waited to talk about tesla, set him up nicely and talk to him about what has been going on with tesla over the last few days. another day, another record, 404 for tesla. michael: when the introduced the cyber truck, it was meant to have bulletproof glass. that did not turn at be the case. we saw an initial bad reaction in the stock after that but it has rallied since then. the initial reaction from a lot of the analysts would be that this vehicle would be a niche vehicle. i kind of question that. i come from rural pennsylvania. i know a lot of pickup truck owners, people who were driving the truck around a lot incurred a very big gas bills. pickup truck owners are notoriously loyal to their brand. if they have the opportunity, the small business owners -- if they have the opportunity to save a whole bunch on gas prices, i wonder if this is maybe more than a niche product. taylor: we will find out. thank you. mike for joining us. tesla shares are closing in on elon musk's goal of $420 per share. he sought to take tesla private. this most recent stock surge came from a report that tesla

fresh highs for tesla.y continue a record setting run this morning joining us to talk about this, kathy wood her arkin ovation outperformed this year. one of the top ten holdings, tesla. kathy, welcome back. good to see you. looking at the action, almost 20% in ten days. are you walking around with more strut in your step when it comes to tesla >> yes, although i'm looking behind my shoulder, sit ron said we made a great call when it was down and out, we'll take our cards off the table, wait for a 100 point correction i'm happy the stock is not responding to that. >> how sustainable is this run do you think >> i think people are beginning to understand how important this story is to transition, to the environment. we are talking about exponential growth in the electric vehicle space, the auto industry hasn't seen exponential growth in more than 100 years i think there's a sense growing as other auto manufacturers rush into the space, understanding how important it is that investors not on board will miss on

going on with tesla the last few days, another day, another record for tesla.hey introduce the cyber truck, that did not turn we sawbe bulletproof, so a bad reaction in the stock. it has rallied since then. not a lot of reaction from the analysts. they say this will be a niche vehicle. i question that. landscapersple like , contractors, people who drive the truck a lot, they are incurring big gas bills. pickup truck owners are notoriously loyal to their brand, but if they have an opportunity, the small business owners, to save a bunch every month on gas prices, i wonder if it is more than a niche product. taylor: we will find out. michael regan. tesla shares closing in on elon musk's goal of 420 dollars a share. in august 2018, he tweeted he sought to take tesla private at that level. the most recent stop surge came from report that tesla is considering cutting the price of its china-built sedans by 20% or more next year. this senior research analyst and director at oppenheimer joins me now over the phone. a 300 $85 price target. he has an outperform rating. le

tesla down 3%, microsoft had a good run, master card, an amazing run.ck of the year, master card and visa, even proctor, amazon, all of these make sense, these are momentum names here. elsewhere, semiconductors, you look at stocks with a great year but may not necessarily be strong the last couple of weeks, strong momentum stock. semis had an amazing year, they're all down a little more than 1%. all of this makes sense, taking profits, had great years, not necessarily up, some momentum names. how about the underperforming, the mean reversion thing we keep talking about. it makes sense oil service names, halliburton, horrible for one year. steel stocks have not had a good year on global growth. they had a great year in fourth quarter, most of the time they have been struggling due to the fact we haven't had a lot in the way of yields moving to the up side so far it has been a classic santa claus rally. quiet, low liquidity, leveraging the up trend in the market that traditionally happens in december, hopeful macro backdrop means no recession in the u.s.,

story for tesla in 2020.s on the move so far or,s morning including essil the italian-french i wear giant says it was the target of a $213 million fraud in a factory in thailand. this is bloomberg. ♪ matt: welcome back to the european open. we are 42 minutes into the trading day and looking at equity indexes that are down, the dax losing .4%. let's get the bloomberg business flash with laura wright in london. hasa: essilorluxottica uncovered a 190 million euro for it at a factory in thailand. the eyewear is working to recover lost funds. reignited concerns about how things are run after a power struggle in the year. goldman sachs and jpmorgan have reported -- to limit the regulation on repo trading according to the financial times. goldman is using total return force. they have lower capital then return rates. deals,"ed retail between trade. nearly 3re getting billion pounds in u.k. to offset leaving the eu. this will ensure farmers receive the same funding next year as they did through eu subsidies. many u.k

