a cluster of poles in an overgrown lot in the tesla plant. but soon, this is going to be one of the biggest signs in fremont. >> i think it is important for us to say, here is tesla. here they are in fremont and we are very proud of them. >> reporter: the sign will practically scream it with a rendering of a tesla convertible 40 feet tall and 200 feet wide. roughly the length of five school buses. >> i think it is cool. >> i don't mind. advertisement brings business. >> reporter: but others worry the sign will be a nuisance and a hazard. >> it will distract the drivers on the freeway. especially during the nighttime. >> reporter: fremont has strict regulations against billboards and signs are supposed to be no taller than 20 feet, but the mayor would like to see the planning commission make an exception for a company that has brought big jobs and economy to fremont. >> i want them to know they are in fremont and the tesla plant is here. >> reporter: the planning commission is expected to vote on the sign at a meeting tomorrow night. in fremon

mark. >> reporter: ken, at least five states are trying to rule tesla. they want that factory built on their home turf. in fact, some ground has already been broken on one potential site in nevada. >> with a gold shovel in hand, a california republican state senator gain walked into tesla head quarters in palo alto. his goal, to personally deliver the shovel and a letter to tesla's ceo to let him know california is serious about doing what it takes to land the factory. >> california is ready and willing to help out. >> gain has team up with senate president, a democrat to get an incentive package through the legislature to entice tesla to bring its battery plant to california in just the next three weeks before the legislature adjourns. >> we have an opportunity to create 6500 jobs in california, high paying jobs that are needed. >> time is of the essence because ground has already been broken at one site near reno. the kpix 5 political analyst melissa griffin, cane says california may have an uphill climb. >> nevada doesn't have a corporate income tax.

kpix 5's kiet do is live now at tesla's manufacturing plant in fremont to explain what the warning letter is all about. good morning, kiet. >> reporter: good morning. there is fierce competition among the five states to see who can offer the biggest subsidy, fastest approving and most tax savings. it's easy to see why california, arizona, nevada, new mexico and texas want the factory because it comes with 6,000 jobs. but tesla wants the winning state to pay at least 10% of the cost of the factory or half a billion dollars. the states have tried to sweeten their deals by offering financial incentives and promises of fast-tracking the permitting process. but several watchdog groups across the southwestern region have banded together to urge lawmakers to tap the brakes and work together. an open letter released this week says, quote, it is time to break the harmful pattern of one state's winning a high- profile competition. the main goal is the long- term growth of american jobs not any single state's ribbon-cutting. talk to each other. let the public into the process. strike a smarter deal

the battle for tesla's giga factory, pulling out all the stops to land it in his state. we have more "squawk on the street" live from post nine coming back right after this. a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. >>> july industrial production capacity out up four tenths on industrial production. we're expecting about that. last look was doubled from .2 to.4, and utilization rates, 7 preponderate 2

. >> i think both ford and tesla if you want beta. if you want rick, do tesla, through the option, when you look at the volatility have been absolutely crushed recently. >> that implied volatility has been almost cut in side. there is still paper coming in there every single day, mandy, even at these levels expecting more out of this name. when you look at revenue growth which absolutely dwarfs others in the industry there is excitement there. obviously, they have to make money. you can own ford for stability or tesla for the options for the big upside. >> a two fer. coming up, guys what to do with the nigerians on the -- najerians on the desk. >> ♪ ♪ drivers want to go further with their electrical vehicles. but you can't take a trip from lisbon to stockholm if you can't re-charge along the way. the green emotion project, funded by the european commission is using the ibm cloud to make this possible by creating a single charging and billing network across 28 countries. so drivers can travel as far as they want to go. take your bu

tesla and panasonic partnering on that project. at a site been broken in nevada but there is a chance the plan could be moved to another state. the l.a. dodgers are in first place, but if you live there, you may not know it because of a standoff between time warner cable and various pay-tv providers. that has resulted in games being blacked out. and memberschairman of congress are getting involved, urging an end to the standoff. a federal judge rules against microsoft in an e-mail privacy turn saying microsoft must over e-mails stored in a data center in ireland to federal investigators. microsoft is appealing saying that e-mails deserve the same privacy protection as letters sent in the mail. lead story, alibaba group is pouring millions into u.s. tech companies as it progressed to go public this year. the chinese e-commerce giant investedrted 120. -- $120 million in a san francisco videogame company, this as we hear about possible investments , lyft, cap, -- snapchat and now for more, we are joined n. da largeith us is editor at

up next, the battle to build tesla's factory. new details on where it may be built and how it could have a huge impact on tesla's business. >> this is "bloomberg west." i am jon erlichman. tesla motors has broken ground in nevada on a site for the highly anticipated giga- factory, but there are other states competing for the factory where it the carmaker plans to produce lithium-ion batterie i will turn over to cory johnson and alix steel. >> the news of the factory, discussed in the conference call yesterday, started up with a really weird sentence. tesla said they had "broken ground in a location that could be the site of a factory." breaking ground if it is not determined to be a site is a strange thing. the discussion is, do they have the capacity to build enough cars? can they get enough battery capacity if they don't have their own factory? is there enough lithium capacity? >> lithium is used in a lot of stuff. in batteries, your ipad, your computer, also in medication, like for bipolar medication. also used to make your ai

