yeah and tesla beat estimates on wall street by a white margin make sure the consensus was that tesla would report a slight loss obviously thought did not happen tesla even managed to overcome effect to wreak lows are in california but tesla really and you alone must the head of tesla really pushed employees hard and also regulators to reopen that plant what also didn't help were takes credits and then on top of the earlier reopening of the plant in china the 1st plant that tesla has outside of the united states so all of that detail tesla actually managed to have this profit they as we mentioned that this is a hurdle to getting into the s. and p. 500 or rather that by gaining the profit they've they've come closer to getting as the s. and p. 500 what does that mean for the company exactly. well basically what that means is that this is the requirement if you want to be added to the s. and p. $500.00 in the index you have to report 4 consecutive quarters that was profits and now tesla has achieved that for the 1st time in the 17 year olds in history of tesla and if test should get inc

does tesla matter for the overall market or is tesla just a tesla story?think tesla for the overall market is the poster child for the irrational skuberance of 2020 phil just said something interesting. people have moved into tesla ahead of fund managers moving into tesla ahead of tesla being put in the s&p 500 that might be a way to trade, that is a rotten way to trade. not based on someone else doing something based on someone else doing something. it is important for this thought but not foregoi spogoing higher >> a wild stab, tesla is not holding holding your family or future college fund by vesting in tesla. >> i'm a long-holder investor and i would short it not that i have a strong opinion. >> that's why we love you. you would short it if you could. let's talk about the banks wells fargo has lost half its value. sitting on mortgage deferrals. do you own any of the banks? what are you watching closely with earnings they'll cross this week >> we don't own the big banks? we do own two small regional banks. what i think is interesting is what happened in

tesla in of itself a story. we've seen a runup in some technology stocks that sell the news, kind of phenomenon going to be with us for a while we think? >> yeah. it is pretty unique for this era. only a few times when you've seen that. as you said, connell, tremendous concentration. microsoft is the best example. it is about 1.5 trillion in market cap. it is alone bigger than 120 of the smallest members of the s&p 500. the top five or 10 names of the s&p and nasdaq. they are the market. that is what makes these earnings from microsoft as we're seeing in tesla which we'll get any moment, so vital to everyone's 401(k). connell: we'll talk more details about microsoft as we dig through the numbers. let you know if there is anything on the outlook side. 38.03 billion. that is the number on revenue. that is better than expected. $1.46 earnings per share, that is better than expected. the cloud number, that looked good as well. so that is in the books for microsoft. tesla still to come. jonathan stay with us. melissa

all that is good but look at tesla. >> tesla has been the stock story of the year. up nearly 300% in 2020 that stock has more than doubled in the last 90 days. now to break it down how do the numbers look on tesla? >> far better than anybody expected that's why the stock is surging and comes down to how most people are expecting a slight profit how did they get there auto revenues was down 3.4%. the regulatory credits were up $317 million quarter year over year operating cost, this was the key here that was down 13.5%. the one piece of news that came out separate is that tesla has announced it will be building a second plant here in the united states what they are calling giga texas just outside of austin, texas. here is elon musk talking about his optimism for tesla >> the next 12 to 18 months, we'll have three new factories things are looking great for giga berlin and we'll have cyber trucks and there is so much to be excited about >> the market cap for tesla keeps climbing now over $300 billion. this was far better than anyone was expecting in terms of an earning

the tesla circus will begin. i think there are bold promises from elon musk and not backed by much reality. i would bet on the decline. charles: tell you what, all right, you bet on the decline. $20 billion says this stock is short. liz claman, it's going to make -- options are saying it will move 20% up or down after these earnings come out. liz: thanks for the direction. it's like i love when they say that. 20% either up or down. thanks. thanks for the clarification. charles, love it. thank you so very much. we do have to say that we might have seen higher moves here but investors are feeling the heat of new claims of u.s./china tension. on your screen, the smoky scene at the chinese consulate in houston last night, coming as diplomats reportedly took to burning documents just hours after the state department ordered the diplomatic outpost closed. as we head into this final hour of trade, china's biggest names, many of them trading on the almighty nasdaq, getting caught in the crossfire. though it is america's

tesla. be joining us taking us through what we can expect in terms of the numbers. this is bloomberg. ♪ caroline: from bloomberg's world headquarters in new york, i'm caroline hyde. taylor: i'm taylor riggs. romaine: i'm romaine bostick. caroline: powering through china-u.s. uncertainty and coronavirus uncertainty and focusing on earnings. up 6/10 of 1% on the dow and the s&p 500. silicon valley stays with much stocks already, managing to come out, tesla we await just getting started. apple and amazon on deck for tomorrow. predicting mega bankruptcies with the z-score at altman. shares of now from what companies have filed for chapter 11. that's coming up. take us through what we see from microsoft. romaine:romaine: earnings on microsoft, we talk about the three-headed hydra. the cloud business, the gaming business, and office 365. there is intelligent cloud billion,t $13.37 slightly above the estimate of $13.12 billion. personal computing at $12.91 billion. $11.9al computing at billion. the