tesla's now also becoming a subscription business. can pay them monthly to get, you know, extra access in your cars. you can pay them flat fees to get upgrades in your acceleration. these are all 100% profit margin purchases that again all lead to the tesla stock being a dramatic, great buy at this point. kristina: the trade war we often focus on ip theft yet we have tesla an american company that is joining forces, getting a loan from china, should we be concerned about any type of ip theft or data being leaked over there, given the american consumers that buy the vehicles? >> it is a concern. however, i think tesla has managed well with their internal security as it relates to ip, at least when it comes down to employees and executives dealing with their trade secrets. that just comes from information i hear directly from insiders at tesla. however, in the grand scheme of things, i think tesla opening these factories in china is an absolute must. you know, 60% of the entire world's electric vehicle demand is coming from china, and t

things have moved very quickly for tesla.hey have already reached production of more than 1000 cars a week. inn musk set that target out april. him to a huge bid from break into the world's largest electric vehicle market. it is incredibly crowded with local players. also foreign manufacturers like audi, bmw, mercedes-benz all trying to get a bigger slice of the electronic vehicle market. they will have an edge ahead of their competitors. have said by next year they could reduce prices of the cars by 20%. nejra: interesting. thank you so much. we will take a look at central banks in 2020 as investors monitor fiscal policy. as you are traveling to work, tune into bloomberg radio. this is bloomberg. ♪ nejra: its focus on central banks in 2020. we are looking at opposite in. -- ends. the rba is interesting. previewing what central banks will do next week -- year. great to see you. let's kick it off with this outlet -- outlook that bloomberg has for 2020. in terms of monetary stimulus from the major banks, it will be more than 20

i think that's why you saw tesla stock fall today.nk anyone seriously thinks this will be a threat to gm and chrysler. it is an interesting comparison, think about the hummer or the jeep wrangler. those are extremely functional, the hummer is in ugly but good-looking car that has an extremely strong cult following. elon has taken that even farther , extremely off-road, it might appeal to some people with the bragging rights that it provides. test a who buys this, a lover, or a truck lever? -- a truck lover? i think there will be an suv segment that will be captured with this. a tech forward type of person will initially be purchasing it. when we put it all together, this is how we think about the math. that itlling it 5% could add to the overall business from that we can lawyer, techie type of person. , techie typerrior person. my sense was that it would be closer to $70,000, and ultimately the average selling price may be closer to the mid-50's. i think they are trying to open this up so it is relatively affordable, and ultimately it

there's tesla and you love tesla. nvidia is what you should buy i am jim cramer and i will see you monday >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is nick romero. i'm 30 years old, and i live in venice beach, california. ♪ venice is such a creative place, and my store is completely based off creativity. ♪ my store is called the ave, and there's no place like it in the world. what we do is, we allow for people to come in and custom create any article of clothing--

that is what tesla has going for it.it in the context of where tesla is today, it started with the model s, then came the and now the model 3, the cybertruck, of which there are more than 200,000 preorders after its unveiling earlier this month. is literally doing transforming the entire industry with a product that is distinctly different from everything that has been offered to date. in: i interviewed elon musk october 2013, and we talked about a lot of things. one of the things he told me in that interview was that part of the purpose of starting tesla was to awaken the german engineer, to get the germans convinced that they needed to produce electric vehicles, and he helped that tesla would act as a catalyst. the germans have woken up. it took diesel and tesla to make that happen, but they are awake now. volkswagen in particular is spending a lot of money on electrification transformation that needs to be gone through. what does that mean for tesla in the next 10 years? matthew: first of all, he did succeed because i

are they done at tesla needing to raise more capital? >> i don't know.ere a lot of nay sayers, tesla is losing money, when are they turning the quarter they have two profitable quarters in a row, looks like this one will be profitable. the primary reason it wasn't profitable, they were building huge new facilities, battery plant in nevada, a huge plant in china. they managed to build these factories in record time they're building what looks like will be the final one in berlin. if that gets online as quick as the others, they'll have a jump. but costs are coming down, everybody is going electric. next big thing will be autonomous we'll see. may need to raise money in the future posting three quarters profitable, you have to hand it to the company. >> in the relatively near term, next couple years, does tesla need to have a ceo or coo who is an operator whose name is not elon musk? >> of course that happens to every company. there will be a point where elon steps down, focuses on spacex, who knows. >> i am not even saying step down, steve jobs got tim co