it won't be a moving electric sign but a static one with tesla name logo and product. threes needed special permission to build this sign because of its size which many on the planning commission tonight even suggested the sign be bigger. still the city and company goal is to unite the 2 entities. >> we employ 4000 people. we expect that to grow and really want to be a part and see ourselves as alaska part of your community. to do so, though, we need to advertise. >> it's not something that is going to be distracting or anything else. and as was mentioned by other commissioners we are proud to have the branding here in fremont. >>reporter: the manufacturing plant itself is 4.5 million square feet which is huge. the sign will be a fraction of that of course that's why so 1 from the city was worried that it would be too big. but rather that it would be more to scale. back live now threes hopes to have the scene up in a few months and definitely by the end of the year. live in fremont tonight lisa abc 7 news. >> thank you. >> google has unveiled a project used drone to de

it won't be a moving electric sign but a static one with tesla name logo and product. threes needed special permission to build this sign because of its size which many on the planning commission tonight even suggested the sign be bigger. still the city and company goal is to unite the 2 entities. >> we employ 4000 people. we expect that to grow and really want to be a part and see ourselves as alaska part of your community. to do so, though, we need to advertise. >> it's not something that is going to be distracting or anything else. and as was mentioned by other commissioners we are proud to have the branding here in fremont. >>reporter: the manufacturing plant itself is 4.5 million square feet which is huge. the sign will be a fraction of that of course that's why so 1 from the city was worried that it would be too big. but rather that it would be more to scale. back live now threes hopes to have the scene up in a few months and definitely by the end of the year. live in fremont tonight lisa abc 7 news. >> thank you. >> google has unveiled a project used drone to de

tesla, fet flicks. biotechs in spectacular an area where if you look a certain names, they have the growth that's exceptional. yet you don't pay a high multiple, gilead, a chart shows the four multiples much higher, get the same growth rate out of gilead than the others. >> you can see this reach for growth when you look at the sectors, for the month, can you see biotech outperforming a broader indices. alsoings gopro, mobileeye, at least having monster runs. >> as soon as august, all these growth funds kicked in. we mentioned growth sector stock peckingier. those too grow at a valuable surprise what you want. sometimes you have to do a little research. you don't have to pick the most known nooims names like tesla. you get names like a gilead out there that sort of had that forward looking p that suppress. other fames in technology are also doing well, net app, other names in biopharmaceutical, jazz pharmaceuticals. growth there with the pe multiple somewhat suppressed going out a couple months. >> how

what is the trade on tesla? >> if you're willing to take on risk, tesla is a great trade, but it's a trade i would only do through options. i don't want to be locked into the stock and suddenly watch it go down $20 one day when there is all of the sudden another news alert out there. we can continue to see upside buying in there. but if you want more stability, you stay with ford. >> stay with ford if you want stability. okay. the iphone 6 is expected to be released in just a few weeks. we're going show you the new photos of it just being leaked. and tell you why dt advanced technology is spiking on that news. >>> plus, investors are creeping back into high yield junk bonds. if you follow suit we have an epic street fight following your way. log on to cnbc.com/vote to tell us who you think is winning. yeah, you can take part in this as well. the live voting. make sure you join us. this billboard down? tae people find out state farm does car loans as well as they do insurance, our bank is through. good point. gra

tesla is boosting warranty coverage on its model s sedan. consumer reports highlighted problems with the car. tesla is extending the warnty to eight years and quote infinite miles. matching coverage on the battery pack. it's ri tro active for those produced since twelve. lack to you. >> thanks so much. >>> today is one of the days where you species a bit of legitimate -- experience a bit of jitters because it is the first day of school. mrs. christina now. >> the mrs. who can still appreciate recess. recess kids, when you're getting outdoors today. it's going to be comfortable for you and your little ones. one of the bay area weeks we are going to get the envy of the nation once again. i can tell you right now, temperatures here in the mid-80s at best down in socal. triple digits all week long. for us, just get spoiled. 59 in livermore to start. 59 for san martin and of 0 here in san jose. mostly clear, but we are going to see the low clouds come down throughout the first part of the morning, coastal drizzle getting that this morning along o

it won't be a moving electric sign but a static one with tesla name logo and product. threes needed special permission to build this sign because of its size which many on the planning commission tonight even suggested the sign be bigger. still the city and company goal is to unite the 2 entities. >> we employ 4000 people. we expect that to grow and really want to be a part and see ourselves as alaska part of your community. to do so, though, we need to advertise. >> it's not something that is going to be distracting or anything else. and as was mentioned by other commissioners we are proud to have the branding here in fremont. >>reporter: the manufacturing plant itselfis 4.5 million square feet which is huge. the sign will be a fraction of that of course that's why so 1 from the city was worried that it would be too big. but rather that it would be more to scale. back live now threes hopes to have the scene up in a few months and definitely by the end of the year. live in fremont tonight lisa abc 7 news. >> thank you. >> google has unveiled a project used drone to del

