what does that mean for tesla because some might say the model 3 could revolutionize ev, but tesla may not be the beneficiary of that. well, they're a light year ahead and a distance ahead of the competitors. volvo says they're going to do ev doesn't mean anything they've got so much work to do >> they're a niche player. how about mercedes, audi, bmw gm all the other automakers >> that's a labor they have to deal with. they have this legacy supply chain that's been a gravy train for them the battery is a third piece, so tesla is is ewe neeblgly positioned to capitalize on this chip and i want to emphasize that the shift isn't just to ev. it's to autonomy elon musk has said every car that sold today with a free software upgrade will be b fully autonomous in two to three years. it's hard to believe, but compare that 13% differential in cost between a toyota camry and a car that will be electric and autonomous in two to three years. i think it's a no brainer. this car has the potential to really ignite the shift away from traditional auto to this new paradigm >> meaning it's 13% more cost

every month that ticks by is at tesla's this advantage. -- tesla's disadvantage. caroline: elon remains number one shareholder in tesla. he's got more than 20% of the company. he's clearly got skin in the game. do the investor base, those sitting around in silicon valley, worry about the fact that he has so many other distractions, looking at spacex one day, looking at another the next? ashlee: i think people worry about this, but, if we've seen anything over time, it's that the companies seem to be getting better at delivering on all the things that elon promises. he seems to have much more credibility than he did, say, eight years ago when the companies were really struggling. you look at this guy and you're like, there's no way he can possibly do all this stuff, yet he actually seems to be getting better at it. spacex has really hit its stride. if tesla can get the model 3 out, it buys elon a lot of cred and it would be a remarkable achievement. caroline: that was "bloomberg technology's" ashlee vance. staying with vehicles, all of volvo's new models will have

. >> tesla is up here. number one performing stock bar none you take profits or go short. >> just shorting the stock, that could leave your portfolio looking worse than this. so to make a bearish bet, mike sold the july 375 strike call for $18.40, now to keep all of that money, mike needs tesla shares to stay below that call's $375 strike price. above $375 profits will trail off. but mike won't see losses until tesla rises above the strike price by more than the cost of the trade or above $393.40 by july expiration. >> say an open road helps you think about where you've been, where you're going >> but there's a tradeoff. above 393.40, mike could still see infinite losses. so to limit his risk, mike bought the july 395 strike call for $10.40 and created his bear call spread. between the 18.40 he collected by selling the lower strike call and the 10.40 he spent buying the higher strike call, he still gets to pocket $8. that $8 is the most he can make on the trade but in order to see profits, mike needs tesla

. >> my fellow americans, our long national nightmare is over >> that's what tesla investors are hoping will happen, but there's something in the chart that suggests there's more pain to come. we'll break it down. >>> plus -- gold is getting crushed, but there's another precious metal that looks worse. we'll give you the setup. >>> and the options market is expecting one of these names to break out when it reports earnings next week we'll tell you which one the "options action" begins right now. >> let's get to it because it has been a wild week for technology stocks. the nasdaq 100 alternating each day between 1% selloffs and 1% rallies only to end the week higher by just a hair. could this be painting the picture for more volatility to come is that a good thing to come let's get in the money mike, what do you think? >> the first thing i would say, generally speaking when volatility is very low, that's a good sign fourth market. when you see the vix sub 11, sub 10, generally the next 30 days are rosie when you he start to see volatility tick up, you have more cause for concern we have

shares had gone too far too fast >> tesla is up here. at this point, you think profits. but just shorting the stock, that could lead your portfolio looking worse than this. mike sold the 375 strike call for $18.40 now to keep that money, mike needs tesla shares to stay below that call's $375 strike price. about 375, profits will trail off a. but mike won't see losses. until tesla rises up the strike by more than the cost of the trade or above $393.40 by july expiration >> they say an open road helps you think. about where you've been. where you're going >> but there's a trade off and above 393.40, mike could still see loss, so to limit his risk, mike bought the july 395 strike call for $10.40 and create d hi bear call spread now, between the 1840 he elected by selling the lower strike call and the 140 mike still gets to buy $8 it's the he can make on the trade. but in order to see profits, mike needs tesla shares to stay below $383 by july expiration. above 383, losses do kick in but unlimited to the difference between the strike of the