i look now, the way at things, tesla is no longer a start-up. tesla is a maturing company. why does it deserve to trade at 40 or 50 times earnings? it doesn't. this is a company where profits, and, you know, overall shareholder returns really matter. transition that, you know, some short term investors really skip, know, they drive the volatility in the stock. the biggest institutions are drive the at valuation. i don't see any major institutions loading up the truck on the stock up here. i think you're much more likely to see people be uyers back closer to their 250 level which is our price target. 249. t could very easily get there with a margin missed that joe is referencing that agree is likely to materialize either in the fourth or first quarter and disappointment around china expectations around china are really lofty. >> both of you sound a neutral thanre some of the other big bolds there.have heard out what needs too happen in 2020 for you to change your pinion on tesla and become more bullish. joe, i'll start with you? >> to be honest i'm looking an entry point. i

they want to compete with tesla in china. ,avid: i was going to mention tesla is producing with a monthand cars per week in the shanghai plant. give us an idea, how big is the market for electric vehicles? on in any will basis? basis?nnual >> in 2019, we are seeing the markets decline a little. we estimate the total volume for this year will be somewhere to 1.21.1 million million units. 300,000, itce over will be much smaller because over 70%-80% of the electronic vehicle market is dominated by low-cost vehicles in china. haslinda: what do you make of the timing of tesla's move in china, coming at a time when auto sales are declining and expected to accelerate in the coming year? >> tesla coming to china at the right time because if we are looking at the timing, when chinese companies approved the tesla project in 2018, it triggered a huge investment for the industry, from traditional carmakers. the tesla project approved mercedesn, bmw, announced a huge investment in china on ev sectors. triggersreally the key to keep the ev investment move on ahmed the government subsidies -- amid the

this is tesla's first car manufacturing plant outside the u.s..irst fully foreign-owned plants and represents how fast things are moving for tesla and the relationships built with the chinese government. we found out tesla cars made in china were included on a list of vehicles qualifying for exemption for a 10% tax in china. the factory represent how successful track -- tesla can go up against competitors like nio and others that are trying to break further into china's ev market which is the largest with players like mercedes-benz, audi. ceoen to what loup ventures gene munster had to say for tesla's global ambitions. rice don't have a specific target. it is worth more than the current market cap. it will be bumps in the road. china will be a positive swing factor but ultimately this a much bigger ambition beyond china and capitalizing on the 90 million vehicles sold every year and turning those into electric vehicles. investors are watching closely to see what this means for tesla stability in china and ability to go global. they have plans are

that's why i'm now a zealous convert, a true believer in tesla.hat's why i can't commit in netflix. >> buy, buy, buy, sell sell sell john in north carolina >> caller: jim, i always appreciate your comments and analysis and i want to thank you for taking a call from me for what is the eighth or the ninth time. >> thank you there you go. >> caller: yes, jim, i thought boeing after the first 7 737 jet crash. but after a 6.5% decline and a lot more than that this morning coupled with the grounding of the 737 max and what we heard in hearings and testimony yesterday, impossible to tell when the 737 will be recertified to resume flights should i sell or hold on to the shares >> i think you can hold on, but it will be rocky and we keep getting this delay, delay delay delay. who wants to check off on it i'm not saying it's a nothing burger but i'm saying that you'll be -- i think you'll be in a holding pattern for long time then you have to see how much they owe, worry about the cash flow. i think they're better -- there are better ways to invest in aeros

abigail: tesla is extraordinary.at, it has nine more than nine lives if you think about all the way back to 2010. it is the best performing of the auto stocks. this year alone, at one point, down 50% year to date. since the june low, up 140%. the bulls and the bears, the huge sentiment whipsaw shown by this stock. more recently, traders shown that the company could hit some of the delivery numbers. on the other hand, saying they may not make the number relative to deliveries for 2019, a little shy. plus profitability could weigh a little bit on the fourth quarter in terms of when those numbers are reported. overall tesla on the year coming back from that huge deficit. it seems net-net that the coverage for this company and its stocks seemed to be pretty incredulous and i don't want to say mocking, but a little bit of that. it seems as though the street is getting more bullish, putting aside this note today. taylor: thank you to bloomberg's abigail doolittle. for more, i want to stick with tesla. a major milestone. th

craig: tesla is no longer a starter. tesla is a maturing company. it is not an emerging growth.why does it deserve to trade at 40 or 50 times earnings? it doesn't. this is a company where margins, overall shareholder returns matter. that is a transition that short-term investors really skipped but they drive volatility in the stock. the big institutions are the ones that drive evaluations. i don't see major institutions loading up the truck on the stock here. you are much likely to see people buyers closer to the $250 target. ours is $249. you can get there with the margin missed that joe is referencing that is likely to materialize in the fourth or first quarters. and the disappointment around china. the expectations around china are really lofty. taylor: both of you sound a bit more neutral than the other big bulls i have heard out there. i want to ask a final question to both of you. what needs to happen in 2020 for you to change your opinion on tesla and become a bit more bullish? joe, i will start with you. joe: to be honest, i'm looking for an entry point. i have been posi

