i think of early days of tesla when i was not sure if tesla was a tech company or an automotive companye is technology in this? adam: we think tesla is more of a software company, and a hardware-software fusion company that, in an ideal world, will be covered by a tech hardware analyst rather than the auto analyst community. we will take what we can get. we think the connection between tech and autos is when you see these large multitrillion dollar tech platforms like amazon, alphabet, and apple that clearly have their eyes set on the auto industry as a domain. not necessarily to make cars, but perhaps apple wants to make your car into an apple store. and so, as they try to look at this internet of cars marketplace, it's a multitrillion dollar market, they're getting drawn in to that 40 tons per second in the u.s. ecosystem. it's happening within cities where ridesharing vehicles might emit 25 tons in a year, five times more than the average car. as tech firms get to that autonomous vehicle topic and the shared and connected car, they are being drawn in and have the resources and capita

as what tesla has chosen to do.arol: joel, dilemma is right. the more miles we get on the road with something, the better. there is so much data involved in making this better, but in the interim, you're going to lose some lives. joel: that's right, that is the moral calculus that we are living in right now because that car is next to you, you are on the roads with them. there is no real federal oversight. think about drugs. there are clinical trials. there is no same safety mechanism in place for our transportation department. so this is out there already in real-time. because of that, our estimate is it is past 1.5 billion miles that tesla has been able to acquire. a lot, right? we don't know how safe it is, but we are all living in this world now. jason: there is a connection between this story and the story we have already mentioned around vaping and juul. these are two companies, juul and tesla, in very different markets, who are essentially taking a similar approach to, let's get there, let's get out there and

give us your talk on tesla.se and result last night, even tesla had warned this could be a small loss and production was down on their target of 100,000 units for the quarter. so it was a surprise, a pleasa nt the quarter. so it was a surprise, a pleasant surprise and the market and shareholders love the result and there was also some good news about what is coming next year with the model y. looking what is coming next year with the modely. looking at what is coming next year with the model y. looking at some of the reasons why they've managed to turn a profit, they have cut costs quite significantly, you mention the margins are higher, which is good news. revenues dipping, looking forward , news. revenues dipping, looking forward, could this bejust news. revenues dipping, looking forward, could this be just a 1—off quarter where they made profit or what do you think? is this sustainable? it's hard to predict tesla. it had cost inefficiencies in california in its production plant which hopefully they've put beh

and coming up, tesla roars.urprise profit, topping wall street estimates for the quarter. we talk to an analyst from wedbush. this is bloomberg. ♪ ♪ taylor: tesla shares spiked in after hours trading after the company reported a surprise third quarter profit. ceo elon musk took to twitter, of course, less than an hour later saying he was "super tesla's team for great execution. with more on the earnings-per-share picture, margins, and what the company is saying about china, and analyst -- an analyst from wedbush securities. come into my terminal. the story of the day has to be those margins. is the margin picture for you what you needed to see this quarter? >> look, that's the key. i mean, if you look at the margins and profitability, that is the major feather in the cap of the bulls. and i think that is the surprise. this is something they need to deliver, margin to the folks and profitability. this should be a potential game changer for them going forward. -- if they can maintain this, this could be a potentia

not entirely in tesla's hands.tch to twitter, going the opposite way shares getting hurt on weak guidance, revenue miss, stock is down almost 20%. you had your own personal journey with twitter what do you think when people say a tech company should have had this bug figured out >> yeah. i mean, the bug is crazy i agree. i don't understand like a bug that effects revenue to that great a degree, for it to go on that way, points to fundamental product problems with the company which we have known for some time, they're slow on changing and noticing problems with the product. i mean, the network is still in wide use they grew the user base, and it is obviously at the center of news and politics and the way everyone talks about everything. the bug, the product itself points to i think there are problems with this company i really wonder about what's going to happen to it in the long run. >> big picture look at where twitter is trading versus ipo price, look where snap is trading. people talk about who is the number two

