at company right now is tesla. then, our confidence was high they were headed in the right direction and as the afterers grew, it was 2018 into 19 as the stock was sayingng as many were tesla was going to run out of money, which i thought was a ridiculous concept. the only time a company like tesla will run out of money as if the markets shut down. there were companies that ran 2008 and 2009n because the markets were open -- because the markets were closed. stories thatating were ridiculous on the face of them. so no regrets whatsoever. cathie wood speaking to erik schatzker. the screen,way from you can find in-depth analysis and the big newsmakers on bloomberg radio broadcasting live from our studio in hong kong. plenty more to come. stay with us. paul: just a few minutes away from the markets open in australia. .1%,res coming off another so let's get to sophie with what stocks to watch. [indiscernible] cutting its guidance and airways ahead of the christmas holidays. we are keeping an eye on resource stocks. this

tesla driving straight into the s&p 500. the electric car company making a big u-turn in the after hours as it gets added to it the index. here we're down by 3%, this, of course, after tesla hit another record high during the regular session. karen, we've all been watching this very closely. what's -- what's your proclivity at this point when it comes to the stock? earlier you said you would look to short it. >> yes thank you for bringing up a very painful trade. so i put in an order to short market on close, and then when i saw the stock trading down at maybe 3:40 p.m., trading down, right, ten bucks, i don't remember, 12, i thought, wow, this is not quite what i was expecting how this was going to play out so i cancelled my short, and it ended up the market on closed price was what 695 i think? so that was very distressing that i did nothing i would have covered right away. i was trading in the after hours or monday morning, so i -- i have no tesla position and yet i feel worse than i did yesterday having no tesla position

and tesla skids. tesla among the biggest drugs on the s&p 500 in its first day of trading. other than the fact the index as a whole moved little. and peloton, for $420 million, to gain u.s. manufacturing capabilities and extension opportunities. we will hear from the president, bill lynch. those stories in moments. first, u.s. stocks slumped amid a new mutation of the coronavirus in the united kingdom. a wave of lockdowns and travel restrictions. abigail doolittle has more on the market today. abigail: it certainly was a volatile market today. at one point the nasdaq 100 down 3%. that's true of the s&p 500 as well, the virus fears and mutation in the u.k. weighing on markets. there was a fear that could come here and slow global economic growth. the s&p 500 lower on the open. on the close, 4/10 of 1%. the nasdaq 100 down a commensurate amount. a bit of recovery as the buyers seemed to find footing. tesla down 7%. the company was added to the s&p 500. that coming as a big surprise -- not coming as a big surprise to experts. they suggested you will see that action for a shock

will all those things combined make tesla the winner, or by oems that some of the make up tesla's market cap, will they have caught up a little? >>>> right now there is not much competition. . when you compare like vehicles, no one is really coming to tesla yet. -- challenges is contested can they go down market? that's how you get to 20 million units. it is not like bmw competing with a toyota camry. once they could do that, the world is their oyster and they can start to take over the entire vehicle we old -- world, but there are others coming in. established players are behind on battery technology but they have powerful apparatuses behind them. once they really lean in, which we think is three or four years will it's possible tesla be big enough to surmount the spirit vonnie: part of this is the loss in china. how crucial is that to joe biden -- elon musk, and joe biden's relationship to china, how important is that? or can he carry out his plans even if the administration takes a hard stance on china? >> china is the biggest automobile market in the world. we not only need support f

tesla will be added to the s&p monday. we will break that down over the next couple of hours. 3/10 of 1%.&p down volatility higher in the last hour. 91 basis point yield. i did want to point out the brexit sensitivity down .7% paid what do you do into a weekend when there could be a lot of headlines? how do you trade that. die: part of what we are seeing is taking -- guy: part of what we are seeing is taking some of that risk off the table. two big stories. a lot of development still to come. let's focus on the one where you are. we have no deal from congress facing on a midnight deadline to stimulusasa covid-19 and the government shutdown pure we could get a short shutdown of the weekend. joining us is bloomberg's laura davison. to an they have not come agreement on limits on the federal reserve power in terms of emergency lending programs, eviction moratoriums, the size of stimulus checks are still being contested right now. the question is, what do they do in terms of resolving it in the next couple of hours and what th

context of the global economy and ascribe a value to it you can simply say that well we think that tesla has a meaning which is mostly a mame and in money is a mean so we're going to make there were $600000000000.00 today and it could be worth it could drop 90 percent tomorrow and there's really there's nothing there it's just they captured the imagination now full disclosure you know i bought some tesla. last year and you know i'm up 800 percent and i still hold onto it because i don't have any i don't have any reason to think that the mania driving test flows are going to end anytime soon. because this is the economy that we're in but his comment is kind of ironic because he says if you want stuff you need to make stuff but if he was actually making stuff the stock would be 90 percent cheaper right there's tesla but this also space x. and starlink so he is has spent during this covert lockdown you see all these advances coming from china as we were was covered recently with dan collins in the kaiser report you see these nonstop new things like that nuclear powered sun artificial sun wi