tesla's drop,i giving one short sell egg to talk at. viewers remember left did decline in valiant stock he's had some good calls in the past always great to get yur per speckive >> nice b to be here >> where are you on this trade i'm imagining you're losing money. one year ago after the solarcity, which was a silly acquisition totally. that stock was about $205. the fact the stock is down 7% right now to the 320s and we're discussing is it a good investment or not, it's amazing that it got here in the first place. i reshorted the stock on the 350 range and sold more right into the close today. when ever people discuss this as a car company, it's a good thing. ironically, i just heard your conversation and you were saying is it a car xacompany or alternative energy company that's worse than the car business look at first solar even alternative energy company has not proven this to be disruptive this is a complete shifting. >> they're not modeling it over current as a transformational way of storing energy, of getting energy >> but haven'

while tesla's sales shifted down a gear. first, a massive deal in the digital payments ace -- payment space. this comes after j.p. morgan showed interest, but ultimately backed away from the takeover offer. they hope to gain greater exposure to e-commerce retailers and small businesses through the acquisition. for more, we are joined by bloomberg's editor at large, cory johnson. with me for the hour as guest host is martin mignot. now, i want to kick off with cory first. give us the background of this deal. big exposure to e-commerce, smallr exposure to business. cory: why is it based out of cincinnati for a global payments business? it is a spinoff from fifth third bank, which tells you the history of this business of payment transactions. with the way this business works, when you go into a store and you use your credit card, the credit -- they find out if you have the money in your account and come back and approve the credit or not, but there are a number of steps that happen behind the scene. that takes a different chun

caroline: coming up, analysts was concern about the tesla x cars.and model what the tesla have to say about the model 3? this is bloomberg. ♪ ♪ caroline: tesla stock fell back this week. analysts have growing concerns of the committee reported deliveries flatlining in the second quarter. goldman sachs issued notes saying the demand for the company's higher-priced model s sedan and model x might hit a plateau. we started off by asking how important the company's upcoming model 3 will be for investors. >> we can look at the s and x sales, but the model3 is this make or break product for tesla. over the weekend we heard from elon they will ship about 30 model 3's this month. the good news is the car is arriving much earlier than tesla products tend to arrive. it is almost on-time. the bad news, of course, they are talking about hand making 30 cars and this is definitely not mass production like we're used to seeing from other automakers. but over the next year to two years it is how the model 3 sells doubled if i tesla. if you are an investor, deliberate the share price makes any sen

an electric mood at the tesla plant. as elon musk showed a model three actually driving then let others take the we'll. the first 30 model three owners were given the keys to the new electric cars. it's an early but important step for tesla when it comes to the model 3 which the company says got more than 400,000 orders since it was revealed last april. >> to give you a sense if you order a model three now you'll probably get it towards the end of next year bau because the s and the x and are in production if you order them now you can get them in one or two months. >> this will show the borld that this is possible. >> the car is also being closely watched by companies like silicon valley charge point which makes electric car charge zbleers first of all it helps obviously drive demand for products on services but we are actually encouraged by this. and accelerating the transition to electric transportation. >> tesla has a lot riding on its low priced entry. it has to deliver a lot of cars to turn a profit. it's now deliv

glucerna. >> quijano: tesla delivered its first model 3 electric cars last night. it's already a hot seller and c.e.o. elon musk admits it won't be easy to meet mass-production demands. here's john blackstone. >> reporter: with fanfare fit for a rock star, tesla launched its model 3. ( cheers ) c.e.o. elon musk's ambition is making this the electric car for the mass market. >> we're going to do everything we possibly can to get you the car as soon as possible. >> right now, the model 3 is pretty much everything to tesla. this is the car they have to get right to ensure that their business continues. >> reporter: the model 3 costs around $35,000 with an all-electric range of more than 200 miles. tesla's previous models start at nearly $70,000. has there even been a car salesman like elon musk? >> elon musk i think is beyond a car salesman. he's more like a hero for a lot of folks and i think the opportunity to buy a car from his company, being part of his movement is attractive to a lot of people. >> reporter: so attractive that since the model 3 was unveiled in mar

look at a tesla, say to yourself the same thing, if you're expecting tesla to gain 100% of the electric car market, you guy the stock. i look at the valuation and say it's very momentum driven, talk about the fact the institution the shareholder base loves it. i don't know if i believe that right now. i think there are some questions. >> i'd lean more toward -- >> a huge bull. >> huge bull he was talking about, hey, this is a software company that sells hardware oh, by the way, they have the giga factory on the other side as well. there's a lot of different things what do you put a value on right now? in what point in time? the one disagreement i have with you, dan, tim brought this up, too, the model l 3, the deliveries that's if you still think this is still a car company that is huge -- monstrously important. >> yeah. >> i don't think it's just a car company. so for that reason, however they end up delivering these, everybody will monitor that, i still think it's more important to look underneath to see if it's a software company, energy company. >> i don't disagree withny of that wh