tesla is also out with third-quarter earnings.n revenue.dollars it's the first decline since 2012. the stock is jumping. down themanaging income statement and posting bottom line earnings-per-share beat 186 versus estimates of a loss of $.24. that is an unexpected profit. our guess is joining me to a surprises areas profit? >> indeed. you mentioned the bottom line numbers already. they are a real surprise for us. drovempanies gross margin the bottom line numbers. >> what is the gross margin? are we looking for and what do we get? >> we were forecasting 15.1%. they came in at 18.9%. for a cup a like tesla, that is a big difference and it surprised us. >> how surprised are we by the profit in the third quarter? we thought maybe it would be elusive for a little bit. and the company have been saying that this is the big goal. they have been saying we got the production right now we are all about getting cost down. because tesla has been so last 18 monthse or so, there has been a lot of skepticism but this is a case where they delivere

you might have 4 tesla's and a couple years. we might have. >>> national park service getting some heat today from dog owners over new rules and public recreational areas. starting next monday at ocean beach for instance dogs need to be on a leash. if you are near any stairwells or parking areas. stricter rules will also apply in san mateo and marin counties. dogs there will be banned from several park trails. authority members claim the new rules that don't require public comment. meantime dog advocacy groups say that if the park service doesn't address their concerns they will sue. >>> back to our fire watch. we are getting a look at the new wildfire research technology at san jose state university. this is the team's mobile atmospheric system. it can monitor wildfires and fire weather in mountainous terrain. there is a lap that has sensors systems and equipment and a fuel sampling facility. scientists say the season they have close to $1 million worth of new technology. >>> the last hour we got laid word of the public safety

tesla filed to have the lawsuit dismissed. arguing it's ambiguous and since he bought from reseller. don't allege any direct contractual relationship or event with tesla at any time. >> any responsible car company that takes safety seriously would say this is unacceptable, want to find out what happened. that was not done. >> ryan mccarthy seems to blame the victim. that your client stuck her finger in latch mechanism doesn't reveal defect in latch but unfortunate and regrettable decision on her part and failure of oversight from adults in the area. >> i don't think statements like this are instructive or have any space in culture with value of safety. >> reporter: tesla spokesperson refused oncram interview, provide a written statement or record phone conversations. but said received five star safety rating. despite concerns about the ice breaker and what happened to his daughter, marvin is still a fan. >> translator: yes, i'm keeping this vehicle because i really like it and tomorrow i'll go to dusseldorf to buy another for

very, very few people have died in a tesla.is 00 people in the entire -- 100 people in the entire world have actually been harmed by a tesla in any way or killed. so, you know, it's really a safe vehicle, and that's, i think, the reality. liz: all right. stand the by, kevin and ross. i want to just hold on for a moment because we want to go and dip into the mark zuckerberg hearing on capitol hill. alexandria ocasio-cortez is questioning him right now, and we should let you know that shed had reached out to her twitter followers to basically crowd source questions. let's listen in for a moment. >> i'm not, i'm to not sure of the exact time, but it was probably around the time when it became public. i think it was around march of 18? i could be wrong though. >> uh-huh. when did facebook coo sheryl sand berg become aware of cambridge analytica? >> i don't know off the top -- >> did anyone on your leadership team know about it prior to the report by "the guardian." >> congresswoman, i believe so, and some folks were -- [inaudible]

are you surprised by the results from tesla?rprised, just given the fact that they are a company from whom we have seen lots of positive news in the past and then lots of negative news coming shortly afterwards. what tesla is seeing its huge growth in china. they have the launch of the suv coming out soon. the factory in china is ahead of schedule and there isa china is ahead of schedule and there is a lot of good news in the business and that is why markets have responded so positively. business and that is why markets have responded so positivelym business and that is why markets have responded so positively. is it a bit of financial manoeuvring? their revenues were down, which suggests they are not selling as many cars as they perhaps hoped. suggests they are not selling as many cars as they perhaps hopedli think this is a problem the global industry is seeing with electric cars. it is all well and good producing them, but the problem is electric cars are much more expensive to produce. you can put them out to market but what

tesla owners posted videos of their cars freezing up.ed by the number of potential obstacles in their path or driving on the wrong side of the road. or cutting through a gap in parked cars to reach their owners. >>> it is not quite ready yet. it is not safe for the rectal person on the road.>> reporter: engineering professor said the new feature is another example of tesla beta testing is technology on the public. >>> you might be able to do this on your own campus. you might be able to do it at a deserted location. if you're talking about the parking lot of a big shopping mall. you are playing with danger. >> reporter: owners blasted the technology on social media. one said the tesla enhance draws on the wrong side of the road. another writing enhanced summons failed. drove into the parking structure poll. we tried to test the new feature ourselves using fellow reporter. the problem wasn't that it didn't work as advertised. but rather it didn't work at all. after an hour of troubleshooting we simply gave up. >>> if there is problems in