stacy right well max do you know that on monday we're going to see tesla 4 enter the s. and p. $500.00 which is a remarkable achievement from just even a year ago at this time yeah it's this definitely a huge story and there's just so many moving parts to it you know and it just a reflection of where we are on the stock market where we are in the business cycle where we are in the there's just so many many layers to it what the particularly about this intrigues you stacy to look at a few items but the thing that really stands out to me is you know we've been recording from home during cove it and these global lock downs and economic lockdown and that there actually hasn't been much economic activity and people are getting used to being just paid to stay at home and they're demanding modern monetary theory the m.m.t. free money for everybody and so let me start with a quote from ilan mosque that bruce fenton tweeted out and it's in the context of today and having to produce stuff the idea you can just send checks out and everything will be ok is wrong people have an idea

stacy right well max do you know that on monday we're going to see tesla 4 enter the s. and p. $500.00 which is a remarkable achievement from just even a year ago at this time yeah that's the definitely a page story and there's just so many moving parts to it now and it just a reflection of where we are on the stock market where we are in the business cycle where we are in the there's just so many many layers to it what the particularly about this intrigues you stacey you get a look at a few items but the thing that really stands out to me is you know we've been recording from home during cove it and these global lock downs and economic lockdown and that there actually hasn't been much economic activity and people are getting used to being just paid to stay at home and they're demanding modern monetary theory that m.m.t. free money for everybody and so let me start with a quote from. mosque that bruce fenton tweeted out and it's in the context of today and having to produce stuff the idea you can just send checks out and everything will be ok is wrong people have an idea

would if you were able to get stuff from just money printing the cornucopia of money printing then tesla stock would be 90 percent cheaper but because there is this huge gusher of money printing that's that's coming out of the central banks and because tesla has nothing working against it because it's not producing anything like a toyota or a ford or some other company where you could look at the actual products in a meaningful context of the global economy and ascribe a value to it you can simply say that well we think that tesla has a meaning which is mostly a mame and in money is a mean so we're going to make it worth 600000000000 dollars today and it could be worth it could drop 90 percent tomorrow and there's really there's nothing there it's just they captured the imagination now full disclosure you know i bought some tesla. last year and you know i'm up 800 percent and i'll still hold onto it because i don't have any i don't have any reason to think that the mania driving tussle is going to end anytime soon. because this is the economy that we're in but his comment is kind of iron

anyone if you were able to get stuff from just money printing the cornucopia of money printing then tesla stock would be 90 percent cheaper but because there is this huge gusher of money printing that's that's coming out of the central banks and because tesla has nothing worked against it because it's not fair. producing anything like a toyota or a ford or some other company where you could look at the actual products in a meaningful context of the global economy and ascribe a value to it you can simply say that well we think that tesla has a meaning which is mostly a mame and in money is a mean so we're going to make there were $600000000000.00 today and it could be worth it could drop 90 percent tomorrow and there's really there's nothing there it's just they captured the imagination now full disclosure you know i bought some tesla. last year and you know i'm up 800 percent and i still hold onto it because i don't have any i don't have any reason to think that the mania driving tousle is it going to end anytime soon. because this is the economy that we're in but his comment is kind of i

so what does that mean for tesla options? professor khow breaks it all down it's time to risk less and make more "options action" starts right now. >> let's get right to it you see the clock, hear the music? that's right it's just one week until christmas and that means it is crunch time for the shippers but the chart master sees some trouble in the transports. he says the group as a whole is about to stall carter, take it away >> well, of course it's an important index, it's the oldest that we have going back to late 1,800s, and it's cyclical, right? we know that the two big package haulers, fedex and u.p.s. are a 23% weight before airlines the truckers add up to about 40, and the big four railroads, about 35 concentrated index, and it is stalling of late let's look at three identical charts and then one or two at the end. the first of three it's a two-panel chart on top is the iyt. that's the i shares that mirrors the dow jones transportation average. you can see it broke out and is now above its pre-pandemic high. but look

check out shares of tesla. they are moving lower in the after hours as the company zooms into the s&p 500 with a market cap of roughly $632 billion. tesla is now the sixth largest company in the entire index, and mike says it's time to pump the brakes on this high-flying e.v. option he's here with his call to, a. mike >> you know, this is an interesting situation, tesla, isn't it i mean, basically you could kind of think of tesla as the most popular but arguably the rowdiest party guest as it enters the s&p right here. we're measuring popularity by its multiple if you compare the multiple missing trading 20 times sale right now, and it's had an epic run, which is particularly extraordinary given the business they are in f you think of an auto or industrial type of company, consumer discretionary company. extraordinary multiples. and this is a stock that right now, despite the very high valuations, this is also a very volatile stock as well if you compare the volatility of tesla to all of the other top ten names

there are people saying that about tesla. said by elons is musk himself, saying it was on the verge of bankruptcy only two years ago. now it is joining the s&p 500. everyone saying because of liquidity sloshing around, there's a bubble in equity prices. teslaays -- that said, chang has changed quite a bit operationally. hit manytely has interesting milestones. to call it that would be probably hyperbole at this point. caroline: one to watch, whenever on asset is switching coins as well. thank you. coming up, tech face-off. apple inlashing out at a series of newspaper ads. that's next. this is bloomberg. ♪ taylor: today we focused on volatility. we just talked about tesla and overall market. we also want to talk about the volatile relationship going down between facebook and apple. caroline: kind of stunning when tech titans take each other on. heldsn't just a privately matter. it was on major adverts across key u.s. newspapers. facebook has been taking out adverts trying to highlight that apple, they say, is bad for small b