you know the story, all the bulls and bears are banking on china for tesla. tesla in that market?raig: you see the red bars in that chart really signify just how much people are expecting china to sort of carry the water for the general ev market. that is generally the case for tesla as well, and the reason why people have been so optimistic about this company. when you look at the rally, it is a significant portion of the reason why investors are growing so bullish with this company. they were willing to give elon musk a little bit of benefit of the doubtwhen they able to unloe china market is sort of a bet being made here. it is a little bit unclear at this point just how much this will have a significant effect on tesla because we are not seeing the price of the model three drop significantly yet. willompany, we may find, be able to bring the price down for the model three once it is able to localize a little bit the production of that car and the sedans are more sort of localized in that market. taylor: are those production targets realistic this time around? craig: a lot of i

a tesla withthe front trunk full of flowers?nothing says romance like that. >> they like to do things fancy in china jack would do the huge wedding ceremonies at alibaba's anniversary. very china specific thing. what an amazing achievement. tesla and opening its factory in china first as you mentioned, fully foreign-owned one. quite the achievement in china and we're expected to get deliveries for q4 later this week, could put tesla in range of its full-year guidance. >> yeah. couple big wins for elon musk. again, chinese government is on board, ahead of schedule good news to end the year with. >> tesla up nearly 30% year to date it could be a good year for the company. achievement for elon musk. >>> still on deck this morning, from c suite shakeups to new trends, predictions for 2020 that's up next. >>> the star wars box office haul continues to rise over the holiday weekend. details whether disney will have another billion dollar film before the year's end when "worldwidexcng rur ehae"etns beyond the not-so-routine cases. comc

tesla shares said a new record high, $420. elon musk claimed tesla would go private last year. earlier today, he tweeted the stock price is so high, lol. our bloomberg reporter. what is driving it for tesla this time around? allrter: the momentum is about china, taylor. one $.4t, tesla group billion from financing and local banks and much welcome cash injection. that built momentum from last week, where in november, new vehicle registrations for tesla in china hit a five month. you'll remember those vehicles are subject to a 25% import duty. if tesla can get that shanghai run up and running, they can offer vehicles that are more competitive priced, and the unit costs will be lower. they will be able to get deeper into the market in china. that is really where recent momentum has been driving the stock for tesla. taylor: i want to come and show a chart i am showing here inside my terminal. it is the share price, than the short. which recently, had been getting crushed. short off guard so much? reporter: the momentum extends from the profit that came in at $1.86. the loss at $.24

tesla delivered the first model 3s they made at the factory in shanghai 15 tesla employees were the firstoposed we haven't gotten yes or no on that what was the answer? >> need to know basis. >> tesla began work on it. they will ramp those up in january. we're going to talk more about tesla later in the hour. >>> disney's new "star wars" film reined supreme. the rise of skywalker earned $72 million in north american ticket sales. they have $725 million in ticket sales for the year around 40% of the 2019 u.s. box office receipts. >>> and the price of gold slightly lower this morning however the precious metal remains on pace for the largest yearly gain since 2010 gold is getting help from the markets for a three-month surge in the middle of the year. >> the s&p has returned over 50% since president trump was elected which is more than double the 23% average market return of presidents three years into their term going all the way back to 1928 that's according to bespoke investment group joining us how democrats can run against this economy in 2020, former u.s. congressman and cnbc contribu

but really, elon musk and tesla are the masters of keeping everyone from tesla fanatics, to consumers wall street firmly focused on the horizon of what is to come next. the best and most recent example from that is the tesla cyber truck. that is the ev pick-up truck that will not go into production until 2021 but all that people have been talking about in recent weeks. that is really what tesla is best at -- keep people focused on the positives in the future rather than focus on the short terms financials of the present for tesla. taylor: bloomberg's ed ludlow, thank you for joining us. now, we are coming up on not just the end of the year, but the conclusion of a decade, and big tech has definitely made its mark. we are joibed by mark mahaney of rbc capital. simpleto start with a chart. come look at the terminal here. continuing to crush the s&p 500 this year. what happened? even with all the risks outstanding, big tech is the star performer. >> i think it has to do with the revenue that has been extremely consistent for these names. some wonderful data points. google has gone 39 str