tesla is unique. i don't think you can compare it to other auto makers i understand they will all launch evs and that will become a bigger part of the industry. what happens is you get so many public offerings of new electric vehicle plays. new hydrogen fuel cell plays nay will take fisker public structure. you have the fuel cell which is a $12 billion enterprise value what ends up happening is they choke the market with competie ing versions of tesla. that is what happened with the dot coms it's not that tesla will stumble fundamentally. they clearly have momentum in what they are doing. if those three are successful then you'll have six then you'll have 12. then you'll have 25 publicly traded equities that investors can choose between they will do secondary offerings. that's when you start to see share prices come down we clearly haven't gotten there yet. it's very hard to know when that tipping point will be reached. >> it's hard to make statement like that that valuation never matters. it's only a

and this likely will get more people investing in tesla stock whenever you join the s. and p. $500.00 a lot of a lot of investors a lot of. asset managers who track the s. and p. $500.00 will end up buying the stock so this could also extend the stake rally that we've already been seeing a tesla stock shelves and a lady in frankfurt france wants to be europe's top dalby he called us a group of private investors is constructing what could become the continent's biggest logistics platform is called evaluate and it could be finished by 2020 for . the 1st of 8 huge warehouse is these emerging. the developers and vesting hundreds of millions of years to tune the valves form a military base into logistics platform which they hope will know even more appealing. has been skyrocketing many companies have realized through the cooper 19 crisis that having warehouses in europe is becoming more and more necessary as countries are trying to relocate parts of the supply chain a lot of friends from site the e.u. from the u.k. because of brics it's china and north america has been conta

to offerntinuing wide-eyed abasement with tesla -- wide-eyed amazement with tesla.alk about what is going on with the auto sector with scarlet fu. scarlet: left in the dust is a generous way to put it. if you are looking at europe and the u.s. and asia, the auto sector is in the red as companies had to shut down operations completely when covid-19 first dropped. in europe we know the auto sector was already trying to revamp their operations before covid-19. their specific challenge includes electrification. tesla has fallen behind the market leader and now that they need to conserve cash, that tech advantage threatens to gap open even more and they cannot spend the money they need to to catch up. is delaying its latest electric car model until next october. that gives you a sense. the auto sector is much more important for europe than the united states. in europe it makes up 7% of gdp. 14 million jobs. the u.s. auto sector is less consequential on every count, especially total market share, although it does get closer because it does not include tesla. of, since our

abigail: tesla delivered. considering you have the stock of more than 280% on the year going into that report. before we look at that stock specifically, it has been another interesting, slightly choppy day. more sleepy at the end of the day. we saw this late day surge climbing. not huge gains. we had stocks of flat. nasdaq down at the end of the day. . this s&p 500 higher. this seems to do with the fact that we once again have the fed balance sheet expanding. that is driving the dollar lower, helping of these major averages. the new york faang index down ever so slightly, despite microsoft climbing into its report which we will talk about in a minute. there were renewed to between the u.s. and china with the u.s. closing down china's consulate in houston. stock see, a china's index in the u.s., down 1.8%. that is sort of a broader recap, a little bit of a risk appetite, but more neutral. as for tesla, risk on, risk on, and risk on. they basically delivered. the stock up huge on the year, now up to hundred 90%

the bottom line from tesla? >> it is important we'll see a lot about q 2 that were better than expected. that's great the make up of those are the lower margin of model 3. we also know tesla will be cutting prizes like in china which could be a tougher market. we know it will be doing well in terms of delivery. >> clearly, we are expecting to see a bit of revival as tesla has come prices. what are they trying to do there? >> they are establishing a foot hold there is a lot of competition in china. it is the biggest market for electric vehicles. there is a lot of domestic interest in this all of the chinese oems have a big interest in electric vehicles as well it has enabled them to reduce prices because they have access to the market. it was originally to avoid the u.s./china trade war i thinks that paying off for them they are seeing the benefits of boeing local and the components that came light during the pandemic when the chinese industry was locked down other regions started to suffer from a shortage of com

