people who can afford to buy tesla not like they're nickel or dime having tesla to take the bus. liz: jeff, elon just came out and said they are going to upgrade the warranty, people like that. that the warranty will be upgraded. it will affect earnings because that is how those things work. costing them more to give more coverage of all of that. i guess in a way people want to hear from you that this company will eventually get it right? that is what they believe about amazon. amazon's p-e ratio is insane and they're not making money but people feel they're on the right track. same with tesla. >> i would say, to people who compare tesla to other companies it is weird analogy but look at chipolte. what ultimate reality will you buy a restaurant stock that trades in beans and rice for 40 times future earnings, right? it sounds insane. chipolte is great investment. there is not a lot of growth alternatives. people believe in the stock. other stocks like gopro or twitter, i don't know if twitter has longevity when it comes to earnings. short term they make a lot of money. i don't ne

tesla considers service a top priority. we air on the side of being proactive to ensure the best driving experience possible. that mean we are particularly attentive, even if those -- or have a low likelihood of causing any future problems. >> my question for, jake, a few years ago, mercedes-benz had a real problem with a lot of technology being built in, but not always working. they were called ticky tack problems, not enough to hurt sales, but it really hurt the reputation at that time. is tesla in danger of having that same problem? >> yeah, absolutely. whether or not it's a small problem or big problem, it's an inconvenience, and you want to buy these cars these days, you almost expect it to be problem-free, and there's many cars you can buy that are like that. it will be interesting. right now it's something innovative, and something very exciting, but as type -- are going to plan to the satisfaction. >> very quickly, in some sense, are cars getting too smart for their own good? yes or no. >> maybe. maybe. >> they're t

tesla is also getting in there. to be fair, i think at this point they don't really -- they've offered patent portfolio, not that many other folks willing to grab on. also, let's not forget, tesla is a partner of daimler-chrysler. in terms of sharing battery technology. tesla is very much integrated into the ecosystem in a variety of ways that will serve them both as a hedge against problems in this market and otherwise also, some good karma for them in the future. >> what do you make of musk? is he the one who can lead this company long term, and what do you make of some of these analysts calls that say in the ind they're not really going to be a car company at all, but more of a battery company that leverages its business model off the global electric grid? >> that's a possibility, though let's not forget. the electric vehicle market is huge. it's possible. i think that's another option for them. they are developing some propriety battery technology. mercedes is already using some of their technology, and i think

tesla is hot, there's the volt, the nissan leap, the prius, a hybrid. people are driving these now, that is significant, and what is also significant, you need to shed light on this now, why a libya, combined with iraq equals about 2 million barrels that are off-line due to all kinds of sanctions doesn't affect the price. we're seeing brent crude at nine month lows? >> in iraq, northern iraq, kurdistan, there is very little oil production. it's less than 200,000 barrels a day that is at risk from this current conflict with isis. and that's really not moving. libya, on the other hand, has been a problem but a problem for the past year. there is nothing new there, libya substantially off-line since the summer of 2013. >> right. >> iran, also about a million barrels a day off-line, for a different reason. because of the european oil embargo but goes back to 2012. so now two years. liz: let me jump in, people look at a guy like you and say what does he like? he's done all the research for us. you have two names today, ecopetrol, that i'm not familiar with.

. >>> you can buy a couple teslas with that. shares of tesla closed at a record but will a not so glowing review dent the reputation? that's next. >>> some good news for farmers, the u.s. agricultural department is forecasting record-breaking harvest this autumn for corn and soybean crops. that put pressure on grain and soybean prices today. corn future's rose a bit because even though a record yield is forecasted, the outlook is slightly below expectations. >>> it was pressure on shares of tesla today, but the electric car maker still managed to close in a fresh all-time high. that is despite the fact that consumer reports magazine which gave tesla's s model glowing reviews last year, now says it found some minor problems with the car. >> whether or not the small problem or big problem, it's an inconvenience and you want a car, you expect the car to be problem free and there are many cars you can buy that are like that. it will be interesting with tesla as time goes on. >> so how bad are the problems and should drivers and inve

