tesla buying solar city. tesla will be holding a news conference later this hour. we'll bring you the very latest. i'm melissa lee, you're watching "fast money" on cnbc. here's what else is coming up on fast. >> oh, my god. becky, look. >> the size of that massive trade on the emerging markets. we'll tell you what had traders betting millions that the em is going to surge. plus, citizens of the u.s., this man could be your next president. >> the belt moves this way. it moves this way. it moves that way. >> and it's got moody's saying it could cause a prolonged recession. the man behind the call will reveal why when "fast money" returns. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. >>

shack is -- you know, shack is the tesla of burgers. so many things have to go right for this stock to go higher, but i am long in the name. i am long around here at these levels. i am willing to bet that -- >> you can love the burger, but it is more difficult to love the stock. >> well, it is not a cheap stock so it is a growth investment, and this is not a buffett-esque kind of buy, but they are opening up the stores in the right place, and e every time they do, it works. >> here is the real question, after danny myer called in for the program for your birthday, could you be a seller? >> i am completely biased, but i have loved it long and i'm a good customer in addition to being a shareholder. >> and doc, last thought, quick? >> and jack in the box, and i like the diversification of the burgers and the fast cash, so that is my pick to outperform any of the prior two. >> at least you are honest. >> and now, with meg terrell and biote biotech. >> yes, there is a new medicare spending to drive up the stocks. and there is a question if t

where does tesla go? in your world, as you view elon musk and his companies, tesla specifically, where can the stock trade down to? >> this is going to sound crazy. if you ask bob lutz, an auto executive, he will tell you it goes to zero. if you ask someone who just looks at business, go to a business school, they'll tell you it's a zero. how long will the capital market allow a company to sell a product at a loss? that's the real question here. is this a car company? then there's no value on it right now. i would rather see musk face that. at least you could say space x is disruptive doing something new. solar city is not even technology. it's a subprime lender of solar space. if they incorporate this in the tesla model, i think this going a lot lower a lot faster. >> musk didn't have to, but he did, andrew, on the conference call today he said there would be no material impact to tesla's cash needs or expectations for cash. and cash flow positive by year end. what if, let's just say he actually delivers

use coming out of the panasonic tesla plant in nevada is batteries for tesla cars. they are in the power supply business is ambitious. carmaker, after-hours, shares are down 11%. i think a lot of tesla shareholders are going to say, wait a minute, i think this business, the stock is taking right now. emily: elon musk has said he will abstain from the vote, but let's talk about his involvement in both of these companies and what this means. cory: keep at the board together on both companies. emily: his cousin is the ceo of solar city. cory: the notion that these companies could be independent, i think, it's good of him to recuse himself, he absolutely should, but i don't think we should look at those boards and say they are absolutely without influence on each other or don't follow the desires of elon musk. emily: my question is why now? tesla is supposed to be focusing on the model three. he said he was sleeping in a sleeping bag at the end of a -- the production line. what is the impetus at this very moment for them to make this offer? cory: financially, both compa

we are joined by someone who was with tesla from the very beginning. tesla co-founder ian wright. he's now developing electric powered trains for larger vehicles. my guest host for the hour is david kirkpatrick. thank you for joining us. kevin, i want to start with you since you have been following the shareholder meeting, what do you make of the latest developments and the fact that he's not sharing his vision of the future but instead looking back at the past? kevin: by the time i had gotten to come here, he had only gotten to the point where they were developing the roadster.+++ things will be in the q&a which at the pace he was going will probably be sometime around 7:00 pacific standard time. emily: the q&a time is always very entertaining for tesla shareholders meetings. what do you make of the fact that he is focusing on a time when you are still at this company and everyone wants to know how production is going for the model three. ian: it is a very interesting history and if you go all the way back to that, one of the goals was to change the way people look at electric ca

tesla. whe we have someone who says both companies are doomed. >> and on whether the uk should leave the european union is tomorrow. we're live in plond london and bringing you the latest poll results. >> and apple involved in a patent fight in china over the iphone 6. but the status of the company that holds the chinese pat nlt may actually surprise you. we have new details on that. >> and a rare interview with vice ceo shane smith. we'll play that for you coming up. >>> starting with this story of elon musk's tesla making the bid for elon musk's solar city. phil lebeau has the latest comments. >> take a look at shares of tesla and what happened once they announced this deal yesterday. and what's happened today with shares of tesla once the second -- solar city bid was announced. there you see it right there. down more than 10%. when you take a look at this deal, what a lot of people are still trying to wrap their heads around is why this has to happen. why are there synergies there. solar

