the mini-cooper and also the black tesla. now, the tesla was actually a rental car. i talked with the owner a few minutes ago who said he rented out the tesla yesterday afternoon through the get around app. based on the surveillance video they've seen from nearby hotels, it looks like the woman driving the tesla was speeding up taylor street and ran the red light at o fairel. as she drove through the intersection, the tesla was broad sided by the mini cooper and caused the tesla to spin around and hit a couple who was walking in the cross walk. police say the husband and wife were visiting san francisco from clovis, which is near fresno and both were in their 50s. the husband has died. the wife is in serious condition at san francisco general hospital. >> it's very upsetting. what are we at now, 14 or 15 fatalities, involving vehicle visit ped in the city. it's becoming very upsetting. >> reporter: police do not believe drugs or alcohol were a factor in this crash, but say speed definitely was. officers estimate the driver tesla was going at least 45 miles per hour a

the driver of the tesla is not injured. i actually spoke to the man who owns the tesla. he rents it through an app called get around. he says its tool's fault or it's the people hole decide whether we can use autopilot's fault thought this accident happened. sfpd says they're glad premium so in control of these cars. >> luckily we're in the preliminary stages of autonomous vehicles operating in the city. i'm not worried about that right now because it's manpowered by somebody overseeing is the vehicle is being applied onto the city streets but the future. >> the tesla team or authorities have not approved autonomy for the city for this car and that's why manual driving kills people. authorities are so there approve feature which is self-driving in the city. >> reporter: so sfp investigators tell me they have a chip from the tesla which they will then use to determine exactly how fast the tesla was going and if it was on any sort of autopilot mode. right now, i've just learned from police that they're looking into whether or not this tesla was involved in other crimes in

and when we return, back to tesla, those shares continue to get crushed this morning tesla bull and elonk's favorite youtube analy jns lerhihourstoi stay with us >>> welcome back to "squawk alley. the dow is down one third of a percent and european markets just closing seema mody joining us with a breakdown of today's action overseas seema? >> not the type of market reaction you would expect on an ecb monetary policy meeting. european stocks are down, but take a look at the euro. a big intraday reversal. it initially hit a two-year low against the dollar after the ecb signaled future stimulus, but when ecb president mario draghi took questions from reporters, he didn't exactly outline the steps the central bank will take in september, which then sent the euro higher at about 111 against the u.s. dollar. economists are still expecting the ecb to cut rates in september, and if so, europe would be joining a growing number of central banks that have already cut rates of the major economies, eight have cut rates since april, that's including turkey since firing its central bank chief earlier

>> tesla. >> geez. >> tesla it is crazy, i know, but given the choices of the two, tesla.as been grim death now for the last six years there's no reason it shouldn't continue to be so. tesla. >> i bet with my wallet, it is tesla. >> you guys are crazy. >> ford does nothing. >> it is barely double digits, right? >> first of all we know ford will be in business in a couple of years, i'm not sure about tesla. >> we don't know that. >> by the way, the free cash flow i think is a function of inventory -- ed mccabe is a research analyst that sent me a note that's whaths.t is i >> name drop. >> up next, final trades >>> final trade time pete >> we've been talking about tesla. how about neil huge call buying in there today. i bought nio gitty up. >> tim. >> a lot of tap on las vegas and wynn i think wynn is the play here and you have a case where wynn's numbers are better than those at lvs. >> steven grasso. >> can you imagine next week if general electric tries to the upside what would the stock do? it has been building a base for the last couple of weeks/months. i'm on ge, final

now, more tesla news here. the company stock is taking a hit in after hours trading after tesla posted a bigger loss than anticipated. take a look. this bloomberg graphic shows the dramatic drop when they made the announcement. the shares quickly plunged nearly 6%. the stock tumbled more than 10% after the closing bell. automaker missed financial target in the second quarter despite record delivers of its vehicles. it expects to return to profitability in the third quarter. >> it may be the biggest sale of the year, billion by goog to buy the oldia ha campus. the site will likely stay an office park though it's possible housing could become part of the mix. the story from unser hassan. >> the sign at 701 first avenue says yahoo but now it belongs to google. public records so a grant deed was filed on tuesday transferring the property to google. google wouldn't comment on camera but did confirm the sale to abc7 news. the company says it plans to keep the seven buildings that make up the campus as an office campu