alix: the latest on twitter was gold or tesla reaches 2000. i covered gold back in the day and the coverage was google or gold at 2000. you don't want to miss this. his insight on u.s. and european equities as well as tesla. what you do before earnings? u.s.-china tensions flaring up again. the u.s. secretary of state mike pompeo spoke about the issue in remarks in copenhagen earlier today. >> we are setting clear expectations for how the chinese communist parties going to behave. when they don't, you're going to take actions that protect the american people. alix: joining us for more is kevin. what happens now? are pushing back and they are saying in a statement from china's foreign ministry, "china condemns such an unjustified move which will sabotage china-u.s. relations." toy urge the united states withdraw its erroneous decision. otherwise china will make necessary reactions. i do want to note that this is part of a broader bipartisan u.s. shift in strategy for how they are dealing with the chinese. yesterday there were indictments agains

this is a bizarre phenomenon with the tesla story.nmentsis that have regulations about what efficiencies need to be for different automotive makers. per gallon and the amount of vehicles they have that are electric. if those automakers cannot meet those targets, they are penalized or they can purchase these credits from other companies that are making a lot of these. it turns out tesla is the only when making a lot of these cars. is effectively a penalty for other automakers not making enough progress to e'v's. from 35428 million of million in the march quarter. that did have in impact. ultimately them reaching profitability. it is not a sustainable part of their business. eventually these tax credits will go away in the future. that is the dynamic around the tax credit. real read is that it is an indictment against the auto industry that they are struggling to build electric cars that people want that comes to her and how many tax credits they need to buy from tesla. tesla is regarded by some as being a religion in terms of investing

we're also seeing tesla gaining market share. their market share was about 26% in new york today as of may, as opposed to 22% last year. so i think you really can't take those numbers away from the company. i mean they're economic company that's why the industry is going. >> is there a growth story beyond cars at tesla? >> yes. in fact last night on the call, i was excited that elon musk talked so much about fully autonomist drive. you know maria we've been talking about this for year when is i've come on on the past. i think this is a plarnlg opportunity for tesla it is what gets us to our bull prize target of $15,000 by 2024, and i think what was really interesting about last night eetion call is that -- musk has been more measured on these earnings calls you can tell he's sort of he hedges statementing saying stuff like in my opinion and reach future complete with the self-driving platform he said that he almost get from his house to work fully autonomistly. this is huge opportunity that totally changes business model it becom

check out the shares of tesla.t is higher by 6.6 pre-market here's an eye opening stat according to the site robintrack, in one span an average of 10,000 users added tesla to their robinhood rtli ppofooser hour. stay tuned, you're watching "squawk box" on cnbc >>> wilfred frost just got off a call with j.p. dimon. >> let's start there in terms of the increased provisions for bad loans. they said in q1 we expected a sharp down turn followed by a rapid recovery now we expect something more protracted in terms of the provisions for bad loans saying the q1 provisions are focused on the hardest hit sectors. it's much more broad based they're assuming there will be more stimulus to come but they don't know that for sure said, visibility on economic damage not very good in terms of comments from jamie dimon, he said his traders with strong numbers did an extraordinary job. 80% from 20% in the office my guess he said one day we'll be back at work. maybe 10% will be always done at home i asked him whether the moves in stock

tesla, an exclusive run there.aker up more than 40% in the past five sessions it is now bigger than 97% of the s&p 500. in fact, anything electric has been on fire leslie mentioned some of the names as topping the leader board, nio, plug, nikola let's bring in gene munster. good to have yo with u with us. >> froth, momentum, could there been a fundamental story if you look at the space there is a scarcity of names and value, isn't there, in tesla and while its competitors are pairing back on rnd when it comes to evs, isn't that to tesla's benefit? >> there is a scarcity value and particularly the other automotive companies have evs, they are not making an impact. it's a clear decision. tesla has 80% market share and fast forward to five or ten years from now and there will be many more electric cars, about 3% of total cars so globally they are electric but undoubtedly that number will go to 100% at some point in the future it's simply a better way to move around and tesla has an advantage. i think when you look at

at a whopping $250000000000.00 if tesla is added to the s. and p. $500.00 it would be a huge milestone for the company and of course c.e.o. elon musk electric car maker shares have already surged over 500 percent in the past year but some critics aren't so sure according to mark hurlbert a financial analyst tesla's stock even if it does well over the long term is now too far ahead of itself those like holbrook believe tesla stock is merely forming a bubble in part through short stocks but those expecting tesla stock to crash have even received attention from musk i'm self must release these tesla set and short shorts on line is a drip jab at short sellers of tesla stock the shorts were a hit on line much like the stock itself if the company shows a profit on july 22nd in its quarterly report test that would be one step closer to being added to the s. and p. 500 reporting for the news with rick sanchez natasha sweet. that's amazing and i'm watching as we speak it's up to $1488.00 it's gone up like $70.00 just today joining us now christiane i.