tesla and elon musk have defied the shorts in the last few months and we will have more on tesla's recordoming up. first, i want to look at the 2019 story of uber. the ridesharing company went public in the spring, but has faced a barrage of legal hurdles. some battles were fought over its international expansion plans, with london stripping the company of its license. another issue, whether drivers are contract workers or employees entitled to benefits. this week, we covered the man who cofounded the company, travis kalanick, and his desire to leave it all in the rearview mirror. we reported tuesday that kalanick is stepping down from uber's board and has sold all of his remaining uber shares. he was ousted as ceo in 2017 following months of chaos and controversy. danmore, i want to bring in ives and our technology senior executive editor, brad stone. does this help simplify it all? >> i don't think so. it does not simplify things anymore than 2017 when travis was ousted from the ceo spot, went to the board. i guess he was the largest shareholder and he was on the board but focused on hi

tesla is preparing to sell the model 3.egistration in china climbed to a five-month high of 5,500. the amount ofer money banks -- for a bid to reduce borrowing costs for small firms. state media reports that the chairman says the pboc will cut the debt ratio. the plan is part of official efforts to ease a liquidity crunch caused by rising local government debt sales. and indian prime minister modi looks at an election defeat in an eastern state. modi struggles to maintain nationwide anger where violent clashes have seen 24 people killed. the government is wrestling with an economy growing at its slowest pace in six years and unemployed at its highest in four decades. global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. i'm haslinda amin. this is bloomberg. paul: thanks, has. let's get over to hong kong now. theie's got a check on markets. sophie: checking in on gold. after breaking out of a tight $11.00 range last week. the relative us

look at tesla.ny that people were really thinking it was going to go down and it's all the way up to new highs. where is that going to be next year? i can't tell you but i can tell you this. people are investing the way they did in the late 2000s or in 2000 before the turn in 2001 and '02 and i see very much similarity in that cycle. connell: we will get more into that and have a discussion, maybe even a debate about this but you brought up tesla. obviously the stock to your point has been on fire, whether that continues or not is an open question. but could a rival electric pickup truck give the company kind of a big shock? there it is. we will talk about who is making it and the outlook for it when we continue. we'll be right back. y, and my lack of impulse control, is about to become your problem. ahh no, come on. i saw you eating poop earlier. hey! my focus is on the road, and that's saving me cash with drivewise. who's the dummy now? whoof! whoof! so get allstate where good drivers save 40% for

connell: the parent comes home, they have a tesla, we were talking about tesla, a tesla themed runningtpants that say tesla on them. they have no idea how they got to their house. so their five-year-old walks in. the five-year-old reportedly says, something to the effect, oh, that is not what i ordered. i ordered a tesla. the five-year-old tried to order a tesla car. the parents ended up with a pair of sweat pant. >> you have to enable all the security features if you have children in the house. connell: that's right. >> amazon makes it very easy to order through alexa on purpose. you can do voice ordering. might want to disable that. talk to your kids about how shopping works. connell: yeah. >> explain to them these things are not free. come see us first. put on wish-list. connell: you can put a pin number instead of face idea. >> kids will figure out a way. connell: anybody that has kids knows about that. free advice on kid, check subscriptions on iphone, as i found out you could subscribed to 20 thins. no idea for years, when you go broke you figure it out. let's talk flip phones. w

and tesla sparking the love across the pacific, the first model 3 is going on the road. one employee is so charged up by his new car, he went for a major milestone of his own, with his proposal but the romantic display not doing anything to electrify tesla stock today. up next a major move by one of elon musk's biggest rivals that has investors in the giant hitting the brakes this hour. we have the "claman countdown" coming right back. by consolidating your credit card debt into one monthly payment. and get your interest rate right so you can save big. get a no-fee personal loan up to $100k. he has the chance to do something amazing... become a guide dog, a lifeline to someone who is blind. or a service dog, a lifesaver to a veteran with a disability he's on a mission and we'll make sure he gets there. you can help. visit guidedogs.org to learn more. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because