what the move means going forward with the transpacific negotiations was a judge has ruled against tesla in labor dispute it was trouble for the already hobbled company molly barrows contributor to america's lawyer will be on hand to sort through the little. and what this effect could have for a long lust and the tech superstar firm time to go let's go. what started off as a global trade war turned into a currency war which then ultimately matched the cold tech war being fought right underneath the surface this global chess match between the superpowers china and the u.s. now shifted into the next phase of the global struggle for economic supremacy capital wars while still in discussions on the actual mechanics of how to implement and enforce the trump and ministration greenlighted this review this would affect billions of dollars and china bound investments as well as a u.s. equity indexes an e.t.s. of which contain a hefty weighting of chinese stocks one mechanism being considered is to force chinese firms to delist from u.s. stock exchanges under the guise of security concerns for sti

your chart of the day has to be tesla. breaking out with a more than massive 17% gain that sharp move higher, we've levelled off a little bit. still a 17% gain for tesla shares on the heels of the earnings announcement. we'll tell you more on that coming up. first, equity futures showing signs of stability if these futures hold, the dow would be up a whoping 35 points, s&p up by five marginal gains to start. watching now what is happening at the bond market the treasury yield checking slightly lower the yield 2.8% as well in asia trading, we did see a little bit popping up. the nikkei and japan trading up half a percent the shanghai composite about flat in europe, we have positivity there as well. looking at the german dax up as well the ftse 100 up. we are watching that german play out go up. they did get data in regard to the overall factory. the top story this morning begins and ends with earnings. today is the busiest day of the season more than 45 companies in the s&p 500 are reporting. take a look at this board. twit

we're waiting for tesla to tell us what it is. is it a design defect present on all cars or a malfunction component on this single car. >> tesla filed this motion last week to have the dismissed. arguing in part that the plaintiff's cause of action is ambiguous and because they bought it through a reseller and not from the company, plaintiffs do not allege any direct contractual reegs ship or even with tesla at any time. >> i think any responsible car manufacturer that takes safety seriously, they would have said this is unacceptable, we want to find out what happened. none of that was ton. >> in an email to the attorney, they seem to blame the victim, the little girl. that your client stuck the finger doesn't reveal a defect in the latch but unfortunate and regrettable decision on her part and failure of oversight on the part of the adults in the area. >> i don't think that's constructive or anyplace in the company that values and culture of safety. >> i wanted to talk about the issues with the company. but tesla spokesperson da

there was a call i got to tell you, ford sounded like tesla and tesla sounded like ford. tesla was like it was like listening to a call from a real company that made cars and made money. >> not only that, they wanted to spend a lot of time on the energy business on some solar. that's interesting to kind of get you excited about that again. >> how about china, the fastest to grow and put up a factory and hire people? this was a -- i'm not saying it was subdued, elon, but it was a guy who makes cars i kind of like, i enjoy him. i enjoy this kind of not wise guy. >> you enjoy the non-twitter musk in some ways? >> yes i mean, look, he gave you. now, people hate this. people who on twitter to me today, which hey by the way jack -- now i feel like i shouldn't after listening to your call you know, tesla comes out and basically, you say something good about tess larks say, hey, you said it was bad. now you got me caught in a short. the fact is a lot of people think it's hocus pocus i come back and say i look at the indication position and say. >> 5 billion >> the most ever >> th

this is bloomberg. ♪ ♪ can: ken tesla possibly -- tesla possibly test another vehicle delivery record musk seems to think so. and less flattering trend would be filing revenue. a revenue drop would be a downer for elon musk. they have a shot to deliver more than 100,000 electric vehicles this quarter. to discuss, we are joined by dan a whole -- dana holt and dan ives. we are hearing possibly record sales and yet a revenue decline. how does that work? >> tesla sells the model three, model s, and model x. as the three has ramped up and is taking the world by storm, the sales of the s and x are following. ing.average -- falluin the average price is getting lower. kurt: tell us about the email. >> it was an mail saying -- email saying they have a shot at a record quarter of 100,000 deliveries. today, there was some chatter that they are close to it, but there might be some glitches so -- logistical issues. the number to be is 90 5000, 3 -- 95,356. kurt: obviously, no company wants to report a revenue decline, but it seems like that might be particularly harmful for tesla. why do you think