stuart: i really have to start with tesla. now up 69 bucks, that's premarket this morning, rallying again. all right, susan, come on in. why are they up again? susan: surprise profits and near guaranteed inclusion in the s&p 500, also reaffirming 500,000 deliveries for the full year and choosing austin texas for its next giga factory where they will build model 3, model y and trucks. that's a $1.1 billion factory likely to come with 5,000 jobs to austin. one concern going through this earnings report nearly half of tesla's sales in the quarter were accounted for by regulatory credit revenues and those are credits that tesla sells to other car companies so they can meet emissions regulations. we're not sure how sustainable that is going forward as the gms and fords also ramping up their own electric car lineup. still, tesla, now the 12th biggest company in america and adding to it today. stuart: astonishing. i will be back to you in a second. i've got another big winner for you, and it is twitter. lauren twitter is up 3.6% $38

we talk about tesla now in increments of 420.e weeks ago it was three times 420, the stock now four times 420 i assume you're in agreement that the price has separated itself from whatever fundamentals we have to work with >> yeah, absolutely. the evaluation of the company has no basis in, you know, traditional valuation metrics. but i do think investors are looking at a couple of things. i think they're looking at the growth trajectory of the company, you know. it's added the shanghai plant. the european plant is being added. at the same time, they're looking at the competition and folks like vw, who are launching an important crossover in europe, is having a lot of problems with the software management of that they're also looking at the new products that are coming are all incremental. interestingly, even in this down economy, countries or continents like europe and countries like china have not moved off their co2 regulatory requirements, so that's going to further, you know, grow electrification and i think there are two thi

of decades.couple could tesla be a multibillion-dollar company? could tesla ship 3 million units?ill the stock become a good investment? if i believe that which i do, i can argue that the stock is 50 -- could be $1500. taylor: what is your outlook for the 2020 profit for this company? them to break even or come roughly close to break even this year and then i expect inm to be solidly back profitability for the remainder of the year. it is quite hard to judge, to be honest. and i will point out that i am -- ing what i look at typically look at 2021 because this has been such a disruptive year. i expect the company to come out of the year solidly profitable and be probably close to breakeven this quarter, give or take. taylor: some of that optimism i think begin reflected was the optimism that we saw in the second quarter deliveries coming ahead of expected despite , andrns of consumer demand the factory shutdowns in shanghai and in the u.s. are you surprised at the rate of their deliveries? oe: i was and the street was surprised as well. it is just one quarter. it is the sort of th

as the worst in the industry i've talked with tesla owners, friends who have a tesla they'll say things like, yeah, something is not working exactly as it should, or when it was delivered, this wasn't working but you know what? it's so cool to drive. i've people say, you know tesla owners think it's cool not that they use it all the time, but the guy put a fart sound in there >>> let's bring in tim higgins from "wall street journal. tim, i was going to ask you about the significant, both for the stock and for the company it would be a recognition of the vision and dream for the past 15, 17 years to the industry, and to essential rise to the ranks that he would be part of, you know, the benchmark indis. for the investor they get -- so the benefit might be short-lived then the equities trail behind the s&p 500. >> do you think there would be reluctance because it's been so sharp? did it go below 200 briefly last year would that be reason for pause to say let's make sure this is for real they're concerned about the fundamentals of the business, and you. >> phil, final question for the repo

no one beats expectations quite like elon musk and tesla that company delivering nearly 20,000 more cars than predicted in the second quarter and that stock is surging to an all time high we'll have more on tesla's big move in a bit. right now, power lunch begins. >>> yes, it does the nasdaq at a record high today. the s&p is about 7% below its all time high. let's get to dominic for more. >> the markets like that camera, were higher. they are coming down now but still in positive territory. at the highs of the day is dow is up roughly 469 points they are up 277 right now. pretty much 1% gains across the board. the s&p 500 hovering right around 3150 and the nasdaq, we'll put a star next to it here because it's created a new record intraday high two places in technology that are really moving. check out these etfs first trust dough jow joan inte. every single one of these tech oriented etfs has hit a record high some of it is covid related but watch those moves. both of these showing pretty strong gains opinion surging in today's trade. good time for some companies tyler, to be in the ipo

start with tesla. susan: big day for tesla.er better deliveries anticipated during the covid lockdown month as tesla's only u.s. car factory was shut for the quarter. if we squeak by for the fourth straight quarter of profit, does tesla get included in the s&p 500 which is stock positive since s&p 500 funds need to buy the stock? market cap above 8 billion, easy for tesla, listed in the u.s. you have to have four straight quarters of profit for the company. also qualitative criteria. we know tesla rallied 50% this month alone. now with a market cap of $300 billion, the tesla is the 12th largest company even bigger than jpmorgan, home depot an united health. another big report card is microsoft. second biggest company in america. cloud as always is the focus. growth rates of 55 to 60%. work from home will be important. is that helping microsoft team which is a zoom competitor? daily active users jumped to 75 million at last count. they capitalized with gaming on xbox and surge in gaming spending during the month of march and bey