right now that is working in tesla's favor.have to consider the model three tesla will be selling. right now we are priced significantly above all of the homemade tesla models. cut prices bywill forcing more things locally. only 30% of the components made in shanghai are sourced locally. the question is can they shift the supply chain. david: many thanks to bloombergs kailey leinz. up next, riots and unrest rattled countries from ecuador to chile. what does the new year hold for latin america? power onbalance of bloomberg television and radio. ♪ david: from new york, this is "balance of power" on bloomberg television and radio. i'm david westin. news,oomberg first word we go to ritika gupta. ritika: the united states launched airstrikes on five bases in iraq and syria. the move comes after several recent attacks on the american-led coalition operating in the region. secretary of state mike pompeo weighed in on the strikes. today, when we did was take a decisive response that makes clear what president trump has said for months

his phone was in the gps you know, holder. >> in a tesla? >> no, not in a tesla.e was watching a movie. but i think that's the issue when you are putting these things in cars who's going to hang out in their car and relax after work and play games >> believe me. at least they have auto pilot, which is semiautonomous. >> what's the point of having it in the car if you're not being able to watch it while the car is moving? if it's just sitting i'm with you. >> yeah. >> you're not going to watch it. >> kick back in your tesla after work. >> is that for the chinese customers? or for the customers in florida? people in florida are screaming laughter right now. >> why >> it's a demographic joke i'm sorry. mah-jong very big in florida. >> oh, i got it now. i got it. >> you know, it's tough when you have to explain your punch lines. >> i think it's just really a little absurd, right that we're sort of putting all these amenities in cars. self-driving vehicles. really, if we just paid attention to the road, you know. >> i mean, i have a jeep have you seen my jeep? it's a l

for tesla tomal meet deadlines. that has been an issue for elon musk and tesla.pment and it is relevant for tesla stop because the price tends to be driven by whatever is new, whatever the company comes out with that is new and hot and will keep growth going. the question with tesla is always will it be profitable and how profitable? david: they got a boost from the government because they said you do not have to pay the sales tax. they could expand pretty dramatically. brooke: they do, and they do say they can bring down the price of the vehicle by 20% by making more of the components locally. the question is how much does it cost to make those cars and how much are they selling them for once you factor out the subsidies and tax benefits. i think there is a question about longer-term demand in china. if they release some of the new models, are you just cannibalizing the old models? important make an point about how much is manufactured in china. it is about 30%. the question is can they start to locally sources, particular as they are worried about tariffs in th

we'll talk more about that in a little bit it was an active weekend if you follow tesla and tesla shares a tesla vehicle that was in auto pilot mode that collided with a state trooper's vehicle in connecticut that state trooper had stopped to help another vehicle. that is the latest accident involving a tesla vehicle that is in or was in auto pilot mode. remember, back in march of last year there was a fiery crash in mountain view, california, where at tesla that was also in auto pilot mode collided with a barrier. in that case the driver was not engaged with auto pilot. all of this has people or the auto pilot was engaged but the driver was not engaged with the vehicle. the ntsb has been looking into that accident. all of this raises the question, will we see any kind of fallout when we have these auto pilot accidents? so far what the ntsb has said in the past is, look, the driver has to be engaged. this is not 100% full self-driving where you tap it, you can fall asleep and you can do whatever you want to do you have to stay engaged as the driver and finally, guys, tesla fans are makin

this is great for tesla.expecting a factory to produce 1000 cars a week by the end of the year. for now, he has good relations with china. scarlet: the chinese market is so critical for tesla. it is in his interest to remain on beijing's good side. this is an opportunity of a lifetime for him. shery: the second-biggest market outside of the united states. thank you so much. for more on these types of stories, do not miss daybreak australia with shery ahn. coming up, u.s. markets close early tomorrow for christmas eve. 1:00 p.m. closing time for the u.s. stock market. joe: japanese prime minister abe and south korean president moon jae-in having a summit for trade talks. have a great evening. this is bloomberg. ♪ [ dramatic music ] this holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed... wooooah! -woah! it's called the internet. some things haven't. get ready for a reunion 3 million light years in the making. woohoo! -yeah! taylor: i'm ta

taylor: i want to flip to another stock, tesla.ls and bears have come to the same conclusion, that tesla is dependent on china in 2020. is tesla really set up in china appropriately for 2020? gene: i would disagree with that. i think china is important, 11% of sales today. having a china factory there is going to lower the cost of buying a tesla for chinese citizens probably by somewhere between 15% and 25% because of the way the tariffs are structured. but this is important. they are going to be manufacturing tesla's, they just started in shanghai. but that is not the whole story. the whole story around tesla, we don't have a specific price target, we think it is worth much more than the $77 billion market cap, but as we think about how the story progresses, there is undeniable truth that tesla plays into. to reach that undeniable truth or escape velocity, the stock would suggest that we are moving in that direction but we are not there yet. to reach that, i think there are still some bumps in the road. i think china is going to b