isn't that like tesla? >> i think it's a lot like tesla. how do you trade the stocks in earnings this coming wednesday that's the question everybody wants to know. obviously have no idea what they're going to report. i do think there's a chance you could revisit the 285 level that we saw 2014, 2015, those were the old previous highs this stock is down 17% give or take off the all-time high a couple months ago. i think if it gets down there, buy it with both hands. >>> still ahead, commodity is gone copper, oil, gold surging in the last week. dennis gartman says one is autbo to explode we'll tell you what has him so bullish. much more "fast money" right after this when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power

tesla has struggled with manufacturing for years. if we know anything, the shipment numbers almost definitely will come in under what the company is having is us think about. with the share price this can be -- cannot be based on a six-month thing, how many model 3 do they ship through the end of the year. it's a one-year, two-year story if the company can make these cars efficiently. make them at high quality. then let's have a story that gets very good. if they struggle over a long period of time, it is a huge issue. all the competitors are coming with electric cars. their quality is very high. every month that takes by is -- ticks by is tesla's disadvantage. it is a two-year story we are looking at. caroline: elon remains the number one shareholder. he has more than 20% of the company. he has got skin in the game. do the investor base ever worry about the fact he has got so many other distractions looking at spacex one day? how much should they consider he can remain so focused? ashlee: i think people worry about this. if we have

they are tesla employees. ceo elon musk said the idea is to have them look for kinks that might be in the car. >> we have the first production cars here being charged right there. >> reporter: tesla's ceo elon musk has sent the first model 3 owners into the world. >> let's head out with some cars. >> reporter: one galuh attendee shared these photos with us. the model 3 can make it about 220 miles on one charge, and it has the lowest price tag of all of the tells laws starting at $35,000. owners of the s and x models welcome it to the family. >> model 3, it serves its purpose for getting people involved with evs who may not otherwise be able to. >> embracing that kind of technology in more of a mass production can only be good for us as a country. >> reporter: tech analyst larry maggett said tesla options like autopilot are impressive at the low price point but might not be enough. >> it is one thing to have a great car. it is another thing to be able to actually manufacture them, deliver them and make a profit

principlee underlying behind tesla and spacex. that, i think it is important we accelerate the transition to sustainable generation and consumption of energy. it matters if it happen sooner or later. spacex is about making life multi-planetary, and doing what we can to continue the dream of apollo. ultimately, may contribution to life becoming multi-planetary. whacks let's talk more about that. -- >> let's talk about that. that is exciting. elon: it is exciting. >> what is your vision? elon: particularly for americans, america is a nation of explorers. people came here from other parts of the world's, they chose to gave up the known in favor of the unknown. statestion, the united is a distillation of the human .pirit of exploration that is why it appeals to americans so much. you can see this with the shuttle tragedy. several people died. that is terrible. but people die all the time. why do we care so much? it was the degree of exploration dying with those people. that is why. >> i'm one of those that remember exactly where you w

let's talk firstly about tesla. tesla says its much—hyped model 3 will be ready for sale at the end of this week — that's ahead of schedule. the reason for the hype is that it costs $35,000 — much cheaper than tesla's other models. another big move into the mainstream for electric cars. samira hussain is in new york. this is a major play from tesla to make itself a mass—market producer? exactly. this is very much a height version of its tesla electric vehicles. —— hyped. it wasjust a few years ago that people could put down a $1000 refund double deposit to get their hands on the model three. they were overwhelmed with interest. $35,000. if you buy it here in the us, you get a credit because it is an allegory vehicle and the price tag comes to $20,000. it is set in a very affordable, especially compared to some of the other models and suvs. the downside is that tesla does not have any experience in mass producing cars. if you look at the model x, it was 18 months behind in terms of production. there are w

tesla's previous models star nearly $70,000. has there even been a car salesman like elon musk? >> elon musk i think is beyond a car salesman. he's more like a hero for a lot of folks and i think the opportunity to buy a car from his company, being part of his movement is attractive to a lot of people. >> reporter: so attractive that since the model 3 was unveiled in march last year, more than 400,000 people have put down $1,000 each to get on the waiting list to buy one. to satisfy all those orders, musk says tesla will build 500,000 cars a year by the end of 2018. but in all of 2016, tesla built fewer than 90,000 cars. >> some of the production targets are pretty ambitious. you know, people have doubted tesla before, but the fact that they are, you know, rolling cars off that people are going to drive, you know, says a lot. >> those are actual owners getting actual production cars. >> reporter: electric cars may be quiet, but tesla nt generate plenty of buzz. john blackstone, cbs news, san francisco. >> quijano: up next, they'

