endurancend continued of tesla? >> if i'm not mistaken, they don't have dealerships, they have stores, you go in and you can sit in a car and buy it from there. >> there is a direct appeal to consumers with tesla. especially because you have an inherent attraction of this car to a particular segment of auto buyers who are very loyal to the idea of green cars, energy-efficient cars. does the government play a role? i mentioned john delorean entered in a partnership with the british government, who gave him some financial backing that enabled him to mass produce cars, unlike reston tucker -- preston tucker. energy efficiency get some government subsidies to build the batteries. , when yourelps production is subsidized by the government, to get you tax breaks and subsidies. that lowers your overhead and costs as well. plus, a lot of it is good product. consumer satisfaction with tesla and their reliability rates high. it is how good and how reliable a car you have. satisfy consumers and keep them coming back for more a

at this point, tesla is saying the system was issuing warnings. >> phil, i want to shift gears on tesla obviously, that's a serious story. over the weekend, obviously april fools' day, elon musk a super smart guy, dumb tweet, joking about the company filing for bankruptcy any response from tesla on this? that's not funny >> no, i think tesla takes it as this is what elon musk does. well, if you follow elon musk or if you are a fan of him or you really, you know, actively see what he does on a regular basis, i wasn't surprised when i saw this tweet earlier in the day he said big news coming in a little bit. of course that got a lot of alarms going people thinking, oh, this is it. this is when we get the q1 production numbers this is what we want to see. and then when he came out with the april fools' tweet, i was not surprised. you have to understand what elon musk is all about. this is his sense of humor you might not like it but that's the way he operates. >> sometimes, jokes fail we all know that, especially me. thank you. >>> the big fun stories you need to know including a dramatic

tesla's stock is doing very well. what are some other possible reasons to explain why tesla has not gone the way of tucker and delorean? at least not yet. any other ideas? what about the nature of the car? what powers tesla? gasoline, diesel? >> it is an electric car, that makes it much different, and in a way, more appealing to consumers with a taste for the future who want something different, not just gasoline vehicles for the last century, what we have been using. >> excellent. elon musk and tesla have entered a market where essentially was almost a blank slate. the other automobile makers are still dependent on internal combustion engines. for people in the u.s. and worldwide are more conscious about the environmental impact of automobiles, an electric car is appealing. it could be the end of the internal combustion engine, and less of a carbon footprint, less smog and global warming perhaps. there is a reason to buy the tesla as opposed to other cars that consumers might feel attracted to. there is that. the ver

>> the mtsb culting off ties with tesla during a fair -- cutting off ties with tesla during a fatal crash. >> authorities in mendocino county confirmed they found the car of a missing southern california family. the four on 2 starts now. >>> a 61-year-old woman connected to a well known restaurant in alameda is killed in what police say began as a robbery attempt. welcome to the four on 2 i'm cristina rendon. >> and i'm ken wayne. paul chamber is joining is live with the latest on the investigation. paul. >> reporter: i want to tell you we got surveillance video. i'll have that at the end of this report. we have surveillance video from that night. this is the first time alameda police are talking about this case because earlier this week it took a turn as one of the victims died. alameda police are investigating a homicide that was first thought to be an attempted robbery reported outside of this restaurant at 1919 webster street. >> the suspects tried to take some property from our victims. and a struggle insued at that point. >> police say it happened around 11:00 friday night and the o

tesla fell again. -- bankruptcy three moody's say that tesla may need to read -- raise more than $3 billion. they have limited returns on investment the company have made. output is still below target. supportse maker china's plan. cofounder and ceo added his backing to the plan to allow companies to issue cd-r's in chinese markets. he describe the plan as a great innovation. thatare planning an ipo could be the biggest since alibaba's debut in 2014. finally, u.s. environmental and regulators -- environmental --ulators will relax the ep relax measures. the decision has drawn criticism from the consumer and environmental groups area the agency may revoke california's right to set its own emotion -- emission tools. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. the trump administration is said to be making a new push to have an outline nafta deal. they will make the announcement at the summit of the americas next week. tony snyder joining us right now. -- jodi schneider running us right now. what does president tru

tesla debt falling back to earth. they put a downgrade, cutting the pressure in putting march march. behind us looking forward to , april, we look ahead to payroll friday. we begin now with the big issue some stormy weather in shortsville. kevin: i tend to subscribe to the wisdom of crowds. when everybody got on that side of the trade where inflation was coming in 2% yield on the 10-year coming. it is an automatic slamdunk guarantee. the fed is going to raise four times. at that point i am like this , could turn. it just needs something to help it turn. eric: sentiment matters in markets. they can take a longer-term perspective. >> the most recent action in the 10 year treasury is more of a flight to safety, a flight to quality, in terms of this most recent move, the low to 2.8 met -- level. michael: quite frankly, i think there is a pain trade down to 2.64%. maybe 2.6% in the next few weeks there. i think people have to be aware of that. andrew: with risk assets looking for in terms of valuation, we actually think th

tesla shares down by over 6%. back to you. >> jason, thank you. >>> happening today, the dmv can now issue perm its for driverless vehicles to go down the road but monitors are still required. not a single car company had even applied for a permit. >> so they have to keep working on that before they perfect that situation. >> i see some of the cars out there but they have the drivers still in them but they drive around a lot. >> you might want to be in a car with a different diver today so you can get something done with the backups. >> it has been a mess out there. we are tracking a crash on westbound highway 4 with two lanes blocked at 680. headlights moving westbound near the chicago highway, just a little further west is 680. traffic is down below 5 miles per hour approaching the scene there. give yourself some extra time. it is close to an hour ride for drivers out of antioch to 680. that is a 34 minute delay. 580 is dealing with a new accident, not blocking any lanes but certainly slowing things down. you ha

. >> this is an agency that's been critical of tesla in the past and by tesla not being at the table, it will diminish its role in the future findings that could come out in the next year or so. elon musk the ceo will aggressively defend the company and the abilities of autopilot. >> reporter: the ntsb says it expects tesla to cooperate with data requests and tesla says it will keep on providing that assistance. meanwhile, the family of the driver who died plans to file a wrongful death suit. the ntsb says it's rare but had it's revoked party status in other investigations. it happened in 2009 after a tour helicopter and small plane collided over the hudson river in new york killing nine people and in 2014 after the u.p.s. cargo plane that crashed in alabama that killed the pilot and first officer. >> thank you, ken wayne. >>> in the meantime, tesla is gearing up to start production of its model y sport utility vehicle. the palo alto-based company expects to start turning out the new electric vehicles by november of next year. back in february, elon musk told analysts the company woul

plus, tesla's second timeout. this week, the electric or manufacture stops production on its model 3 sedans, and sends its workers home, only to reverse course and declare a 24/7 operation. we will explain. and paying for prime. jeff bezos says amazon's premium subscribers have topped more than 100 million. first, to our lead. netflix shares popped this week after reporting the strongest surge from the start of the year. the streaming pioneer added 7.4 million subscribers in the first quarter, beating the estimate of 6.4 million. netflix now has more than 125 million paying customers, the most of any online tv network. the company is the best-performing stock in the s&p 500 this year, proving one quarter at a time that investor's confidence in its online tv service is justified. we dug into the numbers on monday right after they came out with caroline hyde, who caught up with analyst paul verna and henry lake fox. >> they are making shows that everybody wants to watch, so as long as that is the case, then people a

the production halt, as tesla has said, is just something that happens, not just that tesla, but a lot of companies. you have to reset the line or make sure the tooling is right. there are reasons to stop production that are not bad. that said, there have been a lot things, which would cause someone who is a tesla skeptic to see this as yet another sign that this company is in over its head. if the numbers keep moving in the right direction, investors are going to be happy. elon musk will look like a genius. of hiswhat do you make comments last week on cbs, that he overdid it on automation? reporter: that's a huge shift. one of the key things tesla had been talking about as a differentiator is that this was going to be the most automated car factory in the world. that was going to allow them to hit these crazy ambitious production numbers. the problem, as we have been learning, is that it is harder to plug people in. what seems like is happening in the factory, when you start pulling little tidbits that are filtering out of there, tesla is moving much more toward a traditional sort of

are unhappy with the release of investigative information by tesla. wayne's family said he complained to the company about the car veering towards the freeway barrier in the past while on autopilot mode. tesla says they do not have records of that complaint, and he only brought up issues with the navigation system. >> their stock prices is falling, they have had a fatal automobile accident. all of these things are combining to give tesla a black eye. >> reporter: another issue? they are recalling 23,000 model s sedans made before april 2016 for potential problems with the power steering bolts. ?a i don't think >> i don't think it is that big of a deal. it comes on the heels of somany other things that tesla has been facing. >> reporter: the stock dropped to the lowest it has been in almost a year for tesla. >>> the clean up continues today in one of santa rosa's most hardest hit neighborhoods. pg&e crewerize expected to build new gas and electric lines after much of the underground equipment was destroyed during last year's fires. crews will also inst

plus, tesla's second timeout. this week, the electric or manufacture stops production on its model 3 sedans, and sends workers home, only to reverse course and declare a 24/7 , operation. we will explain. and pain for prime. jeff bezos says amazon's premium subscribers have topped more than 100 million. first, to the lead. netflix shares popped after reporting the strongest surge from the start of the year. the streaming pioneer added 7.4 million subscribers in the first quarter, beating the estimate of netflix now has more than 125 6.4 million. million paying customers, the most of any online tv network. the company is the best-performing stock in the s&p 500 this year, proving one quarter at a time that investor's confidence in its online tv service is justified. we dug into the numbers on monday after they came out with caroline hyde, who caught up with analyst paul verna and henry lake fox. >> they are making shows that everybody wants to watch, so as long as that is the case, people are going to subscribe and

that's the lesson tesla is learning this week. >> what the federal government did following tesla's exclusive abc 7 i-team report. >>> a new crack down on car break-ins. can a slogan really help stop people from being targeted in san francisco? >>> i'm meteorologist sandhya patel. things look very different tonight compared to last night this time. i'll let you know how long it lasts before rain learns again. >>> up next a >>> police in alameda need your help solving the city's first homicide this year. a restaurant owner has now died after an attempted robbery on webster street friday night. at the top of your screen you can see the struggle there. it shows attackers beating cindy lee and a 28-year-old woman who tried to help her. they were both rushed to had hospital and lee died from her injuries on tuesday. alameda police have vowed to find the killers. >> we've devoted every available investigative resource exclusively to this investigation. all of our investigators led by our violent crimes unit have been collecting and analyzing evidence. >> if you have any information please call alam

plus, tesla's second timeout. the electric car manufacturer stops production on the model 3 sedan and sends workers home, only to reverse course and declare a 24/7 operation. we will explain. and pain for prime. jeff bezos says the premium subscribers have topped more than 100 million. lead. to the netflix shares popped after reporting the strongest surge from the start of the year. added 7.4ing pioneer million subscribers in the first quarter, beating the estimate of 6.4 million. netflix now has more than 125 million paying customers, the most of any online tv network. the company is the best-performing stock in the s&p 500 this year, proving one quarter at a time that investor confidence in its online tv service is justified. we dug into the numbers on monday after they came out with caroline hyde, who caught up with paul burnet and henry lake fox. they are making shows that everybody wants to watch, so as long as that is the case, people are going to subscribe and state with netflix. it's been an amazing story

likeat will hurt companies tesla that are betting on it. emily: still ahead, the trump administration zeroes in on high tech industries in its push to rebalance global trade. which industries will be most impacted. that is next. plus more on our coverage from , the fallout from facebook's data scandal. will it send advertisers running? or can the social networking them on board? this is bloomberg. ♪ ♪ emily: welcome back to "best of bloomberg technology." i am emily chang. president trump is pushing to rebalance global trade in america's favor and the global tech industry is preparing for a huge impact. white house advisor peter navarro said the administration's tariffs on china will focus on high tech industries where beijing wants to lead. the focus of theu : tariffs is on the china 2025 industries. china, in my view brazenly has , released its china 2025 plan that basically told the rest of the world we are going to dominate every single emerging industry of the future and there -- there for -- therefore your economies are not going

elsewhere, we get to a flashing warning sign from tesla. back in august, investors lined up for a chance to finance the company's ambitious rollout of its model three sedan. but now after a spate of setbacks, including a credit rating downgrade, tesla's notes have plunged. still with me, greg peters, jim keenan, and kathleen gaffney. jim keenan, in august of last year, for this maturity, for this credit rating, that tesla issue was a record low yield of 5.3%. and it has fallen out of bed. is it a tesla issue specifically, or does this speak to something broader in credit markets? jim: in general, you have seen volatility increased dramatically since you had that issue. it is a combination of aggregate volatility built in the equities, and what that has meant in spread volatility. so the credit markets, and certainly the high yield markets, have been weaker since that issuance. on top of that, you have seen the yield curve move. so there has been a duration component to that aspect. obviously, you have seen some issues with tesla with the un

>>> tesla disaster. the deadly crash involving a tesla vehicle and a driver using the autopilot feature. what the company is saying

elsewhere, we get to a flashing warning sign from tesla. back in august, investors lined up for a chance to finance the company's ambitious rollout of the model three sedan. but now after a spate of fresh setbacks in the past week including a credit rating , downgrade, tesla's notes have plunged. still with me, greg peters, jim keenan, and kathleen gaffney. jim keenan, in august of last year, for this maturity, for this credit rating, that tesla issue was a record low yield of 5.3%. and it has fallen out of bed. is it a tesla issue specifically, or does this speak to something broader in credit markets? jim: in general, you have seen volatility increased dramatically since you had that issue. it is a combination of aggregate volatility built in the equities, and what that has meant in spread volatility. so the credit markets, and certainly the high yield markets, have been weaker since that issuance. on top of that, you have seen the yield curve move. so there has been a duration component to that aspect. obviously, you have seen some issue

he says lanes that are not clearly visible can be a challenge for teslas autopilot.>> tesla has eight cameras all around the vehicle. they monitor the presence of the lanes on the road. >> reporter: tesla says it is also using a dozen updated ultrasonic sensors. it allows for detection of objects and nearly twice the distance of the prior system. the company also advises its customers to keep their hands on the wheel and to pay attention.>> do you still think the tesla is safe?>> i do. it is a matter of the driver taking responsibility as well. >> reporter: the driver in the deadly crash did not take control of the wheel despite warnings. in this video, joshi grabbed the wheel seconds before his tesla would have slammed into the median.>> the results are kind of freaky. >> reporter: tesla's ceo elon musk told reporters california needed better lane markings because it was confusing his cars autopilot feature. we reached out to the company about joshi's video and are still waiting for a response. in san jose, maria medina, kpix 5 news at 11 . >> most people say they would feel unsafe o

tesla's second timeout. the electric car manufacturer stop production on its model three sedan and sent workers on. now workers are asked for 24/7 shifts. apple pushes the deeper into news, but can a prescription make it as successful as apple mys -- music. ibm shares tumbling after the first quarter despite a win in its campaign to reverse years of revenue decline as it reported its first year of growth. ibm's new strategic imperative unit saw a 50% rise in revenue from the year before. this including the company's clout, analytics and mobile -- walk us through the main weaknesses here. >> the biggest weakness is gross margins. this has been an issue for some time. even a share, we should see slight decline in gross margins. the pace of decline is not going to be as bad as last year. this remains the number one concern that is the driving out-- down the stock. emily: this that outweigh security, cloud, analytics? >> that is similar to what it's been happening for the last year. i would not get too excited a

amazon and tesla saw sharp losses. president trump kept up his criticism of amazon saying it doesn't pay the postage service. they will continue to face questions about that deadly crash near mountain view just over a week ago. >> the dow fell 458 points. down nearly 2%. the tech heavy nasdaq dropped 3% and 193 points. s & p slid 58 points off more than 2%. all the major indices are in negative territory. >> silicon valley intel tumbled more than 6 persona bloomberg report that a plans to start using its own chips in mac computers. tesla was down 5% . >> joiningtous talk about the losses is george. george, a big day on wall street. we saw the markets were over indexing earlier in the year. is that this correction here or closer to the correction point? >> if you look at the last 30 years l is a 10% -- 30 years, there is a 10% correction. we are not quite 10% from the beginning of the year but we could be heading in that direction. >> george, i want to talk about china tariffs. we knew china was going to retaliate in so

he says lanes that aren't clearly visible can be a challenge for tesla's auto pilot. >> tesla believes in having eight cameras all around the vehicle and they monitor the press of the lanes on the road. >> reporter: on its website, tesla says, it's now also using a dozen updated ultrasonic sensors allowing for the detection of objects at nearly twice the distance of the prior system. the company also advises its customers to keep their hands on the wheel and to pay attention. >> do you still think the tesla is pretty safe? >> yes. it's just a matter of the driver has to take responsibility, as well. >> reporter: the driver in the deadly crash according to tesla did not take control of the wheel despite warnings. in his video, he grabs the wheel seconds before his tesla would have slammed into the median. >> and the results are kind of freaky. >> reporter: a couple years ago the tesla ceo told reporters california needed better lane markings because it was confusing his cars' autopilot feature. we reached out to the company about josh's video and are still waiting for a response. in san

tesla will be profitable and positive in q3 need4 so obviously, no to raise money. that was the tweet, pretty damning on the economist which reported the electric maker will need up to $3 billion this year, but does wall street agree with optimistic outlook? here to tell us more, bloomberg's detroit bureau joins usid welch and david, i mean, very few stocks divide the wall in betweenysts lovers and haters, investors between lovers and haters. to dive into the bloomberg and look at gtv because this shows you how bearish bets that are out on tesla. the overall float in tesla is currently shorted, phenomenal. most in anythe u.s. stock. the hate?ve and >> yeah, that's right. and actually, it's now the most shorted stock for a while it was apple and now, it's back to tesla. you have true believers elon has a vision for electric cars, that he will bring to reality one day and ath great technology and great brand, he'll really be able to cash in and investors will make a lot of money. the haters, as elon and people in tesh lucall them, are the shorts, the bears, think that

but in a statement, tesla says it withdrew from the panel. "cbs this morning" anchor gayle king rode with tesla's ceo elon musk to get some answers. >> you have this beautiful glass roof. ultraviolet coatings like a good pair of sunglasses. >> reporter: tesla's model 3 is sleek and minimalistic but it's one of the automaker's key features. >> creeps me out. so you're not turning, the car is turning? >> reporter: that's getting renewed attention, the autopilot system. staying within lane, it is not supposed to replace a human driver. >> we can't expect people -- >> why did it do that? >> my hands weren't on the wheel. >> what's the purpose of having autopilot if you still center to put your hands on the wheel, elon? >> because the probability of on autopilot is less. >> reporter: less likely but not impossible. an accident last month in autopilot mode. was it defective? >> the system worked as described. it's a hands-on system. it's not a self-driving system. >> reporter: a week after the accident, tesla announced that the driver had received

for a while it was apple, now it is back to tesla. you have true believers who think elon has ambitions for wireless and autonomous cars, that he will have a great grant, and will be able to cash in. elon and people in tesla call them, think you will run out of money before he gets to that vision, and the shares will come crashing down, and somebody else, general motors or mercedes or combination of all the existing companies, will be the ones who make the cars of tomorrow that drive themselves and run purely on electricity. and those are the two opposing views. until tesla shows they can make money and stand on their own two feet without having to raise more cash, you will have a bunch of shorts pushing the story. >> keeping a keen eye on the cash flow, particularly when he was tweeting about today, saying we will be cash flow positive in q3 and q4. many have been eyeing this figure, because there is a phenomenal amount of debt of the company. >> there is. a hassle has about $10 million in debt already and they are spending quite a b

walter died march 23rd in a fiery tesla crash in mountain view on his way to work. she couldn't reach him and turned on the news to see this. she told me walter had complained that his tesla's autopilot had steered toward that same barrier on several occasions. she recognized the location and the blue model x. >> did you think if was water? >> yeah, i think that's him. he just like love everything. for me. i not only lost my husband. i lost my best friend. >> reporter: tesla kofrmtd its data showed walter huang was using autoo'pilot at the time of the crash but that his hands were off the steering wheel for six seconds right before impact. tesla sent me a statement tonight that reads in part "autopilot requires the driver to be alert and have hands on the wheel. the crash happened on a clear day with several hundred feet of visibility ahead which means that the only way for this accident to have occurred is if mr. huang was not paying attention to the road." >> we know that he's not the type who would not have his hands on the steering wheel. he's always been a real

announcement,ll the tesla bowl said tesla is testing our patients. when we were the recall news we asked ourselves do we still believe in the story, and that is the question for investors, as a company that's not making money and basically says in the out years, we are going to get there and build enough cars and people are going to like our cars and buy them and the question is, can they produce enough cars and enough buyers, which is testing investor patience. lisa: tesla to disclose some details about the fatal accident and now they have angered the ntsb come the national transportation security board that says you guys can't do that. it's an ongoing investigation and we don't like that you disclosed information. you can add this to the concerns of how they are managing their pr and financial conditions right now. alix: it also raises the question in terms of production for their vehicles, at what point are indications so low that -- mike: they come out with the latest monthly figures and bloomberg has a really interesting thing they have come up

why do you just cover tesla? things like that he's on twitter and tweeting back at these people. >> almost seems like a rage and a waste of his time. there's a hot to do. hopefully it's a sideshow. interestingly, a year ago march 17 of last year they did a convert, the stock is right where it was now and they were able to just -- they could have done probably multiples of what they raised last year and they did it at 2-3/8 and stock conversion at 328. they could do that again i think the market is still open i agree with bk, i think they should do it very soon, right away they couldn't do it at that price but i think they should and maybe he knows -- musk obviously knows when they'll try to do it but maybe knows he can get that done, this bankruptcy thing is ridiculous. >> yeah and he tweeted about it, too. the bankruptcy joke, he said why would i tweet about something that isn't even a possibility? you tweet about it because it's not. >> you prefer not to have the ceo out there tweeting like this he's eccentric.

everywhere you look, it's trauma speaking of tesla, we have news. phil lebeau joins us. >> a lot of people have been talking today about elon musk's april fool's tweet where he said, we've gone bankrupt, we avoided it by selling a massive number of easter eggs. it was clearly his attempt at some april fool's humor. well, after hearing or seeing much of commentary regarding whether or not that was a wise thing to do, he just issued a tweet saying, seriously, obviously i'm not going to do an april fool's joke about going bank bankwupt if i thought there was any chance it would actually happen sigh there you have it. ee long musk feeling a little frisky today not only commenting about people who don't think he should have issued that april fool's tweet also going after ntsb for criticizing tesla for releasing data regarding that model x that's under investigation out in california. guys, back to you. >> thank you for that. kevin, your reaction to the latest tweet, all the tweets over the weekend from elon musk. is he sort of acting like early stage ent

plus, tesla's second timeout. this week, the electric or -- car manufacture stops production on its model 3 sedans, and sends workers home, only to reverse course, and declare a 24/7 operation. we will explain. and pain for prime. jeff bezos says amazon's premium subscribers have topped more than 100 million. first, to the lead. netflix shares popped after reporting the strongest surge from the start of the year. the streaming pioneer added 7.4 million subscribers in the first quarter, beating the estimate of 6.4 million. netflix now has more than 125 million paying customers, the most of any online tv network. the company is the best-performing stock in the s&p 500 this year, proving one quarter at a time that investor's confidence in its online tv service is justified. we dug into the numbers on monday after they came out with bloomberg's caroline hyde, who caught up with analyst paul verna and henry lake fox. >> they are making shows that everybody wants to watch, so as long as that is the case, people are goin

—— a tesla car. through the car, concerning a fatal crash? -- a tesla car. took place in california, this is one of the self driving cars. it looks like it is coming back to bite them. the share price has crashed over the last few days. the reason is that the american authorities have said they are pinning the blame, essentially, or tesla's technology. tesla says that the driver was warned to take control of the wheel from the autopilot. but this is only going to revive the debate about whether it is safe to give driverless cars to drivers that might learn to just sit back and relax by the steering wheel, as nice as it which sound. if it malfunctions, people might die. would you get into a driverless car? i think they are probably inevitable, but i think... so probably i will get into a driverless car. any time an incident like this happens, it pushes back the inevitable that he. the story makes an interesting point, that tesla has been really dependent on investors' willingness to keep funding the development of their ca rs funding the development of their

you only wrote an article about tesla. a response -- here is a new reason to be nervous about tesla. musk wrote back not criticizing, just asking question. colin, should he stopped tweeting and start focusing on the cars? fair point ia -- i think we are in a twitter point. era. obviously the importance for tesla is ramping the model three. it has everything to do with what investors are focusing on in the near-term and everything to do with the cash burn story. if they can't get as ramped by q2, i think it will have to go to the market and raise capital in q3. that is a challenge for them, because they usually come to the market with good news. story tolly have a sell, a new product to sell, and if they are going to the market because they are in a cash bind, i am sure they will be able to raise capital but it will be the first time that they go in that challenged position. emily: you have a sell rating. why? colin: we are very concerned about the production ramp. as i said, they are in a tight cast position, and that is n

that's always the tesla story. still watching as there's a push and bull between the tesla bulls and bears. production numbers, they announced it built 2020 of its less expensive model 3 sedans, falls short of production target of 2500 per week. other big automakers having a big day today, racing ahead after reporting higher march sales. gm, ford, fiat chrysler, all posting good numbers. look at gm, up 14%. fiat chrysler up 14% for its sales numbers. jeep. what a move. fiat chrysler's jeep, sales spiked 45%. let's looked at shares of all of them. fiat chrysler jumping 9%. reflects the great jeep number. gm moving higher by nearly 3%. gm saying we're done, we're going to stop reporting monthly numbers, they want to end on a high note. we've got a chorus of buyers for spotify as the stock jumps above initial pricing. how will it perform longer term? it could go the way of snap which celebrated first year as a public company and the word celebrate, i use it loosely, very rough year for the social media app, to losing

what's your take on tesla? >> over the weekend -- that tesla is going through bankruptcy the thing is behind every good joke there's a kernel of truth it speaks under the psychological pressure he's under. tesla is facing massive, massive amount of debt due over the next 18 months and a big capital expenditure spend. so, the only way they can get out of it is to do a capital raise. that's the big question, can they do another capital raise and pull the rabbit out of the hat and go forward the market is feeling -- the shorts are feeling like they're just circling like sharks in the water at this point and i think they finally may have nailed the company to the downside so he's facing some very serious problems because debt is absolute stock is relative. sales are all relative that's absolute but he has to face that problem going forward. >> at the same time as a trader, do you feel like this is setting up for a massive short covering rally? all they have to do is deliver 2,000 because that's the number that esse

there are problems for electric car maker tesla. they announced a rrl with s model sedans because of problems with the power steering. now a federal agency is criticizing the company as well. >> reporter: just last night, the ntsb said it is unhappy with the way tesla is handling the investigation into a deadly crash involving one of their new model s sedans. a crash killed a 38-year-old man. his car was in autopilot mode when it struck a freeway barrier on 101. a tech analyst says the recall itself is not enough to hurt the car maker. >> their credit has been down graded, stocks falling, all of this is combining to give tesla a real black eye right now. >> reporter: in a statement released yesterday, the ntsb said that tesla was kwaur cooperative in assisting with vehicle data but they are unhappy with the release of other information. tesla declined to comment on that statement. >>> a nightmare drive in the north bay could be getting easier. caltransbegan work on the slit of highways 37 and 21. according to caltrans commuteers are

the rescind this is a problem for tesla is that they also have -- the reason this is a problem for tesla is that they also have this huge production sprint going on, trying to get as many model threes produced this year as possible. to the extent that they are not able to hit those numbers, and you have something like this that calls into question the company's long-term prospects, that could be a toxic mess for a company like tesla. emily: combine all of that with the general news about production delays. how much does this really set tesla back? max: so bloomberg has a model that is very impressive -- we don't know how close it is -- the model has been showing that tesla's production is likely ramping up toward the end of the corridor. so it is possible that even though the numbers have not looks uber good, that elon musk will come out and say we knocked it out of the ballpark, because they were able to do a last-second sprint. that said, this is more than the sprint. they have to get to hundreds of thousands of cars per year, which is something they haven't done, no one has done with

this red tesla is nothe one that crashed two weeks ago and killed an apple engineer. it is a different car in a different crash but a similar event. the abc7 iteam has exclusive physician about that other crash six months. >> dan noyes he been speaking to experts. >> several tesla drivers posted autopilot veered off courses.ir >> reporter: you are seein the road from a big rig eastbound 92. september 21, 2017. the trucker comes upon a crash that just happens and rushes to help. the car's driver who does not want to be identified tells me he had autopilot on in his tesla model x. by the time he wanted to take over, the car slammed into the merge divider. the safety barrier was in working order. this driver walked away uninjured. >> reporter: i shod the photo to attorney. he points to similarities between the september crash and the one that killed walter huang in mountain view. both teslas had low morning sun. both had autopilot. and both became confused in the lane marking. a tesla owner who commutes the same route tells me he recorded the trip by the accident scene t

walter died march 23rd in a fiery tesla crash in mountain view on his way to work. she couldn't reach him and turned on the news to see this. she told me walter had complained that his tesla's autopilot had steered toward that same barrier on several occasions. she recognized the location and the blue model x. >> did you think if was water? >> yeah, i think that's him. he just like love everything. for me. i not only lost my husband. i lost my best friend. >> reporter: tesla kofrmtd its data showed walter huang was using autoo'pilot at the time of the crash but that his hands were off the steering wheel for six seconds right before impact. tesla sent me a statement tonight that reads in part "autopilot requires the driver to be alert and have hands on the wheel. the crash happened on a clear day with several hundred feet of visibility ahead which means that the only way for this accident to have occurred is if mr. huang was not paying attention to the road." >> we know that he's not the type who would not have his hands on the steering wheel. he's always been a real

. >>> we're learning tesla's response to i-team interview with widow of tesla owner walter hwang was the last straw. tesla drew criticism because of the statements made in response to the investigations. died after tesla hit a safety barrier on u.s. 101 last month. on autopilot at the time. ntsb chairman says it's unfortunate that tesla by its actions did not abide by party agreement. uncoordinated releases of incomplete information do not further transportation safety or serve the public interest. hwang's family clas that tesla was blaming him for the tragedy. new statement to congress. >>> pleaded not guilty to dozen felony charges after sd he was drunk transporting a high school swim team. drove for several miles. swimmers say he honked horn and cursed at other drivers. bus eventually hit a light pole near washington's campus. no studentsereurt. >>> developing in oakland, pedestrian died after hit by car on interstate 580, just after 9:00 this evening. right now three right lanes on westbound 580 are still closed while highway patrol investigates this tragedy. >>> new details of r

in a release this morning, tesla says it is kicking tesla off the investigation -- i should say, the national transportation and safety board is kicking off tesla from the investigation because the company released information about the investigation to the i-team before it was vetted and confirmed by the ntsb. however, earlier this morning, tesla says it withdrew voluntarily disputing the ntsb account. now, the palo alto company says the ntsb would not let the company release information to the public, and they believe in transparency. we do have exclusive i-team reports about the tesla crash on abc7news.com. click on sections and then i-team for several stories as dan takes a closer look at issues involving the tesla crash. >>> all right. it's april. right? well, doesn't look like it in this video. this was taken overnight in the sierra. you can see winter-like conditions. locals say this is some of mosl they've seen all season long. of course, seers and borders in the area definitely welcoming some of that fresh powder to the area, lisa, but, boy, that's rare to see? >> uh-huh. an

for the time being, tesla is back to 257. you have to wonder this company's ability to raise cash at a time when they'll absolutely need cash and you sort of raise on the debt side is going to be challenging given the amount of debt coming due the next 12 months of more than a billion dollars or so. imagine it being more delootiluo top of the decline that we have seen >> this is the pane thcompany tt lives on capital market. they have been able to fund what has been an enormous losses for years because people believe and if somehow that changes or facts on the ground changes and changing people's believes that they won't be able to deliver, they'll have a difficult time. >> part of the jeffery's call is the notion they'll take what they're calling a drastic action on either guiding or funding >> you got to wonder what that is jeffery makes an interesting point that panasonic making it different to use it as collateral what are the options if they seem to be more limited at this point. we'll have much more on this as david men

you only wrote an article about tesla. why so? bloomberg responded saying, here is a new reason to be nervous about tesla. the ceo is complaining about press treatment. never a good sign. you saw that with the information story. musk wrote back not criticizing, just asking questions. should he stop tweeting and start focusing on the cars? reporter: i mean it's a fair , point. you know i think we are in a , twitter era. not really sure what -- i am sure he does not take that much time. obviously the importance for tesla is ramping the model 3. it has everything to do with what investors are focused on and it has everything to do with the cash burn story. they can't get this ramped by q2 i think they will have to go , to the market and raise capital in q3. that is a challenge for them, because they usually come to the market with good news. they usually have a story to tell, a new product to sell. and if they are going to the market because they are actually in a cash bind, it is going to be the first time that they go in that kind

you still see tesla shares finished the day down quite a bit. close, they may actually be read as a goodthey really hat week and awful entire month of march. it was the worst month for the company's share performance since december 2010. haidi: elon musk has been super active on twitter, starting with april. . responding to a journalist asked him for an interview, my focus is on getting the model 3on time. we had another spacex rocket launch. does he need to do more to convince investors this is his focus? mark: i think you have heard investors or just analysts or people who follow elon raise this concern of is his plate overloaded? this was a major question that to the companyd recently passing a huge pay package for him to lock in this idea that he will be with tesla for the long-term. he got spacex and all of his other interests, including boring company which is doing tunnels into the ground for alternative transportation system. he was tweeting this past quarter about selling flamethrowers to support the company. i think it is a legitimate

tesla shares rebounding today. the stock rising as much as 8% before closing the day, up nearly 6% in the end. it fell short of its self-imposed production target for the model 3, but they say the performance was not as bad as feared. let's discuss this with carlab the founder, eric noble. not as bad as feared -- is that good enough? eric: no, that is not good enough. at as bad as feared was couple thousand production units for the month, as far as we know. this is a planned, in full production, should be doing 10,000 units per month. not as bad as we thought it might be. when musk himself is publicly indicating he will solve the problem by sleeping on the factory floor, if that is what it takes, you know the problem is not in need of heroics, it is in need of process. when we will make vehicles in volume with consistent quality, that is a question of process, not the romantic ideal of an executive willing to work all night. production of model 3 started to early and it is showing up in quality, low quality. that w

we know tesla is a full company. the sundays, but it's i'm sure a big upset for some equity investors. for the timing, the joke is misplaced, i would say but aside from the fact that i think they're realizing they could no lopger hide the fact the short-term production issues they are midterm structural issues that need to be addressed i think that's why i agree, i'm nervous about making these calls. but i feel like we have the more banned risk profile where we could have more bad news, but also, we could actually be surprised with a more aggressive approach to raising more capital, which is more at the same time, derisk the equity story. and probably negative as well. probably need more capital than what we have today and more equity versus previous expeditions. these are very serious concerns that neither management nor the board can ignore >> let me step away for a moment and find out if you have more reason to be nervous or not. on the call you've made today. phil is going to join us now with market flash on tesl

on 101 involving a tesla car. our business and tech reporter scott budman is in mountain view with what is the company's reaction and what they're saying in response. scott? >> reporter: good evening, jessica. a lot of back and forth. we have a lot to what tesla is charging up not far from shoreline boulevard in mountain view and not far from the scene of that deadly accident. at ishe you the autopilot feature of the cars. >> a war of words between tesla and the national transportation safety board. wong was in his tesla model x at the time of the crash. the ntsb says it kicked tesla out of the investigation because the company offered statements seeming to blame wong for the crash. tesla fired back, saying it withdrew from the investigation because it wanted to be able to be transparent with customers about the autopilot technology. at least one consumer group says tesla should step away and let the authority work alone. >> this is all about a desperate company trying to keep it stock price high and get ahead of

tesla says they're going to make an official complaint to congress about the ntsb. an attorney for the family told me that tesla feels more concerned about blaming mr. huang and less concerned about the safety of drivers using the auto pilot system. i'm posting this all on abc 7 news.com. >>> online you'll find the videos of the stories that dan and the i-team have done about this crash. we will send out push alerts when news breaks. >>> the santa clara district attorney's office has charged rubin foss toter with multiple felonies. wou we have more on the disturbing charges. >> reporter: rubin foster did not enter a plea today. that has been delayed until the end of april. and tonight he remains out of jail on $75,000 bail. inside this santa clara county courtroom, a stoic rubin foster faces the seriousness of allegations against him. >> we do not care who the perpetrator is, their status in the community or anything of that nature. we are here it to try to get you justice. >> reporter: two months ago, police responded to foster's home in los gatos after his girlfri

. >>> we're learning tesla's response to i-team interview with widow of tesla owner walter hwang was the last straw. tesla drew criticism because of the statements made in response to the investigations. died after tesla hit a safety barrier on u.s. 101 last month. on autopilot at the time. ntsb chairman says it's unfortunate that tesla by its actions did not abide by party agreement. uncoordinated releases of incomplete information do not further transportation safety or serve the public int int hwang's family claims that tesla was blaming him for the tragedy. new statement to congress. >>> pleaded not guilty to dozen felony charges after said he was drunk transporting a high school swim team. drove for several miles. swimmers say he honked horn and cursed at other drivers. bus eventually hit a light pole near washington's campus. no students were hurt. >>> developing in oakland, pedestrian died after hit by car on interstate 580, just after 9:00 this evening. right now three right lanes on westbound 580 are still closed while highway patrol investigates this tragedy. >>> new detail