tesla would deliver more earnings for hosts that own a tesla.ze that by sharing their car seven to 14 days a month -- so, a third to half the time -- they can afford a tesla and the car can pay for itself. caroline: what are the trends, do you think? clearly, there's a desire to get your hands on a tesla of the weekend. what are people about to be using for this fourth of july break here in america? are they part of the holiday season. july 4, we are seeing record bookings of ev's. over the last 12 months, ev's have been growing 50% faster than the entire marketplace, both on the supply side and demand side. people who feel that turo is a great place to try an ev before buying one. ev's are a big part of july 4. another big trend we are seeing the vannigansn of ,f the world and toyota tacoma and all these amazing vehicles that have been designed for camping or designed for van life or have been a retrofitted with the extras our hosts are providing to enable a unique camping experience. caroline: paint a picture of regulation and how able you are

we talked very briefly with the man who owns that tesla. he says he rented through a service called get around, and it was the renter who was driving the vehicle. this is what the owner of that tesla told us just a few minutes ago. >> the message showed up and says, your car is not drivable. and something failed. and i was shocked. douldn't believe because it's kind of weird message, right? but then i received a call from tesla roadside assistance, and the guy was saying, the car was in an accident. are you okay? >> we understand that the specific investigators have already downloaded video that may have been shot from that tesla and obviously there is a whole lot of other icras but based on the information they have so far, police investigators believe that car, this tesla, was going 45 miles an hour when it blew through this red light. reporting live in san francisco, i'm sergio cantana. >> thanks very much. >>> all but one lane are reopened after a car burst into flames flooding the tunnel with smoke. everyone that was inside at the time

what about tesla and ford? are people buying fewer ca rs ? tesla and ford?buying fewer cars? that does seem to be the major factor. fewer cars? that does seem to be the majorfactor. some of fewer cars? that does seem to be the major factor. some of these cars are at record lows as far as margin. ford has produced good numbers going forward , ford has produced good numbers going forward, if we examine them from their pickup department. pickup trucks are big, high margin vehicles. tesla are down about 38%, so vehicles. tesla are down about 38%, so they are under the whip. vehicles. tesla are down about 38%, so they are under the whipm vehicles. tesla are down about 38%, so they are under the whip. it looks like all of these carmakers are seeing slowdowns in the western markets and they are just making money in china and the rest of asia. that's right, and this is where we are seeing the global expansion. these are all factors that are washing over the market. cars are big sale value items, and you can see where the world is going as far asa see where the world

coming up, tesla sputters.res of the electric carmaker fall in after hours trading after the company reports a worse than expected second-quarter loss and backtracks on a profit forecast. facebook's earnings call still underway. take a listen to mark zuckerberg telling investors about the $5 billion fine his company will be paying the ftc. >> i want to talk about the recent news that we reached a settlement with the ftc over privacy concerns. as part of this, we have agreed to pay a $5 billion fine, but even more importantly, we are making major changes to how we build our services and run this company. this will require investing a significant amount of engineering resources and building tools to review our products. it will also significantly increase our accountability by bringing the process for automating privacy controls more -- auditing privacy controls more in line with how financial controls work at public companies. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to

and today at 4:00 p.m. >> reporter: the tesla owner does not know if the tesla was being driven on auto pilot mode, but police should be able to get data from the car. >> and it has the information by a millisecond. the speed and also the movement of the steering wheel and the pedals. >> we have learned there was surveillance video from surrounding buildings. investigators are looking at that to determine whether that woman will face additional charges, arrested for running the red light and for misdemeanor vehicular manslaughter, also planning to try to talk to the female victim who was here at sf general tonight to see if they could get more insight into what happened. frank? >> jana katsuyama in the city tonight. thank you, jana. >>> a car fire shut down macarthur tunnel tonight. the driver was able to walk away. both northbound lanes and southbound lanes were all shut down, but opened back up this afternoon. caltrans will offer a follow-up inspection tomorrow. >>> police in concord searching for a driver of a truck involving a hit-and-run crash involving a motorcycle rider. it happe

if you talk to tesla owners, they love their cars.don't care about cash flow and elontability musk's tweets, but wall street does. diving after hours, do you think the profitability issue is a near-term problem or long-term problem? >> i actually think it is both, for tesla in particular. clearly near-term is an issue and this is a reflection again of model three becoming a bigger percentage of their total sales, and those cars simply make less money, not surprisingly, then the higher-end cars. longer-term, that issue remains. yes, they have new models coming out here they have talked about a pickup truck and some other interesting opportunities. the model y is coming, but it again is on the lower end. not sure where the pickup will fall, but i think it will be lower as well. is there enough momentum and juice to keep tesla as a brand going? they are a very loved brand. the question is can they maintain that moving into other areas? paul: bob o'donnell, we have to leave it there. .hanks for joining us plenty more to come on "daybreak