tesla is going to offer what kind of products to the corporation? >> sure. the biggest thing is a utility scale battery where you can put a batfully and there's several different use cases throughout, in a california, toe renewables or for back-up power for walmart or a target, and this is something that people think that business is not worth anything and we highlighted it when we said tesla was the best pick for the year, we highlighted that business and that will become more apparent as we move on. right now it's all about the model three. like phil said, hitting that 500 per week in december right now >> ben, at what point do you worry about elon musk being diverted to other parts of his businesses and away from tesla? you know, the space x, ready to have that launch over the weekend. he has that tunnel he's building, yeah, in los angeles i mean, he's got a lot on his plate right now, obviously >> yeah. you know, i think key man risk is probably the biggest risk out there. i mean, a lot of investors are investing elon and his vision for tesla and ride sh

. >>> today is the the tesla's model three moves off the assembly line. coming up, when the owners will bid -- be getting the new cars. >>> a wildfire has grown to nearly 2000 acres. there are evacuation orders. the fire tested about 30% contained. on valley road it remains closed to traffic. fire says they are making progress that speak to rain of preventing. >> all i there is no word on what caused the fire. >> people lucky to be alive after the plane lost power. he heard the engines better and saw a cloud of dust not far from the neighborhood with no time to reach the freeway to land the pilot took quick action to avoid homes. mother say he is lucky that is a five, his reaction was one of a seasoned veteran pilot and suffered only a few cuts and bruises. >> this is what i have to do. >> the ntsb is taking over the investigation and will try to find out what caused the plane to lose power. today is the day the first cars come off the assembly line. when the first owners will see their new cars. >> they were in danger and we did our job. >> some people s

they are tesla employees. ceo elon musk said the idea is to have them look for kinks that might be in the car. >> we have the first production cars here being charged right there. >> reporter: tesla's ceo elon musk has sent the first model 3 owners into the world. >> let's head out with some cars. >> reporter: one galuh attendee shared these photos with us. the model 3 can make it about 220 miles on one charge, and it has the lowest price tag of all of the tells laws starting at $35,000. owners of the s and x models welcome it to the family. >> model 3, it serves its purpose for getting people involved with evs who may not otherwise be able to. >> embracing that kind of technology in more of a mass production can only be good for us as a country. >> reporter: tech analyst larry maggett said tesla options like autopilot are impressive at the low price point but might not be enough. >> it is one thing to have a great car. it is another thing to be able to actually manufacture them, deliver them and make a profit

from spacex to tesla, we are sticking with elon musk. he announced the highly anticipated model three will officially begin production on friday after passing requirements two weeks ahead of schedule. the beginning of the rapid ramp up, with tesla expected to make 500,000 vehicles in 2018 and one million in 2020 as it pushes into the mainstream. we are now joined by dana hull, a bloomberg news reporter who covers tesla. first of all, talk to us about this announcement. how crucial is it? we knew model threes were meant to be rolling off by july, is this sooner than we thought? dana: slightly sooner. what elon musk said is that the very first vehicle should be rolling off the production line this friday, and that there will be a handover event on july 28 to the 30 customers. good news for customers, investors, and fans eagerly awaiting details of what july would hold. caroline: i'm looking at the bloomberg chart. quite amazing how much we continue to see a ramp up in market capitalization of tesla versus the likes of gm and ford who had t

so, interesting moves on tesla shares? tesla shares have fallen 1596 since late june, when shares? tesla shares have fallen 1596 since latejune, when they hit those heights. lots of commentary around the market values of the brands tesla was working with before. volvo are going all electric from 2019. as opposed to an internal engine. what does this mean for the future of electric cars per se? it was just the domain of hazlitt for so long, and now there is lots of competition. that's right, elon musk was a soothsayer in that respect, investing a lot of money into the business. tesla only delivered 76,000 cars last year. volvo delivered over half a million cars. so clearly, the big boys are getting involved in this and that takes the sheen off tesla's approach somewhat. goldman are downgrading their price on tesla yesterday. that is meaningless given that tesla's share price last night was still $327. looking at market around the world, investors seem to be waiting for this data from the us on jobs which are due out on friday. but also those mixed messages from the fed about the pac