you just mentioned tesla. we are also collaborating with tesla.joining us. good to speak to you. that takes us onto what is coming up next on the program. than 500%soared more in the past year and had its fourth positive quarterly earnings. mosque still eyeing expansion. ♪ ♪ anna: welcome back to the european market hope. 30 minutes into thursday's trading session. we're on the upside but only by .3%. u.s. futures up by a similar margin. higher on the nasdaq futures. let's get to some of the individual stories on the moving markets. daimler up 3.7% now. turning a profit after weathering the worst of the virus crisis. and then an incredible ride. 12.6%. others higher. ublices. 6.8% in the up dutch listing. the c.e.o. of unilever told bloomberg how the company handled the coronavirus pandemic. >> what we have seen in the last quarter is the true spread of unilever. the breadth of our portfolio gives us good resilience. we have shown agility how to respond to these circumstances and meanwhile we have been working on the strategic future of the compan

coming up, tesla posts another profit. we talked tesla, next.s is bloomberg. ♪ ♪ breaking news on the stimulus deal in washington saying the aid would include wagereplacement at 70 -- replacement at 70%. it doesn't rule out future relief. ifwere trying to figure out that fall short of expectations? there was a rumor of a half trillion. the democrats wanted a $3.5 trillion plan. we will have plenty more on the stimulus, and we will have any impact it has on what the fed does next. tech earnings are rolling out. twittericrosoft and reporting results. here's abigail doolittle with around up. abigail: there is a tale of two stories between these tech giants, microsoft trading lower twitter is higher. microsoft beat top and bottom line estimates by double digits, but their cloud business disappointed. revenue, butd ad their daily users group. as for the cloud business for microsoft, it is moving in the wrong direction over the last several quarters. but what is amazing, investors are disappointed by the cloud business. this idea that that is disappoi

. >> yes, tesla is a technology company tesla is going to experience d. and they'll be included in the s&p 500, and we'll look at them as a battery company. but when i think about the fundamentals of the company, you say to yourself the first thing i would be doing, and was elan musk, i would be announcing a secondary. that's the right thing to do in terms of managing the business and never really participated before so they could either up or done, be prepared for that i'm not willing to participate in that type of volatility when i said that it was raised to 800, and as you know, the stock is trading way above that. so is it time to just take your stuff off the table and get out of this thing? what's the story here? >> first the analysts have been well behind this you say, boy, i hope scott wapner doesn't see this on "halftime report", but maybe he spots it it's one of the reports that kind of came out uh-oh, he didn'tment are mention it, did he if musk says i need to build ten factories, and i have the money, and next thing you know they have a septemb

we'll start off with tesla the electric carmaker jumping in the after-ho

that tesla fired employees who refused to work over covid-19 concerned. they accused ceo elon musk of covering up a covid-19 pandemic in the fremont plant behind me. they want the plant shut down for a deep cleaning and asking the alameda county health department to do contact tracing instead of tesla performing the function. the workers will protest outside the health department in oakland. you'll recall yesterday we reported on three former employees who were fired after accepting tesla's offer to stay at home over fears over the coronavirus. when musk reopened his factory in may, he did send a letter to his employees that if they, quote, feel uncomfortable coming back to work at this time, please do not feel obligated to do so. by the end of june tesla told those workers they abandoned their jobs and fired them. one had a newborn with respiratory issues and one had recent heart surgery and tesla has not responded but in a public hearing that it is not true that they fired those employees. incidentally, "forbes" is reporting that tesla is the most valua

getting in touch with tesla isn't easy the company did not respond to an interview requests from d.w. . many environmentalists are furious that the electric giant has pressed ahead with construction despite not having the final green light to do so. other concerns include the vast quantity of water the factory will consume well tesla has promised to address that issue activists like nadine and spend a lot of my ass say it doesn't go far enough to date some 370 objections to the factory has been submitted but the coronavirus means there won't be a public hearing until september to teach what happens to us as her criticism is not accepted at all the people who speak out against the project don't get to listen to hear many people who are really involved and want to contribute but they just get ignored we need to listen to be involved we need transparency and democracy but we really need our politicians to take our resources and protected areas seriously and to put their foot down when needs be it's the turn of gloom hide where the factory will be located has a pleasant inhabitants tesla