that's why i'm in it and not in tesla. a lot of this does have to come down to valuation, but it also has the execution risk with the tesla which hasn't met any of the production goals they're trying to reach for now, whereas gm has this in the bag. >> i think on gm there's things that could go right for them. south america they could see less losses. europe they could grow and stay profitable. china they're making inroads. there are certain things for general motors i think where the valuation is so low and the expectations are so low and you get a nice yield while you wait, i would not own gm or tesla, i'd own the auto parts companies because that's where you get the leverage. >> greater return in five years. being an investor in general motors or ford or tesla? >> i think you could make money in general motors, ford or tesla in five years, the thing is for which company do more things have to go right? and that's what -- when you value investors talk about margin of error, you don't have one in tesla. everything has to

tesla hit it. one of the key things tesla is saying is the white trailer up against a bright sky and the car as autopilot did not see it, and the driver did not see it. it's been one of the areas of this technology that there has been something such as snow that this technology has a hard time seeing. it's not surprising that perhaps a white background was not picked up. cory: not as advertised for this. some of the features were rolled on initially in tesla's autopilot and then the company pulled back, as i understand it is inwe know where this the relationship of tesla technology as it has been on the road? tim: tesla brought back some technology after videos are showed up on the internet, people doing silly things and questioned the safety. the driver is supposed to keep their hands on the wheel and be able to take control if something goes awry and there is a system that is essentially supposed to slow the car down if the driver is not paying attention. issues is about the development of driver

a host of reasons to sell tesla. i would still be a seller of tesla. >> yeah. every time we've had one of these batteries blow up or had fires in tesla over the years. these have been effectively non-events. the event here is tesla should not be priced as an auto company. it should not be priced as a software company. it should probably be priced as a battery company and there's a lot of risk around the solar city tesla merger. one of the reasons why the stock has bounced back because i think there's been some ebb in terms of the expectations. this goes through. >> i agree. as sad as it is, i do think it's a blip in the evolution. tesla story. >> okay. still ahead, are biotech stocks on sale? we've got a back of the envelope analysis and why this space may be looking cheaper than ever before. i'm melissa lee finally at the nasdaq. you're watching "fast money" on cnbc, first in business worldwide. meantime, here's what else is coming up. >> let's make a deal. >> you nknow that the imf says one company could be the most dangerous stock in the world and here's a h

tesla. this is a subsidized company. look at the free cash flow. >> we know that. fair enough. i'll play the -- you know, we sparred back when you were on set on street signs. we'll do it again. elan musk says the cash burn is going to slow down because -- he mumbled in the conference call. basically synergies. >> he said cash flow positive by year end. >> there you go. >> cash flow positive by year end. i did the conference call today. >> what he said in the transcript which blew me away is really referring to the fact that when they get rid of all the back office stuff at solar city, almost seemed like we're going to get rid of the headquarters and that's where the cash burn is. what? did he really say that? it's almost -- you sort of wonder how well thought out this is. part of me, almost thought it was a way for him to float the idea, see how the street reacts. if that doesn't happen, maybe he tries to get a bid from somebody for solar city which would seem to be extraordinarily unlikely

tesla is building factories to go from 50,000 sales to 500000 and 2020. let's assume tesla can meet its forecast and assume other carmakers retained their market share for plug-ins. if each vehicle displaces 15 barrels a year, here's the impact. at this rate, we get the benchmark of 2 million barrels of oil a day displaced as early as 2023. that is an oil crisis and the thing is, it's just the beginning. it's not at all unreasonable to assume that by 2040 nearly half the world is new cars will have a plug. you are skeptical. the price of electric cars still needs to come down and there are not enough fast charging stations for long-distance trips. many drivers are still going to choose gasoline and diesel, but imagine a future where the rumbling streets of new york and new delhi all violent with electric engines. what if global demand for oil service to fall, at first by a trickle and then by a rush. invested in oil will be lost while trillions in new energy will be one. the power of nations will be shuffled. that's the promise of the new peak oil and it