tesla shares are slumping. we will look at how much trouble that is headed in the model three release. >>> apple, alphabeting with all underperforming, you know that coming up, we're going to debate whether now is the time to buy those laggards or if more selling is on the horizon. we to want hear from you you can contact the show via twitter, facebook, send us the e-mail sissorwibcfit g cn, rsin bune wldde >>> no follow through. the big rally we saw on monday, unless you count the nasdaq, it's up 36 points, the dow struggling to remain positive. the s&p's up about 3 and the russell is down nine points at this hour. and autoparts retailers are getting hit hard today just look at o'reilly automotive it's on pace for it's worst day in history, down 18% right now company reported a miss on second quarter same store sales. rising only 1.7% compared to guidance of three to five percent growth companies cites head winds from a mild winter and overall weak consumer demand for that miss. it's taking other companies wit

tesla has pinned its future on the long-awaited model 3. at $35,000, it's the first car that tesla plans to mass- produce. the goal is to deliver 1 million model 3's over the next three years. earlier yesterday, a tech reporter from the wall street journal told us who those first 30 owners will be. >> he has not identified them yet but he has previously said the first customers will be tesla employees who put their orders in. he wants to test those early editions of the model 3 with people that work for him so they can work out those final bugs. >> elon musk is expected to outline his grand vision for the future of tesla. >>> a new app could help you see next month's solar eclipse in the palm of your hand. here is more on nasa's citizen science project. >> reporter: nasa has launched its newest app aim to inspire citizen scientist to share their experiences during the upcoming coast-to-coast solar eclipse. >> is going to be a spectacular event in many ways. you want to look all around at the ways the atmosphere is changing this is one way y

>> the earnings are not the main event. >> tesla's the main event. >> there you go. >> tesla >> for sure. >> i think we got through an entire show without saying f.a.n.g. and i appreciate -- >> i said "f.a.n.g.. >> you did >> yeah. >> never mind, then. you ruined my weekend. safe travels home, buddy our time is up we'll see you next weekend at 5:30 p.m "mad money" with jim cramer starts right now (female announcer) the following is a paid presentation for crepe erase, the number one anti-aging body treatment system for crepey skin! (male announcer) that can deliver stunning results on your arms, your legs, your hands, your chest, and even your neck! (female announcer) featuring legendary actress and crepe erase success story, jane seymour! (soft music) crepey skin makes me feel...old. (cindy) i am really sick of looking down and wondering what happened to me. (belinda) i feel like i'm missing out on life because of my skin.

tesla is not a good stuff. i think that's the ultimate question, i believe -- i think people generally want electric cars and tesla's several years ahead of the pact. >> rob, thanks appreciate it. >>> president trump is stopping ahead of the g-summit. after north korea's latest missile test >> we must confront the threat from north korea it is a threat and we'll confront it very strongly. the president and i pulling all nations to confront this global threat and publicly demonstrate to north korea that there are consequences for their very, very bad behavior. >> this comes up after yesterday's united nation where nikki haley made this comment. >> the united states is prepared to use full range of our capabilities to defend ourselves and allies one of our capabilities lies with our military forces we'll use them if we must. we prefer not to have to go in that direction >> joining us now, doug, good to have you here, you were just in pyongyang three weeks ago. what do you make of comments from nikki haley and the

tesla being one of them. that he's only down 2.3% is miraculous it says something about because he's getting slaughtered in these shorts i know the market up, but that's impressi impressive >> doing some heavy work if he gets any turn from the shorts that start to turn any type of profit babablility for , he's going to have an incredible year zpl it's been impossible to short tesla. >> if you were quick, you could have done okay i'm still in the belief that we can argue about this, all the arguments we've made 100 times i think the core holders of this stock are in it for the when i say long haul, long haul $80 for sell it north of 5, not suggest i suggesting >> the two recent pieces around tesla give more ammunition to a building case. thank goodness, i have not been short, i've been negative on the stock. the news from volvo isn't shocking the battery costs are getting back to a place. that is where tesla and the bulls will say it's all about the battery. all about abothe broader stuff. you're getting to pl

the view from sky drone 5 shows just how massive the tesla plant really is. the city has approved the company's plan to nearly double the factory square footage, to more than 10 million square feet. and they will need every bit as they ramp up aggressive production schedule fored model 3. elon musk went on a tweet storm saying model 3 passed all requirements for production two weeks ahead of skej. hand-over party-- schedule. hand over party. august should be a hundred cars, september, above 1500. looks like we can reach 20,000 model 3 cars per month in december. fremont is now poised to become the manufacturing capitol of the bay area. >> are you ready for that attention? >> i am certainly ready and happy to see that fremont is getting recognition. >> reporter: fremont mayor, lilly may, is working full time hours, even though the mayor's job is officially only part time position, he says the sit seworking on various ways to support the growth, one of which is to approve the flow of traffic so tesla delivery trucks can get in and out more easily as tesla gets