the only california judge has said electric car company tesla and its founder broke the law when they threaten employees trying to unionize legal journals turbos contribute with america's lawyer joins us now with more on this judge's ruling molly welcome back in what way did mosque and his car company explicitly break the law according to this judge. in several ways danielle and hi nice to see you in christie as well so last week this administrative judge ruled that tesla violated the national labor relations act a number of times when workers in california organized a union 2 years ago by threatening and retaliating against them so judge me to tracy ordered the company to stop a number of these actions including eliminating a rule that blocks employees from handing out union literature when they're off duty and also to stop interrogating people about any union activities she also ordered tesla to reinstate and give back pay to one union employee who had been fired and rescind a warning that they had given to another pro union employee judge tracey had a. slew of other comments in ord

i think that tesla is any ceo who actually can continue to grow a company the way elon has with teslaard. and i think that's very true in this case. i do think the team is fantastic. it's the best executive team that i've seen in the many years i've been there. whilst they may be young in age, they're absolutely experienced both in terms of the way tesla works but in terms of the areas that they're focused on. i think that, as i said, the results yesterday show that it's a point in time and obviously we're here for the long term, but i think that, you know, just incrementally continuing to do better and setting a.mbitious targets. i'm ask both of you, are you glad he's not tweeting as much >> he is a very disciplined individual i think that the way he runs that company is it phenomenal in all aspects. >> when you talk about listening, one of the directors had told me a year ago that he had come up with a chart and the chart was when elon tweeted, what the stock had done and when he hadn't tweeted what the stock had done. >> it outperformed when he wasn't tweeting? >> yes >> did you te

tesla saying there is a fourth quarter backlog.k about this coming up with alan baum from baum and associates. this is bloomberg. ♪ romaine: tesla is out with her delivery numbers. their expectations they would hit 100,000 vehicles for the quarter, coming in at 97,000. and here to talk more about it is alan baum. he is with us and destroy -- in detroit. looking at a quick read of the numbers, you could quibble over 97,000 versus 100,000, but when you look at the trajectory of their delivery and production, is it still on a pace that is considered positive? alan: in terms of deliveries, they are ok. hit are obviously trying to 360-400,get of obviously they will be in the lower end of that, so they will need to break 100 in the last quarter. just as they tend to move sales to the end of each quarter, they also tend to go out in the fourth quarter with a bit of a bang. so i think they will get there. the issue is, as the model 3 volumes increase at the expense, in part, of the s and x, then there is a revenue issue. joe: you anticipat

tesla is still building that out.hey are still really getting the whole sales and service operation in place. is stilltself relatively new to the market, so they are still working bugs out. common complaints are things like scratches, it comes down to basic craftsmanship when building a car. improving, when models are new, they often have these issues. many of many were vehicles out there have a lot of those problems, and they are just catching up to the fact that they are becoming a regular car company now. taylor: it is interesting that this is on the rise. you have covered all of the auto sector. it is in your company, how much of it is an expectation that these kinks will be worked out eventually? >> there is always an expectation issue. tesla has an advantage here in -- whatever they have had whenever they have had quality issues, there has been a lot more tolerance from the customers, because tesla owners like the electric drive, they the touchscreens, the technology in the vehicle, so they are pretty forgiving

you love tesla. you so bullish on the company and does the stock move significantly above 300 bucks a share? >> well, i think tesla is on the verge of becoming a bellwether for two critical emerging sectors. the first is the zero carbon economy, and the second is the fourth industrial revolution. there is nothing closer than tesla to a pure play in those two critical emerging areas. stuart: so self-driving cars, i don't see that happening for quite a long time, but you're placing great faith in self-driving cars at tesla? >> well, elon musk would disagree with you. in fact, one of the big news items on the earnings call yesterday is that musk expects that all of the self-driving enabled vehicles within the tesla fleet, which is most of the cars that they've sold, will have full self-driving capability by the end of this year. if that happens, that would be ground-breaking. stuart: you think, then, there really is a revolution in the auto industry? i'm not quite prepared to admit that, but it's all ab