tesla -- some critics say tesla does not have the cash it needs to build extra plants to support the excel are rated production goals they have announced. -- accelerated production goals they have announced. they want to open a factory in china. where are they going to get the money for that? it's going to be very expensive for tesla to do all the things they want to do. will need to do a massive capital raise to fund this and everything else they want to do. this is a wild story. emily: we will keep talking about tesla wanting to buy solar city, two musk companies. cory: there is always spacex. emily: why not make it three? ,oming up, a supersized deal another one. a chinese internet company is shelling out for 1tencent. ♪ china's largest internet company sets its eyes on the west. tencent is looking at the maker of mobile hits. tencent already dominates the scene in china, but this could give the company serious exposure abroad. the other half of the story is who tencent is buying supercell from. in a surprise move, the japanese internet conglomerate announced that its president

in tesla's case, the stock is still rated high. same city cannot say the since october when it pivoted on its strategy. it has been dropping quite radically. it just doesn't look like they can raise the capital they need. musk in the call today was in pains to point out that everything was fine at solar city they could raise money if , they needed to. the question you have to ask yourself is, this is a very low priced bid compared to solar city's history. and so if they really were fine, , why would they go for this deal? it will be telling if they do actually recommend this deal because it would be a sign they have sort of lost faith in their own future. cory: the free cash flow burns are so disconcerting for solar city because it would suggest maybe the company wouldn't even survive or would at least have a lot of risk if the markets are not open for them. emily: we will keep watching. cory johnson, liam denning, thank you so much. coming up, the ipo market gets a test after a very slow start to 2016. we will break down twilio an

get my tesla and do my battery. though, tesla has a lot of debt, on the flip side. they are still trying to meet their estimates, and they still want to turn profits, right? talk about what this debt competition is going to do for them. it is not like tesla has the strongest balance sheet out there anyway. they are still in very much startup mode, building the world's largest battery factory in nevada, trying to get a third model into their lineup, and there is so many challenges they in $3.2d then to add billion of solarcity debt, having the equity raise, as you mentioned, when people bought that stop just last month, they were thinking this was a company that was going to triple its debts, so it definitely throws the balance sheet out of whack, and this is a different proposition than they were getting into. rlet: you talked about elon musk and his attention being between two companies. jamie: it could affect them where they are not able to have a dealership. solarcity, and then, by the way, here is our tesla s or our model 3 car, and then go online and not sell i

tesla has been momentum name. looks trying to put a silver lining on this story. >> well you know, i think the deal makes a lot of ends and no-brainer for elon. when you're bailing out your cousin business, that is not what tesla shareholders are in the business of. we're in the business of making cars and batteries. that is what we need to focus. tesla has enough leverage i'm a believer in elon. i think he has gone too far. i don't think he gets the math on solarcity is disasterous. it is a absolute dog with fleas. tesla has no purpose or value to tesla shareholders it makes more sense than a separate company. liz: i don't disagree with you. s&p agrees with you. they say it will be credit negative if the deal goes through. the fact that solarcity and tesla are in electric and green vehicle sufficient might be nice. the ceo is cousin of elon musk. i need to get to markets, ross. we're at session lows, down 58 points. earlier the dow was up 19 points. what is going on for the average investor who says it is too sca

the car could make or break tesla. tesla wants to buy solar city in an all stock deal for $5.7 billion. i'll be honest with you, on the phone call with reporters this morning, which is still going on, muck sounds unconvinced himself, like he was working without notes and he wasn't quite sure what he wants to say. this is very different than the way he usually conducts himself. let's talk about how these companies are related. muck is solar city's biggest investor and chairman of the board there. his stock if solar city skyrocketed when he announced the deem him to be fair, his stock in tesla plummeted at the same time t. ceo of solar city is muck's first cousin as is another executive. now, there is nothing specifically wrong with an of this, but these companies are more related through blood than they are through markets. now, muck says he will not take part in the board vote on eater side and will not take part in any acquisition talks because of the obvious conflict of interests. we will talk about this deal through

but -- in tesla cars. the problem is to get to that vision and that means they have to be a car company. they have to produce a lot of cars. anthony: as a short seller they had that record product launch and 22,000 units sold. >> they took deposits. they used those doe possible its to pay off a loan. it's just another way to finance the business. he's burning a lot of cash at tesla. both these companies are burning hundreds of millions of dollars every quarter. gary: sothebys, you were with us a year ago, the stocks down 30%. what's going on there? >> we just had the spring sales for christies. the sales were down anywhere from 50% to 70%. the market is doing what we thought it would do. it's dropping. it's dropping because one by one we are losing the buyers. gary anthony: do you think it's because. gary: stopped buying art? gary: the problem was i never bought a piece of art. >> we lost the russian and south american buyers. anthony: what's the main noise in the system, the smoke you looked at as a short

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

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

there are so many issues tesla is facing. we have to see their production for the model three really kicks off. they have 100,000 orders. the factory needs to get wrecked the -- get ready. and it, the stock got hammered. so there are a lot of eyebrows being raised. this really is a good idea, and we thought the stock of tesla, as you mentioned, dow, but -- down, but solar city which up. let's see with the shareholders of both companies have to say. daniel: it seems like the deal has not energy -- energized everyone. thanks for that. staying in the u.s. now with the government has given the green light for companies to use small commercial drones. there are still restrictions attached to the new rules. nevertheless, this brings using drones for deliveries one step closer to taking off. experts predict trail leading changes for search and transport. reporter: business will soon be taking off. up to now, winemaker ryan cundy has made a drone just for fun, using an eye on the control, he can move this in california. but with that

and now tesla. >> tesla motors may be the next car manufacturer in regulatory hot water. the authority is investigating potential suspension problems in the popular s sedan. several customers filed complaints against the electric car manufacturer. they also said it was concerned about reports tesla had required customers to sign nondisclosure agreements that could prevent them from reporting technical problems with their cars. us get more insight on that story with our market man in new york. what do investors make of the case? >> wall street got nervous and you just have to look at the stock price of tesla. it is a bit of a he said she said game because tesla itself denies that there are any investigations, but there are reports that there might be some issues with the suspension and drivers could theoretically lose control of the cars. we don't know the full extent of it. but what we see overall is it is not easy to produce a car, especially if you do that for the mass market. the session on friday was just the latest example. >> the controversial tabloid talk or just f

the tesla model f. vehicleg to tesla, the was on a divided highway when the autopilot engaged, perpendicular to them model s. the driver did not notice the tractor-trailer, so the break was not applied. as a result, there is a fatality. first known fatality where autopilot was activated. 2.5% ases are about they open up an evaluation on the tesla model. this is not something tesla takes lightly. no, definitely not something they take lightly. but, the first fatality in the tesla where and autopilot was activated in 130 miles area that million fore in 94 u.s. autopilot activated cars, million worldwide. administration will open an investigation into the design and performance of their autopilot system. this,re informing us of and the stock is down in the post-market. we will continue to monitor any headlights. scarlet: this year has the potential to be a political event, in particular, when it comes to donald trump. columnist wrote a few months ago that a trump nomination and election represents the syst

this tesla owner in russia shot cell phone video as he guided his tesla model s through traffic during a flood. and it worked. tesla ceo upon seeing the video tweeted out that he was proud of the car floating through the water but urges that tesla owners basically don't try this at home. >> do not try this at home. not a good idea. >>> if you want to hang out outside tonight, maybe barbecue, you've got a lot of daylight. >> true, summer solstice. tomorrow, summer like, 80s to mid-90s. >>> tonight, you're fired. his campaign in crisis, donald trump axes his campaign manager. now speaking out to nbc news. >>> tonight, new details about how it went down. were trumps kids behind it. we talk to donald trump jr. >>> burning up, temperatures nearing 120 degrees, shattering records. new evacuations as fires rage across eight states. >>> the killer's 911 call. what he said during the orlando massacre, as controversy erupts over the parts the fed didn't want us all to see. >>> fatal flaw? a young hollywood star dies in a tragic accident, crushed by his own suv. tonight word that vehicle was unde

nonetheless, tesla's stock has stayed down. i think that is because this is raised serious questions about the company. alix: greg pirrong from the university of houston. alixscarlet: coming up, what you need to know to gear up for for tomorrow's trading day. ♪ scarlet: you have japanese wholesale prices coming out at 7:50 pm eastern time. gdp. at 2:45 a.m., french begun want to miss that in terms of growth and many factoring services. all for "what'd you miss?" you miss?" we will be back here tomorrow. hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured r

you have been an outspoken skeptic of what tesla has been doing. with everything elon musk is doing, why did he decide he had to make this move now? cory: i talked to a friend of his and this guy is not afraid of risks. this deal is amazing. the cost of the deal is probably closer to $8 billion. they will try to issue stock for this thing. solar city is a very different business. yes, it is involved in clean energy but this would be like ford lying con edison and saying we will own power or buying exxon mobil. it's a big stretch for a systems of buy solar rooftops. solar city loses tons of money. on a net income basis, solar city would lose hundreds of millions of dollars. if you look at the cash burn, it's worse. they are burning $1 billion last year alone. will doubler tesla its cash burn numbers as a goes into its most aggressive production cycle. david: elon musk is a very smart man. he could be right or wrong but he is very smart. he said this is a no-brainer. what is his explanation? cory: he will have to explain it to shareholders. it's a to

tesla ceo sits on solar city's board as well t. big concern is tesla doubts that they can make the model 3 cars pre order him. tesla had to go to the finance well a couple of times, to be fair, it won't cost them money. it's all stock. we say it's a $2.8 billion deal. it won't be, tesla's stock is worth so much less. the price continues to drop this has the making of the worst ideas and from net flicks said it would split into two companies. >>> the columbus dispatch, the newspaper in columbus, ohio, reporting this morning, u.s. transportation secretary anthony fox will announce columbus, not san francisco, is the winner of the smart city competition and will get millions of federal dollars to test autonomous cars, build electric chargers and other cool stuff. it's a bummer for the bay area. they wonder if ohio is a swing state. >> we're not saying. we're just pointing it out. >> columbus ohio. >> right. >> futuristic cars. >> futuristic things. >> the buckeyes, they got great football over there. >> all those people from columbus

. >>> then can a tesla swim? the new video making the bay area made car look more like a boat. >>> and the hype over a well known american brand finally coming to the bay area. ,,,,,,,,,,,,,,,, >>> well, it was a situation that no boy scout troop could be prepared for. just as summer camp is starting, someone swiped their supplyings. kpix 5's devon explains what happened. >> it just really upsets me because they know it's for kids. that doesn't mean you have to take it. >> he's old enough to understand that not everyone embraces the boy scout's oath of honesty but it's hard to accept someone would target toys and supplies for the camp kicking off today. >> i really enjoyed it. one of the reasons why is because it's a program to help kids basically have a good time. >> the kid's organizers parked their supply trailer at the camp over night and then arrived this morning to find someone broke the lock. >> we saw all of the new program supplies we bought for this new camp was taken. a bunch of amazon boxes with craft

we're taking a deeper look into the plan for tesla to go solar. coming up, why some say it's a good deal and others say stay away. >>> and good afternoon. i'm mols jeff ranieri. cooler temperatures today. we're tracking exactly how long that lasts in just a few minutes. lately the beaches have been packed.... and this is not what bchgrs want tsee in the water. great white sharks -- swimming off the coast of santa cruz. ==boxes== nbc baya' >>> the beaches have been packed but sharks are swimming off the coast of santa cruz. marianne favro joining us live from santa cruz tonight at the wharf. these recent is shark sightings are pretty discouraging. >> reporter: well, i want to show you where the shark was spotted on saturday right over here by these buoys, a possible white shark just off the santa cruz saturday about 250 yards from the beach and just today marine biologists spotted even more sharks south of here. people on this charter boat got an unexpected surprise. this video shot from a helicopter south of the cement ship shows a shark swimming

wondering is tesla, the electric car company, becoming tesla, the sustainable energy company. that's the story from here in the u.s. back to you. >> well, tesla ceo elon musk who is also the chairman of solarcity and largest shareholder in both firms described the deal as a no-brainer. >>> solar stocks reacting to the deal. phoenix and solarworld trading higher. solar tech is off by a tad in germany. >>> now, a key consideration in brexit would be trade terms if the uk breaks away from the eu if it were to happen. while the leave campaign argues that treaties they aren't necessary to trade. others argue that negotiations would be extremely cumbersome and ultimately work out worse for brits. i spoke to the director of the world trade organization and he told me how negotiations would pan out post brexit. >> i've been talking about this quite a bit recently, and what i've been telling people, is that the realities we don't know. we don't know exactly what the outcome is going to be. there will be negotiations ensuing for if the uk leaves the eu. so negotiations would be needed b