the model 3 is tesla's first mass market electric car, and the cheapest tesla to date with a starting price of $35,000. the range? 215 miles on a charge. it goes 0 to 60 in six seconds, and comes fully equipped with cameras and sensors for self- driving, though the auto pilot activation costs more. >> and you can preorder a model 3 today, but you may have to wait until the end of 2018 to actually get the car. >>> and coming up, a woman attacked by her own pet snake. her desperate 911 call with a boa coiled around her face. >>> and the police vehicle that could be harming officers. the concerns over carbon monoxide leaks. >> and the forecast coming up in a minute. changes are on the way, you may or may not like them. care act... admit it still needs some work >>> health care concerns. bay area protesters fighting to keep the affordable care act admit it still needs some work as congress continues to sort through the health care controversy. jackie ward shows us people all over the bay area are rallying to protect the affordable care act. >> reporter: at this rally in walnut creek, heal

. >>> plus, is tesla about to ge its groove back? the chart master who called for the pullback now says it's time to buy and after you see his charts, you might be buying, too. >>> and later, blue apron making a comeback today after a tough debut week following its ipo, but if history is any indication, you might want to sell. >>> first, we start with the wrath of amazon, prime day kicking off in four hours. the kpaeccompany has been takino prisoners especially in retail spice as it continues to dominate retail stocks feeling the heat, sinking 2% today, hitting their lowest levels in three weeks amazon announced its own version of the geek squad, costco falling after a downgrade from bmo, says sales aren't enough to combat the amazon effect walmart under pressure and the department stores like macy's, well, they're department stores like macy's. you look at costco, look at best buy, if you are a value investor, guy adami, do you nibble on any of the names that got smacked around and banged up today? in absolutely great having you the

the model s is not safe but argues tesla needs to make improvements tesla is defending its safety record >> i can't tell if this is a big deal tesla usually gets high marks for safety >> it's a big enough deal and comes at a time when sentiment towards tesla is being tested. >> yesterday was rough >> and people feeling it was an underwhelming announcement about the model 3. >> some analysts warn being delivering those model 3s as promised on time >>> third time is a charm for xs x. his space company successfully launched a falcon 9 rocket last night after two previous launches were scrubbed in the final seconds. it is the third successful launch for spacex in the last few days it is delivering a satellite weighing 13,000 pounds. >>> the fed has posted the living wills of eight of the largest u.s. banks detailing how they could be dissolved in a crisis regulators are giving aig and prudential financial more time to submit plans extending the deadline by another year from the end of 2017. the extension will allow the companies to include guidance regulators may have on the plans. >>> the m

to tesla, we are sticking with elon musk. model -- announced the three will begin production on friday passing requirements two weeks ahead of schedule. the beginning of the ramp up where tesla expect to make 500,000 vehicles in 2018 and one million in 2020 as it pushes into the mainstream. now joined by dana, a bloomberg news reporter who covers tesla. first of all, talk to us about this announcement. model threes were meant to be rolling off by july, is this sooner than we thought? dana: slightly sooner. what he said in the tweet last night was that the first vehicle should be rolling up their production line this friday. there will be a handover event on july 28 for the first 30 customers. that is good news for customers, investors, and the many fans have been eagerly awaiting details of what july would hold. caroline: i'm looking at the bloomberg chart. quite amazing how much we continue to see a ramp up in mac -- market apple is nation versus gm and ford who had their numbers out today for june sales. he $7t out at that

i just look at what tesla is doing. wonder, when we see them launching rockets, it's about bee kind of satellite to able to control space and therefore the eco system of this. give us your sense on the importance of the eco system the technologyt underlying it. >> well, i think you bring up a point. it is about the ecosystem. it's about the machine, the software. it's about the charging infrastructure. it's about the megafleet maintenance, keeping the car safe and clean. about aspects of bandwidth that might extend possiblye car, including satellite transport as you mentioned. adjacents there are sis between what spacex is doing doing. we've asked elon musk about that, about is there any rational-- you found between solar and your auto business. theabout the satellite or space business and the auto business? he wasn't drawn out on that. the rightk you've got idea with the way you're thinking. one thing. it's the collective ecosystem that's important. that's within one company. wonder, for other companies, that may not h