i mentioned tesla.t's because tesla is on my mind earnings are coming out after the bell chien ra production, is it starting up or is it close to starting up? auto gross margins, are they growing as many expect it's what happens during the conference call with ceo ilan musk those numbers come out shortly after the close of trading today. guys, back to you. >> phil, seeing more of you in the next hour for sure phil lebeau. mike, boeing, the fact it's at 1% right now has such a big impact on the broader dow. is it a situation where it wasn't as bad as feared? >> that's for sure not as bad as feared and the market is trying to make a fair assessment of whether the company's guidance is roughly correct about whether they're going to get approval again. clearly, 2019 is a loss for earnings this stock when it got up to those highs earlier this year, it was about a clarity of vision of many, many years of free cash flow you've got one year set aside. the market still wants to believe in the very long future in

lauren: tesla shifting -- tracee: tesla shifting into overdrive, after it crushes its earnings. cheryl: republicans stormed in the closed door testimony yesterday, fed up with democrats's secrecy over the impeachment battle. we're live in washington with how it all went down. tracee: it started a forecast food war and inspired a halloween costume and rumor has it, popeye's chicken sandwich is coming back with an extra perk. it is thursday, october 24th. "fbn: a.m." starts right now. ♪ ♪ i want some more. ♪ what are you waiting for. ♪ take a bite of my heart tonight. ♪ i want some more. ♪ what are you waiting for. cheryl: welcome to "fbn: a.m.." good morning, i'm cheryl cheryl. tracee: goo.tracee:cheryl caso. cheryl: today the busiest day for earnings for the entire reporting season. we've got a slew of numbers coming out. before the bell we'll hear from twitter, southwest, american airlines. the s&p is up 2 and three quarters, nasdaq up almost 30. tracee: stocks in asia right now, mixed with the nikkei and hang seng pointing higher. cheryl: taking a look at europe, it's been a p

a unique aspect to the tesla story. no other car company has the model where they can upset a $5,000 features that's pure margin and that impacts margin. >> thanks, gene, before we let gou, professor munster. >> we have a class. >> on the quarter. >> grade on the quarter. >> i give it a minus with elon involved, he is so polarizing i need to apologize for getting a grade that starts with this. buts in a good yup they show they can continue to grow the indemand question is not as significant. and on the profitability side i think there was a measurable step forward here. as someone short the stock i would be -- ienl not short -- but if i was short, i would be concerned at their ability to keep turning the screws down and in the quarters to come. >> gene, thanks. gene munster a minus on the request are after hour sessions highs up towards 18%. some of the other headlines i don't think we verbalized but come out in the shareholder letter the model y is ahead of scheduled production expected by summer of 2020 positive nap g

they love tesla because they want to be tesla's banker.er being at the freemont plant where tesla is made, with elon musk and he was saying i can't believe it, this is the most heavily shorted company -- this is years ago -- ever -- 40% of the float was shorted. today it is 26 -- >> we are still not at the all-time high. we're still off highs. we're better. we should also point out that in the last year or so, year and half, it's ban tough ride for elon, a lot of controversy, lawsuits, he said he was going to sell to the -- got funding secured to sell to a private equity. obviously he didn't. the sec there are still some rumblings going around about regulatory investigations on this stuff. there's stuff out there. again, you have to turn profit and cash flow positive by selling more stuff. not just cutting expenses. they need to do that. but they are telling people they want to squeeze the shorts like, i don't know, like a pimple. liz: that is disgusting, and i knew given a rope, he would -- [laughter] >> why is that bad? saying that? liz:

elon musk flipping the script on those who doubt tesla. electric carmaker delivering positive earnings few saw coming. plus, the company's founder declaring he is ahead of schedule with a new factory in china. tesla's profit and margin were better than expected. shares are surging in the premarket. that is your bloomberg business flash. alix: thanks so much. rush,re on tesla, colin oppenheimer's managing director and senior analyst, joins us now. why do using this profit might be sustained when we saw the same thing in the third quarter of last year? colin: does a couple of really important things going on. issue ishe bigger really about operational efficiency that they've been able to achieve. on the manufacturing side, they are true -- they are clearly driving costs out, and they are demonstrating that with their gross profit. more importantly in our view, from a cash flow and resiliency perspective, they took out wondered $75 million of -- took out $175 million. that not only helps the cash flow profile, but the ability of the organizat