. ♪ emily: turning to tesla. elon musk announced that the company was shopping for a chinese production partner. bloomberg reports that shanghai is the first in line for the proposed base. joining us now for more is our managing editor for tech coverage in asia. what do we know about the partnership? >> to be clear, this was not announced i either company, at this point. a person who is familiar, they said that, among the cities competing, shanghai is the number one contender. that is not a big surprise. there is a free economic zone that would be good for tesla. there is motivation to build a plant in china avoid the levees that you would get, trying to build outside of the country. emily: this deal, is it a big deal? >> it would be. there is speculation about what the percentage of preorders from china are. for tesla to have a second factory or a second assembly plant would be a big deal. emily: tell us more about the company that tesla will be working with. >> it is not a particularly high profile company, at

to be fair, the purchase will not technically call tesla money because it's an all-stock deal but tesla's stock is worth a lot less after the announcement. tesla shares fell down to about 9%. >>> and "the columbus dispatch" is reporting that u.s. transportation secretary anthony fox will announce columbus, not san francisco, as the winner of the smart city competition and will get millions of dollars in federal aid to test autonomous cars, build electric charges and other futuristic cars. once again, an ohio team beats a bay area team. >> that's really sad. >>> a man accused of hiding a teen murder suspect in novato is expected in court for a bail hearing. police say elmer rivera harbored a teen along with 16 girls he was arrested for stabbing and shooting two novato high school students last month. one of those victims died. police are looking for a third suspect. but enriquez is also accused of raping a student before the deadly attack. >>> dennis hastert checking into a federal prison in minnesota. he showed up at a wheelchair today. the former republican leader pleaded guilty to break

tesla stock today. cnbc showed off craters to indicate tesla stock yesterday. it fell as elon musk failed to convince investors tesla should buy solar city. many fear this is a bailout of solar city which has been losing money, but so has tes lachlt this is the marriage of two people with big credit card bills. we want teslas to roll out of the factory. >> that crater may be the concern of this acquisition. >> any time cnbc is showing pictures of craters, you made a wrong decision. >>> helpful to some people. it's called hop skip ride. it's designed for kids. legally uber and lyft are not permitted to pick up drivers pds 18. drivers are required to have childcare experience and pass a more expensive background check. >> they had one that shut down called shuttle. so this has certified childcare. >> you have trust to send your kid away with a stranger. >> remember those uber eats, kitten. >> it's going to be a hot day again. great weather for just doing something to cool off. ice coffee, ice cream or just relaxing at the pool. as we see more of this weather over

here's what tesla says happened. tesla informed ntsa about the incident immediately after it occurred. we know that the vehicle was on a divided highway with the autopilot engaged when a tractor trailer drove across the highway, perpendicular to the one that the model s was on. neither autopilot or the driver noticed the white side of the tractor trailer against the brightly lit high and the autopilot brake was not applied. the high ride height, the tractor trailer, and the positioning across the road and the rare circumstances of the impact caused the model s to pass under the trailer so it passed under the trailer at right high speed. its advanced crash safety system would likely have prevented a serious injury but didn't take place. it went underneath the tractor trailer. that's the circumstances regarding this incident involving a model s that was in autopilot mode. a fatality of the accident. >> and the failure, phil is -- the truck perpendicular across and the lighting? >> right. >> back lit or the sun? >> well

even a mosque, tesla threatens to buy solar city. "the wall street journal" says that still defies logic. we will have the story. you are watching "fbn:am," your first look at morning markets and breaking news. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday. nicole: raking us this morning. punch and counterpunch in the race for the white house. kelley clinton blasts all trance record and trump fires back saying he will win the white house did good morning. i am nicole petallides. lauren: at i am lauren simonetti. in historic vote on staying in or leaving the european union and peer nicole: markets on hold ahead of the british had said so. just a market futures this morning getting a little bit of momentum

gabe slate shows us tesla big plans for the future. and talks to an auto expert who says this move may backfire. >> reporter: tesla and solarcity not just silicon valley neighbors. they might help get the company off the ground and sit on solarcity's board. the ceo and cofounder of solarcity is the cousin. elon says the merger is a no- brainer. it will help tesla deliver full solar power solutions to people. change the power in their house or business to all solar and power the tesla car. >> you walk into the tesla store and you can say, i would like a great solar solution. done. >> reporter: this will usher in a new era for tesla. it will not just be an automotive company, it will be a bigger sustainable energy company. >> sustainable energy problem needs, you have the storage and transport. those are the 3 ingredients. >> it's brilliant and could be a nightmare. >> reporter: one auto expert says it all sounds great. but delivering on this is a challenge. >> i couldn't be more excited to use the sun and not pay for energy. but every s