tesla is not saturated in the united states by any means.heir production constrained in the united states -- they are production constrained in the united states. haidi: how much risk do you assign to the operations in china given how dependent tesla is and what is going on with u.s.-china tensions, particularly as we know one of the things beijing could do is step up protectionism and push their own made in china brand? look, china is a lot smarter than the u.s. government currently, and the bottom line is china has never acted in a short-term manner. china is a long-term player in everything it does. there should be no conflict between the u.s. and china longer-term. this was solely created by trump. trump will be gone in three months and we will restart these negotiations from an actual place of making progress versus some sort of blackmail to try and get him reelected. the chinese have been very patient dealing with trump for the last couple years, and hopefully, we will be able to have a much more, much more productive business environm

stock part of tesla is about 55 billion for him.nd that's another number that could go up in the coming years depending on what happens. and he's going to get even richer. >> elon musk whatever you think of him he's a leader and certainly changed the car game thank you very much. have a good day. >> tech continuing to fuel the market rally tech may be the market rally what does he think about it? is there risks hidden amid the record highs we'll talk more about that as a reminder as we're all getting back on the road, you might want the app while you're traveling. download it today. still looking pretty empty dow futures though, they're full up 153 we're back right after this. ta-da! did you know liberty mutual customizes your car insurance so you only pay for what you need? given my unique lifestyle, that'd be perfect! let me grab a pen and some paper. know what? i'm gonna switch now. just need my desk... my chair... and my phone. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ >>> welcome back well it is now ti

piece of one share of tesla.i think human nature -- we have seen this with the bitcoin space -- to prefer to own one hold one, it might just be psychological. i think it would encourage more people to buy the stock. emily: there has been some controversy around how much the board members at tesla are being paid, specifically the chair of tesla's board. you have got a proxy group recommending they not reelect her to the board. where do you stand on her reelection? cathie: i have known robin for a very long time. she was the cfo and juniper networks when we were one of the largest shareholders of the time. i got to know her very well. she is probably the most -- she's extremely fair, very straightforward in her approach, very disciplined. and i think elon musk respects her. i respect her enormously. ofbe the chairman, the chair tesla, can be quite challenging at times, and has been quite challenging for her as a director prior to becoming the chair. she knew what you was getting into. i think she deserves all the -

a tesla solar panels, and two tesla's in the driveway, that's great and i'm a small percentage of the market and i have a personal rip wi relationship with the company. that does not justify a $300 billion valuation today, maybe 15 years from now. >> good morning, it's john tesla is $1600 a share right now and he said it was expensive at $700 a couple months ago you don't have to be anti-tesla to think it is expensive are there other stocks that you can buy that are not as expensively priced and that are perhaps a better value what would those be? >> great question. first let me identify something that the market has not talked a lot about. the price to sales ratio the price to sales ratio is now higher than alphabet and facebook and approaching mic microsoft. other stocks that are, you know, there is a lot of private companies unfortunately that are going to be going public that will help in the electrify indication -- ele electrification of the future. >> give us a few names. >> there is sonovo it is self serving for me to talk about, but it takes all of our garbage, industrial wast

look at shares of tesla. tesla the most valuable car company in the world. more valuable than toyota, though the fundamentals do not support that. tesla is expected to release production numbers and tell us how many cars were built. you recall elon musk called factory workers into the factory before alameda county said it was safe to do so. our bob redell is out at tesla and reporting on workers who said they felt unsafe. and tesla said they could stay home and then they claimed they were laid off. >>> several reports say the nation's top executives are willing to testify together before congress. "new york time" says that include jeff bezos and tim cook and mark zuckerberg. block the information watched a virtual town meeting and said zuckerberg assured his fellow employees the boycott won't last. they'll be back soon enough. >>> and president trump says he supports more money, more payouts to americans. not totally clear if he's talking about another stimulus or extending the number of weeks that extra $600 goes into unemployment checks. a fox reporter tri

let's get more on tesla's quarter. less bring in gene munster welcome back i want to get your back on this quarter. >> everyone was focused on the s&p 500. i don't think that's the real story. the reason they got there is actually sustainable the tax credits are coming from other automotive companies that simply don't have an ability to make evs fast enough, so i think that's the real take-away here, is this is not just about getting the s&p 500. this is about a company that is laying the framework for predictability around profitability. hard to imagine we're talking about the tesla story, but i think that's what is driving the stock higher in after hours. >> karen, you got a question >> i do. gene, what about the free cash flow, which obviously was a big surprise to the upside but i'm wondering how much of that is working capital adjustments that could end up turning around once production is back up and they are paying full payroll how do you think about that number >> i think it's going to be sustainable. i think t

by the way, this is the fourth straight profitable quarter for tesla. the last hurdle that needs to be cleared in order for the company to be included in the s&p 500. some numbers within the numbers. operating cash flow, $418 million. auto revenue down 3.4% but made up for that with revenue increasing by $317 million model wide production happening in california is increasing. as is production of china-made model 3s that is an area of growth. tesla is saying it is reaffirming its target of delivering a half million vehicles this year that's one more reason why the stock moving higher after hours as tesla reports much better earnings than expected reporting from chicago >>> shares in microsoft fell in after hours trade after the tech giant saw growth in the azure cloud service. falling below 50 percent for th first time talking about beating estimates on the top and bottom line in the work from home environment smes cutting back on tech spending >> microsoft also gave lower than expected rise >>> twitter expected to report a loss when the company posts s