unless it's a specialty car like a tesla. get around wouldn't say why a 21-year-old was allowed to rent a tesla, saying we are cooperating with police and authorities investigate thing inls dent. -- incident. >>> in the north bay, people remain evacuated from their homes because of a wildfire in napa county. the canyon fire started just after 2:00 this afternoon. it has charred 55 acres so far. cal fire says it is 60% contained. the evacuations are taking place along the south side of highway 128. that road is closed between markey cove and rag canyon road. no reports of any injuries or structures burned. >>> as part of building a better bay area, we are looking at ways our communities are working to keep us safe, especially during a disaster like a wildfire. our reporter is in santa rosa where community leaders held a special workshop on a fire protection plan. >> reporter: it's a new effort to make sure devastation like this doesn't happen again. >> this is the first of three meetings we'll be holding. >> reporter: the city

a mini cooper broad-sided the tesla. the tesla spun out and hit pedestrians in the crosswalk.have obtained a memory chip from the tesla. >> we don't know if it was in autonomous mode. that will be later determined by the data inside the tesla. speed was a factor. it's unknown if she -- it's a to itsocrredle and she took >> invtigatorsteslwaoi 4 miles2. the victims are a couple from clove vis in san francisco for an anniversary trip. abc 7 news report are jobina fortson will have more coming up in the next half hour. >>> concord police want to find the driver of this dark-colored pickup. the driver hit and killed a motorcyclist and didn't stop. it happened when the biker was trying to pass concord boulevard. the truck hit the biker after he was thrown from his motorcycle. neighbors shared vance video with abc 7 news. one heard the crash and ran out to try to help. >> i could see the other person was in the middle of the road and not moving. people were trying to direct traffic around, make sure that nothing else hit him. >> the driver of the car the motorcyclist ran into did st

they were hit by the tesla as it spun out. the police estimate, based on some surveillance video they have from this intersection, that the tesla was going through this intersection at about 45 miles an hour. they also have a couple of witnesses. but i have to tell you just a few minutes ago we also talked to the person who actually owns that tesla. he says that he actually rented it out through a car sharing company and it was the renter who was driving the vehicle. he's actually at the moment trying to get further details from that tesla right now, and that's likely going to be invess as well. we will further information coming up at 5:00. reporting live in downtown san francisco. >> sergio, thanks very much. >>> one lane reopened after a car burst into flames flooding the tunnel with smoke. everyone inside at the time was forced to evacuate until firefighters got everything under control. all of this happened after 12:30 today. this is the tunnel that connects it to the golden gate bridge. we did an alert on the nbc bay are

they are getting their lunch eaten by tesla.: there's a point there and -- in that if you talk to people who own teslas, they love their cars. they are not focused on the ins and outs of if the company is making money, how many delivers they are making, what production looks like, so how much does that matter? >> it's huge. making a good car, if you are a car company is definitely the most important thing, more than anything else. and to ben's point, one thing about the conversation that has changed over the last year is about a year ago, people were saying the company is doomed, they will never get to volume production, and now, the debate is a different debate. it is is tesla a niche manufacturer? that would be the bear case. the bull case is this is a company that is going to be bigger than toyota, daimler, and so on, and if you are elon musk, that is a good shift in the conversation. you don't have as many people going around talking about this thing collapsing any day. which was happening a year ago. emily: talk about a shi

nbc bay area talked to the owner of the tesla yesterday who rented the tesla out to the driver. he says he was in the office when he got a message that said the tesla was not driverable and failed. >> the guy was saying your car is in accident. are you okay? i told him, i don't know because i share a car on getaround. >> police say this is a busy high tourist area and drivers need to slow down. the wife is at san francisco general hospital. police say so far, it does not appear drugs or alcohol were a factor in this tragic accident. back to you. >> thank you, sharon. >>> breaking news, iran says it's captured what it says are u.s. spies. the country accusing 17 people of working for the cia. the iranian intelligence ministry say they're all eye rain citizens. some arrested apparently sentenced to death. tracie potts is live on capitol hill. any reaction from washington? >> not yet. some sentenced to death as you said, scott, others to long jail sentences. the iranians say they were citizens applying for u.s. visas, and the cia turned them in the process of those applications, an