he better hope tesla is not seen as a car company and the biggest competitor to tesla is tesla. i don't think they will get to the numbers. the numbers are huge. it's a search company. apple isn't going to be a car company. it's searching for invasion, as well. >> why do you say -- we don't really know -- >> successful car company. >> i get what you're saying because of supply. they have to raise money to build a factory. apple as $233 billion on the balance sheet and raise $4 billion in asia pacific in a bond offering. it could put up a factory overnight. >> the question is not will it be imminent. is it going to be in the near term? could they be a competitor? they could. they could build a product, no question about it. it's not going to be in the short term oh beat by 2020. >> not a tesla issue. >> i wouldn't worry about -- >> i love how he slaps on the years, the estimate. apple will be a car company in 2020. >> this goes -- >> jesus -- >> listen, okay, so now we're talking india in five years is going to be big for apple. they will build cars in five years. what will they

a tesla owner shooting cell phone as he guided his tesla model "s" through traffic during a flood in a tunnel. ceo elon musk after seeing this said, i'm proud of the car. he does urge other tesla owners not to drive their car through flooded conditions. >> don't do this at home. >>> back in a moment with the warriors' next plan. we'll hear from steph curry and klay thompson. the making. the disneyland resort diamond celebration. don't miss your chance to see it all dazzle. come celebrate new beginnings like hyperspace mountain... and premiering this summer, frozen, a musical spectacular... plus an all new soarin'. so come to the place where summer dazzles. returned to clevelanthis >>> warriors fans, if you need to close your eyes we understand. lebron james and the cavs return to cleveland this afternoon with the championship trophy. there it is. although of course we are heartbroken here in the bay area, it is a pretty heartwarming story for cleveland. this is cleveland's first championship in 52 years. we're talking about in baseball, in football, in basketball, any sport. so it's

tesla says they will have an opening party july 29. panasonic is tesla's main battery supplier and is a big partner. to playy are moving larger battery. i think it is 20 by 70 millimeters. cells,y larger battery which have higher energy density. you will see the model three get a significant range though it is a smaller car. >> think you were joining us. next, the oecd says the world is caught in slow growth mode. we will hear from pimco on whether he agrees. that is coming up next. ♪ >> it is time for a look at some of the biggest business stories in the news right now. goldman sachs is said to have cut dozens of banking jobs in the last few weeks. jobs were eliminated across the mergers and debt and equity capital markets teams. adjusting to firms slowdowns. a deal is valued at about 2.8 arian dollars. 56% -- 56%ents a premium. acquisition is expected to increase revenue by as much as $120 million in fiscal year 2017. that is your update. the global economy risks getting caught in a loan growth trap. bet warning today, the omc puts

i want to standby to the talk to you about the tesla down grade, and morgan stanley's adam jonas and we know him well, and considered to be the guy, and the closely watched to and listened to voices on the stock, and at one point the most bullish on the name, and he had come off of the price are target in the last few month, but today, he cut it even further, and downgraded the stock. can you comment? you told me earlier today in your words that the note was damning for tesla, and can you expl explain? >> absolutely. because if you are following adam jonas and you and i both follow him, and he is not somebody who screams out ridiculous ideas and he is measured in the approach, and you may disagree with it, but the approach all along is that tesla is building the vehicle and the infrastructure that will continue the grow in the future, and that why i he a price target of $333 and i believe in where tesla is going as an auto company and battery supplier with the giga factory, but in the note he said that you have done a complete turn here by saying that you want the buy solar city, and

go drive a tesla. if you want to make money, go buy stock in nxti. >> how are discount giants tj maxx and stores? and nearly 75 million babyboomers in the u.s. alone. and tonight one company that could profit on the fact that we're all getting older. newvacin. the reality behd this could be a slam-dunk in both directions. i'll explain why. why don't you stick with cramer? . >>> this week we're talking about duopolys. we love a good one on "mad money." but serious competition, it is anathema to profits. they can behave like gentlemen with no need for self-destructionive price wars. here's the thing. suddenly it covered with lowe's and home depot. both companies tend to do well, at any given time one will be doing better. it is and not always the same company at the top of the heam. the consider the offprice retail price. between tjx, the parent tj maxx marshals. i like to think of these two companies as the vultures of the retail sector. they're scavengers that feed on the cast-off merchandise of strugg