up next tesla rolling out a new service for the longest customers. company is offering up an unusual tune-up and then later why tomorrow could be a major moment of truth for biogen investors full details when "fast money" comes back especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪ >>> welcome back to "fast money. tesla giving a much needed tune-up to how its repairs to the first car. the company sent a email to roadster orion saying they get dedicated service advisers technicians appear repair centers. they have not made the roadsteres since 2012 no longer making spare parts cnbc first broke the story and the reporter joins us with more. what do the owners get. >> so now that tesla has been mass manufacturing vehicles, the roadster owners, the original customers have been fee

tesla shares soared to a record high this week, hovering near elon musk's goal of $420 per share.ou may recall that back in august of 2018, he tweeted that he sought to take tesla private at four dollars to cents per $.20 -- four dollars and -- $4.20 per share. i talked to story, bloomberg's craig trudell. >> you do have a lot of electric vehicles, just cars in general that are priced, even premium cars priced below where you see the tesla model three. when the price came out for the made in china model three, i think it caught a lot of people by surprise because it's not that big a difference and the whole sort of reason for building this plant locally is the idea that they can bring the price down by avoiding import duties and so forth. you are seeing tesla make a bet here that there is going to be just sort of natural sort of goodwill of getting a plant opened, getting governments on board. there are a lot of government purchases of electric vehicles in china. tesla making a bet that the sort of initial buzz about having the model three built in china will itself kind of carry

i want to ask you about tesla of course the german auto industry has always said that tesla may be in front in terms of the pioneering for each autos but that once the weight in the scale the german auto industry was brought to bear that it would be able to mainstream each autos but now tesla is actually coming to berlin and it's been successful for almost a year already in terms of producing at mass volume does that mean the german auto industry is still playing catch up and we're welcoming any competitor because competition has always made us very strong globally and therefore if tesla comes to germany and becomes a competitor fine fine with us because as i said we are facing competition across the globe and we have always strong in this competition. all right now was my interview with ben hard not us president of the german association of the automotive industry from earlier today let's go over to taiwan where all 40 is there are stepping up efforts to clean up the energy sector c o 2 emissions are high of 10 tons per person per year significantly higher than the average of 7 tons

. >>> tesla crash. new questions about cars and autopilot after a tesla hits a police cruiser. >>> and this is my favorite story of the morning. going bananas over this artwork. the sky high price over this perishable piece and the uproar over what happened next. >>> "good morning america" is sponsored by weathertech. the ultimate american made vehicle protection. cle protection. o♪ ozempic®! ♪ oh! oh! (announcer) people with type 2 diabetes are excited about the potential of once-weekly ozempic®. in a study with ozempic®, a majority of adults lowered their blood sugar and reached an a1c of less than 7 and maintained it. oh! under 7? (announcer) and you may lose weight. in the same one-year study, adults lost on average up to 12 pounds. oh! up to 12 pounds? (announcer) a two-year study showed that ozempic® does not increase the risk of major cardiovascular events like heart attack, stroke, or death. oh! no increased risk? (announcer) ozempic® should not be the first medicine for treating diabetes, or fo

tesla? you love mr. musk. i will say this.en a stock that had this divergent of price targets. you have analysts putting out worst case scenarios at like $10 a share and you have best case scenarios at 50. this is really a confusing stock for small investors right now. we should point out that tesla probably has to raise money soon. i would say in the next couple quarters. at least that's what i'm hearing from sources. they will have to come back and raise money. one reason why they have to raise money, they have too much debt and they have capital issues. okay? they are probably undercapitalized. that doesn't mean this isn't a good product, don't mean it won't sell. but this stock is let's just say there's something crazy about this. liz: it's resilient. is it not? >> know what the problem is, i think, with it? it's like a cult stock. you know, you have to believe in elon musk, who is pretty crazy at times. why are you wrapping me? i just walked in the door. liz: you went on and on about being a baby and cold, i'm cold. >> it