and i think tesla has built out their management team. think they've brought in a new chairman of the company. and i think they're making movements to do that the fact remains, you need mr. musk to latch the team on. they're consistently ahead of everybody else in the industry he is the visionary that is tesla. now, wh now, would i want to work there? maybe not. but steve jobs latched people on, as well. and the fact is, was not easy to work for do you want to bet against steve jobs or elon musk. i think the answer is no. >> colin, finally to you what does the stock need to do to reclaim its year-to-date loss >> i think they need to show positive cash flow there's a coupledrivers. first, we think they're going to show up in the second quarter and be able to guide effectively on that. and then we should see some benefits on their working capital. given that they have started ramping sales again and have a positive working capital benefit there. if we see them generate some positive free cash flow in the second quarter, we think there is an

tesla's battery, their range, their autonomy, i don't own a tesla, but it's better than any other caror price performance. i think they're going to ride this curve and it is a large addressable market. >> gene, i have a question for you that comes from last year when you were actually having a dialogue along these lines what happened to the competition? where's porsche, where's bmw, where's audi they were supposed to crush this company like the cockroach it is when they brought their models nobody wants their electric cars how come tesla is the only electric car that people want to buy? is that short story a dead one now? i don't know any engineer that wants to go work there all the hot young engineers want to work at tesla if you're coming out of the electro engineering. have they broken the story about being crushed by competitors >> no, i think that the bears will say that the competitors will short circuit the tesla story, but some of the cars out there, audi etron is in the market, it averages around $85,000. and i think that is the core piece is that there is a scalability despi

of production did leave tesla last week.it was announced he went to lucid, which is the electric vehicle startup. we know where he has landed. there has not been any huge executive departures of late, but at the same time, there have not been any big high-level hires. you are seeing a lot of promotions within. not a lot of big names joining. the departures are kind of old hat. i don't think the market reacts to them that much. caroline: we will see how numb how they are in terms of the numbers in terms of the actual production. thank you. now, the boston pops spectacular will be the largest and oldest public fourth of july event and this is a taste of what to expect. ♪ ♪ ♪ ♪ do not miss the boston pops fireworks spectacular. live july 4 at 8 p.m. eastern right here on bloomberg. coming up, right here, right now, bitcoin tumbling again, i'm doing some of this year's epic rally. we will discuss all things crypto next. this is bloomberg. ♪ materials hasied for $2.2 buy a company billion. it produces semiconductor manufacturing

a mini cooper broad-sided the tesla. the tesla spun out and hit the pedestrian in the crosswalk. police have obtained the memory chip from the tesla. tonomous mode or if she was in control of the vehicle. that will be later determined by the data that's inside the tesla. but speed was a factor. it's unknown -- it's a rental vehicle, and she took it to its limits or what occurred. >> investigators believe the tesla was going 45 miles an hour in a 25-mile-an-hour zone. the victims are identified as a couple from clovis in fresno county. they were in san francisco for an anniversary trip. abc 7 news reporter jobina fortson will have much more on this developing story coming up in our next half hour. >>> concord police want to find the driver of this dark-colored pickup. a biker was trying to pass a car near concord boulevard just after midnight yesterday. the truck hit the biker after he was thrown from his motorcycle. neighbors shared surveillance video with abc 7 news. one heard the crash and ran out to try to help. >> i could see the other person was in the middle of the road not

plus, a battle for the soul of tesla. one bear, one bull they face off ahead of results after the bell "power lunch" starts right now ♪ ♪ what is it good for ♪ absolutely nothing >> what a song from my youth edwin star, "war, what is it good for." welcome to "power lunch," i'm tyler mathisen and i date myself proudly, ladies and gentlemen the dow at its low, now down 123 or about a half percent. but why? well, it's basically boeing and caterpillar. s&p 500, it is higher by about a fifth of a percent and nasdaq higher about a half percent. those are sitting at record levels the nasdaq, i should say, despite the hurdles facing big tech as the doj takes aim at the industry more broadly launching a broad review of big tech companies over fresh anti-competitive concerns. elon moy with more >> the justice department plans to look at three areas of concern. are the big tech companies stifling innovation or harming consumers? the doj said there are widespread concerns about practices related to search, social media and some retai

at tesla headquarters in palo alto, california, 11:00 a.m."squawk alley" is live ♪ ♪ >>> good thursday morning. welcome to "squawk alley." i'm carl quintanilla with deirdre bosa

leaving tesla. the former head of production at the fremont plant said he would be leaving tesla and this morning lucid motors announcing that it has hired that executive, so what you've got here is a steady cadence of executives fairly high up within tesla who have said, either on their own or because things haven't worked out with the company, that they are no longer at tesla this comes as the company is about to report its q2 delivery numbers. and the number that people are going to be focused on, what is happening with model 3 delivery. 74,100, that is the estimate in terms of model 3 deliveries. the wild card in this, china we know there is strong demand if not record demand here in north america but it is unclear what is happening in the tariffs from the vehicles from the united states over to china. so as you take a look at shares of tesla, remember, they open up a plant in shanghai later in year that is the expectation, guys. and that would make a big difference in terms of deliveries in chi

