Tesla CEO Elon Musk touts robot cars amid sales slump

Tesla CEO Elon Musk touts robot cars amid sales slump


THIS YEAR AND 5 1/2 BILLION OVER THE NEXT THREE. DAVID: TOUGH SELL. ROBERT THANK YOU VERY MUCH. WILL ELON MUSK BE ABLE TO TURN THE TIDE OF A STRING OF NEGATIVE HEADLINES AND CONVINCE INVESTORS THEY ARE MOVING FULL STEAM AHEAD?>>HE’S STILL INVOLVED WITH THE SEC DRAMA AS WELL OVER HIS PREVIOUS TWEETS. FROM THAT REPORT, WHAT WE KNOW IS HE’S OFFICIALLY COMMITTED WITHIN THE NEXT YEAR OR NEXT YEAR WE SHOULD SAY THAT THEY WILL HAVE FULL ON DEMAND TAXI ROBOTS THAT WILL BE ABLE TO COME. THAT’S SOON. I DIDN’T THINK THAT WOULD HAPPEN THAT SOON. I DON’T KNOW HOW HE CAN FOLLOW THROUGH WITH THAT. SEVERAL ISSUES LIKE YOU MENTIONED A FEW ANALYSTS DOWNGRADING THE STOCK. YOU HAVE A LOT ON YOUR PLATE. YOU NEED TO STAY CASH FLOW POSITIVE. STILL UNANSWERED QUESTIONS ABOUT DELIVERIES, ABOUT DEMAND AND THERE’S CONCERNS THAT DEMAND MAY BE DROPPING. IF YOU HAVE THIS ISSUE WHICH HAS NOT BEEN VERIFIED YET IN CHINA. SO I WANT TO SPECIFY THAT. IT HASN’T BEEN VERIFIED. THAT’S A HUGE MARKET, 20% OF THEIR REVENUE. IF YOU HAVE ONE CAR BLOWING UP AND BURSTING INTO FLAMES, THAT COULD DAMAGE THE BRAND. DAVID: NOT GOOD.>>ELON MUSK IS KNOWN TO SORT OF TROT OUT THESE MIND BOGGLING EVENTS AND ACCOMPLISHMENTS JUST AS THEY ARE ABOUT TO REPORT A TRULY HORRIBLE QUARTER. SO IN FACT, THE REASON THE STOCK AND SOME OF THE ANALYSTS MAY BE SOMEWHAT NEGATIVE RIGHT NOW IS MAYBE THEY ARE READING IT THAT WAY BECAUSE FROM A LOT OF DIFFERENT PERSPECTIVES THE ACTUAL PROBABILITY OF THEM HAVING A FULLY AUTONOMOUS DRIVING CAR SEEMS EXTREMELY LOW. NUMBER ONE, THE TECHNOLOGY, THEY DON’T HAVE AROUND THE CORNER RADAR INSTALLED ON THESE VEHICLES. IT DOESN’T SEEM LIKELY THAT JUST A SOFTWARE PATCH IS GOING TO REALLY MAKE THE DIFFERENCE. THERE’S A LOT OF SKEPTICISM ABOUT WHETHER THIS CAN ACTUALLY BE ACCOMPLISHED. AND BECAUSE OF THAT, THEY ARE READING THIS AS BEING OH MY GOSH SOMETHING TERRIBLE IS ABOUT TO BE ANNOUNCED AND THIS IS ELON MUSK’S WAY OF CAPTURING EVERYONE’S IMAGINATION.>>THE STOCK LOOKS A LITTLE SICK, DOESN’T IT? TO ME AS AN INVESTOR, I’M NOT AN INVESTOR IN TESLA THANKFULLY I THINK ALMOST THEY ARE CHANGING THE STORY HERE. THE REASON TO INVEST IN TESLA USED TO BE WAS THAT IT WAS AN ELECTRIC CAR; RIGHT? IT WAS THE ONLY PURE PLAY FOR YEARS AND YEARS AND YEARS, WHEN EVERY OTHER MAJOR CAR MANUFACTURER IS GETTING ON BOARD. THERE WAS A FASCINATING STORY TODAY, TURNS OUT IN FACT THAT TESLA’S E-CARS CAUSE MORE CARBON THAN EVEN DIESEL CARS. SO THE WHOLE JUSTIFICATION, YOU KNOW, THE SOCIAL JUSTICE WARRIORS HAD FOR BUYING TESLA IS IT WAS SO ENVIRONMENTALLY FRIENDLY TURNS OUT THAT’S NOT THE THING. MAYBE THE AUTONOMOUS DRIVING, GOD KNOWS I’M NOT GOING TO GET ONE OF THOSE CARS — MAYBE IT WILL SAVE THE COMPANY AFTER ALL, GARY, WHAT DO YOU THINK?