combine now and we hope that this discussion and that could come up again i want to ask you about tesla of course the german auto industry has always said that tesla may be in front in terms of the pioneering for each autos but that once the weight in the scale the german auto industry was brought to bear that it would be able to mainstream e autos but now tesla is actually coming to berlin and it's been successful for almost a year already in terms of producing at mass volume does that mean the german auto industry is still playing catch up i will well coming any competitor because competition has always made us very strong globally and therefore if tesla comes to germany and becomes a competitor fine fine with us because as i said we are facing competition across the globe and we have always strong in this competition. now to some of the other business stories we're following for you the race for the supremacy of driverless car technology is heating up in california chinese start of auto xpect by e-commerce giant ali baba has applied to test self driving vehicles without an in-car bac

you're seeing tesla make a bet here.here is going to be a natural goodwill of getting a plan open, getting government on board. there is a lot of purchases of electric vehicles in china. tesla is making a bet that the initial buzz about having the model three built in china will itself carry them for the first six months next year, then you bring the price down. a chart thatg you i'm showing inside my terminal which is the big headwind and macro back shop that is slowing car sales across the curve in china from the last year or so. is a 20% price cut enough to offset this drop in demand? >> if you are elon musk and you are looking at that chart, you are more nervous about the state of the china market then -- if you look at when those drops were kicking in, it is around the time that tesla was getting a deal, signing on the dotted line to get this belts. ,t was built extremely quickly this was a muddy field in january of this year. we're talking about a plant that is already open and cranking out cars, potentially delive

is in love with tesla.sion on the street craig i'll start with you. we see this nice record number here you don't think this will last what do you think of the tesla >> so it's a tough day to be a bear with a stock at new highs, right? the reality is, you know, tesla is trading on hopes and dreams right now and i'm not a weath weathervane. the expectations from china is too high competition is coming. china will be a great market for them but the number for our 2020 is more like 50,000 units not 150,000 units and i think that things are getting pretty frothy up here. does deserve to be a $250 stock. >> why has it done so well as of late >> everything craig said is false. i don't know where he gets his numbers. he pulls them out of his weathervane. first of all sales will go up by 40% to 50% next year because china is coming online and coming on faster than what anybody thought. >> you can't say somebody is wrong about a forecast nor next year you don't know >> put me on in a year we'll see. >> you might end

it's very hard to own this >> you own tesla >> i don't >> you said you're the only one that owns tesla. >> i own gm. >> what would get to you buy tesla shares >> comfortable on valuation. >> that's not going to happen. >> it's a totally cult following that has its ups and downs and as soon as something happens that is negative elon musk tweets something, this is the car or the truck of the future i can't see the value in this stock. at some point the party stops and you're left owning a stock that's hatch the price. >> asking sarat that question is a great example what tesla has as a problem how do you define tesla? is it a stock you want to own on the institutional side long term no it has not classified itself you want to put in a longer term portfolio holding. josh cites it's in the same place as february of 2017. along that ride it got chopped in half and is not attractive to an institutional long-term holder a trading stock, yes >> it's a trading stock, not an investment i believe it's a trading stock i've traded it many times, scott. i said i'm out it continues to run to the upsi

tesla, yes, i have never been a fan of tesla.e had a lot of negative things to say about them. listen, they are going to make money in china. but this is a company that has grown a lot because of the government subsidies to buy teslas. now they are moving all their production out in china. they are going to -- it's a huge market. they are going to make money but one of the reasons i do not like tesla is they have a very hard time actually making money on the cars they produce, and they have a hard time producing cars. the fact that they haven't been overly successful at producing cars in the u.s. makes me think that they are going to have an even bigger problem in china. i think if they start manufacturing in china, i think china is going to try to manufacture their own electronic vehicles -- susan: they have them. they have chinese electric car brands there as well. but i would say it's been positive for tesla because under ten months, they broke ground on that factory ten months ago and now are starting to deliver their first m

it is tesla's first outside the united states.bolic in terms of elon for the largest electric vehicle market. they have built close relationships with the chinese government which have been on display considering how fast the plants have ramped up. tesla announced it would get a list of vehicles qualify for exemption from a 10% purchase task -- purchase tax in china. you have competitors like nio down,hers doubling mercedes-benz and dfw -- bmw. there has been an unprecedented slump amid the economic downturn. you had falls because china was scaling back subsidies. despite this, the signal for tesla has been strong. we saw new registrations in tona jump 14 in november more than 5000. elon musk has very ambitious targets and it has yet to be seen if they will reach those. elon musk said he wanted more than 1000 cars produce a week before the end of the year. that will not happen. -- produced a week before the end of the year. that will not happen. shery: thank you. our china correspondent. a screen, away from you can find in-depth a