is happening -- another stock we are watching carefully. it has gone next dividend. we have what is happening with the bayer story. positively on good news coming out of the united states on that roundup trial. that is look at the european markets. vonnie: here in the u.s., we are holding onto our 2900 mark in the s&p 500 but will we buy close of day? 2911 right now and deteriorating with the s&p down .4%. stocks -- theials 10 year yield is up to 2.55% as the market continues to digest fed moves. we did have the bank of england this morning but that discussion is what is impacting the treasury market. like the dollar stronger but we are at 97.77. the crude oil futures in the u.s. are trading at $61.27. down 3.5%. pressure applied on the crude oil market. let's take a look at gmm. several currencies weaker thanks to the stronger u.s. dollar, including the brazilian riau, the russian ruble and the argentinian peso. we all know what is going on with some of the other asset cl

that lawsuit claims the tesla suv had a dangerous defect that led to this crash. good evening, thanks for joining us. i'm dan ashley. >> i'm kristen sze, >> we have the story here now. >> dan and kristen, attorneys say tesla knew about problems with the autopilot and had better technology before the crash but the company didn't install it in time to save walter wong. the news conference was too much for wong. after it was over, she broke down. this model x was her husband's birthday present. his dream car. the lawsuit filed in superior court says on march 23rd of last year shall as he headed to work as an apple engineer, the autopilot feature turned it left and drove it into a concrete median. walter wong died from his injuries later at the hospital much the model x's batteries burst into flames. he left behind a wife and two children. >> he was a really good guy. all the family and all the kids. we miss him so much. >> she told me her husband complained several times that the autopilot was veering toward the same barrier and they took the suv into the dealer to c

tesla is sustaining another blow by wall street analysts.gan stanley is slashing its worst-case scenario to just over $10 over concern the company has saturated the electric car market. and kohl'snney posted sales declining today that rattled the industry. amanda: let's get a check on the major averages here. obviously trade remains very much in focus across the broader s&p 500. we are seeing positive action off the highs of the session. stocksbeen led by chip biggest decliners yesterday and we are seeing a bounce back for some of those names. moveials are also on the higher. only consumer staples stand out to the downside. we are watching the british pound. a had been moving ahead of new proposal from theresa may to present to parliamentarians there. word is from jeremy corbyn that labor will not support it. a second referendum seems to be in the offing. shery: another currency that we are following is the canadian dollar which has been strengthening against the u.s. dollar throughout the week. we continue to see this strength. we have seen

the news at six begins right now. >>> a bay area father killed while driving his tesla. to court. the issue the family says never got fixed. >>> school pickup that ended with a bay area mom under arrest and cuffed in the back of a patrol car. why other parents called police. >>> mayday is not just about workers rights but also about tenants rights. >>> kpix 5 news 6:00 starts right now with a foster city family suing tesla. >> was a tragic class that took the life of a father and husband. >> kpix 5 on the technical problem the family says tesla never fixed. >> reporter: there is no question about it, tesla is becoming more and more popular especially here in the bay area charging stations like this one near downtown san jose her full practically all day long. now this lawsuit has tesla drivers debating the reliability of one of their cars most favorite features. walter huang's model x was splintered when it hit the barrier at the 85 interchange last year in mountain view. he and 38-year-old engineer husband and father was killed. his wife said he loved the car. >> i gave

tesla jumps after making an

tesla is probably the best thing that will happen to nvidia and here's why when tesla goes full mode and full craziness and they say we'll do this ahead of everyone else it's bankly saying to the rest of the auto industry, you need to invest if you do not invest you will be future parody with the cars. if you are ford and gm and you don't want to fall behind you have to go to the best chip supplier that's comparable to the tesla solution and nvidia is the only company out there that's providing chips out there that's comparable. >> there are autonomy, forts going on right now so america vidnvidia are the pry suppliers in which is a division of intel it's coming in from the low end and basically trying to prevent you from crashing and nvidia is coming in with the a.i. perspective and they want to do computer vision and those are the two primary competitive forces and nvidia has said that they'll offer a level five solution mobilize level five solution is still out. so if you feel the pressure from tesla, and you want future parody and control over your software stack, there are plenty

arc invest ceo and big-time ceo said wall street is missing tesla's edge >> the edge that tesla has inattery, they're three years ahead of anybody else in artificial intelligence chips. our analyst now says four years of anyone else in terms of miles of driving data collected, no one is even close, not waymo, not cruze and they're at 10 billion miles and waymo is at 20 million miles. you train these autonomous vehicles with data, no one else is close >> tim, what do you think? doesn't she have, like, a $5,000 target on tesla? >> it's certainly four and i heard rumors it was going higher kathy wood is a very thoughtful investor and she's done a lot of work on the company. my issues are that i don't think they're looking at the balance sheet is in distress i'm not sure they're going to get there and to me we had moody's on yesterday talking about their assessment from the company from a pure credit perspective and it doesn't sound like even a credit company is looking at their off-balance sheet liabilities and contingent liabilities and things that are hand stringing the business you in

should tesla be worried? reporter: probably. sending some letters out to perspective buyers today in germany, saying we have the model s, the model x, you might want to give is a hard look. that timing probably wasn't coincidental. what we got today from volkswagen was a closer look at the id3 that they will bring to the market first. electric. marketowcased it -- first, fully electric. they showcased it. we've got the firepower of, the customers who want to buy this, the resources. in the words of the company, we are not here to play. we want this to make money, and this is the future. taylor: the keyword i just took from you is that they have the customers to buy it. we just heard from tesla in their quarterly earnings that they thought demand was waning a bit. does the market have room for another player? is there enough customer demand to meet supply? benedikt: for the time being, probably not, but this is a market very much in its infancy. up.s only just ramping over the next couple of years, we will see how robust this dem