but tesla is also leaving the door open for other states to offer more incentives. industry experts believe the company should be looking at 300 to 600 million in tax breaks. >> the company wants state and local officials to compete to bribe them, to put it in blunt terms to bribe them to invest in a particular location. >> watchdog groups say most companies that get these big tax breaks don't really need them and would be better used for individuals or families in need. tax credits has exceed their tax liability then they sold the tax credits to a third party for a profit further reducing government's tax revenues. public officials are desperate to win these deals in the name of job are creation. a del computer plant in north carolina received more than $270 million in subsidies from state and local agencies. but dell later decided to shut it down and eliminated all the jobs created. evergreen solar plant in massachusetts is another example. the company received about $58 million from the state. then they shut down the facility and moved to china. in both cases sma

tesla is a fast-moving company that really engineers as they go along. they make changes on the fly and they have done updates to the air werewe over the you flash an update to the car. does not operate that way. they have obviously been an incredibly successful company, but they are really not a company known for being fast-moving. they are deliberate and careful and they make decisions for the long-term. the specific problems they have had were parts that the battery case, which toyota was not pleased with the intent to dust extent to which they felt the case would protect the battery vehicle.v4 tesla has had trouble with the model s battery. some high-profile fires and an investigation in the u.s. that really ended when tesla decided to beef up the protection of their batteries. stats betweenng the engineers that are particularly interesting now that we look at some of the problems that tesla has had with its model s, which otherwise has been incredibly successful. is there any chance these two companies have a future together ye? the plan from the be

. >>> coming up, a state senator with plans to ambush tesla ceo elon musk. why the senator plans to show with a symbolic gift. >> reporter: and i'm stephanie chuang live at golden gate bridge in san francisco, where just a minute ago the gates opened here for the outside lands music festival. what makes this year a record-breaking one, coming right up. overseas is about to get easier. nbc bay area's bob redell is live at san jose mineta airport with a sneak peek at some things meant to make international traveling a little easier for our friends. >> anyone who's traveled international knows it could be quite a hassle trying to get back into the united states. you've got to wait in those long lines at immigration to show your passport, to gain reentry. that's about to change here at norman mineta international airport in san jose. just moments ago, the local director of u.s. customs and border protection demonstrated to us and mayor chuck reed two new global entry kiosks, which allows you to skip those lines and gain entry to the u.s. in less than a minute, r

things like tesla and of course netflix. but biotech in particular is an area where if you look at certain names, they have the growth that's quite exceptional. and yet you don't pay very high multiples, something like gilead, for instance. we have a table here that shows some of the forward multiples that you'll see available in the market place. much higher, and yet you get the same growth rate out of a gilead than you do the others. >> and you can see this reach for growth, when you take a look at the sectors. for the month, you can take a look at the russell, for instance, as well as tech, as well as carter mentioned, biotech, outperforming the broader indices. then you take a look at individual names, as you mentioned, gopro. these names are just having monster runs. >> yeah, they certainly are. as soon as the market turned in august, all these growth names started kicking in. we managed a couple billion in our growth sector stock-picking area. and those names, too, all growth names, growth at a valuable price here is w

plus -- >> tesla. >> it rose to an all time high. we'll tell you why some traders say it's time to hit the breaks. and will bill cosby save netflix. it could take a streaming did i have into fast forward. we'll tell you how to play it. the action begins right now. >>> live from the nasdaq market site, i'm matty byrd. these are the traders in times square. hello. this is the big question for this week. do bond traders know something stock traders don't? the ten-year yield dropped to a 14-year low. who's right, safety takers or risk takers. dan, it seems like someone has to be wrong in this? >> that's a great way to put it. on the week if you look at the tlt, 20 year bond it was up 2%. we had the s&p up 1%, nasdaq up 1%. in the world we live in there was a bifurcation. we saw that when we had the taper tantrum last year. when equities came back, bonds continued to go down in the end of the year. there was a long period where people were going to say bonds and equities went up. here's the thing, we're 3 trillion dollars into the bond bu

a cluster of poles in an overgrown lot near the tesla plant. but pretty soon, this is going to be one of the biggest signs in fremont. >> i think it's important for us to say, here's tesla, here they are in fremont, and we're very proud of them. >> reporter: the sign will practically scream it, with a rendering of a tesla convertible splashed across an illuminated sign 40 feet tall and 200 feet wide, roughly the length of five school buses. >> i think it's good. >> i don't mind. advertisements, that brings business. >> reporter: but others worry the sign will be a nuisance and a hazard. >> it will distract the drivers when they're driving along the freeway, especially during the nighttime. >> reporter: fremont has strict regulations against billboards and signs are supposed to be no taller than 20 feet. but the mayor says he would like to see the planning commission make an exception for a company that's brought jobs and big business to fremont. >> we want people to know as they drive down 880 that they're in fremont and tesla is right here. >>

. >> tesla, grasso. >> tesla. >> can you do it? >> tesla. >> so tesla you are looking at 265 is that all time high for february so if you look at 2 zief, that's where you got to break through there's my voice. break through that level to be viable again i would say but you got to have the stomach for this one. i think model x will be a huge amount of tail wind for these guys. you got to look at tesla. i'm a lit afraid of this level here. >> tesla. >> groupon, 13%. >> we talked about it last night. dan nathan said basically this is worth their cash balance. it was a terrible quarter. i don't think it was 16% terrible as what we saw in the after market. it traded down 13%. there is no real reason to own it other than the huge volume day, maybe get a bounce in this name. that's how you play it. >> take two interactive down 6%. tim. >> fiscal first quarter. second quarter came in better than expected. they were 54 cents a year earlier. grand theft auto five which i know you guys all play every night. still doing very well. the problem

coming up next, planning a drive to the sierra, the spot where tesla is building a new super charging station. and a live look outside, another summer day coming to a close, meteorologist drew is up next with the forecast for the rest of the weekend and beyond. >> well, the giants three-game win streak came to a halt in d.c., while the a's and angels battle for the best record in bulldog: it's true! i am a bundle of talent! but my friends are learning skills that can change a life. that's why mattress discounters good deed dogs is raising money to help train dogs like suzie to engage students in schools and special education classes. while ginger visits folks in the hospital offering quietomfort. with your help, we can do even more! make a donation at mattressdiscountersdogs.com or any mattress discounters. mattress discounters good deed dogs helping dogs help people. >>> tesla motors is building super charging stations for the electric cars, this week the company confirmed a deal with a local utility company. super charging stations can charge a model's battery half way in 20 minutes

. >> that's just what tesla did this week. the shares wept to an all-time high. but we'll tell you why some traders say it is time to hit the brakes. >>> and will bill cosby save netflix? shares have been on the pause button this year. but a new strategy could take the giant into fast forward. we'll tell you how to play it. the action begins right now. >> indeed it does. live in the nasdaq market site, i'm mandy drury. hello. this is the big question for this week. do bond trader nose something the stock traders don't? stocks enjoyed their best tweets since april. the ten-year yield dropped to a 14-month low. who is right? the risk takers or the safety chasers? dan, i want to get to you first of all. it seems like someone has to be wrong in this. >> that's a great way to put it. listen, on the week, if you look at the tlt, which is the 20-year bond etf, it was up almost 2%. the nasdaq up 2%. in the world that we live in, we know over the last year that there was this bifurcation. we saw that when we had the taper tantrum last year. when equities came back, bonds

so i applaud tesla for this. it's the right thing to do. >> gary, talk about the strategy involved here, though. we've seen sites like facebook and others, services offer bounties to hackers to figure out crucial weaknesses in their system. if you're tesla, high stake here's. you don't want to create a market for people hacking these cars. so is that why they're doing an in-house employee instead of putting a bounty out there for people to try to hack the cars? >> well, you know, there's a variety of different ways that you can do this. i mean, either -- hackers are going to try to do this anyways. so why not bring them in-house. bring them in, provide them the platform to say, go figure out wham you could do and then let us make sure we're building the systems to prevent any type of hacks from doing anything to our vehicles. so i think it makes a lot of sense. i think their approach, could you do it either way. either pay a bounty or bring them in-house. in fact, i would recommend they try both. right jt because

i'm the cofounder and coo of tesla truck. unfortunately, most of our schools and communities don't have the necessary resources to keep up with the technology, but imagine the resources on wheels. that's tesla truck. a mobile maker space for the masses. whether you're a school that wants a year long program or you're someone that wants to be part of a robot making workshop, tesla truck is the perfect solution. imagine this. a park or a parking lot with a 17-foot box truck. with cutting edge tools like 3-d printers and laser prints buzzing. people, learning and creating and collaborating. that's the vision. we're asking for $325,000 for a 20% stake in the business. we're going to use this to build and furnish our first truck. we'll use it for marketing and for curriculum development. we expect to earn over $650,000 in our first year with only one truck. so tesla truck is penetrating this market that's virtually untouched. please join us. >> good job. congratulations, first of all, on winning that competition. that's amazing. w

tesla doesn't nominate the market here. if you look at the amount of plug-in vehicles as they have been invested, they have sold only 28,000 through july and the chevy fold has sold the most. >> the one thing people say about electric cars is where are you going to plug them in. expansion.eeing some we have over 8000 charging stations in the u.s., a lot more than china has. goal thatobama had a we would have a million electric cars on the road by 2015. about going to come in 300,000, 400,000. he has helped to invest about $5,000 in infrastructure and this is the kind of chicken or add to that we need depending on how you see it. >> matt miller, thank you so much. we will have the latest on world cocoa production. the country at the top of the list might surprise you. >> the former environment presidencyll win the against the incumbent court into a new poll out for you as you like. so for 45% of voters support in the second round. silver is running second in the first round 29 is versus 34%. 19% in the survey which has a mar

