what tesla by solar city.ll of that is coming up next. ♪ emily: $2.68 million, elon musk is the main investor and many are worried about the company. anticipated,y tesla's financial liability depends on getting that ball out right now. cory johnson walked us through that. pg&e,if ford is buying or exxon mobil may be, this is a very strange thing. yes there is a commonality in terms of clean energy and more portly yunnan must is one --pany that can bailout and elon musk is another company that can they another, but showing us how crazy this is. if you look at how much cash tesla has and you have a company that cannot afford solar city. tesla has $1.4 million in cash. $2 billion in debt. you look at the cash. valium,ook at the total 1.4 billionne billion dollars dollars and they can somehow acquire more money? emily: they are making batteries. this is something we have been debating and thinking about for a year and a timing seemed right. doesn't make more sense? john: most people don't have use for it. the prin

solar city in response to tesla planning to make an offer. solar city said it intends to carefully evaluate tesla's proposal. and by the way to the people who are saying, wait a second, isn't the ceo of solar city elon musk's cousin? yes, it is. he said he will recuse himself from the decision-making process when it comes to this offer. one quick update regarding the conference call that just started. elon musk said that they look at this as an opportunity, if they are combined with solar city, or combine solar city into tesla, to be basically one stock shopping when it comes to energy, storage, the power wall and the giga factory, to transportation with tesla. that's an early indication of what tesla is thinking. elon is still talking. he's not taken questions yet. we'll hop back on and as soon as we get anything else, we'll get back to you. >> obviously tesla has a ton on its plate. solar city is a cash flow negative company right now, with debt. strategically, why now? why right this minute they need to do this? >> all i know from this call so far, elon said they've been looking at solar city for a number of yea

solar city. tesla stock lost 12% following the news. stock in solar city surged by 14%. >>> trader joe's will spend $2 million to reduce coolant leaks from refrigerators. safeway and costco agreed to reduce the leaks. >> there could with' way to a text that doesn't limit you to a small keyboard. >> this product could potentially revolutionalize the by we interact with our smart phone. >> it's lunchtime in san francisco. >> this is hard to type. >> i have problems myself with tiny fingers in texting. >> reporter: a new system to free you from small key boards. it would be known as the tap. it can be paired with any blue tooth enabled device. >> no matter what you're touching. >> each finger presents a letter. you can see it from any surface. >> creators say it could be completed in an hour. >> these videos give you a sense of how this works. the keys that are commonly used require only one finger, others, a combination. >> tap fingers 1 and 2, 2, 3. 3, 4, and 4 and 5. and n, t, l, s. >> some we talked with weren't sure they'd go through the trouble of learning the ne

solar city. tesla stock lost 12% following the news. stock in solar city surged by 14%. >>> trader joe's will spend $2 million to reduce coolant leaks from refrigerators. safeway and costco agreed to reduce the leaks. >> there could with' way to send a text that doesn't limit you to a small keyboard. >> this product could potentially revolutionalize the by we interact with our smart phone. >> it's lunchtime in san francisco. >> this is hard to type. >> i have problems myself with tiny fingers in texting. >> reporter: a new system to free you from small key boards. it would be known as the tap. it can be paired with any blue tooth enabled device. >> no matter what you're touching. >> each finger presents a letter. you can see it from any surface. >> creators say it could be completed in an hour. >> these videos give you a sense of how this works. the keys that are commonly used require only one finger, others, a combination. >> tap fingers 1 and 2, 2, 3. 3, 4, and 4 and 5. and n, t, l, s. >> some we talked with weren't sure they'd go through the trouble of learning t

solar and green energy to replace it. >>> tesla is acquiring energy company solar city in a stock deal worth $2.8 billion. tesla's elon musk is the chairman of both companies. the move by musk is seen as a way to consolidate his holdings and combine his green energy products. shares of solar city surged 24% in after-hours trading on this news. tesla shares are down nearly 7%. >>> the rise of prescription drug prices is rampant, right? >> really is. >> what can you do? >> 7 on your side michael finney is here with tips and advice. >> these complaints are flooding into my office. 32 million people have gotten rate hikes according to a consumer reports survey. each long time generic drugs are seeing huge price increases. >> this woman suffers from rheumatoid arthritis. she's taken a generic drug available for almost two decades. >> i credit that drug with keeping from becoming crippled. which i'm sure i would be now. >> two years ago a three-month supply cost $32. last year it skyrocketed to $500 out of pocket. so she stopped taking the medication. >> i stopped the drug hoping that i wouldn't have a flare-up of my arthritis. what happened was that i was in such a bad stat