for ev batteries, a key factor behind tesla's success. and later this month, or in early august, tesla will report its q2 financial results after posting better than expected sales, some analysts are now asking if tesla has a shot at breaking even in q2. phil lebeau, cnbc business news, chicago. >> separately, a reduced pay period was brought into place during the virus pandemic. according to an internal email obtained by cnbc, for more on that, you can check out cnbc.com >>> ahead on the show, social unrest and a record surge in coronavirus cases in the u.s muddy the waters ahead of the presidential elections we'll break down how the upheaval may affect the race >>> jpmorgan will reportedly remove terms such as master, slave, and blacklist from its internal technology materials and coding amid efforts to address racism within the company. that's according to reuters. the move would emulate companies like twitter looking to eradicate language with racial overtones. it would make jpmorgan the first to do so in the financial sector u.s. une

nearly half a million robin hood users holding shares of tesla in some form.k to you. >> what did you say? 50,000 trades an hour? >> 50,000 trades in the past 24 hours. >> past 24 hours yet it's only the tenth most actively traded stock on robin hood what are above it? >> it has been consistently regardless of the news that has been a top stock. it has been for awhile before they offered the ability to buy stocks and fractions of a share, it was relatively cheap and a name that consumers knew. >> thank you very much >>> so few people traveling this summer, airlines are forced to compete for the few flyers there are. up next a lack at the airline price wars you can listen to us live on the go on the cnbc app [indistinct radio chatter] (vo) audi e-tron. the next frontier of electric. get an exceptional offer at your local audi dealer. how does the world reopen for business? to return to the workplace, safely, companies will need the right tools. that's why salesforce created work.com it's an all-new suite of apps, expertise, and services. to manage this crisis t

it's been amazing right in the past year the stock of tesla basically almost tripled and now chester actually is the world's most valuable car company on the planet even surpassing. toyota that's been their leader in the past couple of years and if you look at the valuation of tesla would have $200000000000.00 it's worth twice as much as this ridiculous car companies forte if you're a chrysler and general motors but clearly wall street is not seeing tesla as a car company it sees tesla as a technology company also being involved in better reason and all electronic mobility or lecturing mobility but it's really it's been an amazing right that we've seen in the stock of tesla in the past couple of months no idea as quarter in new york thank you so much. dealing with the post covered economy will be front and center of germany's presidency the pandemic has put large parts of the blocks economy on hold impacting businesses and consumers alike on the agenda is a long list of tricky negotiations the e.u. is in the middle of budget talks and is guiding through its coronavirus recovery fund

toyota that's been their leader in the past couple of years and if you look at the valuation of tesla with a good $200000000000.00 it's worth twice as much as this rebuke us car companies for it if you have chrysler and general motors but clearly wall street is not seeing tesla as a car company it sees tesla as a technology company also being involved in better reassess and all electronic mobility oil lecturing mobility but it's really it's been in the amazing right that we've seen in the stock of tesla in the past couple of months. in new york thank you so much. they're doing what the post covered economy will be front and center of germany c.e.o. presidency the pandemic has put large parts of the blocks economy on hold impacting businesses and consumers alike on the agenda is a long list of take a negotiation the e.u. is in the middle of budget talks and is guiding through its coronavirus recovery front regionally germany wanted to put climate change at the heart of its presidency but that was before the president can. hatch president of the german institute for economic research wh

tesla up 10 bucks which is nothing for tesla today or any other day.k to watch with these crazy runs up to 1577. microsoft no slouch either. it is a behemoth. tesla market cap 300 billion last time i looked. microsoft 1 1/2 approximately. second only in the united states to a little called apple. melissa francis joins me 4:00 p.m. eastern time. we'll have the numbers pretty much as soon as they come out. as soon as we figure out what the company reported. we'll see you then. thank you for joining us here. i'm connell mcshane filling in for the great neil cavuto. over to one of other greats charles payne. take it over, charles. charles: thank you, connell. we'll watch 4:00 p.m. on the knows. good afternoon, i'm charles payne and this is making money. markets are bouncing around in very narrow trading range, you can actually cut the tension with a knife. there is more hopes for swift vaccine news as operation warp speed strikes again. the largest deal to provide americans with free doses of a vaccine. with the earnings results, connell talked about tesla