. >> are you still betting against tesla? >> i am. tesla is a challenge risk management. that's, that falls into your how do you deal with managing risk and you have to have tight stops, and really have humility. but when the art of short selling is paying attention to whether your thesis is playing out and ultimately capitalizing on that. we look at tesla, we see a company for the last two quarters all ultimately had to bring down numbers. pushed out expectations into the future taking down short-term expectations. the ultimate debate with tesla is, elon musk says it is a demand constrained market and we don't believe it. doesn't even make sense to us. when we look at demand constrained market, if it were demand constrained in the u.s., why is he launching new markets in europe? by is he going to china, the uk? why not satisfy all demand in the u.s.? then we look at core markets of the u.s. and europe, we actually see sales are down sequentially twol to for quarters. depending on the market. what demand for market has sales going down? that doesn't jive. then the last tw

plus, so so, that's what tesla did. shares rose to an all time high. we'll tell you why some traders say it is time to hit the brakes. will bill cosbicy netflix? a new strategy could take the streaming giant into fast forward. tweel you how to play it. the action begins right now. sitting in for melissa lee, hello, everybody. these are the traders in time's square. well, this is the big question for this week. do bond traders know something they don't? stocks enjoyed their best weeks until april. who is right, the risk takers or the safety chasers? let's get in on the money, it seems like someone can be wrong on this. >> the tlt 20 year bond is up 20%. in the year we live in over the last year, we know there was this bifurcation when we had this temper tantrum. bonds came down and there were times when the bonds went up. at some point something has to give. from where i'm sitting, something has to give. we will foe soon enough. >> for something to give, there has to be some sort of trigger, doesn't there? >> there is some global macroconcern maybe you

tesla shares are motoring higher. baron's is reporting that they're making positive comments about the electric carmaker saying suppliers are eager to work with tesla and are agreeing to its strict quality requirements. its analysts think it can hit 385 bucks a share within 12 to 18 months. those shares gaining steam, up 1.9%, kayla, in today's trade. back to you. >> $385 would be a big move, dom. thanks. >>> switzerland's roche agreeing to buy intermune for $8.3 billion in cash. it's sending shares of intermune soaring up nearly 36%. our meg terrell has two very special guests on the deal. we'll send it over to you, meg. >> kayla, thanks. let's bring our guests in, the ceos of both companies. both of you, thank you so much for joining us. >> thanks for having us. >> thank you. >> so dr. schwan, let's start with you. this is the biggest deal for roche since genentech in 2009. why does the deal make sense buying roche? >> i think the starting point is really the medicine which intermune has developed over the last year

costs about half as much as a tesla. that is why they are stronger there. the market is not as big. 20,500ve sold about green cars they say in the first half. in the u.s., through july, plug-inn hybrids -- electric cars, i should say. huge share of the electric-only market, but if you look at all of the green car sales in the u.s., tesla has sold about 30,000 units career through now in the u.s. >> right. >> of the model s, whereas the chevy volt has sold 65,000 and the spark has sold -- >> what is the is a structure like? do they have many charging stations? >> not nearly as many as we do. we have about 6000 here for public use. there are more for any use. china is not there yet. they're hoping this will affect -- the chicken and the egg argument is exactly what this is, they hoping it will spur the electric market and help it grow strongly. >> it is a bigger country to drive through. >> it is a large country, a very big place with so many people and great food. [laughter] you, matt miller. we are a few minutes away from the opening out. we have the top 10

stuart: i've picked facebook, tesla and amazon. what you are really saying and i think i am reading between the lines, you think google could do it all over again. stuart: absolutely. there are so many places and ways they could grow. i will tell you this right now. in the next ten years i think google will be more powerful than every government agency there is right now. more powerful than every single government agency there is. stuart: their model is due no evil. charles: i hope so. we can hold them to that. stuart: let's get back to reality. we are just conjecturing. a look at the stock market, up again. look at this. dow industrials up another -- 16,900. not too far short of an all-time record high, a couple hundred points the way. are you doing a lot of home repair? remodeling? if the answer is yes looking at the performance of home depot look at it go today. this is a very big company, big stock and it is data new high, $87.78, that is a 5% gain. good sales, excellent forecasts, up she goes. don't look now, the s&p 500 is up

what can nevada offer tesla? and none of the states will disclose specifics as the negotiations are still ongoing. we do have i an idea of the cards they may be playing. boast no corporate or personal income taxes, job training grants, it is a right to work state, and they have a proximity to the fremont plant. the governor and state legislature to now come back to tesla with an attractive incentives package. they expect the state selected to provide about 10% of the factories cost, which means that tesla is looking for $400 million to $500 million. great that is a huge ask. can the state the 40? -- can the states afford that much? >> texas and california may be more suited to answer that call. both of them have done -- every state is jockeying for this project, but perhaps no more than california. they have two pieces of legislation, one that has already been passed and one that .s pending texas governor rick perry also once this project -- wants this project. it really hope that the plant was there. that is som

tesla spokesperson said we appreciate senator gaines' interest in tesla and his support for the giga factory. i am mark sayer in palo alto kpix 5. >> the state legislature could consider tax, investment and hiring credits as part of any incentive packets to bring that giga factory here. >>> this just in. new video. dozens of people gathered in san francisco this evening to demonstrate against new u.s. air strikes against iraq. president obama approved the new bombardment, targeting the islamic extremist group isis. they say it brings more death and destruction. protest is still going on right now. here is the view from chopper 5 over the crowds. earlier today, bay area sere january americans rallied in support of the u.s. military action. they are asking the world to protect the asere januaries and the christians in that area. -- assyrians in the air. >>> palo alto police are investigating a sexual assault. a man walking his pit bull walked near the stanford campus. then, he touched a woman inappropriately. the victim took out her phone to call the police and the man ran away. >>> cr

"mad dash" for monday morning, tesla. >> tesla, a lot of things are happening with tesla. this is the second upgrade we've seen. this is recommendation changeded by deutsche bank saying, even steep growth trajectory leads up to upgrade to buy. talking about significant volume increases. a lot of people are betting against tesla, thinking the a great short of all time. compared to the market size of ford. talk about how many, ford makes more cars in the day than tesla. what they're saying is, this is a very, very -- going to be a very, very profitable company. a lot of intellectual shorts saying this call is just a farce. but in the meantime, tesla's breaking out the technicians love. i know that shouldn't matter. but they're talking about earnings estimates going so high, david that you're talking about 2016, making -- talking about 933, i mean $9? >> that's all because of production numbers which people see going through the roof. you've got huge bulls out there, dan bentton, huge holder there. momentum stock. >> yes. >> as long as numbers go up, one assume the stock may

six tesla charging bays have been delivered to truckee. somebody says stations provide the company's model "s" with a half charge in as little as 20 minutes and it i >>> coming up next, a dog and its owner caught on a cliff. rescue crews helped save them in a daring rescue. the video you have to see. >>> seeing low clouds out on the coast and some drizzle at times tonight. but just to the south, we have tropical storm lowell not bringing us rain for now but tossing big waves coming up out of the south. we'll talk more about the changes in the forecast and the marine report and heat in the seven-day when we come back. >>> i'm tony kovaleski. coming up after the newscast, we investigate, 30 minutes of investigative journalism. tonight, we expose critical safety issues on public transportation and the roads and hold the powerful accountable. >> should that happen at all ever? even if there are signals in between, should two trains be heading toward each other? >> no. >> is this an appropriate use of tax dollars? >> it is an appropriate public

two investors in tesla this will have moderately negative effect on tesla earnings in the short term as our warranty reserves will necessarily increase above current levels. rob, to me this is kind after joke. he says it is good forever or eight years whichever comes first. is it the warranty or is it that if you're driving a car you don't want to spend anytime sitting on the side of the road? what is your take on this. >> the thing with electric motor, there have electric motors in service since the '50s and running strong. there is a point advantages to electrics over gasoline engines and don't have pistons going backwards and forward at high speeds and don't get wear and failure with electrics. he is making a statement. electrics have negatives. charge charge infrastructure is not there yet so focusing on positive. melissa: rob, make it forever and forever. infinite miles an eight years. basically giving you a eight year warranty. >> to give people drive car longer. after eight years technology becomes obsolete in rest of the car. going longer than eight would be a problem. the ca

kiet do is live in tesla's manufacturing plant in fremont with details of that warning letter. good morning, kiet. >> reporter: good morning. those watchdog groups are calling this competition among the stays a race to the bottom with no clear winner. it's easy to see why california, nevada, arizona, new mexico and texas were all vying for this $5 billion gigafactory because it comes with 6,000 new manufacturing jobs. but tesla wants the winning state to pay at least 10% of the cost of the factory, or $500 million. they promise to fast track environmental permits and other financial incentives. several groups have banded together to urge lawmakers to tap the brakes. a letter says it is time to break the harmful pattern of one state winning a high- profile competition. the main goal is the long term growth of american jobs not any single state's ribbon cutting. talk to each other, let the public into the process. strike a smarter deal that will preserve the tax base for the benefit of all. here's carl with the silicon valley leadership group from earlier this summer. >> we have

tesla continues to deliver. what's your take? >> to keep these guys on track, they have a lot to work on. looking at 2017, 2018 earnings. to see them staying on track, improving margins is a material improvement and the investments they're making in the service side are going to serve them well over the long term. >> 70,000 vehicles by 2015? >> absolutely. the guidance they gave in terms of reaching 2,000 a week exiting 2015 would imply 100,000 vehicles per year. we think they're lowballing the numbers. they committed to producing 60,000. we were waffling in terms of not wanting to provide too much guidance. but ting those numbers can be robust. that would get us to about a $7 billion revenue number for next year. >> you ever worry that you're getting a little too bulled up a here, eventually when they deliver, there's going to be a multiple that makes sense on this stock? >> yeah. it's always a concern with the momentum stock that you're looking at growth and at the point that you cross over from a revenue growth multiple into a

mark, i am going to begin with you technically tesla not quite parabolic? >> i'm bullish on tesla. i think today's move is important. it should cause some further accelerations in the shares. i think it can get up to 280 with the possibility of 295, and actually 326. there's a couple different charts to support this view. you see that the stock is getting up above the levels from august, and this past february. a lot of people look at this and you see shore covering as well as the people who attempt to buy the breakouts. the volume is above average, which on a day like today, is important it still looks to go higher. >> a bit overbought, but still so much love. can it continue from the fundamental perspective, erin? >> it's up today, because there's news they're going to build about 400 charging stations in china. obviously one of the big impact across the entire world is that the reason why people don't buy tesla is because you're not sure exactly where you'll be able to charge them. currently it's trading at $30 above the "wall street journal" average price. most of wall street h

industry with a real return on our investment, that's always something we should be looking at. >> tesla is also leaving the door open for the other states to or more insentiz: according to u.s.a. today, industry experts believe the company could be looking for 300 million to $600 million until tax breaks. >> the problem is the companies also want state and local officials to compete to essentially bribe them. i mean to put it in blunt terms, to brake them to -- bribe them to invest in a particular location. >> watch doug groups say most large companies that get these tax breaks don't need them and they would be better used by individuals and families in need. >> there have been cases where companies receive tax credits exceeding their tax liability. then they sold the kreltsdz to a third party for a profit. further reducing government's tax revenues. public officials are desperate to win these rare big deals in the name of job creation. >> the result is often deals that offer benefits up front but don't require a company to stay for the long-term a dell computer plant received more than

a tesla suv? >> i think this well zero emissions, electric car craze, melissa, honestly i think it will go down like clear pepsi in the early 1990s. melissa: waitings. is, was there clear pepsi? >> it is great that they can produce a lower emissions car but why do we need a lower emissions car? environmental activists never justified that. i'm happy for the technology. it is going to be a sales flop. >> i think it is fine to have low emissions car but i don't think tesla will ever achieve scale particularly with batteries. batteries are very difficult to achieve economies of scale and make money when they cost so much. melissa: i will drive suv i admit on television even though now i will be target for environmentalists. the main thing you need it to run all the time. i have my kids and family. big problem with the tesla, it is on side of the road a lot of the time. they have to get over that hurdle, right? >> it doesn't charge very fast like first generation iphones. sit there to wait for the bat

you can thank tesla for the nasdaq. its shares are up 3%. linkedin in is up by 8% in the early going. back to you. >> thank you. enjoy your friday. >> reporter: you, too. >>> 6:47 now. let's check in with liza for a check on our traffic. very busy out there. >> it certainly has been. and it's still status quo for 580 in the livermore area where we have been reporting this accident that happened earlier this morning involving an overturned big rig. all westbound lanes are open but it is jam-packed out of tracy beyond the 205 interchange approaching vasco in the eastbound direction. two lanes still shut down as big rig tow trucks are on scene trying to clear up the trailer. expect delays there. also it's been a tough morning for san francisco's muni. now, they have restored service on the muni metro but expect delays on all underground lines and now we are getting word of a fallen tree. this is in the north beach area which has shut down columbus and green. so bus line number 41 will be rerouted and there are reporting delays. no problems for

but a tesla spokesman said today there is no final decision. the $5 billion factory will supply batteries for its electric cars. by 2020, the plant could employee 6500 people. california, texas, arizona, and new mexico are the other states in the running. >>> a dramatic change in california's drought emergency today going from extreme to exceptional. new numbers released today by the u.s. drought monitor shows the crisis spreading north. on your left, what it looked like last week. on your right, this week's map. you can see a drastic difference. 58% of california is now at the exceptional drought level. well, could they get tapped out? the historical drought may make breweries run dry. some are warning that production could drop as the dry weather extends into next year. nbc bay area's ian cull takes a sip. >> reporter: hops, barley malt. but water is essential. >> the future is the thing we have to worry about right now. >> reporter: gordon biersh says the lack of water can tweak the taste. >> we notice when the water supply gets lower, the h

covering the stock saying tesla is the most important car economy in t econo company in the world. and phil lebeau, welcome. adam, you first. nothing to be disappointed in this report about? >> it was a good report. i'd say they're kind of alignment of the telemetry of their ramp, the model s to the international markets, probably running about 20% higher than towards the end of this year and through next year. >> phil, your read here? >> the confidence you heard on the conference call. talking about production next year. they were careful not to make it sound as though, look, they were hedging bets saying we think we'll have full year deliveries above 60,000, but the production rate at the end of next year will be basically 1,925 vehicles per week, factor out 100,000 for the full year. they're at 800 right now. you could hear that confidence in elon musk talking about, yeah, i'm comfortable where we're headed and that the production, the deliveries next unique ultimately split 50/50 between the model x and model x. >> phil, heard you yesterdand m >> any commentary on the call abou

tesla, model as sales have matched analyst estimates. in may thatk warned tight supplies of lithium-ion batteries would weigh on deliveries. tesla is aiming to deliver more than 35,000 cars this year. going to carry on talking about cars now. the iconic italian carmaker, fiat, is leaving. investors are meeting today to seal the merger deal with chrysler. the company will move to the u.k. and list in new york. ryan has got the details. this is a pretty historic day. >> i was just wondering if tesla will last as long as fiat. 115 years. this is sort of the story of giovanni ,gianni and john. they take $400 and invest in setting up this first fiat factory. a buddy is in town talking about horseless carriages. he says, i want in on that. the next year, they have 35 employees. he runs the company to the end of world war ii. after a while, johnny takes over. the country'sinto largest manufacturer. >> the uncrowned king of italy. >> he was head of the senate as well. and then, john elkin comes in to the scene about 10 years ago. he is now 38 ye

. >>> the next big thing by tesla, it might be a massive highway sign on highway 880. how big of a sign? well, the length of a hockey rink. tonight fremont's planning commission met to discuss this plan and going in, there was very bill opposition. >> we want people to know when they drive down 880 that they're in fremont. and also that tesla is here in fremont, producing cars and employing over 4,000 people. >> the sign is actually a small part of an even larger plan to develop the area around that tesla plant. city leaders would eventually like to see a bart station nearby and a commuter village. >>> this might give you a better idea of the size of the proposed sign. it would equal fife school buses stretched end to end. it would be lit up and very visible on 880 at all hours. >>> a busy stretch of interstate 280 in san francisco is closed right now for seismic upgrades. caltrans has shut down the northbound lanes of the 280 extension for the entire holiday weekend. the closure is from the 101 interchange to the king street exit. the southbound lanes will remain open

look at tesla which is a winner. up over 5% at 260.67. positive comments echoed last week from pacific crest, those firms looking trajectory going forward for tesla motors, production of vehicles, amount of vehicles they put out over next couple of years. 60,000 and 100,000 respectively for 2015 and 2016. those are gains of 18% and 67%. that is more than they expected. don't forget the gigafactory producing the batteries, lithium-ion batteries. that is big deal for tesla. buy rating and 310 price target from deutsche bank. melissa: nicole, thank you so much. iraq on the brink. the crisis there reaching a boiling point. listen how the u.s. is most likely in for the long haul. >>> the surprised state where it is hardest to get work. why many might want to consider crossing state lines to get a job. ♪ (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt sc

finally look at tesla, also rallying ar settling a patent dispute over the tesla trademark in china. the automaker free to expand in the world's largest auto market. tesla shares on that news, carl, up nearly 4%. >> nice gain. actually not up that much at the open. a nice improvement during the course of the day. >>> when we come back a look at the all-new foursquare, dennis crowley, ceo, joins us later in the hour. >>> plus shares of groupon plunging and trading. what's wrong with the company and others in that sector, and are we close to the holy grail of energy storage? behind research that claims battery life could be tripled in as early as three years. >>> "squawk alley"'s back in a minute. honey, we need to talk. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan, insur

it's all part of his push to have tesla build a giga factory. the competition includes several other states including nevada. right now gains is working on a bipartisan bill. it would provide tax incentives for tesla to build their plant here. >> we're hoping this would be a good first step for additional employment in california. >> supporters say the factory will return in a $5 billion investment and 6,500 new jobs. >>> temperatures for your friday were just about where they were supposed to be for this time of year in terms of average. these numbers about what you would expect within a degree or two. the antioch got to 95. that was one of the warm spots. concord was 90. highs tomorrow are going to be a little cooler than these with numbers mostly in the 70s and low 80s. we're going to drop about 5 degrees tomorrow. here's the live imagery. the high clouds over head i think the real story right now is there's no fog along the coast. it will come back though. we did the same thing last night for a time. we got a pretty good north gradient. the

number six, tesla -- consumer tesla. -- number seven, consumer reports says the model exhibiting minor flaws including the front hood, the door handles popping out when you are nearing them. if they do not pop out, what you do watch my >> you do not get in the car -- would you do? >> you do not get in them. >> number six, a software maker forecasting forecast below estimates -- the company that makes the software that runs the its feature reported seventh quarterly loss in a row. #, hertz global holdings -- they delayed publishing results because they were not ready in time. they said they are still viewing financial records from the past three years. >> number four is caesars entertainment -- the casino giant feeling the burn from atlantic city troubles. they added that no qualified bidders have emerged for its bankrupt hoppity in atlantic city. you -- property in atlantic city. you and i were talking about that. >> i spoke to one analyst who said as more casinos close, that could potentially be good for those that remain. >> but who is going? >> there are still some people going, jus

stuart: michael, tesla, the model. is, it has more than its share of problems according to "consumer reports." would you buy tesla's stock now? >> yes, i do. i own it myself. i would buy it now. i'm in it for the long haul. they're gearing up for the gigafactory to produce 500,000 vehicles. they will put supercharger stations throughout europe. they have models to move into china. china is the huge car market. the biggest car market in the world. this is well-run company. they will drive their costs down substantially next three to five years as they gear up production. so yes, i will be in it for the long haul. stuart: we hear you. liz, the family of the woman who inspired aunt gem mime ma, the heirs, want two billion dollars in royalties. tell me the story. >> quaker oats, the pepsi co, pinnacle, lawsuit of great grandchildren who inspired, aunt jemima. discovered in the new york state fair in the '30s much the grounds the grandchildren, they have a death certificate that they say lists quaker oats as their great-gra