i think the big thing to remember is, perspective about tesla. tesla is a silicon valley company, and it's competing against a lot of old world rust belt and other automakers. they just move faster. they're tackling more than anyone has ever tackled and doing it at a pace that no one has ever done at. so our standards are really high for them, and they should be, and they need to be met, but the pace of innovation that tesla is bringing to the marketplace is unrivaled, and i think we shouldn't lose perspective on that, due to a little, a little miss here or there. i think the bigger picture's much more important here. >> and we've gone through george clooney. gone up through the car dealers, the attorneys general, all of that. how do you approach your position on tsla these days? adding more, or is it getting rich? >> you know, if you take a step back and look at the chart, it's, one, it's performed unlike almost every stock out there. one of the really few, rare companies in the form of a stock and the pace of value creation in the stock. it has

the end of an affair between toyota and tesla. we will look at how tenses play out as far as the market action goes. >> jim, we talked about india and what is going on in southeast asia. what is your view when it comes to the market perspective and your economics viewpoint? >> [indiscernible] exactly, it is like a heroin at a facing heroin again. >> it does not boost a very efficiently. be saying tol people you want to be underway chinese equities over the next six months. >> two weeks ago, everybody was flooding into china. >> yes. kinds ofeen these things go back to the highs of this year. we are still 60% down from where china was in 2007. >> if you are under way china, where are you putting your money? philippines,india, southeast asia, taiwan. >> we have turned a corner. they have turned the taps back on. they may not have accomplished a lot in reforms, but they have been able to avert a crash which is arguably something in everyone's benefit really. >> in the short-term, the soblem is that, when you put much debt into areas

the tesla model "s" and tesla stock continue to prove critics wrong. but will electric cars ever successfully make it mainstream? in mondayer of our 25th anniversary, phil lebeau joins us with a look at what will dominate the roads 25 years from now. >> reporter: despite all the cars about electric cars being the future of transportation, right now we are still a world powered primarily by gas-powered vehicles. the got old internal combustion engine. look at vehicle production numbers worldwide this year. the industry is going to make somewhere around 85 million vehicles worldwide. and look how many they're going to make that are electric vehicles. 142,000. that's not even one-tenth of 1% of all vehicles around the world. but 25 years from now, it is estimated by navigant research there will be about 8 million electric cars here in the united states. however, the key to boosting those sales by 2039, it's going to be major government subsidies. in fact, there's an m.i.t. study out that says evs could be 50% of all new vehicle sales by 2039 provided ther

tesla delivered the first electric sedan in april to chinese customers. the c.e.o. planned to invest several million building a network of charging stations in china. >> now a check on the weather as we head into the weekend and the long holiday weekend. >> a lot events, working monday. some people are not having a long weekend. so, there we go, we will have our own party. >> coming up on 4:47. sfo...cloud cover again. we will probably have flight arrival delays like yesterday. they will let us know in an hour they will let us know in an hour and you can fine me on and it will be dry with temperatures close to normal and the cloud cover shows prevalent to the north and the hat of the bay to the san mateo bridge and it will move south and into the east way -- bay the next two hours. by learn the high clouds are rolling in and that is going to be the case today and tomorrow which is why our temperatures are cooler because of the shade the high clouds will provide, cooler compared to year, 60's and 70's and 80's and possibly the 90's but you have to go way out support

now it is time for tesla. he will boost the aerodynamics to create a super car with a price tag of about $150,000. i am joined by the founder in los angeles -- steve saleen. thank you for being with us. how did you get to be a gearhead? an enthusiast for all things automotive. >> i think maybe you are born that way. certainly in my case, i was born very much interested in cars as i grew up from elementary school into high school. i had a fascination with cars, racing in particular. that carried on through my adult life. >> you started racing a porsche, your father's car, out of high school? >> yes. that was my first car -- a 1956 porsche. i would participate in speed events. that led into selling it and trading up at that point to a mustang. i then modified a mustang and took it to the racetrack. the worst possible thing happened. i showed up in my first race and then i won. it has been downhill ever since. i probably should've quit then. no, i've enjoyed cars ever since. >> there is no quitting to when it com

a big and bold move by tesla. how the company plans to reach bay area drivers like never before. >> and this morning plenty of sunshine b even in san francisco. we have patchy fog. it's not going to stick around long. we'll break down your weekend forecast and get you into labor day coming up right after this. >>> time is 7:16. take a look at the the sky camera network. if you live here or visiting, you'll want to get outside today. huge statement or highway distraction. tesla wants to put up a giant sign near the fremont factory that you can't miss. it would be the size of five school buses to sit along the tesla plant on 880. scott budman tells us what tesla is doing to make the sign a reality. >> signs, signs, everywhere there's signs. and now along 880, tesla wants to put up a sign almost the size of a hockey rink. >>> we want people has they drive down to 880 to know they're in fremont and "b", the tesla factory is here in fremont. and we're proud of that. >> and that pride would be on display here at tesla'

. >> we would be doing this even if it wasn't tesla. if there was a factory here producing something other than awesome cars but they're employs over 4,000 people. i as mayor would also want to make sure we're doing anything we can to help them. >> tesla has been a bright spot for the fremont economy. now it wants to lighten things up even more. tesla declined to comment for the story other than saying it would make more information known at a planning commission meeting tonight. that's at 7:00 at fremont city hall. public comment can happen. i'm scott budman reporting live in fremont, nbc bay area news. >> thank you. >>> it could be a safer ride on b.a.r.t. thanks to your phone. a free app introduced today allows people to report crimes or suspicious activities while on the b.a.r.t. trapes. riders will be able to upload photos and location information and it features a silent photo and flash free option. a b.a.r.t. official says this comes after riders have been asking for a safe and discrete way to communicate with b.a.r.t. when they'

. >>> plus, climbing tesla's wall of worry. why one analyst just cut his earnings estimates for tesla. that's next. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*? >>> big gains on twitter today kicking off the top trades. the company announcing it's making it easier to gauge how well your tweets resonate with your followers by giving all ursers access to its analytics platform. it provides details on your tweets, engagement, cliquecks, retweets and so much more. >> they're constantly changing their interface. they had a host of reasons why people were tweeting more last quarter. if you look at it, i'm a big proponent of mopub. you will start to see ad revenue continue to grow the way you have

someone i know quite well, who was going to buy a tesla has decided not to buy a tesla after reading some of your outcomes and your results and your findings. if the car dies on the side of the road, how can you possibly pay that amount of money for that kind of car if that is a potential thing that could happen to you, ed. >> yeah, and it's also worth considering the fact there are a lot fewer service centers nearby. we were lucky enough to have one very close to where our offices are, so these small problems didn't turn into very big problems, but if you're far away from somewhere that can service the car, you have that issue of just getting to a service center to fix a small problem. you know, these kinds of things are individual buyers will have to weigh on their own. >> i want to be clear, too, because we're talking about the car, we're not talking about the stock. tesla technology is in fact going into the new versions of the mercedes. have you had a chance to review enough electric mercedes or any other electric cars? i'll defend tesla a bit. who doesn't expect growing pains?

this car has been out there -- a lot of people that want the tesla have the tesla. more people are buying them still. to get to 35,000, they will have to get you a massive increase in demand they are not seeing yet. >> what about the battery giga factory? will that help them produce more mass-market cars? did you learn anything about the model three-car? >> what anyone says they will do something cheaper than they have ever done it before, i say call me when it is cheaper. that aside, the giga-factory is seen as an important marker for tesla's future. there is some weird stuff in the press release. there is one sentence i want to read to you. here it is. pay careful attention to this. "in june, we broke ground just outside of reno nevada, on a site that could potentially be the location for the gigafactory." so they broke ground, but it is a potential site of the factory. they have some bulldozers pushing some dirt around, but they have not decided if that is where they're going to build anything. it suggests to me that they are not very far along here. they want to

investment in tesla and put together a deal where tesla would provide the battery and some of the power for the electric vehicle. that turned out to be the toyota rav4 ev. early on rav4 that elon musk was very high on. he thought there was a great chance that the project would be expanded, that the two companies said they would build about 2600 and initially, and here we are today where they actually haven't reached 2000 deliveries of this car. just last year, tesla sold more than 20,000 of the model asked s.model it is a car that didn't really live up to the hopes that either company had going in. these two guys, they like each other, but i guess it was the differences when it came down to their employees. tell us a little bit about that. >> there may have been a problem of little bit top-down management. the two companies decided that they wanted to build a vehicle together. there was very little direction given as to what exactly they were going to work on. there was no set plan as to what they were going to build. out of tokyo,ll thank you so much for that. -- coming up, prices are

how about making a better tesla automobile? meet the man who retools of the tesla s. all of that and more. first, let's get headlines from carol massar. >> amazon has announced they are buying a live video platform for videogame companies called -- for nearly $1 billion in cash. you might recall they had 55 million unique visitors earlier this year. tivo is hoping to capture the companies of aereo, offering a new dvr that record over the air content. but has a49.99 service fee of $14 99 to a month and a one-year commitment. they can capture recorded content. after theshot up 26% maker bought the company for $8.3 billion. they make a drug that has not yet been approved but shows promise as potentially the first drug for diseases. back to you. loony?burger king gone they want to acquire the canadian donut and coffee giant tim hortons. if you mean the king that makes its headquarters in canada where the corporate tax rates are lower than the u.s. i am joined by greg giannone up. cecraigjia mona -- giamonna. deal cannot yesterday in a that would make the third largest fas

. >>> and a bump in the road for tesla. consumer reports says model s is more than its share of problems but what does it mean for the stock in breaking it down with phil lebo. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business. frothere's no reas

tesla 3.5. >> but it's the disruption. it's that premium that goes with this stock. >> that's fine, so no one is disputeing this isn't a wonderful thing of technology, there are a lot of places these guys can destroy capital. i think the gig ga factory is that. i won't own candy in china, to be clear, this is a very speculative play traded over $100 million on this news, everybody wants to own tesla the technology, but you want to look at governments around the world are doing everything they can to promote eoms and domestic players do have electric technology. you will see other places around the world put their own competition on the map as well. >> those analysts keep putting up their test target. >> the morgan stand p stanley. >> they were at 220. the stock is 240. >> it's not as they advanced as the result of the stock moving up. >> nobody buying tesla. >>> coming up, the world health organization declaring the ebola in west africa an international public health emergency. >>> we will take a look into which drugs are

tesla fixed the issues on the model s under warranty. we have a lot more on those stories coming up in just a little bit, right, joe? >> i can't believe the perverts we have watching on twitter. >> why? >> the world is waiting for mcc to do the ice bucket challenge. >> what are they referring to? >> join us tomorrow, "squawk on the street" is next. >>> good tuesday morning, i'm carl quintanilla with david faber, and we are trying to build on two up days in a row as the dow is flat year to date, down six or seven points, analyst calls on retail, and apple working on a new ipad, fascinating pharma trials as well, the three-year note option in a bit, and europe is fighting off losses, germany's confidence number a big miss, down eight straight months as the conflict takes a toll on that economy. we begin with the markets, futures flat as putin sends and aid convoy to eastern ukraine, and german investor confidence plunges. >> more than just price. new details on why amazon is taking on disney and what it means for amazon's already paper thi

how important is a gigafactory or even just a factory to tesla's and medium -- tesla's immediate success? >> it is important to get more fuel cells from suppliers so they do not have backlogs or interruptions that they cannot produce enough vehicles to meet their backlogs. >> let me challenge you with that -- they made more cars this quarter than they needed to make. production was nearly 1000 more than they made this quarter, and there is no backlog anymore. >> according to the press release, it seems to be indicating the backlog is growing. they also have a slowing down of the next quarter of how many they are going to produce, they have to produce ahead, but they also have to ship it. there's the difference between shipping and delivering, and there's only so many they can produce at one time. if they want to expand in china, that means they may have to cut back in markets such as the u.s. >> do you see backlog? >> if you parse the statement, sequential orders were up, and we track the time from order confirmation, which is usually 24 hours after placing an order to the start of produ

. >> tesla costs $100,000. is that the new volt? >> is that as fast as it goes? >> like ungar arriving for the show. [ laughter ] >> faster my man! faster! >> the fact is by the way, tesla which has $150,000 car or whatever, they're trying to come out with a car for the middle class, like a 30,000, $40,000 car. neil: how far does it go? >> 300 miles. it doesn't, people want the big what used to be gas-guzzlers, the suvs conserve gas a little bit. neil: fall back on regular conventional engine, just in case. the word old fogies comes -- i guess it is two words, comes to mind. >> the word very tiresome comes to mind. >> apple computer, it will never work. >> do i like it? i wouldn't own one, they wouldn't be making it again. >> government motors, two words for you, government motors, please the masters. >> even my generation, we look at the volt as a wah-wah. not excited about it. neil: i don't doubt they're improving this, tesla is a big leap in this direction, i said this many times, it's going to come down to i thought you plugged it in. i thought you plugged it

there you go yeah laughs and there but anyway we turned out to electric cars some good news for tesla love tesla not being paid by them either the company had in fact revenue jumped the second quarter so is tesla the real deal and can they shake up the american auto industry and god i hope so i don't awesome i love you i spend many sleepless nights scared to death about climate change i think we've already passed it or very close to passing a tipping point in which you won't be able to stave off some of the worst effects of climate change twenty percent of our greenhouse emissions come from transportation so if we can get more electric cars out there we can maybe save the earth. also tesla's experimented with this new take on patents they've come out and said that they're not going to enforce their patents against anyone if people are going to use tesla patents for good faith they're going to let them use that doesn't mean there's not selfish motives there are things i want to crowdsource building up the infrastructure needed to create this massive electric car market. but hey they're

talk about tesla. quick thoughts here this morning. shares moving about 3%. news on the giga factory. what do you think about this one? >> i love the name giga factory. i think they made it up. you're enjoying saying it a lot, but okay. bring down the cost of batteries. that's it. this company made, lost more money than ever, trying hard to move from a nis thing. only sold 10,000 cars in the quarter. not a lot of cars. again it's small and a big idea. 234e have to bring down costs and batteries, that large battery is the biggest cost for tesla. they have to find a way to make it much more efficient. makes sense. giga factory crack meese up. the press goes crazy. >> got to call it something. give them credit. re/code, head of investor relations to do the job as ecommercial giant. one of the largest ipos in history and jim wilkinson is there already. a signal they might be keeping an eye on washington, on its public relations generally as it eyes all of these various business, the "new york times" talking about it being on a shopping spree here? >> this is goin

. >>> new at 6:00, call it the tesla sweepstakes. states competing to win a $5 billion battery factory and it now looks like california is out of the running. good evening, i'm veronica de la cruz. >> i'm ken bastida. our elizabeth cook is in the newsroom with more on where tesla may already be preparing to build its revolution any plant. liz. >> reporter: states have been fiercely competing to land tesla's new "giga factory" dangling all sorts of insentives and tonight it looks like nevada has the inside track. now, take a look. it doesn't look like much but the barren landscape outside reno is starting to transform. right now, there are nothing but cattle roaming but tesla said today that it's prepping that site to build its $5 billion battery plant. we learned the work started last month. but it's not quit a done deal. ceo elon musk made it clear the company is doing this in a couple of other states as well but there's a good reason why nevada would beat out california. >> we want to make sure we have things sorted out at the stat

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 batteries. i will turn it 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

to enforce their patents against anyone of people are going to use tesla times for good faith they're going to let them use that. i don't want to crowdsource building up the infrastructure needed to create this massive electric car market but hey they're you know kind of working to reverse climate change as well as getting us away from this this. is what drives industry right now we have to move on real quickly here but now there's one topic that i've never thought that we'd be discussing here on buskin car dash and so how is her smartphone now making hundreds of millions of dollars how sound how this is just bonkers to me i know what it is maybe this is don't worry about climate issues in society so for. future like an exclusive look at her sex is that why it's making so much money. you know i'm sure it in short know when you you know it's really amazing i have to say in terms of business for not having a massively large scale somebody who might have say that made me do it but to make this much money it's bringing in two hundred million a year a year can you risk your current year's