people and there are non-tesla people a lot of non-tesla people that love the stock love the car.n has been making comments. >> if you love the car >> is that enough? >> sometimes that equates to i remember people that used to love that circuit city parking lot was crowded. stock, things like that best buy went in. >> there are people if you had a pair of nikes bought the stock you can do okay. >> right >> they have more nikes. >> exactly >> we got some news to bring you as well. the other big story of the morning, t-mobile and sprint could be getting the green light to american as soon as today we might get an announcement while "squawk" is on the air joining us to talk about what it means for the sector, the senior telecom analyst at wells fargo securities good morning to you. >> good morning. >> we are expecting this news that the doj has approved this transaction, that would include spinning off part of the business and selling it to dish to create a fourth competitor. i think the big question right now is if, in fact, that transaction takes place. if the doj puts its stash of

facebook and tesla, amazon and apple. that's take a look at the longer-term chart of the nasdaq 100. much of the fears around the possibility that big tech could be regulated, but last year put volatility, there is another record high. one reason to think strength could continue. we see a series of bullish higher loads telling you that the momentum may just remain bullish for a while, but watch consolidation down to the moving average. tech and stocks are bullish. another stock reaching a record is chipotle, the food giant. highest since 2006. this is after its previous record high on july 18. earnings were better than expected. sales increase the most in two years and a 10% gain in comparable sales growth also helped out by the biggest year-over-year increase since the first quarter of 2017. digital delivery, innovation and stronger marketing fueled the sales jump. news, bestreaking buy is elevating what they call a veteran, a 30 year veteran into the role of cfo. that is none other than matt, who was pleased to be chose

same with tesla, although i will say there's a lot more risk in tesla than there is in netflix. all right, right now the dow jones industrial average off 166 points as i hand it over to liz claman. liz: i agree with you on tesla. i have seen that stock get hit and then claw back and hit and claw back. charles: over and over again. i think i'm going to buy some netflix before the next earnings report. not sure but i'm leaning toward it. liz: we will watch it. he knows this stuff. charles, thank you very much. as we look at the loss for the dow, down 174, is today's market action representative of what happens when a central bank disappoints investors? europe's version of the fed ducked a rate cut this morning, they didn't do it but the markets are not happy about that. could big tech come to the rescue or push stocks further into the sea of red? google and amazon both potential antitrust targets about to release their quarterly results, just one hour from now. we've got your all access guide on what to watch when these titans unveil the latest look at their war chest. and their p

just over 87,000 vehicles were produced at tesla.hey do not break it down by region however, melissa, so it is hard to know how much is north america. likely a good chunk of it, the majority is north america and the united states. how much is europe, which has been increasing in deliveries, and then the wild card in all of this, how many of the deliveries were to china. remember, there's a tariff on vehicles built in california and then shipped to china right now. >>> we should note too, phil, the company says it will no longer report vehicles in transit after this quarter so that is sort of a change in the numbers they will release. in terms of the questions answered with this release and unanswered, phil, what would you put in each category in terms of the answered, some might say that the demand issue might be answered, a cannibalization issue might be answered. >> i would say that, yes. >> okay. especially on the demand side because remember so much was made by a number of analysts that you had an ev tax credit, the federal ev ta

coming up, tesla sputters.res of the electric car maker fell in after-hours trading wednesday after the company pulled back on profit promises. we will break it down. and later, we talked to ftc commissioner noah phillips about facebook's record $5 billion fine to put its privacy violations behind it. this is bloomberg. ♪ emily: tesla posted losses and backtracked from a profit forecast as part of its second-quarter report. cash and deliveries of emerged as the biggest challenges to growth. the company announced its longtime technology officer is stepping down, though staying on as an advisor. i covered the carmaker's challenges with max chafkin of bloomberg businessweek and a tech analyst. >> i think the $5 billion on the balance sheet is a great number. i think margin is probably why the stock is down, but i think margin is actually, if you go through the numbers in detail, is better than expected. and i think forward guidance of being gap-positive on that income is also good as well. it is kind of an overrea

connell: right. >> the next news is the tesla truck. this week, yesterday, playing defense or offense, depending how you look at it, demonstrating a prototype for its electric pickup. because it knows it has to defend that ground. connell: in less than a minute, lindsay, we'll hear the comment from president trump. if you're interrupted, that is why. there is a lot of breaking news as well. to gary's point on the model y, the company, tesla says it is on track by the fall of 2020 to come forward with that. on a lot of other measures this is a disappointing, disappointing figure. what do you take away from it? >> absolutely. i find it disappointing they couldn't make profitability, at least the consensus estimate on those sales. the sales number like deirdre pointed out for q2 was the best quarterly sales result ever, on number of vehicles sold, obviously they missed on revenue. they couldn't trickle them down to the bottom line. makes me wonder what are automotive numbers are looking like. connell: we have to jump on you. the president

are you surprised that tesla still doesn't have somebody in that position?> i just don't get it, right? i mean i look at this and i go why is this any different than any other car company or frankly any space company? these are really hard engineering businesses that require tremendous discipline because people's lives are in the balance, and it's super, super important as we saw in the case of boeing with the 737 max that you really need to have attention to detail top to bottom, and you need to have predictability in your manufacturing processes, and i think tesla's getting there. but it's getting there in a way that just i think causes investors an awful lot of heartburn and candidly, you know, just me as a fan of the company, it just -- it feels like it's harder to get there than it should be. >> roger, i spent a lot of time looking at autonomous vehicles down in san francisco, especially when it comes to waymo and lyft and uber. when we talk about the long-term, where do you think that tesla ranks here? there's been some skepticism about where it actual

the stock is up more than 50% so far this year. >> tesla is a different story. that's stock that's down huge this morning >> it is 10% in extended hours here this is a story about growth versus profits tesla wanting to be profitable, but now saying they might take longer than expected you can see in the share price investors not loving that so far. the margins are being squeezed here essentially the profit was -- the sales were lore than wer thn expected it's continuing to focus on production and the question is when it can deliver on that front. it's not looking good going into trading with tesla >> elizabeth schulze, thank you very much for those updates. we're also watching amazon today as that company prepares to roll out quarterly results after the close. deirdre bosa follows that stock closely. what should we be looking for in light of what we've seen from netflix already and facebook as well >> it's interesting. you were talking about tesla this growth over profits amazon has shifted the narrative over the last few years. we've seen more profit, less grow

it is now less than $2000 that a when you buy aor tesla.hat will make things all the more difficult when a year ago $7,500alking about a federal tax credit. emily: thank you. coming up, shares of t-mobile and sprint were under pressure thursday. we will tell you why. and we are live streaming on twitter. be sure to follow our global news network tictoc. ♪ emily: ai programs have been beating human poker players for years. facebook may have invented the ultimate card shark. it beat five pro players and a "texas hold 'em" tournament. after 10,000 hands, the ai averaged $1000 in winnings per hour. that was called a decisive margin of victory. talks over a merger with t-mobile have slowed. anotherl will push past deadline, july 29, before closing. this wouldn't be the second extension to the deal more than a year ago. the switch is now more affordable. nintendo has launched a cheaper model of its handheld gaming console. it will cost $100 less than the original. coming up, moving up the cup -- corporate ladder. amazon is spending money to reach

we will break down tesla's earnings later this hour. coming up, back to facebook's record settlement with the ftc. >> this is a watershed moment in privacy enforcement and privacy governance. emily: we will hear from ftc commissioner noah phillips on how he thinks the facebook fine will change how your data is protected and ask about the newly revealed antitrust investigation. that is next. this is bloomberg. ♪ >> this settlement is the result of an exhausting investigation which concluded that facebook trade the trust of its users and deceive them about their ability to control their personal information. emily: that was federal trade commission chair announcing what we all knew was coming. a $5 billion settlement between the ftc and facebook. some terms of the deal increased responsibility by the board to protect user data, but little impact to facebook's lucrative advertising business. the agreement was approved by the ftc with a vote along party lines. i want to bring in one of the officials who voted in favor. minutes ago, facebook

that minicooper and the black tesla. now i spoke to the owner of the tesla not long ago. he said he rented it out through a woman through the get around happen yesterday afternoon. >> just the opposite of the message. that my car was not drivable, and it's an accident. i didn't believe it. >> reporter: according to san francisco police, the woman driving the tesla was speeding up taylor street and rammed the red light at o'farrell. officers say as she drove through the intersection, the mini cooper, which had the green light hit the tesla, causing the tesla to spin around through the crosswalk, hitting a husband and wife as they crossed the street. police are not releasing their names, but say the couple was visiting san francisco from clovis, near fresno, and both were if their 50s. the couple were taken to san francisco general hospital where the husband died and the wife is in serious condition, but was able to talk to investigators. >> it is very upsetting. what do we have? 14 fatalities regarding the vehicle verses the bed in the city? and me and my officers are resp

tesla is still a relatively new brand.t will be interesting to see what happens if and when they refresh these luxury lines. taylor: that tax credit, as it shrinks in half, how much of a tailwind was that this quarter and, going forward, with that tailwind removed, how much do car sales slow? craig: that will be the big question on the conference call for earnings in a few weeks. what we saw at the end of 2018, the fourth quarter was the previous record for deliveries and a lot of that ended up being in hindsight, a lot of consumers going out to buy the model three and s and x. i think people underappreciated how much that was demanding into the fourth quarter of that last year. that is the big question for the third quarter, can they sustain that momentum even with the smaller amount of support from the federal government? taylor: i should bring in david winston, morningstar analyst joining me from chicago. we've been having a discussion where it seems to be in the all clear. from your fundamental analysis, fold in the de

the hazards he still sees in tesla's roads, up ahead. tesla and major indices stuck in the red but the nasdaq moments ago revving its engine tos to g out of negative territory. this is usually what we see toward the last 15 minutes of the day. we are less than an hour to the closing bell. let's start the "countdown." kristina: breaking news. powerful aftershocks still shaking in southern california following yesterday's massive 6.4 magnitude earthquake. it's the strongest earthquake in two decades. earlier this morning a 5.4 magnitude aftershock hit the northeast of ridgecrest, california, 150 miles north of los angeles. this was the strongest of more than 200 aftershocks that measured at least 2.5 magnitude. the quakes may not be over yet. the u.s. geological survey says there's a 20% chance of survey of magnitude 6.0 or higher occurring in the next week or so with an 80% chance of a magnitude 5.0 or higher quake hitting the state. everybody in california, our thoughts and prayers are with you. >>> we've got to turn to the markets. the

a dash cam inside an uber captured the tesla running the light. you can see one of the victims, kelly dean, throwing her arm across her husband ben. sunday's crash killed ben dean. the fresno county couple came to san francisco to celebrate their wedding anniversary. this morning, supervisor matt hanie plans to lead a rally for traffic safety. jobina fortson will have more coming up at 6:30. >>> as part of our commitment to building a better bay area, we're looking for efforts to keep our community safe. a series of meetings have started to avoid widespread reduction of wildfires. some of the people who attended lost their homes when the tubbs fire swept through santa rosa in 2017. last night's meeting provided a chance for firefighters and homeowners to share ideas about reducing fire hazards. >> we'll look at comprehensive management programs, chipping programs. >> i'd like the city council to pass a law about vegetation management, that people that own property, don't just have to cut the weeds down, but cut everything down that's flammable. >>

police arrested the driver of the tesla. they say she is 22 years old and they do not think alcohol or drugs played a factor, but they believe she was speeding. she is facing a count of vehicular manslaughter charge. >> it is very upsetting. we are at 14 or 15 fatalities in the city. my and my officers are responding to the calls. it is becoming upsetting. >> the driver rented the car using an app called get around. according to the apple, a driver who rents a specialty cart like a tesla must be at least 25 years old. we do not know how this 22-year- old woman got a hold of the car. perhaps someone else rented it for her. and police have not released her name at this time. the woman who was in the hospital, we understand, she is suffering from life-threatening injuries. every time that we cover a tesla crash, folks are asking whether the car was in self driving mode, and police are looking into that. at this point, they believe that speed was the major issue in the crash. live in san francisco, da lin, kpix 5. >>> new detail

. >>> let's talk about shares of tesla today. they are tanking after the company reported disappointing results. the stock is down about 14%, a little less than that right now. is it the end of the road for tesla as a growth stock? that's what the journal's heard on the street column says today. joining me is the author of that article, charlie grant the reason why being the end of a growth stock is important is because it means the multiple on tesla could come way down. >> tesla trades at a huge premium to the rest of the automotive industry. now its growth, revenue is actually expected to fall year over year. we have a declining top line in a tough business, and the story is getting worse and worse, and the balance sheet continues to be very rickety. i see big trouble ahead. >> what do you think is the main reason the stock is down so much today? >> i think that record deliveries did not produce profit it's really that simple. tesla reported 95,000 cars delivered in the second quarter. take that, tesla bears revenue was 10% bel