needs urgent reform plus eve mobility enjoy it tesla is coming to town well tesla it is rushing to get its new factory up and running locals have mixed feelings about the new neighbor we'll take a look at the construction site just outside. a low i'm terry martin thanks for joining us brazil's president has tested positive for the corona virus also nora has downplayed the severity of the disease for months describing it as a little flu critics said he would so it was only a matter of time before he caught the disease himself as he has failed to socially distance and has largely refused to wear a mask in public. from the very beginning of the outbreak. repeatedly played down the risks of the corona virus and initially described it as a means to flee he also sentient. distancing recommendations and other measures including wearing face masks in public. has been tested 3 times previously all came back negative however on tuesday the brazilian right wing leader confirm to local media he had tested positive for covert 19 or soon to be a bit of a well i don't it on sunday with a certain feel

it's another banner day for tesla.just hit yet another all-time high, and this time taking the market cap crown it's at 165% for the year. it's up 430% nearly for a low. we're at 206 billion, making it the biggest automaker. how impressive is that it's not only bigger than every other automaker, bigger than disney it would take ford more than two months to deliver what tesla delivers in a year i'm joined by dan ives and phillip le beau. thank you both for being here. dan, do you think there is a catalyst for it crossing this 206 billion mark >> i think what we've been seeing, especially for the last six months, has been a real embrace by traders, and you can make an argument whether these are momentum traders or true believers, but clearly they're embracing the idea that tesla has the cleanest past, if you will, to a wave of the future with their electric vehicles you can debate whether or not we'll see electric vehicles take off as many have predicted over the last five or six years if you're a believer who says, yeah

we start with electric car—maker tesla.dnesday, it announced its sticking to its goal of delivering half a million vehicles this year, despite coronavirus, and it passed a major milestone on its road to becoming a profitable company. tesla made a profit ofjust over $100 million in the three months to june. that was the fourth quarter in a row tesla has been profitable. it removes a major hurdle to the company joining the s&p 500 index of the biggest us companies and to qualify, a company must be in the black for a whole year. it also has to be worth more than around $8 billion. well, tesla certainly has that covered. its shares have tripled this year, giving it a stock market value of over $300 billion, bigger than jp morgan and on a par with consumer giant procter and gamble. daniel ives is managing director of equity research at wedbush securities, in new york. you are using the word already but a paradigm shift for tesla? yeah, i mean it is a paradigm shift especially profitability. that has been a missing piece in the p

later this week elon musk, tesla reports.lk about the idea that we has a battery that could last ten, 15 hours basically wh basically what they need for gas stations if they take over the world. i think people know he can't take over the world, but are you prepared for batteries that last much longer like a nine-hour battery that makes it so oil demand drops radically >> well, these battery applications have certain markets they work well in. there are other markets where it's more difficult. vehicle transportation is one we have this electric batteries making an impact and beginning to penetrate our projections expect significant penetration of electric vehicles over the next couple of decades in light duty transportation. there's more work to be done on long haul transport, industrial applications, shipping, aviation, petrochemicals our commodities go into a variety of markets many of which really have not proven to be suited to today's battery technologies, and we're working on technologies that can help address the emissi

and evil bill the giant tesla is coming to town hall tesla rushes to get its new factory up and running locals have mixed feelings about their new neighbor called this is the construction site just outside berlin. i'm sumi so much kind of good to have you with us the world health organization says there is a merging evidence that the corona virus could spread through droplets in the air that statement comes after more than 200 international scientists claim the corona virus can be spread from person to person through tiny droplets that were made suspended mayor. for several hours they also claimed that these airborne droplets could travel for tens of meters the w.h.o. is promise to publish information on the known routes of transmission of the virus these are fields of research that really growing and for we each there is some evidence emerging but is not the diff the feni to have. and therefore the possibility of airborne transmission in. in public settings especially in very specific conditions crowded closed or poorly ventilated a setting that have been described cannot be ruled out

on deck next week, we have microsoft and tesla, both report quarterly numbers wednesday.zon on thursday. then facebook, the wednesday after that. google and apple on july 30th. no better time to bring in wedbush managing director dan ives, one of the sharpest observers of the tech space. dan, investors are salivating ahead of any of these names but i want to tackle tesla first. what do you expect here? this name at its low was so much cheaper than it is right now. credit suisse has just added $700 on to its price target. it's a $1507 stock here. what happens next week that changes this? >> i think next week it's all about the p word, possibility. not just with regards to the s&p 500 but it also shows they are doing this profitably. it's a key fundamental [ inaudible ] and what's starting to happen is a re-reading of tesla, that profitability is the key. i continue to view that $2,000 bull case on tesla. liz: you worried at all about the up and comers? we just had henrik fisker on. he's coming out with the fisker ocean, the new suv, and people are taking reservations here.