that's tesla. tesla is actually down 6.33%. it had been down just under 5% when we started the show. maybe apple's going to take on tesla when it comes to batteries there for the electric cars but luminar is jumping 21.5% right now. if there is that chance that apple would partner with luminar, ticker symbol lazr, maker of the mobile eye which falls under the intel group, is also using so good news for luminar. can we look at ford and gm? they make electric cars. let's see if apple comes in on the scene here and what that would do. ford down fractionally. general motors is up about .33%. >>> let us get to this pharma bro story. remember this guy, martin shkreli? kid who wore the hoodie to court? he's finding love and kicking it to the curb behind bars. a former reporter for bloomberg news, christi smythe is saying she not only fell head in love with the former ceo but she quit her job, she divorced her husband, who was in finance, during a nine-month whirlwind between 2018 and 2019 relationship following her meeting with shkrel

when are we not tainlkg tesla? will it continue the incredible run into 2021, we'll debate that next don't go away. >>> here's your cnbc update at this hour. ai wisconsin health care worker has been fired for destroying more than 500 doses of the moderna covid-19 vaccine it happened over the weekend it was initially reported as an accident the worker later admitted to intentionally taking the vaccine out of a refrigerator to spoil we don't know why. the fda has recalled several pet food products from sport mix that is after 28 dogs died the fda says the dog and cat foo food may contain moldy corn and grain. >>> head coach during a regular season game. san antonio spurs head coach gregg popovich got ejected after arguing with officials that left her in charge and in the history books. >>> and a history making serial killer died. dan little was serving a life sentence for murdering three women when he confessed to 90 more killings making him the most prolific serial killer in u.s. history sam little was 80 years old.

electric mobility now there is a new kid in town what could apple's entry into the market mean for tesla. this is the business i'm paid for example for joining me. says it will reopen its border with the united kingdom after restrictions imposed because of a new variant of the corona virus cause a major disruption to freight traffic the news will come as a relief to english supermarkets which had a ready been seeing punny buying shortages of some specialized products like french oysters. shoppers face long waits to enter supermarkets in london britain's largest supermarket groups have warned that gaps could start to appear on shelves within days if freight deliveries are not quickly restored staff at low pasco lu french food shop in west london say shipments of fresh foods from paris were canceled after the border closure. things are going to be born when we were expecting deliveries of oysters specialty meats and some fresh fish so unfortunately none of that will arrive on thursday woman or most. shoppers who didn't order early are likely to face a more limited selection of their christ

tesla intends to start producing electric cars here as early as next summer. tesla boss. musk is now looking for employees. he's been on site himself to hold interviews, going straight from the airport to the construction site. around 8000, jobs will need to be filled on tesla's website advertisements look tempting, but musk is not a fan of germany's powerful unions and rigid labor laws. what do you want? your surely gets. and he's been very clear that he does not want does not want a union like here in america. my hope is that the laws in germany are better or stronger and will allow for a better relationship between unions and to keep tesla in check. but this is exactly what metal workers union eeg, a metallic is insisting on cooperation between company management and employees has a long tradition in germany. union official. bergen is skeptical about tesla's attitude and you don't have a gate and he enjoys a lot of workers in germany. have a say in how the company is run, works councils are mandatory here. we have strong laws, protecting workers' rights and health, and

a check out shares of tesla. they are moving lower in the after hours as the company zooms into the s&p 500 with a market cap of roughly $632 billion. tesla is now the sixth largest company in the entire index, and mike says it's time to pump the brakes on this high-flying ev stock. he's here with his call to, a. mike >> you know, this is an interesting situation, tesla, isn't it i mean, basically you could kind of think of tesla as the most popular but arguably the rowdiest party guest as it enters the s&p right here. we're measuring popularity by its multiple if you compare the multiple missing trading 20 times sale and it's had an epic run particularly extraordinary given the business they are in if you think of an auto or industrial type of company, consumer discretionary company, extraordinary multiples and this is a stock that right now despite the very high valuations this is also a very volatile stock as well. if you compare the volatility of tesla to all of the other top ten names in the s&p, names like