brent: tesla is having a bad week. shares down more than 13%, as lower-than-expected production and increased competition put the brakes on the u.s. electric carmaker. tesla anticipates the production of only 20,000 mass-market model 3 cars per month. they figure less than previously estimated. then came volvo's announcement that it had plans to build on the electric and hybrid cars starting in 2019. for more, let's bring in our wall street correspondent. tesla wants to start producing its first mass-market vehicle model 3 on friday. the news these days seems to be a very unpleasant lead up trade what's going on -- up. what's going on? reporter: there's a lot of pressure on the stock, within the past two weeks the stock dropped by almost 20%, meaning we are pretty much switching bear market territory on top of it, we had a report out on wednesday were goldman sachs believes that the stock could get cut in half within the next six months, and now on thursday, there was a safety report out where the model s from tesla on

he says that apple should buy tesla. take a listen. should buy tesla. elon musk probably is not going to let it happen, but that could transform apple. emily: alex, what do you make of it? alex: i think a lot of people would be impressed. apple has yet to make any advisable deals -- beats -- emily: which for them was a huge leap. of thehey love the idea visionary ceo. and of course, apple has a track .ecord of visionary ceo's the big question is about the fundamentals. apple is a company that does a 20% net margin. the margins for the automotive industry are dreadfully weak in comparison. be luxury carmakers do a 12% to 15% net margin on a good year and that's a big hurdle to bridge that. emily: carl, what will the biggest challenges before the model 3? >> i think getting the car out there at the rate he is talking about and finding that audience, we know he has a lot of backlogs deposits,over 350,000 but whether those come to fruition when you put options on it, that is a big question. the bigger one for me though is, supporting those volumes. he's got

if they are going to chase tesla, they are playing tesla's game. so far, with electric cars from a tesla is the only one that has really caught on that has made people get excited about electric cars. the same way that we would prius is the only hybrid that has a result in large numbers -- that have sold in large numbers. when it comes to tesla, talk more about what happened with the latest sales report. we saw a plateauing of sales. does not typically happen before -- doesn't that typically happen before a big launch? >> if iphone sales and ipad sales fell before the launch of the apple watch -- it's a smaller into different product. is ithe company said it was a manufacturing problem and that it wasible more complicated and it slowed them down. there was a speculation on twitter that maybe there's a sop ning demand. -- softening demand. at this point, it looks like a manufacturing issue. which is a big problem for tesla because they've struggled with manufacturing since the start of the company. julia: they are at full capacity. they need more op

here is what's coming up on the show the official party for tesla model 3 is hours away. investors may not want to celebrate too soon did this week's tech wreck make you nervous of apple earnings? don't be we have a way to buy protection. dan will break it down >> later crude oil just made a run to $50. there is something in the chart that can spell trouble for black gold we'll tell you what it is. the action begins now. >> welcome back everybody, it has been a wild couple of days for technology nasdaq posing its back-to-back losses after earning its alphabet google. the biggest name in space, the biggest name in the world reports that's apple two request, what can we expect from apple and should investor be bulished? >> dan >> over the last week and a half, it makes sense to go back and look at the biggest name drive. we had amazon and facebook and google and microsoft, that's about $2.3 trillion on market cap. a 4% move in either direction of those. they under performed those moves. these are stocks that are up 30% or 40% i think that's incentiv structie you can assume

will tesla deliver? we look ahead to tesla's earnings report. all bets are on after 400 million shares of snap hit the market. a look at the lockup expiration of that investors have had their opportunity to sell. the turmoil continues in washington. anthony scaramucci has been removed from his new job as white house communications director just 10 days after he joined president's staff. the white house said, "mr. scaramucci felt it was best to give john kelly a clean slate and the ability to build his own team." sarah huckabee sanders --mented on the exit of the during the briefing. >> he does not have a role in the trump administration at this time. we put out a statement earlier, announcing that. i don't have much else to add. emily: we are joined by alex in washington. that was fast. what do we know about what went down? >> it was a memorable 10 days. here is what we know. either anthony scaramucci decided to resign and offered his resignation to john kelly, or john kelly asked him to his authorityng over the white house on his first day on t