ford cuts jobs while one analyst says tesla is facing a code red situation.he doj is said to lean against recommendation to approve t-mobile's takeover of sprint. headlines. with ford planning to eliminate about 7000 salaried jobs, about 10% of its global white-collar workforce. the automaker is under pressure. signs point to a peak in demand. joining us is a u.s. auto reporter. how surprising was this? we know the big restructuring was happening but did this amount seem like a lot? >> it was actually a little bit on the low side compared to what morgan stanley was expecting. they put out a note last fall where they were saying about 20,000 might be the number. little lower than that prediction but it is obviously still a big number and absolutely raises eyebrows. i think you have a situation where ford is talking about wanting to be quicker with its decision-making. perhaps the handling of this announcement is a perfect encapsulation of how much faster they have to move given that they said they would do a significant job reduction on the salary side way bac

tim, how problematic is this lawsuit for tesla?well, it puts the company under a microscope yet again for the autopilot system which has raise add lot of questions in the last couple of years about whether people are paying enough attention to it. it is not self-driver, does not turn the car into a robot. the person behind the wheel is supposed to pay attention. many over rely on it. >> this lawsuit outline as number of problems. they're suing for product liability, failure to warn, breech of warranty, false advertising, it is a long list. >> yeah, one of the lawyers today was talking about how the system was flawed in the idea that the driver is supposed to maintain control of the vehicle, keep their hands at the wheel yet the system is steering and essentially driving and it's hard for the person to maintain the awareness that maybe they have to take over in a split second. that's been a common criticism about this system, that tesla, previously, has said many times that it's really the driver's responsibility to maintain awarene

it is important to stress that i am a believer in tesla. they will turn the corner and capture what will be a juicy growth curve around the electrification of vehicles. where 1% today, eventually 100% globally. 2019 will be a difficult year. they are going to miss their numbers, their target. everyone knows that. i want to focus on what has happened in the last three weeks around the story. the stock is down 27%. it is down 24% since may 5 when trump tweeted twice about 25% tariffs. so there has been an acceleration on the downturn based on what has happened in the past few weeks. you mentioned analysts have largely not changed their opinion. the reason why the stock has dropped is ultimately, this gets back to the demand, the china piece is now more in question. i think there is risk. this is different than apple. there is risk that teslas are tariffed going into china. there could be consumer backlash going into the china brand. china was expected to be about a quarter of the sales for this year. if that number gets down to 12%, there wil

bruce, you have an equity threat and a death threat for tesla how does the tesla story ultimately play out? >> look, from our standpoint the store is carried and we have a negative outlook and one of the things that's important to keep in mind that tesla has a pretty good liquidity position and after the capital raise, we think they need about $1 billion to run the business and another half billion for the convertible bond and that gives them $3 billion left over. if you assume that they beurn a half billion, that gives them a long runway. from our standpoint the b-3 rating is still appropriate and that cash position does give them -- to be fair, they can issue more debt equity and in the current credit structure and income statement you just talked about six quarters that's not that long of a runway when you talk about a company that addresses a certain number of issues that's a long time and they needed that cushion and that's a important cushion to have. >> what do you think about and how do you value the contingent liabilities and the supplier obligations which i think are extraord

. >> taking on tesla.he family of a man killed while driving in autonomous mode on the peninsula has demands for the silicon valley company. alright, let's talk perks! would you like a desk chair, weekends off, or the bathroom code? yes, please! it's time to get more. lower fares. better service. sweeter rewards. alaska airlines. attorney general "william barr" >>> right now at 6:30, a firestorm on capitol hill. attorney general william barr is skipping out on day two of testimony after a contentious first day. this comes after the attorney general testified before a senate committee. tomorrow he is supposed to testify before a house committee, but late today we learned barr will be a no show. >> democrats are considering a citation of contempt. janelle wang joins us with the latest. >> house democrats want the full, unredacted mueller report, and if they don't get it, they may consider subpoenas. this comes after william barr testified for the first time on capitol hill. >> in his first congressional test

this is bloomberg. ♪ emily: the blows just keep coming for tesla.is the latest firm to slash price targets. in a new note, analysts warned tesla may be relegated to a niche carmaker. this just a day after musk scent staffk sent an email to pushing for delivery to catch up to demand. joining us is craig. how are investors and analysts reacting? >> these emails have been an effort on the part of musk to on one hand put to rest the notion that tesla has a demand issue, but also to rally the troops. it is also just an attempt that has not gone over that well with the market. you did see a bit of a tick up the last time he sent in a mill -- an email to employees, where he did try to put to rest this idea that they have a demand problem. he also phrased these emails in ways to where he left out the fact that there is a lot of work to be done for them to have a great quarter. the second email was on the side of, we have work to do, we have to work through our delivery issues and bring costs down in order to have a great quarter. they haven't necessarily ha

>> now his family is blaming tesla for his death. >> reporter: it's been a year since the fiery crash on highway 101 that killed walter huang. for his widow, is pain is fresh. >> we miss him so much. not just family. friends miss him a lot. >> reporter: now she's filed a lawsuit saying tesla is responsible for his death. the document alleges tesla's auto pilot feature was defective. >> took him out of his lane of safety, pointed him at a concrete fixed barrier and accelerated 10 miles per hour in three seconds and drove him into the barrier. >> are the vehicle was traveling 70 miles per hour at the time of impact. a passerby pulled him from the tesla but it was too late. >> i think they knew there were problems and blithes with the car. >> reporter: a preliminary report from the ntsb says "the vehicle did not detect the driver's hands on the wheels in the six seconds before the crash." they say there may be a problem with that. >> i think will is a lot of confusion about the auto pilot which tesla encourages calling it automatic pilot. it is a really fancy cruise control. >> reporter: