DELETING A TWEET MAKES IT GO
AWAY, IT'S LIKE HELLO, BEEN ON
THE INTERNET FOR A WHILE.
MARIA:  THIS IS ALL -- TESLA IS
REPORTED I STARTING IMMEDIATE
YOU'VE PREVIOUSLY DOWNGRADED THE
STOCK.
WHAT DO YOU DO AS AN INVESTOR?
SUSAN MENTIONED $359 IS THE
PRICE FOR THE CONVERT.
HOW WILL THEY GET TO $359 BY THE
DEADLINE?
>> THEY'RE GOING TO TRY TO
HOPEFULLY THE STOCK POPS.
THEY'RE SELLING MODEL 3,
ALL-WHEEL DRIVE CARS.
THEY HAVE A RESERVATION LIST OF
420,000 OVER THE LAST TWO YEARS
THEY BUILT UP.
WHAT PERCENTAGE OF THOSE
RESERVATIONS ARE FOLKS THAT WERE
EXPECTING TO GET A $35,000 CAR,
MINUS A $7,500 TAX CREDIT.
THEY'RE NOT EVEN PRODUCING THE
MORE CHEAPER VERSION OF THE
YOU CAN GET IS THE ALL-WHEEL
DRIVE, STARTING AT $49,000.
IT GOES ALL THE WAY UP TO
$80,000.
SO THEY'RE NOT EVEN HAVING THOSE
CHEAPER VERSION CARS AVAILABLE.
SO THE WAIT LIST HAS BEEN TWO
YEARS.
WE THINK A LARGE PERCENTAGE OF
PEOPLE ARE EXPECTING 3 A $5,000.
WE THINK THAT THE CANCELLATIONS
HAVE BEEN INCREASING.
WE'VE BEEN HEARING REPORTS THAT
REFUNDS ARE ACCELERATING AND
THAT FOLKS ARE NOT CONFIGURING
EITHER.
ONCE THEY PUT THE DEPOSIT DOWN
THEY HAVE TO PAY AN EXTRA
$2,500.
THEY SHOW THEY'RE PROFITABLE IN
3Q.
AS WE GO INTO 2019, THAT'S WHEN
THE REAL ISSUE COMES TO PLAY IN
TERMS OF WHAT IS THE REAL DEMAND
FOR THE MODEL 3 AND CAN THEY
MAKE PROFIT ON THE $35,000, TO
$40,000 CAR.
>> THE MAIN QUESTION ON THE
MARKETS IS SHOULD ELON MUSK STAY
AT THE TOP OF TESLA.
MARIA:  I WAS JUST GOING TO
>> IF IT WAS A PRIVATE COMPANY
HE WITH
HE WOUH
HE WOULD BE HAILED AS A HERO.
IT'S A PUBLIC COMPANY.
HE TAPPED THE PUBLIC MARKETS FOR
>> THE COMPANY WENT PUBLIC IN
2010.
THEY'VE ONLY BEEN PROFITABLE
MAYBE ONE OR TWO QUARTERS IN
THAT EIGHT-YEAR PERIOD.
EVERY YEAR THEY'VE HAD TO GO TO
THE CAPITAL MARKETS EITHER ON
THE EQUITY MARKETS OR THE DEBT
MARKETS TO RAISE MONEY.
EVERY SINGLE YEAR.
>> THOSE CONCERNING BEHAVIORS,
WHAT DO YOU THINKS, DO YOU
WHAT DO YOU THINKS, YO YOU
WHAT DO YOU THINKS, YOUYOU
WHAT DO YOU THINKS, YOU HU
WHAT DO YOU THINKS, YOU HAVE TO
MAKE A CALL, DOES HE STAY?
>> THAT'S GOING TO BE THE
DECISION FROM THE BOARD OF
DIRECTORS.
I THINK FOR ME, THE
BIGGEST ISSUE WAS THE REVERSAL
OF THE PUBLIC, PRIVATE.
TO ME, THAT SHOULD NOT BE
DISCOUNTED.
PRIVATE AND COMING OUT WITH TWO
>> RIGHT.
MARIA:  WHAT WOULD IT GET TO GET
TO YOU UPGRADE THE STOCK AND BUY
THE STOCK?
WOULD IT BE ELON MUSK STEPPING
DOWN AND A NEW CEO COMING IN?
>> IT WOULD DEPEND ON WHO THE
CEO IS.
IF THE CEO IS COMING FROM -- HE
OR SHE FROM AN AUTOMOTIVE
BACKGROUND, I THINK THAT WOULD
BE BENEFICIAL.
THEY CLEARLY HAVE VERY GOOD
TECHNOLOGY.
WHAT THEY HAVE PROBLEMS IS
SCALING PROFITABLY AND SO THAT'S
THE ISSUE.
BUT I DO THINK THAT THE
COMPETITION IS ACCELERATING.
IT'S HEATING UP.
YOU LOOK AT JAGUAR, YOU LOOK AT
MERCEDES, AUDI, VOLVO, THEY'RE
ALL COMING OUT WITH SUV
FOR MANY YEARS.
THEY HAVEN'T BEEN UPDATED IN A
WHILE.
THERE WILL BE A TON OF
COMPETITION COMING IN.
MARIA:  GREAT TO SEE YOU.