'sis really shores up tesla finances, puts them in a healthy position to execute on the plan that tesla has been outlining all year. announcedn musk has that he has moved to texas. plansw that tesla has big in texas. >> at the height of the pandemic earlier this year, elon musk was very critical of authorities in california, in the bay area and more broadly, over the handling of the coronavirus and restrictions they put in place on tesla. the austin plant is where they will build the model y and cyber truck. elon musk is a very hands-on manager. .e hear that all the time he likes to be where the action is. lifeends his entire traveling on his private jet to shanghai. he wants to be in the thick of it. where spacex is working on its starship, and that is another area where elon musk is very hands-on as well. he speaks very affectionately about texas and he has confirmed today that that is where he has moved to. emily: what are you looking at today with tesla's inclusion in the -- >> he has told his staff to cut costs, focus on pennypinching. things we have been waiting on .or years then

context of the global economy and ascribe a value to it you can simply say that well we think that tesla has a mean which is mostly a mame and in money is a mean so we're going to make it worth $600000000000.00 today and it could be worth it could drop 90 percent tomorrow and there's really there's nothing there it's just they captured the imagination now full disclosure you know i bought some tesla . last year and you know i'm up 800 percent and i still hold onto it because i don't have any i don't have any reason to think that the mania driving tousle is it going to end anytime soon. because this is the economy that we're in but his comment is kind of ironic because he says if you want stuff you need to make stuff but if he was actually making stuff the stock would be 90 percent cheaper right there's tesla but this also space x. and starlink so he is has spent during the scope of lockdown you see all these advances coming from china as we were was covered recently with dan collins in the kaiser report you see these nonstop new things like that nuclear powered sun artificial sun with. s

today's the day that tesla enters the s&p 500 we have the stimulus, tesla entering and the market down almost 700 points. it's december 21, 2020 "squawk box" begins right now. >>> good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen as joe mentioned, this is christmas week but we're wearing red this morning, we thought it was for christmas week, but look at what's happening with the markets. dow futures are indicated down 650 points this was a bad morning an hour ago, futures were down 300 points, i got coffee and came back and they were down another 250 points you can see how things have been picking up momentum to the downside over the last hour or so dow futures indicated down 2.2%. it's all coming because of concerns about this more virulent strain in the uk. look at the lockdowns associated with that and what that's doing to travel stocks the airlines right now are indicated down by 8% roughly depending on which stock you're looking at american airlines down by 8.1% united off by 7.2. delta off 8.5% the cruise lines under extreme pres

became an automotive giant. >> tesla. >> tesla. >> tesla. >> everybody is talking about the world's most valuable automaker. the company's stock value soaring. in just 17 years it's already worth more than ford, gm and fiat chrysler combined changing the game in the electric vehicle market. it's edgy, environmentally friendly, and for some, a status symbol so how did tesla become an automotive giant three big reasons says cnbc's phil lebeau. >> first of all, it has bet completely on electric veechbtle it has not stuck a toe in, it has jumped in full force and it has been successful with that. >> the company skipped hybrids and started rolling out fully electric vehicles in large numbers starting in 2013 the model 3, a huge success. reason number two, unlike its competitors, tesla has control of much of its supply chain, including building its own batteries. >> it's cranking out the battery packs that have allowed them to ramp up production quickly they're not only building battery packs, but tesla is working on the future guts, if you will, of an electric vehicle. >> and finally, el

tesla intends to start producing electric cars here as early as next summer. tesla boss. musk is now looking for employees. he's been on site himself to hold interviews, going straight from the airport to the construction site. around $8000.00 jobs will need to be filled on tesla's website advertisements look tempting, but musk is not a fan of germany's powerful unions and rigid labor laws. what do you want? surely gets, and he's been very clear that he does not want, does not want a union. like here in america, my hope is that the laws in germany are better or stronger and will allow for a better relationship between the unions and to keep tesla in check. but this is exactly what metal workers union eeg, a metallic, is insisting on cooperation between company management and employees has a long tradition in germany. union official, bergen is skeptical about tesla's attitude. and you know how gating he and the only law workers in germany have a say in how the company is run. works councils are mandatory here. we have strong laws, protecting workers' rights and health. and

what elon musk says says tesla, then i will say tesla. but i listened to his interview with joe rogan and he said tesla and i like the car. one more if i've got time. i believe that the business and venues will make the vaccine mandatory. will they force people to get it? my question is, how are you going to know? how will you know who has had it or hasn't had it that you can then hang out with? final note, my full length film "things i wish i knew before i started talking" has been released and it's available on digital platforms everywhere, wherever you watch movies, and i hope you'll check it out. that does it for me. enjoy your weekend. see you next week. >>> good saturday morning to you. it's december 12th. i'm victor blackwell. >> good morning, everyone, i'm amara walker in for christi paul and you're in the "cnn newsroom." >> just minutes ago the fda explained their decision to issue an emergency use authorization for pfizer and biontech's coronavirus vaccine. >> the fda commissioner says the u.s. government is already working to d

on the: less stress corner office over at tesla. greg: let's stick with the tesla story. ark investment management founder had a call on the name back in 2018 and said it was going to hit the $4000 a market share. earlier, she spoke with erik schatzker and they talked about the call. >> i do not read the twitter world of hate notes to me. our marketing department used to send me anything that i needed werespond to, but, no, we standing up for what we thought was right, and we also were , andished at the backlash i think part of it was elon's personality and the things he was saying on twitter. he is a provocative soul. he is brilliant. he is our renaissance man, and all we did, which is what we should have done in terms of our research is keep our eye on the prize. and the prize had to do with the autonomous taxi network that we theeve tesla will be in pole position to dominate, mostly because of its advantages and artificial intelligence and the amount of data it has collected. and the ai expertise that it has. we cannot believe that no one wanted to listen to this, that