including what you love is building teslas in the -- including elon musk building teslas in shanghai.and daimler's designers on leading the way to sustainable luxury. kailey: this is "bloomberg businessweek." carol: welcome back to "bloomberg businessweek." i'm carol massar. kailey and i'm leinz. you can also listen to bloomberg businessweek live on the radio on sirius and carol xm channel 119, and on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. carol: also, a.m. 960 in the bay area, london on dab digital, and of course, on the bloomberg business app. tesla surprised markets with an unexpected profit in earnings, the most in years. the company says they are also producing vehicles on a trial basis at the shanghai giga factory. kailey: if you one must delivers the first chinese-made tesla model, it will be a rare case in which the company's famously scattered ceo will manage to hit one of his mentor early -- notoriously ambitious deadlines. >> the first foreign owned automotive plant in china. it's in shanghai and the factory was built in record time. roughly s

tesla has such good data about what these cars are doing. actually a mystery to outsiders exactly how dangerous this technology is. regulators have basically, up until now, not taken any action. they opened a defect investigation that closed without ordering a recall or forcing tesla to make any changes. hard tos actually quite figure out how safe these cars are. the kind of positive case is that tesla says, look, humans are always supervising these cars. you have all the safety of a human driver, it's just that the car is doing things to help you. almost like interlock breaks or something. am -- an additive safety feature. but the skeptical case is when you take so much responsibility from the driver, they get lulled into a sense of complacency and get distracted. it is actually very difficult to when hention supervising system appears to be working perfectly well. this is a problem airlines have had for a long time. autopilot on airplanes is so good that they sometimes just get distracted. the pilots zone out. jason: you mentioned regulato

tesla owners posted videos of the cars freezing up. seemingly overwhelmed by the number of potential obstacles in their path. or driving on the wrong side of the road. cutting through a gap in parked cars to reach their owner. >>> it is not ready yet. it is not safe for the regular person.>> reporter: engineering professor said the new feature is yet another example of tesla beta testing is technology on the public. >>> you might be able to do this on your own campus. you might be able to do this at a deserted location. but if you're talking about a parking lot of a big shopping mall i think you are playing with danger. >> reporter: reached out to tesla for comment but they did not respond. drivers that the company should hit the brakes on technology that just doesn't seem road ready yet. >>> pull up next to a car without a driver i would go the opposite direction. i will look at it for a minute and maybe take a picture. i wouldn't go near it. i don't trust it at all.>>> so much for the friday night lights. they won't really be necessa

another catalyst for those who are optimistic about tesla those who are the tesla bulls. remember in the fourth quarter we'll get the electric pickup truck reveal doesn't mean they will start building this pickup truck right away but it's coming in the fourth quarter, likely in november those events historically, guys and those type of events that tesla bulls rally around and say look this is the next great growth opportunity let's see if that happens when they show us those pickup trucks >> if you can put deposits down another source of cash thank you, phil. >>> the stock is downgrade, how much demand is out there for tesla's car. the. >> are aeroflot with jmp securities you effectively went from a bull to neutral on the stock. and you write in your note we believe tesla could have manufactured more should it have chosen to which really underscores this whole question about demand when will we know the answer to whether or not demand is actually leveling off? >> well, i think we'll get additional insight into it in q4 i think the way to come at this, i heard phil mention

tesla shares sank.nalyst looksc ahead to earnings following the delivery numbers. >> we have them falling short of guidance. even if you look at the production levels, there was some record production levels, 96,000 some odd units -- they would need to be a significant increase in that. i think there is hope the shanghai factory will be able to come online, but we remain skeptical. taylor: with more, i want to bring in orton johnson, and also and also iohnson, reporter. we talked about the delivery numbers. i'm curious about that composition mix. what do you make of the different models and the price differential? >> the model three was 82% of deliveries. three,reat for the model but it is a concern because the margins are lower than on the other models that are higher priced. gordon, is the biggest concern they are selling more of the cheaper cars, and that is pressuring margins? but the the concern, biggest concern is the street is expecting q3 revenue to grow. asp's areto 2019, down, and they sold mo