air sunday at 1:30 on abc 7 >>> tesla is acquiring energy company solar city stock deal worth 2.8 billion dollars. tesla musk is the chairman of both companies. move by holdings and combine the green energy product. shares of solar city surge 14 percent after hours trading but tesla dropped more than 12 percent. >>> along the way to project tear down and rebuild terminal 1 at san francisco international airport will break ground next week. 4 billion dollar improvement project will demolish part of the existing terminal to make way for a larger modernize building. these are renderings of the new terminal by the way. airport plans to replace all of concourse a and b brand new 24 gate building. c stands but renovated. delta fly out of terminal one. construction is expected to be finished by 2020. >>> another half hour of 7 news at 9:00 is next. come up. one-on-one interview with donald trump. what he says about his campaign manager being fired. comments on hillary clinton rising poll nichlts one congressman push to keep the treasury from putting harriett on the 20 dollar bill. >> man voteded best bald dad what he did for his son after >> man voteded bes

tesla's bid for solar city and that's where we begin tonight's market focus. last night the auto maker made a nearly $3 billion takeover for the company. another company founded by tesla's ceo. he says the deal would allow customers to buy cars in a one stop shop. solar city shares rose 3%. >>> shares of window bag goe got a lift today after there was a jump in quarterly profit and revenue rose better than expected thanks to an increase in sales in the company's towables. shares up 6% on the day to $22.95. >>> analysts are bullish on price line. the price target increased to $1,500. the firm cited an expectation of improving margins. shares up 1%. >>> it's a different story for mcdonald's. they were down graded to neutral to buy citing overall slowing in the u.s. burger restaurant sales and tougher year over year comparisons. shares off more than 1.5%. >>> tomorrow the federal reserve will release the first round of the so-called stress test for the big banks, the purpose is to see if the banks have enough capital to handle a sharp economic down turn. investors will look to see if the banks are strong enough to raise dividends. joining us to talk more is the ana

wall street this morning is on the positive side and we are watching tesla and solar city, tessler put in a byt in a bid to buy solar city. in the solar city shares are up this morning, we will keep our eye on the market and this is up 21 points. we will watch to see what happens with this vote tomorrow to see if great britain will try leave the eu. >>> 6:30 am and let's get you updated on traffic. things are slowing up and no major hotspots? >> looking good so far. >> plenty of hotspots this afternoon. >>> fog rolling in and this is a live shot, bay bridge and you can see these low-lying clouds, temporarily the sun is poking out and we will get this mixing going on because we have lots of dry air and this is spewing in and the flow pattern could relieve us a little bit on the east bay shoreline in the coastal peninsula. hayward is 57 and over the hills midshipman to upper 50s and you can see this relief in santa rosa. for oakland today we have warm but not as hot, 67 or so racing into the 70s. robin is checking out these hotspots that this warm activity. >>> some stop and go traffic but no ma

tesla's bid for solar city say. markets reacted negatively sending tesla shares off by more than 10% in yesterday's trade. >>> the ecb reinstated greek bank's access to cheap funding yesterday. after the lenders were cutoff from the ecb's regular funding operations when the company became close to being ejected from the euro zone back in 2015. julia in brussels. jewel jaia. so they are reinstating the greek bank's access to this money. what does it mean? >> great question louisa. basically what we've seen since last year is greek banks having access to the greek central banks emergency liquidity assistance. if they needed liquidity, they couldn't go to the ecb. it has to be indirect. now this costs more money. about 1.5% more than getting cheep liquidity from the european central bank so it hurts the banks. what this now means is the waiver that was applied to greek government bonds -- because obviously they are junk bonds. they are not investment grade -- has now been reapplied. it means they can post those bonds to the european central bank and get liquidity back. we're talking a sum of around 62 billion euros. if

solar provider by -- worth $3 billion. elon musk said the deal was a no-brainer but investors are skeptical. does it make strategic sense for tesla to buy solar citynd what does it mean for the wider solar power sector? i'm joined by cory johnson and liam jenning. you open your piece on the post merger with elon musk talking about this being part of the non-weird future, yet you believe it's weird and he is letting on. explain. : very heavy on long-term vision. renewable energy where tesla was not only going to sell you your nice electric vehicle but solar panels to go on your house and so forth. what wasn't there was a clear explanation of what the benefits of this deal would be to investors and what the savings would be. why this idea that a one-stop shop is needed in renewable energy. that was not clear either. emily: what are investors saying now that they had 24 hours to digest this? cory: it was interesting to watch the trade in solar city. first, it never reached in your near the bid price. shares fell off a little bit today as people start to realize this deal might not even happen because it is so illogical. i was shocked to see so many a

by next summer. >> tesla is making an offer to buy energy companies solar city in a stock deal worth $2.8 billion.'s elon musk is the chairman, with the goal to use clean electricity to fuel the vehicles. the move is a way to consolidate his holdings and combine the green energy projects. shares soared 14% after hours and tesla shares dropped 12%. >> a new study finds with kids, the more you have, the happier you will be. a survey of 500 stay-at-home moms were asked to rate their legal of happiness. this is going to surprise a lot you. moms four or more kids were most likely to consider themselves very or extremely happy. a reason? they say they do not try to create rig it schedules but roll with life. >> fating crime with electronic eyes, at act we are in the community where an army of surveillance cameras will help keep the streets safe. a father and daughter in san jose are building a body are jose are building a body are community by jose are building a body are community by (whispering): what are you doing up? (whispering): mom said i could have a midnight snack. (whispering): well, i say it'

necessarily big in size but big as an topic of conversation on wall street, tesla motors proposing to buy solar city, both companies controlled byn musk and the musk'ssolar city is elon cousin. visually $2.6 billion. says is he wants to create a vertically integrated alternative energy provider from electric cars to rooftops, solar panels. tesla shareholders are not happy about the proposal, solar city trading higher. looking at short interest in both stocks because it is darn high even know it has come down for tesla. the white light is the short interest at the percentage of quote, it has come down as the stock price has recovered this year, it has come down to 25% of the company's flow which is extraordinarily high. solar city, the short interest going up as the shares going down, at 40% of flow. a remarkably high number of investors are betting against these stocks. , the big, h&m retailer, shares down after the company posted earnings that missed analyst estimates, a victim of wet and winter weather, especially in germany, its largest market. watching those shares as well this morning. david: morgan stanley is among those w

is solar city better off being owned by tesla? guess that's another way of saying is this essentially a bailout for solar city which had a tough time accessing the capital market at a time when i mentioned they have $6 billion in liability on the balance sheet. >> yeah. i disagree with the argument this say bailout of solar city f they are well positioned to be break even by the end of the year, i think taking a step back, there is a deal that e lan wanted to do for years, i think. and in many respects, he is channeling his inner warren buffett by buying solar city at a time when sentiment is pretty negative. and i think he's buying an attractive asset. >> when the deal first crossed, i was looking at the reaction of the other solar players as well as sunrun, the knee jerk reaction is move higher. then investors realize there weren't rich cousins of the ceos of those companies who are going to step in and buy them. today they're all down. so michael, my question to you is does this really firm up solar city's position in the market

which means those anticipated delivery services by companies like amazon or google not happening anytime soon. >>> meanwhile tesla wants to buy solar city. the stock deal, worth as much as 2.billion. elon musk is the chairman and biggest shood of both conditions. he says combining them is a "no brainer" since the same people interested in electric autos are probably interested in solar energy. >> let's turn to sports. some called it the biggest game in "uss men's soccer history. the cope pea america semifinals against argentina and arguably the best player in the world. lionel messi. >> it took about three minutes for messy to show his magic. that nice chip to ezekiel la ves vez zi makes it 1-0 argentina. in the 32nd minute, messy comes in with a shot on a free kick. argentina goes on to the 4-0 win. chile in sunday's final this was a friendly. it looked like a friendly the way. >> well, no. it wasn't a friendly. and it didn't go very well. >> it was close until kickoff. >> yeah. kind of fits. >> then there was this moment where this man, look how long it takes for security to take this man. this is after the game. so security still hav

by .30. >>> tesla offering to buy solar city. tesla would pay $26.50 to $28.50 a share.hat's a 25% to 35% premium to tuesday's closing price. of course, solar city's stock has been down in a very big way this year. elon musk controls both of those companies. he's calling this deal a no-brainer that customers could buy an electric car, home battery and solar system all at once. the question is whether it puts too much pressure on tesla assess balance sheet. >> if you're an investor in tesla not you're thrilled. >> it's all about the battery, and there's a recovering story about two companies controlled by the same person. >> well, it's his cousin. twin sister's son. >> are they identical, we don't know? >> identical twin cities. >> identical. is that what it says here? >> so, if you were shareholders and voting would you -- >> i don't know, i haven't done the research. >> if it's a no-brainer, you don't have to. you just do it. >> you just do it, right? >> otherwise, you don't say it's a no-brainer, do you? he thinks it's a no-brainer. i saw a special saying this is diffe

> tesla had this evening a report of a fatal crash that's being investigated by the highway safety administration, using the auto pilot software. there was a fatality. and for a moment, the solar cityl will not be front and center. this is a great car. the tesla is a great car. any one who drives it knows. but i think that that solar city deal was ill-advised. my advice is buy the car not the stock. >> hi, jim, keith from new jersey. i have a question about starbucks. >> sure. >> where do you see its sources of future growth? >> that's a good question. it's a fantastic company, but it's still what i would regard as a senior growth company and needs to put up new stores. and the answer is india. it's the place that apple thinks is a great market, the place that howard's spending a lot of time in. from your pantry it the front page, i expect more merger talk in the snack aisle. we talk about a rate rise in the future following brexit. where does the company stand now? then it's a company behind the data of disney, pfizer and fedex. and i'm answering all your questions in tonight's very special edition of the lightning round. so stick with cramer! [ applause ] ♪ ♪ this car? came court

tesla offered to buy solar city for more than $26 preside.50 a . both company are run byillionaire elon musk. that's it from cnbc, first in business worldwide. with the lobster and shrimp... ...you love in so many new dishes, you're gonna wanna try... ...every last one. like the new coastal lobster & shrimp. with a wood-grilled lobster tail, ...wild-caught red shrimp crusted with panko, ...and shrimp fresh off the grill and brushed with... ...summer ale bbq sauce. or try the new lobster & shrimp overboard, ...because when a dish can wow you like this, ...overboard's the only way to describe it. but hurry, this ends soon. before it became a medicine, it was an idea. an inspiration. a wild "what-if." so scientists went to work. they examined 87 different protein structures. had 12 years of setbacks and breakthroughs, 4,423 sleepless nights, and countless trips back to the drawing board. at first they were told no, well... maybe, and finally: yes. then it was 36 clinical trials, 8,500 patient volunteers, and the hope of millions. and so after it became a medicine, someone wh

by german. korean car companies come in first and third. tesla down again this morning. investigators rebelling against along musk's plan to buy solar city.solar city loses money, tesla loses money and tesla needs as much money as it can to retool and rebuild the model 3. they think buying solar city is a distraction. elon musk wants to go to mars. nobody has a problem with that. buying solar city, no, no, no. this is a kooky idea. let's go back to mars. >>> now the magnificent donald trump. >> the young teen went viral after he gave a graduation speech impersonating presidential candidates is at it again. jack iello appeared on "jimmy fallon" where he debuted a new character. >> we make quite a team, look at us. we have the same voice. >> and we have the same size hands. >> they're big, beautiful hands, aren't they? we have the same brain. >> we think exactly alike. in fact, we even finish each other's -- >> wow. >> he's great. >> he's been doing these impressions since he was a child. he's been preparing for this moment all his life. >> i love it. i could see him on "saturday night live," right? >> it's all in the hands though. you've g

by the fed. you don't always have a federally-approved car cash. tesla is facing a different problem. tesla ceo elon musk wants his company to buy solar cityd investors hate that used. two things to watch this morning on the stock market, the first the brexit vote. britain deciding whether or not to leave the european union. the second is twillio. it said hey would you like to buy stock? last night went really well. so people are paying more than they were asking. >> do you know what the price was? >> i know it was 50% higher. so this is the first high-tech ipo in a long time. it's going well so far that may encourage other silicon valley companies to jump in. >> kind of paved the way. >> you talk about the brexit vote. it could be disastrous for great britain and might have the domino effect. it's most people, i don't know what people think but world leaders hope great britain stays in. >> there are u.s. companies saying thousands of jobs are on the line. >> no doubt. >> thank you very much. >>> 5:48. wash your hands off before you plug in your phone. kfc installed a charger. you've got to wait. it's only available in india but the latest

. >> solar city forming a committee to review the take jove herb offer on the table from tesla. both companies, of course, controlled bylong musk, jon? >> from a regulatory standpoint, simon, they had to do this. so by putting this special committee together, it's certainly on a day when the market are up, helping the stock. basically back to where it was when tesla made their bid, because when tesla made that bid it popped to almost 24, where it is right thousannow. turnover, 26 million. traded 6 million i believe so far today. >> dish, downbraided to -- downgraded? >> based on u.s. spectrum. what is it worth? what are the balance sheets outside saying this is worth? what is that worth? that's the issue. they they lower and they put the price down to 40. downgrade to a sell around 49. they see room to the down side because they don't think the balance sheets are good enough to put that number where they think it is. >> coming up on the show, some of the market's biggest buyers about to disappear. bob pisani join us us next to explain the buy back blackout. plus the things experts are watching that could be missing. th

let's look at tesla, offering to buy solar city, and both of them essentially owned by eline musk.ew details are coming out on the iphone, it's going to look a lot like the old one with one perhaps big exemption and mark will talk about bad luck. well, forget about the jets, he's reportedly been the victim of a ponzi scheme and lost 8 million bucks. we've got it coming for you after the opening bell which is just minutes away. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for r an

in where tesla is going as an auto company and battery supplier with the giga factory, but in the note he said that you have done a complete turn here by saying that you want the buy solar city, and it does not mean that you are going to be building the cars better or more efficiently, and it does not help the auto business and he c cannot explain what it will do to help tesla in the long term financially, and you can make the argument that long term thee the ret cli for the company, but what adam jonas' note is to tell the bulls with tesla, you are out there for a while without a whole lot of support, because there is nobody on wall street who is looking at this and saying, yeah, this is making sense. >> thank you, phil. great for your insight there, on that, and i was looking forward to that phil lebeau in chicago. >> and the note, the risks outweigh outweighs the rational. that is from adam jonas, and the street is sort of weighing it, and a lot of people have been opining over to the last 24 hour, and we rewaiting for adam jonas to weigh in, and now we have it. >> i am surprised that the stock is up to $195 and wait for the lawsuits to start coming, and this is a textboo

by this one is wh people are telling me. it's just not a good call. >> tesla has lost more in market value than it would be paying to shareholders in solar city.another one at its lows is valiant, which we haven't mentioned in a few days. new low, downgraded. they downgrade vrx to neutral. they say some of the parts continue to support upside valuation. they lower their overall target to 35 from what had been 50, noting the drug they acquired when they did the deal, the -- it's not doing particularly well. they see earnings heavily weighted towards the second half of the year. >> yeah. the spoke points out jpm took an overweight from 12 to 250 and back to 21. now to the neutral today. >> that's not helpful. >> that's an ill-advised arc that i think most people would regard as suboptimal. the way i look at the valiant is that this is what i've been waiting for. i did a piece last week about it. i know the valiant people were that happy about it. a lot of times i don't want to do pieces because i want to please management. this is drug they paid a lot of money for. you've got allergen. i think people still held great hopes for the irritable bowe

by the way look at where the share price of solar city is trading. it is certainly not pricing in. i it is only trading about $22.50. what happens if the blowback, especially from tesla investors is big enough that musk has to walk away? >> he could do it. there is not a walk away price built in here to my to my knowledge. but they could walk away from this deal. in fact a lot of people are wondering is elon musk floating out this proposal here in order to say, okay, what's the best we can do to help out solar city? at the same time he does believe that tesla ultimately an energy company. that is clear from this proposal and the way they have been moving with the giga factory etc. while it makes the sense in terms of a business plan down the road, near term investors are saying this is not why i bought tesla. >> the one thing the two companies have in common is elon musk. exactly. thanks phil. >> tesla shares sliding lower through the day. little more than 10% right now. cnbc contribute are ser s -- contributors on their thoughts. bob, what do you think about where tesla is taking its business. >> i think people are finally beginning to figure it out. they have drunk

solar city forming a special committee to help evaluate the takeover bid from tesla. this is part of an effort to address conflicts of interest among directors in the two companies. tesla run byn musk, run by his cousin, tesla stock traded down when that was announced. legendary university of tennessee women's basketball coach pat summit has died at the age of 64. cheryl casone he with that and other headlines. cheryl: we learned about her death in the last few moments, the winningest coach in division i college basketball history, she retired after announcing in 2011 she was suffering early-onset alzheimer's. she was visited by family, friends and former players as a condition deteriorated. summit went eight national championships and helped women's basketball. business headlines, volkswagen has agreed to settle lawsuits resulting from its admission cheating scandal, the settlement expected to be announced today in washington including $10 billion in buybacks to owners of 575,000 vehicles under this deal volkswagen to get a repair buyback to pay each owner $10,000. a government watchdog has issued a troubling report on the department of veterans affairs. the government accou