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

tesla 5% in the global market. reset doubles next year with the launch of the model x and gre to 400,000 units by 2020. really, this will be driven by lower battery costs. we don't see it being an issue, seeing with experts, we see this as very much achievable and tesla is able reach a larger adjustable mark, we see significant growth opportunity. >> you see the ed market share with a full launch of the ge n3 vehicle coming up smplt this akooum seuming the other auto makers won't come near with tesla? >> no, we believe that bmw will be a serious market, the i3 is a good product and a fair comparison from the ge n3 from tesla. on the other hand, the other auto makers are largely not playing in the space. so we don't see significant pressure from other competitors through 2020. >> and the september 1st china the tax incentives kick in how quick will it be the trajectory once those incentives take effect? >> ultimately, i think it will be a function of how the battery suppliers can really produce and with the ge n3 vo

you know, kayla mentioned, an early backer of tesla. the first to own a tesla, in fact. also a big fan of spacex. why the big bet, steve, on elon musk? >> he's a remarkable human being. may go down in history as the most important entrepreneur and when you meet him he thinks differently. sees the world and future in a clear way and executes unlike any we've seen. whether it's tesla, spacex, solar city he helped form with his brothers, and more success in more industries than any entrepreneur i know of on the planet. a remarkable person. you'd want to support just about anything they. >> tesla, the broader electric car industry, steve, you've been a big fan from the beginning. when you think, though, about the chewiallenges of that indus, price or the relatively limited driving range, how do you as an investor think about those challenges, steve? >> sure. with any major change. think about moving from internal combustion cars burning gasoline to a fully electric future. inevitable that all vehicles are electric. it's not easy. the biggest challenge price and range. so tes

tesla, colin rush, who covers tesla for us. >> i think it will go for the available labor pool, where there are resources for housing, and building this plant out. how important is this for your projections on tesla? five pointsanother of gross margin that they can pull out, which is a huge which i do not think that people are appreciating with this company that they can pull this kind of leverage out of the car manufacturing. >> do you think they can pull off this factory? >> absolutely. isir access to capital unprecedented, and access to talent is unprecedented. we have not seen this kind of in in ouroming history. we're looking at 50% premium at less than a point. that is has not happened before. >> why is that? >> it is the vision that he has had great what they have done is build a culture around taking the impossible and making it real. they have attracted talent to do that sort of thing, and to capture people's imagination. we have not seen that in many instances. that is why we are enthusiastic about teslas rosin bags and what prospects and intrigued by what they said last nig

tesla, they're sort of suppressed. other names in technology are also doing well, names like net app, other names in biopharmaceutical, jazz pharmaceutical. growth there with the pe multiple is somewhat suppressed when you look outgoing a couple of months. >> mike, how do you look at the reach for growth where we are in the context of the market run? >> you know what's interesting to me, people are willing to pay for growth in the areas that are not proven. names like gilead, they are companies that have a long track record of earnings and revenue growth. you compare that to something like go pro or you compare it to something like tesla, tesla has yet to prove itself. this is a situation where obviously they're going to sell a respectable number of cars, but if you take a look at those multiples, saying you need a million dollars of enterprise value per car sold, that's a lot compared it other businesses in the space. biotech, that's not true. these companies, growth companies, versus old state health care companies l

panasonic already supplies the batteries that power teslas. live in the newsroom, elizabeth cook, kpix 5. >>> new at 6:00, cars targeted in bart garages and lots thousands of people park there every day thinking their vehicles are safe. but kpix 5's linda yee found out that may not be the case. >> reporter: not necessarily, veronica. no one would think that this parking lot here at the lafayette bart station would be the target for thieves. but these thieves are not only breaking into cars; they are breaking some cars apart. they are easy pickings, cars and trucks sitting in a bart parking lot all day after the owners take the train in to work. last evening thieves crawled under three toyota suvs and sawed off their catalytic converters. >> you can slide under there easily and remove them. most of the older ones, they do some tundras and for runners and some of the older tacoma pickup trucks. >> reporter: metal scrapyards buy them for the platinum in them. this happened at the lafayette and pleasant hill station lots. bart police say they rout

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