. >> tesla shares soaring.arning $1.86 per share versus a loss of 1.82 per share they have reported producing 300,000 vehicles the company saying it is ahead of schedule with its new giga factory in shanghai and on the long awaited model y cross over and expects that launch by next summer what ceo elon musk said on the conference call for demand of electric vehicles. >> when flat screens came out, it was a big step in demand because now getting a flat screen was much better than having a small crt screen tv weem see the same thing instead of just buying a car because their last car wore out, they'll buy and electric car because it is fundamentally a better car. >> big numbers for investors to a large degree on prediction of when this motdle y will come and when this factory will be on board. it is worth saying so many times. he's offered projections that have been out there ahead of schedule and sometimes when you are dreaming big, you dream too big. we'll have an analyst join us. >> this is an excellent quarte

plus we'll tell you what sent shares of tesla into overdrive and later big changes at boeing. the ceo stripped of his chairman title. b but one insider says too little too late. >>> we begin with moment of truth for the markets. we are hours away from earnings kicking off. so will the banks be the bellwether for the markets as we head into the rest of earnings season >> i don't know if e.they're th bellwether, mel. late night for us yankee fans -- >> oh, yeah. >> i'm a new york fan, go yankees. but let's talk markets. >> we do what we need to do, as you know, mel. are there trading opportunities? i still think they are citi was an interesting play tangible book is around $69. i think what you'll see is a bounce after earnings on the back of that it trades anywhere from 85% of tangible book to 1.2 i think that's what's going to happen now in terms of the bellwether for the broader market, i don't believe that to be the case. >> i think it's all positioning. we've all talked about that. i think positioning has been negative in the financials i've been negative in the financials

so just in terms of raw volume, tesla is -- china is hugely important to tesla.are seeing signs of a possible economic slowdown in car sales, both in the united states and abroad, you have to focus on the markets where car ownership is still new. in china, that's the case. you have a growing middle class and aspirational buyers. and it is just a huge wealth of opportunity for tesla. carol: staying with sustainable cars for the year ahead, and when it comes to luxury, our resident car expert caught up with daimler's chief officer to talk about what is to come. >> he is a superstar in the car world for his designs. of course if you drive basically any mercedes these days, he has -- class, all of the suv's, he has designed all of those. he has been very influential. carol: been there for a long time? >> since 1997. but he is still pretty young and he is the one who has been doing these crazy, conceptual cars you may have seen. if you follow him on instagram, it's great. he will put up photos of taxi drones that are like flying devices that he has conceived. that pos

elon musk‘s tesla has stunned wall street with its third quarter results.r gained over 20% in after hours trade. after it revealed a profit of $ia3 million. most were expecting it to make a loss again in the third quarter. eileen burbidge, partner at passion capital and technology entrepreneurjoins me now. tesla is delivering at last because, for such a long time, it was all about the promises but wall street was not buying it. you state at last but it has managed to have profitable quarters but it was not sustainable so the question is whether this is an isolated water, maybe they are needing cash and are going to go fund and maybe the next quarter will go down again. it is really polarising. a lot of people coming out saying how can this be true... but the margins are getting better for them and cutting costs as well so it is going in at the right direction. that is what you want to see but over a year ago, revenue has fallen and the question is have they really been able to cut cost back by that much especially when part of the positive news was the new

what was it like to ride in a tesla on autopilot?the word i would use is creepy, in the sense that it feels weird to have the car turned the wheel, accelerate, with no input from you at all. .t is very humanlike it really does require supervision. taylor: you hinted on detention, which is this great technology. but casualties are also coming. is that the internal tension that tesla is facing right now? zachary: their strategy on getting to and anton's vehicle is really different from the other players in the space. or general google motors are being very cautious and careful and trying to get to a fully autonomous, functional vehicle before they release it. taking their semi autonomous product and trying to put it on the road as fast as they can and sell it to as many people as they can. with that strategy comes risk. people would be out there misusing it. and in some cases dying. but tesla believes they can get to full autonomy quicker that way by having this fleet of cars that have the technology installed. taylor: where is the reg