. >>> just ahead, tesla's mass market tesla car about to hit the streets in your neighborhood. next. and one of us used up all the sunscreen! i wonder who... . we're gonna need some reinforcements...quick. copy that. walgreens makes it easy when summer needs a little help. your summer base camp is just around the corner so you can get in, out and back to those summer shenanigans. walgreens. at the corner of happy & healthy®. today only, all military and veterans enjoy 20 percent off in store. the ultra-fine mist startstoms working instantly to deliver up to 12 hours of ahhhhh get fast relief with vicks sinex. introducing the easiest way to get gillette blades noo text "blades" to gillette on demand text to reorder blades with gillette on demand... ...and get $3 off your first order >>> in today's quick hits in los angeles, 41 children can now call themselves u.s. citizens. they took the oath aboard the "uss iowa" on the eve of independence day. the children all have parents who have already become naturalized citizens. for the second day in a row, spacex scrubbed a rocket laun

tesla put it on twitter you can watch it at 8:45. there's also -- you can start voting on internet made commercials for the vehicle as well. >> reporter: as you mentioned, it's building this excitement, building this hype around the car. so many people have signed up. but you got keep them interested! >> that's part of tesla's ability as a startup company unlike a traditional automaker who spends a ton of money on tv advertising. they haven't done that. they've relied on word of mouth, social media presence and big events to draw a lot of attention. ala apple -- a la apple style. >> reporter: thanks so much. frank? >> or maybe drive one here! [ laughter ] >> exactly! >> that would be fun, too! we'll sit down with michael cordosa to hear about a terrorist victim's lawsuit on social media. >> and the senate looking to repeal and replace the affect. that's as we continue. stay with us. ♪ [ music ] ♪ what should i watch? show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome.

coming up, tesla adds two new executives to its board. this after months of pressure from investors. we will break down the decision next. this is bloomberg. ♪ caroline: tesla shares falling as much as 4% in monday's session after a man initially claimed his vehicle suddenly accelerated after he engaged the cars of driver assistant system and crashed into a marsh. despite the day's decline, is has rallied on anticipation of starting production. elon musk in fact queried if it had gone too far over the weekend. it added two new executives today. the c.e.o. of 21st century fox and the chair of johnson publishing will join tesla's board. joining us is david welch from detroit. plenty to digest. let's do the new board members first. this comes after plenty of pressure from investors. i think we are having technical difficulties with david. david, can you hear me? >> i can hear you now. caroline: let's talk about the board members first. plenty of investor pressure to do this? >> yes, there was. this goes back to april. you had a handful of

it's being called the tesla car for the masses. the first model 3 is about to roll off the assembly line. >> i would love to have one. >> reporter: ceo elon musk said model 3 passed all regulatory requirements for production two weeks ahead of schedule. expected to complete sn1 on friday. that stands for serial number 1. last year hundreds and hundreds of people across the bay area stood in long lines to put $1,000 down for a reservation. musk toyses is la will soon deliver. the handover party for the first 30 customer model 3s is scheduled for july 28th. then production will go up. he says august should be 100 cars, september 1,500, and by december 20,000 cars per month. why such a high demand. >> reporter: tesla's model 1 demand starts $70,000 and the model 1 is about the half not including a $7,500 car credit. the sedan will get 1,500 miles per charge. it will go from 0 to 60 in under six seconds. >> it's a henry ford vision, mass produced automobile with an electric twist to it. >> reporter: reservations for model 3s are being

. >>> coming up, electric blues for tesla. we tell you why the automaker shares took a slide in yesterday's trading session. that's after this short break. back in two. these days families want to be connected 24/7. that's why at comcast, we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >>> welcome back to the show tesla shares had the worst day in over a year following more than 7% in yesterday's trade that as the electric carmaker's delivery numbers disappointed investors. cnbc's phil lebeau has the full story. >> reporter: shares of tesla under pressure after a note from goldman sachs cut the price target for the company and warned about lower margins in the second half of the year. this revolves around the second quarter deliveries the company

and drivers of tesla like tesla and the street has been unable to shake that. unable to shake that love and that the model 3 will come out and happen once again. we got a nice e-mail from tesla talking about the show case of it it's so inexpensive. i do believe that's frozen a lot of the buying. when i look at this, i goes good-byes back to 2,000. a lot of companies like tesla didn't produce didn't produce numbers but the difference is there's a product. >> there's a product that you can get in and drive and enjoy as you say we made this comparison before he gets as much leniency as besos has from his with this expectation that it will come if you believe. >> it's a tech company not a car company. >> it has come although people are still arguing about amazon as well you got -- that's kind of the play book right here, isn't it there's no way to justify $53 billion market value on the number of automobiles they're going to produce next year or the year after. >> only if it's a tech company that's the only justification. if it's a tech company that happens to also