and tesla, one of the big weighted stocks just from the get-go and dragging the index lower, as tesla is down about 4 2/3% and we'll talk about that next, including bitcoin. we'll be right back. >>> welcome back, everyone i'm sue herera about 16 million people will get their covid-19 shot by february. that is from alex azar >> i look forward to receiving this svaccine myself in the coming days to demonstrate to americans that these vaccines are safe and incredibly effective at preventing covid-19 >> a house subpoena has subpoenaed secretary azar and cdc director robert redfield lawmakers want to know if trump officials tried to block or change reports about the spread of covid-19. an hhs statement claims there was no political interference. >> and britain now faces travel restrictions from 40 countries spain was allowing flights but now they are suspending the flights. other new countries joins the list, hong kong and the sus sti -- u.s. is still allowing flights >> the s&p and nasdaq are still in the red as you see there but ever so slightly look at the nasdaq nipping at turning nega

tesla. to make room for tesla and s&p index funds. at the keep coming back to tesla because it captivated a whole generation of teslas who don't mind paying off a $60 billion technology company that makes cars i think it is the most important story in years we have seen this before with jeff bezos netflix became a national past time, right tesla taking it up to 11. it becomes an ultimate love the product, buy the stock amazon and netflix have the same dynamics you don't see people worshipping bezos. they worship elon musk in a way tesla has been a lottery ticket for paying out for a youth number of people index funds can't give you terms. you don't have to like elon musk the guy called me a simulation you should respect his ability to make money for you. i bet tesla is more upside as musk keeps meeting his target. i am thrilled the stock makes so much money, i am ecstatic that it helps a whole new generation fall in love like stock picking like i did in 1979 once the index fund is finished s

this really shores up tesla's finances, puts them in a healthy position to execute on the plan that tesla has been outlining all year. emily: elon musk has announced that he has moved to texas. we know that tesla has big plans in texas. tell us what you know. ed: at the height of the pandemic earlier this year, elon musk was very critical of authorities in california, in the bay area and more broadly, over the handling of the coronavirus and restrictions they put in place on tesla. at the same time, tesla has big plans. the austin plant is where they will build the model y and cybertruck. we know that elon musk is a very hands-on manager. we hear that all the time. he micromanages. he makes decisions himself. he likes to be where the action is. he spends his entire life on his private jet going back and forth between shanghai. he wants to be in the thick of it. he wants to be near spacex, where spacex is working on its starship, and that is another area where elon musk is very hands-on as well. that is a big part of the reasoning. he speaks very affectionately about texas and he has confi

tesla joining the s&p 500, what tesla does, is an unusual to you? is it business as usual as a fly sign -- highflying stock? clearly, with this, investors are trying to come to the right exposure on this transformation. tesla has exposure on each of those elements. this is where you get exposure on a lot of disruption. lisa: this has been an incredibly difficult company to map out in terms of its trajectory. people call it a faith-based stock. we were talking about data and artificial intelligence, electric vehicles. you are talking about carbon credits. -- peter atwater said this could be a trojan horse for the s&p. clarity intoack of its future, you agree? colin: i don't all. it's important to disagree with you on one point. at the end of the day, they are creating some very important technology that is transforming the economy. companyhallenge for a of the side and voluntarily -- volatility. goinggo forward, we are to watch this company closely. ofh the broader base investors, there is some hope. lisa: what about the argument that ford and genera

did not go near tesla. now that tesla is in the s&p 500 and because these money managers have to include in their portfolios the stocks in the benchmark, they're going to be big investors in tesla. what does that mean? if you think tesla represents 1% of the index, which it probably does, that is $47 billion passively managed coming right into tesla from a benchmark. tom: unbelievable. matt winkler, thank you. matthew winkler with us this morning. he has been dead on an tesla, pushing against the tesla doubters for months and words with a nice summary on the state of electric vehicles, which are not just tesla. francine, that was extraordinary. i will tell you, the highlight of my year pre-pandemic where the electric taxicabs of london. i thought they were extraordinary. my kids will only get in one of those. they are eight and six. because at school they talk about nothing but renewables if it is a normal taxi that will be like, no, we will walk stop which is great for getting them into sports. london, it

or maybe even tesla? reporter: there's different types of partners when it comes down to a car project. one there could be an instance where apple fully can he desinals the cars and partners -- fully designs the cars and partners with a manufacture to build the car. then there's the idea of partnering with an existing car maker, that's where tesla would come into play or toyota or a b.m.w. or volkswagen, etc. with it basically kim out of the version of their car with an apple twist. an applesoftware driving system. there's different directions apple can take this project and then there's the other approach where they can simply make their self-driving system and apply it to an existing car maker. right? there's four or five or even more directions apple can take this project and the expect route that they take is not entirely clear at this point. but apple has traditionally went the route where they design and develop everything. they partner with a manufacturing partner to produce it. vonnie: it certainl