so again, that's why shares of tesla moving higher.han expected delivery numbers for the model 3. as well as for overall because the estimate on the street was for about 91,000 vehicles to be delivered. they delivered 95,200. no breakout in terms of regional deliveries but we're going to hope to get mother natu more detail on that. that's why tesla shares are moving higher. >> interesting the share price reaction up 6% when this was in a leaked e-mail, right >> what, the -- the 95,000 number - >> it wasn't - >> the number is new >> the record is anything over like 65 -- >> yeah. he said he was going to be close to a record. he did not say we definitely will set a record. >> and to your point, phil, the key thing is not the absolute record, it's the relative performance compared to analysts and this is a beat which was the important thing. >> yep >> is there beat delivered because production was strong or demand was strong or both? and which do we need to see more of in the coming quarters? >> they say there's not a demand problem, but

this was a record quarter for tesla. was on the strength of the model three, which is what everybody has been waiting for. everyone was hoping this car would be a hit, that it would sell at good prices, and continue to generate interest in the u.s. and new markets. the only downside to this is that sales of the models s and x were down 25%. it feeds concern down the line here that the higher-margin vehicles aren't selling quite as well. they are getting a little bit long in the tooth. tesla is going to need to spend money to freshen them up. those other ones that actually make more money. but there is very good model three demand, and there were a lot of concerns that there were not that anymore americans who could spend $50,000 on electric car without a big tax credit. keep in mind, those federal tax credits have been waiting. it up -- have been waning. it appears there's plenty of demand, so shares are doing great on the news. guy: the question has to be how sustainable is it. this is a heavily shorted stock. this morn

investigators are working with tesla to obtain more evidence. police a 21-year-old kelsey cambridge of vallejo was driving the vehicle. she had rented the tesla from the app called get around. >>> a live look in downtown san jose. the city is experiencing a transformation driven by an influx of new tech emphasis. bryson, what the latest companies to a announce a major move to san jose, the company plans to build a huge tech campus near the city's airport and a plan to bart station. devin fehely on the growing tech profile and how the balance of power is shifting in silicon valley. >> reporter: about four years ago san jose civic calling itself the gateway to silicon valley. at the time, it was more aspirational but it wasn't strictly accurate. sure. but there are a lot of tech workers who call san jose home, and but fewer tech companies do. but that is changing. call it the google effect, businesses and city leaders say other companies are feeling the gravitational pull of the tech giant's decision to build a massive campus in downtown san jose.

police arrested the driver of the tesla. they state they she is 22 years old, and they do not think alcohol or drugs played a factor. they do believe that she was speeding. she is now facing a count of involuntary vehicular manslaughter, and running lot. >> it is very upsetting. what are we at. 14 or 15 fatalities regarding vehicle versus but in the city. me and my officers are responding to the calls. it is becoming very upsetting. block we understand that the driver went to put tesla through an app called to get a ramp. according to the app, driver who rents a specialty car such as a tesla must be at least 25 years old at. at this point, we do not know how she obtained the car, or if someone else rented the car for the 22-year-old driver. now this area, this intersection is only about three blocks away from union square. it is a very busy area. and if in fact she was speeding, this is not the place to be. very busy with a lot of cars and pedestrians. we continue to monitor the injured woman. last we talked, she had life- t

the people there want to buy from tesla.opens up a market that is very big and this whole demand issue that was created out of nothing should be put to rest right now. romaine: do you think this is sustainable? we have seen them do well on a quarterly basis before and a couple of quarters later, things kind of go south. bearshe headline from the will be that it is not sustainable that i don't think that is the case. i think this is sustainable. i think we probably get it up q over q to q3. kallo from robert w baird, thank you very much. i want to point out tesla shares are up 7% after hours. fiat chrysler reporting monster truck sales, very large truck sales. not monster trucks. apickup in what seems to be sputtering auto market. joining us, the bureau chief at bloomberg. how did ram do it? romaine's favorite truck. >> some of these trucks can be monster trucks. if you are fiat chrysler, they did it because there is a 12 inch touchscreen, the exterior design is great, and it is basically a luxury car inside the truck. if you

tesla is still a relatively new brand.t will be interesting to see what happens when -- you know, if and when they refresh these luxury lines. you know, that could be just the thing that causes, you know, people who are model 3 buyers to want to trade up. >> craig, that tax credit, as it shrinks in half, how much of a headwind was that this quarter and then -- i should say tailwind, excuse me, and then going forward with that tailwind removed, how much do car sales slow? >> that's going to be the big question on the conference call for earnings in a few weeks, right? because this tax credit is going to go from $3570 to $1875. and what we saw at the end of 2018 was the fourth quarter was the previous record for deliveries. and a lot of that ended up being in hindsight, you know, a lot of consumers going out to buy the model 3 and the s and the x before the tax credit at that time was $7,500 before it was cut in half. i think people sort of underappreciated how much of that was demand being pulled ahead into the fourth quart