>>I’M NEVER GETTING ONE OF THOSE THINGS. LOOK, THE ONLY THING CONSISTENT ABOUT ELON MUSK IS HIS INCONSISTENCY. WALL STREET DOES NOT TRUST HIM BECAUSE OVER THE LAST COUPLE OF YEARS TIME AND TIME AGAIN HE WOULD GUIDE WITH NUMBERS AND MISS WITH THOSE NUMBERS AND SOMETIMES MISS BADLY. THEN YOU KNOW WHAT HAPPENED WITH THE SEC. THEN HE DECIDES TO SMOKE SOME WEED ON VIDEO. I MUST TELL YOU ANY OTHER CEO ON WALL STREET WOULD HAVE BEEN OUT ON HIS EAR FOR THE WAY HE’S BEEN ACTING AND SOME OF THE THINGS OUT OF HIS MOUTH. AGAIN, WE HAVE SOME SEC ISSUES, AND I JUST DON’T BELIEVE THE NUMBERS THAT ARE COMING OUT, AND MORE IMPORTANTLY, THE MARKET DOESN’T BELIEVE IT. IT IS ONE OF THE WORST ACTING STOCKS VERSUS THE MARKET IN 2019. AND DID NOT DO SO WELL IN 2018 EITHER. DAVID: BOTTOM LINE IS THE SHARES ARE NOW DOWN 20%. THAT’S CORRECTION TERRITORY, FOR THE YEAR. 20% DOWN. BUT AGAIN, THERE’S STILL A LOT OF TRUE BELIEVERS. I THINK LIZ, THOUGH, MAKES THE KEY POINT, WHENEVER THEY HAVE A BIG PROBLEM, THAT’S WHEN A DISTRACTION COMES IN. WHO KNOWS WHETHER THAT SMOKING THE JOINT WAS JUST A DISTRACTION TO DISTRACT FROM THE BAD BASIC NEWS THAT THEY WEREN’T PRODUCING THE NUMBER OF CARS THAT THEY WERE SUPPOSED TO HAVE?>>I THINK LIZ ACTUALLY BROUGHT UP ALSO TOO THAT THE REGULATIONS, THAT’S WHAT WE’RE MISSING TOO. WE DONN DON’T — WE DON’T KNOW. IF YOU WERE IN A DRIVERLESS CAR AND A CAR HITS ME ON MY BICYCLE, WHO IS RESPONSIBLE? THERE ARE A LOT OF UNANSWERED QUESTIONS. IF YOU ARE COMMITTING TO HAVING THIS OUT ON THE ROAD IN THE NEXT YEAR, WE DON’T KNOW IF IT WILL GO THROUGH, THAT’S A HUGE COMMITMENT.>>I THINK THE THING WE SHOULD REMEMBER THOUGH IS THAT THE TESLA IS A GORGEOUS CAR.>>IT DRIVES NICELY.>>THIS IS NOT INCONSEQUENTIAL. HE HAS PRODUCED AN AMAZING CAR THAT A LOT OF PEOPLE WANT TO OWN. DAVID: THE OTHER POINT WE HAVE TO REMEMBER WHICH IS THAT WHENEVER THERE IS A MAJOR TRANSFORMATION IN TECHNOLOGY, JONATHAN, YOU HAVE TALKED ABOUT THIS, THERE’S ALWAYS QUESTIONS ABOUT IS IT GOING TO BE SAFE? WHO IS LIABLE? I MEAN, THINK OF WHEN WE WENT FROM — TO THE HORSELESS CARRIAGE. THERE WERE ALL KINDS OF QUESTIONS ASKED. YOU SEE A FIRE IN CHINA, AND YOU FORGET ABOUT THE FACT THAT THERE ARE HUNDREDS OF FIRES IN REGULAR CARS ALL THE TIME.>>AREN’T YOU SKEPTICAL BECAUSE IT’S CHINA? I MEAN, YOU KNOW –>>YOU CANNOT — YOU CANNOT AS A COMPANY COME OUT AND SAY WE’RE GOING TO HAVE A MILLION OF THESE CARS AND THEN ALL OF A SUDDEN IT IS ONLY 200,000. DAVID: THAT’S TRUE.>>THAT’S THE BOTTOM LINE. IT JUST CONTINUES TO HAPPEN. DAVID: OKAY.>>LOOK I AGREE THE GUY IS A GENIUS, BUT HE NEEDS TO GET HIS ACT TOGETHER.>>HE’S JUST OVERPROMISING. HE’S TAME IT DOWN A LITTLE BIT. HE HAS A GOOD PRODUCT. DAVID: MORE THAN A LITTLE