are privately held company so he's getting to do that now with this with the publicly owned company tesla he seems to do the least amount of work that is needed and he gets to live off of the mean that he is in the rest of the economy is valued so high is because he doesn't make a lot of stuff yet at scale if you made the same number of cars as chrysler or or ever say he's been so you know on then the stock would be 90 percent cheaper the fact that he doesn't make stuff is why the stock is so high right well we're going to go into that because in this next headline from wall street dot com he talks about that tesla shares are up 677 percent just this year 2020 alone which is outperforming even big queen this year so you know that does create bitterness in people who don't hold any and you know i personally don't own and some maxed right when i saw month joe rogan show originally he was making fun of the f.c.c. and who is participating in some behavior that some would consider inappropriate and i that's what i double down and so i figured this is the perfect capitalist for a 2020 year this

who is getting booted from the s&p to make room for tesla >> they say they will replace aiv when tesla is added. they will join the consumer discretionary sector aiv is getting kicked out. back to you. >> so now we know. keep in mind this swap takes effect at the start of business december 21. we have seen a massive run in shares of tesla. steve grasso, where do you stand on what this stock has done on news it will be included >> this was sort of a no-brainer when you look at these things, look back and wish you would have bought them on the leadup into being added to an index because all of the index players have to be added as well they don't wait for the final day. then you get the j.p. morgan calls out on tesla that it's overvalued, so that keeps the buyers at bay, but this stock, what it has done over the years should keep the short seller on its heel never bet on elon musk just when you think the stock is fading, it comes back. i am not in the stock right now, but i would not bet against the musk >> it is not just the robin hood traders, but the esg funneleds looking for a home >

or maybe even tesla? reporter: there's different types of partners when it comes down to a car project. there could be an instance where apple fully designs the cars, and partners with the manufacturer actually build the car. then there's the idea of partnering with an existing car maker, that's where tesla would come into play or toyota or a b.m.w. or volkswagen, etc. with it basically come out with a version of their car with an apple twist. an applesoftware driving system. there's different directions apple can take this project and then there's the other approach where they can simply make their self-driving system and apply it to an existing car maker. there's four or five or even more directions apple can take this project and the expect route that they take is not entirely clear at this point. but apple has traditionally went the route where they design and develop everything. they sell it through their own brand and partner with a manufacturing partner to produce it. vonnie: it certainly piqued el

is it like legal that youdo no own tesla? >> wells to well, to be clear,e have kroeoverweigh weighweight broader than that. yeah, we missed tesla. that is something i admit. but we own other tech companies and tesla has taken up a lot of oxygen in the room >> and i almost feel like everything is technology these days even mining companies will tell you that they are tech because of something so let's get some storkicking stiffer picks. robotics surgery, isrg >> right that is one we added this year intuitive surgical is dominating the market in terms of the intersection between health care and technologies robot about tick surgery has a very long runway of growth intuitive surgicalis by far an away the dominant player there are a couple of others with a toe in the market but the opportunity to continue to use robotic surgery in technology and software to improve patient outcomes is something that intuitive surgical is again fitting from across a number of different procedures and we think that runway for growth looks really im

perhaps at least from the tesla investor, tesla stalwart fan base if you will, probably the best thing that could have happened, just seeing what happened with this company now and included in the s&p, 700 -- $700 billion market cap, it seems that standing alone and not being acquired by apple has fueled quite -- exactly what we're talking about a few minutes ago, quite the craze when it comes to ev self-driving cars and everything else. >> i don't know what we're supposed to take from this bit of hindsight who perhaps had the greater loss opportunity. what musk is saying is apple, let's say year and a half, two years ago, could have had tesla for $60 billion. at some point, tesla traded to 30, $35 billion market value that shows you what the market thought of the struggles they were having at the time. there is not a chance that if apple acquired it, it would represent within apple anything like the current value this is being driven by this pure vision of magic and heroism that tesla will save the world behind one man's vision. the other thing is, apple, famously, does not like -- te

tesla is so big. it is going to be the seventh largest, it is going to be 1.5% of the s&p it is going to increase the p/e to 2.6 which is already pretty pricey look at volume right now it is trading about 70 million shares per day that's going to be north in the next hour. it will probably be north of 200 million shares before we are done we don't know how big it could be because we don't know how many people are indexed into the s&p 500. i know you find that hard to believe but right now the estimate is we need $85 billion to buy at the close for tesla roughly to balance everything out for tesla's eight wading in it there are many people who follow the s&p. that would be 40 to $80 billion more see? this is why we don't know exactly what's going on. you can find the whole thing at the close and get a lot of potential fireworks. we will keep an eye on all of that of course in the next hour. back to you. >> bob, stay close thank you. >>> we are getting breaking news on united airlines phil lebeau with t

we touched on it briefly with tesla. you say you want to be involved incease. we touched on it briefly with tesla. you say you want to be involved in any he company locompany loos of renewable energy, clean energy does that make you not want to invest in traditional oil and gas companies or are you looking within that spaces and saying this is one company that does have the right plan, they are going into a transformation and there is an opportunity there, or is it a matter of just finding the teslas of the world, the new world type of companies rather than the old world? >> i think what you said is the krekd though correct thought, which if they are old fossil fuel companies trying to transform their business models into clean energy, if you look at clean energy estimates, the u.s. is expected under the biden administration to spend $400 billion over the next ten years. the european commission wants to spend a trillion euros over the next ten years so there is a big wave starting. it will last many, many years and we wa

. >>> goldman touts tesla. car buyers are shifting gears and an inside look at where recruiters see job growth. >>> let's have more from dom chu. >> bitcoin is the not only the only thing up. the market hitting record high levels, specifically with the s&p 500. goldstar and the nasdaq composite, both hit record levels the s&p up 0.2, outperforming the nasdaq, up about 0.50% one key places that's been playing catch-up in recent weeks and months has been the emerging market stocks. this particular tick etf, ticker eem has been lagging the s&p 500 but as of late has been up a huge surge if you take a look at this etf over the last two years, only up 20% but this is the best level since january 2018 point it's up 67% since the pandemic lows emerging market playing catch-up the stock of the day, not all green today. the biggest grocer publicly traded in america is kroger. it's off 5%. sales fall a little shy and even though it ups its full-year profit forecast, it still comes in below some analyst estimates. it kind

. >> tesla shares were off yesterday before this news hit they were down like 5%.ill. >> tesla shares were off yesterday before this news hit they were down like 5%.ll. >> tesla shares were off yesterday before this news hit they were down like 5%.. >> tesla shares were off yesterday before this news hit they were down like 5%.. >> tesla shares were off yesterday before this news hit they were down like 5%. >> tesla shares were off yesterday before this news hit they were down like 5% they were up on getting put into thesome. >> but is this the competition finally? if you don't think that legacy guys have the technology to take on tesla, i mean, tim cook is great, but if steve jobs was still there trying to do this, i'd sell tesla maybe i'm exaggerating, but in a guy got into this and put all of his brain power, remember the late steve job, you'd think this door would bdoor -- this car would be unbelievable >> it has to be an enormous pie. if $600 billion makes remotely any sense at all, it has to be vastly higher for everybody. whether apple makes an operating type system. i don't th

stacy right well max do you know that on monday we're going to see tesla 4 enter the s. and p. $500.00 which is a remarkable achievement from just even a year ago at this time yeah it's this definitely a huge story and there's just so many moving parts to it you now and it just a reflection of where we are on the stock market where we are in the business cycle where we are in the there's just so many many layers to it what the particularly about this intrigues you stacey you get a look at a few items but the thing that really stands out to me is you know we've been recording from home during cove it and these global lock downs and economic lockdown and that there actually hasn't been much economic activity and people are getting used to being just paid to stay at home and they're demanding modern monetary theory that m.m.t. free money for everybody and so let me start with a quote from. mosque that bruce fenton tweeted out and it's in the context of today and having to produce stuff the idea you can just send checks out and everything will be ok is wrong people have an i

stacy right well max do you know that on monday we're going to see tesla 4 enter the s. and p. $500.00 which is a remarkable achievement from just even a year ago at this time yeah it's this definitely a huge story and there's just so many moving parts to it now and it just a reflection of where we are on the stock market where we are in the business cycle where we are in the there's just so many many layers to it what the particularly about this intrigues you stacey to look at a few items but the thing that really stands out to me is you know we've been recording from home during cove it and these global lock downs and economic lockdown and that there actually hasn't been much economic activity and people are getting used to being just paid to stay at home and they're demanding modern monetary theory that m.m.t. free money for everybody and so let me start with a quote from. mosque that bruce fenton tweeted out and it's in the context of today and having to produce stuff the idea you can just send checks out and everything will be ok is wrong people have an idea that th

to keep tesla in check. but this is exactly what metal workers union eeg, a metallic is insisting on cooperation between company management and employees has a long tradition in germany. union official. bergen is skeptical about tesla's attitude. and you don't highgate, he and the law workers in germany have a say in how the company is run. works councils are mandatory here. we have strong laws, protecting workers' rights and health. and we expect that american companies here in germany will respect and dear to these rules that then cost them crist is a businessman himself. and he's hoping tesla will become a customer of his. he's also the president of the local chamber of commerce. chris says the wages tesla is offering are about average for the car industry, but there's still a lot for the region likely use these wafers to poach workers from existing companies. probably seem tempting to people, but they should be aware. the factory will be running it all out hours 7 days a week. and that's not the case at

stacy right well max do you know that on monday we're going to see tesla 4 enter the s. and p. $500.00 which is a remarkable achievement from just even a year ago at this time yeah it's this definitely a huge story and there's just so many moving parts to it you know and it just a reflection of where we are on the stock market where we are in the business cycle where we are in the there's just so many many layers to it what the particularly about this intrigues you stacy to look at a few items but the thing that really stands out to me is you know we've been recording from home during cove it and these global lock downs and economic lockdown and that there actually hasn't been much economic activity and people are getting used to being just paid to stay at home and they're demanding modern monetary theory the m.m.t. free money for everybody and so let me start with a quote from. mosque that bruce fenton tweeted out and it's in the context of today and having to produce stuff the idea you can just send checks out and everything will be ok is wrong people have an idea that