it's up against a saloon car from tesla, the model s.e as heavy as the lambo and it sells for about a third of the price. 0ur short drag is just enough for both cars to reach 62mph, the industry standard for measuring exhilaration. both cars are in their fastest set—ups and whatever happens today, we recommend you don't try this at home. we have several safety measures in operation. most of all, johnny is a professional racing instructor here at drift limits. he does this day in and day are to scare the living daylights out of members of the public. in the passenger seat will be mark, ensuring fair play and probably screaming his head off. and who can we get to give one of the finest sports cars a run for its money in a tesla? it's only top gear's the stig! i'm sorry, the stig wasn't available so i'm standing in. is that 0k? it's only...click‘s lara lewington. drivers, start your engines. epic, dramatic music. elevator muzak. ready! i'm a passenger here. myjob is really simple. ijust have to observe... whoa! i did brake a bit early but i

sinking twitter is tanking and tesla is surging >>> we are gearing up for amazon after the bell >>> tesla is not only stock revving up group one auto soaring to record highs. after its earnings report, the ceo will be here to break down what's driving profits >>> later, the wework water cooler tensions are high for employees with thousands of layoffs. many might be heading for the exits with empty pockets we've got the details on that as "power lunch" starts right now >>> welcome. a mixed bag we got for markets thanks to earnings the dow is in the red. the nasdaq is the only one that is higher right now by just about half a percent let's look at what is driving. the dow held by back 3m. >>> vice president mike pence with some harsh words for china and for some of the companies doing business there >> kelly, it was a highly anticipated speech after being twice delayed due to development o s on trade it was hawkish speech. the u.s. maintains an adversarial view of china and its economy and actions oversaes ev even though washington wants to keep engaging. >> america is reachi ining out hand

including why tesla's are being built in shanghai.d daimler's designers on leading the way to sustainable luxury. kailey: this is "bloomberg businessweek." ♪ carol: welcome back to "bloomberg businessweek." kailey: you can also listen to bloomberg businessweek live on the radio on sirius xm channel 119, and on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. carol: also, a.m. 960 in the bay area, london on dab digital, and of course, on the bloomberg business app. tesla surprised markets with earnings at the most in years. they are also producing vehicles at the shanghai giga factory. kailey: if elon musk delivers the first chinese-made tesla model three for customers this year, it will be a rare case in which the companies famously scattered a ceo will hit one of his notoriously ambitious deadlines. >> the first foreign owned automotive plant in china. it's in shanghai and the factory was built in record time. it was roughly six months. carol: talk to us about the pace is all came together. kailey: from permits t

it's up against a saloon car from tesla, the model s. it's twice as heavy as the lambo and it sells for about a third of the price. 0ur short drag is just enough for both cars to reach 62mph, the industry standard for measuring acceleration. both cars are in their fastest set—ups and whatever happens today, we recommend you don't try this at home. we have several safety measures in operation. most of all, johnny is a professional racing instructor here at drift limits. he does this day in and day out to scare the living daylights out of members of the public. in the passenger seat will be mark, ensuring fair play and probably screaming his head off. and who can we get to give one of the finest sports cars a run for its money in a tesla? it's only top gear's the stig! i'm sorry, the stig wasn't available so i'm standing in. is that 0k? it's only...click‘s lara lewington. drivers, start your engines. epic, dramatic music elevator muzak ready! i'm a passenger here. myjob is really simple. ijust have to observe... whoa! i did brake a bit ear

tech is outperforming, not just semiconductors but also gains in tesla. not participating in the mood, shares of twitter. sales missing expectations, the company also morning that its sales growth will not be as robust as perhaps the market was looking court. fascinating story here. twitter basically says they were collecting data they were not supposed to be and letting advertisers use that. they fixed the bug, but unfortunately that meant a little bit lower in terms of revenue growth. they: no wonder we see stock under pressure. you mention the gains we are seeing in chipmakers. we are seeing a big rebound. this is the philadelphia semiconductor index, higher by 2% at the moment. this chart showing that they have regained the premium over the s&p 500 when you look at forward p/e ratios, you can see the valuation for the philadelphia semiconductor index is a the highest level near the s&p 500 since 2012. we had a more positive outlook from lam research, not to mention, last night, south estimates.beating this is an industry that has also taken a hit from