speaking of tesla and electric tesla wasnd nikola, added to the s&p 500. people are getting past that idea. they lost the contract for electric trump trucks with investors dumping the stocks. we will continue speaking about electric vehicles. abigail doolittle, thank you for that. back to president trump's veto of the defense spending bill, it comes from his demand of the 1996 communication decency act. this is a legal shield used by many tech companies. with more on that and the big tv story this week and elon musk pursuing outreach to apple, dubai tesla, it is registering to analysts. we had the announcement this week. apple has begins speaking about the car that is coming even though it is several years down the road, and then elon musk applied -- reply to a tweet about batteries and what might actually happen. you say that a partnership between the two might still be possible? >> my opinion for apple to dive into the deep end of the pool, ev's, it is likely to do a partnership or collaboration. tesla and vw are two top candidates. this is a trillion do

it is there to support tesla capital spending. tesla expecting to double each year for the next two years. tesla looking to expand the factory in shanghai, they're also building two new factories cured one just outside berlin in germany and the other in austin, texas. this expansion coming through the course of this year. remember this time last year we were talking about tesla becoming profitable. just had its first quarter of profits. we are now looking like we are heading towards the sixth consecutive quarter of profitability for tesla. all this on the back of changes and expansions. growth in battery technology. the addition of a crossover suv and the fact we are going to see tesla join the s&p 500 very soon. what is interesting about tesla joining the s&p 500 is it will be the sixth largest company in the s&p 500. its market cap $600 billion. it's cash more than 88% of the s&p 500. elon musk not doing too badly. david: fascinating cured it will not just be in the s&p 500, it will help drive the s&p 500. fascinating for a new

gina martin adams on tesla and the s&p 500. an elon musk s&p 500 look like? gina: i think lisa is correct to suggest we need to talk about this because this is one of the underlying trends that has created the stall speed for the s&p 500 over the last day or so. tesla interesting about being added to the s&p 500 is probably more but it doesn't do to the index than what it does. there's this overwhelming fear out there that we are going to see volatility in the s&p 500 suddenly spiked because of the addition of tesla. well, tesla has been in the bloomberg large-cap index for the last several years. over the last year, the bloomberg large-cap index was simply the 500 top-ranked by market cap in the united states. the average daily price changes, otherwise known as volatility, is exactly the same for that index versus the s&p 500 over the last year, so simply adding tesla to an index of 500 doesn't change the volatility on the index largely at all, but the investment universe is complete captivated by this idea and really thinks that tesla is owing to create a s

as a $1000 bull case on tesla. vonnie: back to apple because we have the ev story this week and some analysts and investors are saying this is a 2025 or later story. some saying it could be a lot sooner. you also have a top 10 christmas list for investors. give us one or two more christmas wishes. >> for our christmas wish list, it is the super cycle. iphone 12 five, we believe it is a real super cycle. it can be a 240, 2 hundred 50 million units. that would be a record, surprising iphone 6. that is key to the stock. in 2000 look at product 21, they finally unveil apple glasses. that is the technology that will be embedded in the classes. -- the glasses. they announced that in 2021. -- they announce that in 2021. a year from now, this is north of potentially $200 stock. that is the bull case. vonnie: once again, you maintain that we could see an apple car when? actually on the streets. >>>> i believe on the streets, 2023. potentially 2024. i believe a partnership, laying the groundwork for that, we see that over th

annmarie: dani burger, thank you for that roundup of tesla. year-to-date, yesterday's move, relatively a little blip into an astonishing year for the stock. coming up, relief at last. after months of deadlock, congress passes a massive stimulus deal. we get into the details next. stay with us. this is bloomberg. ♪ annmarie: from bloomberg's european headquarters, it 6:30 in london. hordern.rie concern over the u.k.'s coronavirus various overshadows a stimulus deal in the united states. boris johnson offers and last proposal on fishing to secure an 11th hour brexit deal as he races to reopen trade routes to france. tesla shares skid, dragging the s&p 500 lower in its trading debut. you, the second day we see this risk off tone in the market, all to do with fresh concerns over the variant in the united kingdom of the coronavirus with the government putting london into tier four and swift reaction from european nations, cutting off travel from the u.k., overshadowing the good news out of the united states on the stimulus front, finally that sti

they say, good, tesla is down, i'll buy some tesla. it is different. >> it is different >> it is different here, citi says five reasons apple stock can trade higher in 2021 i read the piece this morning about jim, i like jim very much, but they don't have crypto they don't have crypto they don't have ev stay away. >> you're kidding. >> no. look at the stock. >> which stock am i looking at >> apple. >> that's what i thought it is down 53 cents. >> it shouldn't be down. we have two -- top analysts saying good things i'm saying, david, the new investor does not care about what the traditional firms say though i've been looking at reddit, they're not giving me a lot of ideas yolo how are you doing? yolo saying buy tesla. they love palantir >> i mentioned that downgrade of palantir to 17 from credit suisse just talking about it trading at 46 times next year's sales, enterprise value >> that's almost bigger than snowflake. >> enterprise value is in the just equity, you add in the debt, it does figure prominently into the metrics we like it u