CHERYL: OKAY.
THERE ARE TWO OF THE MOST
TALKED-ABOUT STOCKS IN 2018, CAN
YOU GUESS WHICH ONES I'M
THINKING OF?
APPLE AND THEN TESLA.
BUT THIS IS A TALE OF TWO VERY
DIFFERENT STOCK PERFORMANCES.
TESLA GAINED 7% YEAR TO DATE,
APPLE IS DOWN 7% YEAR TO DATE.
ITS FIRST ANNUAL LOSS, WE SHOULD
SAY, IN THREE YEARS, AND WHAT
WILL 2019 LOOK LIKE FOR TESLA,
AND COULD APPLE LOOK TO GO FROM
YOUR SCREEN TO YOUR DRIVER'S
SEAT IN 2019?
HERE TO WEIGH IN IS CONSUMER
EDGE RESEARCH SENIOR ANALYST
JAMIE ALBERTINE WHO COVERS THE
AUTO SECTOR EXTENSIVELY AND WEB
BUSH MANAGING DIRECTOR, DAN
IVES.
ONE OF THE CRAZIER THINGS THAT
CAME UP IN 2018, AND IT WAS A
PRETTY GOOD MOMENT, LIZ CLAMAN
WAS SPEAKING WITH WARREN BUFFETT
AND ASKED HIM ABOUT THESE TWO
COMPANIES.
I WANT YOU TO LISTEN TO WHAT HE
SAID TO HER ABOUT, WELL, A
BUYOUT.
LISTEN.
LIZ: WOULD YOU SUGGEST THAT
APPLE GET INTO, OR WOULD YOU
SUPPORT IT?
>> I WOULD SUPPORT WHAT TIM COOK
DOES.
I THINK IT WOULD BE A VERY POOR
IDEA TO GET INTO THE AUTO
BUSINESS.
IT'S NOT AN EASY BUSINESS.
INCIDENTALLY, THE AUTO BUSINESS
IS DIFFERENT.
YOU CAN WIN IN AUTOS ONE YEAR
AND LOSE THE NEXT.
CHERYL: BASICALLY, THE ORACLE
SAYS THAT'S NOT REALLY A GOOD
IDEA.
APPLE SHOULD NOT BE GOING OUT
THERE TRYING TO BUY TESLA BUT
BEGS THE QUESTION, CAN A
PARTNERSHIP BE SOMETHING IN THE
FUTURE FOR THESE TWO COMPANIES?
>> YEAH, LOOK, RIGHT NOW APPLE
DEFINITELY HAS A PLATEFUL IN
TERMS OF THE CHALLENGES, IN
TERMS OF iPHONE DEMAND,
SPECIFICALLY OUT OF CHINA, AND
SOME OF THE TARIFFS.
OUR OPINION ON THE AUTO SIDE, WE
DO BELIEVE A PARTNERSHIP WITH A
TESLA IS SOMETHING THAT'S A REAL
POSSIBILITY IN 2019.
AGREED 100% WITH WARREN, AN
ACQUISITION IS NOT SOMETHING WE
WOULD LIKE BUT A PARTNERSHIP,
ESPECIALLY NEXT GEN EV WITH
TESLA IS SOMETHING WE CONTINUE
TO VIEW AS A REAL POSSIBILITY.
CHERYL: IT'S NOT A BAD IDEA
CONSIDERING TESLA STILL
CONTINUES TO BE SUCH A FAN
FAVORITE.
PEOPLE THAT OWN TESLA LOVE
TESLA.
I'M NOT TALKING THE STOCK, I'M
TALKING THE VEHICLE.
>> THAT'S TRUE ABOUT THE STOCK I
THINK AS WELL.
FIRST, HAPPY HOLIDAYS.
THANKS FOR HAVING ME.
I WOULD TELL YOU THAT I AGREE, I
THINK, IN PRINCIPLE, IN THEORY
THERE COULD BE A PARTNERSHIP BUT
I HAVE NEVER SEEN ELON REALLY
PLAY NICELY WITH OTHERS WHEN IT
COMES TO MANAGING A BUSINESS
THAT HE'S FOUNDED.
SO I DON'T THINK THERE'S HIGH
LIKELIHOOD HERE.
I THINK TESLA HAS ENOUGH ON ITS
PLATE WITH RESPECT TO TRYING TO
BREAK INTO MANUFACTURING TO
SERVE THE FAR EAST, BREAKING
INTO THE MODEL Y, THE CROSSOVER
UTILITY VERSION OF THE MODEL 3,
AND CONTINUING TO SCALE THE
MODEL 3 ABOVE AND BEYOND THE
OTHER CORPORATE GOVERNANCE SORT
OF ISSUES THAT IF YOU WILL HAVE
BEEN SELF-INFLICTED THROUGHOUT
2018.
I THINK THERE'S QUITE A BIT
TESLA STILL HAS TO FIGURE OUT ON
ITS OWN IN 2019.
CHERYL: THAT'S WHY I WAS KIND OF
THINKING IN THE BACK OF MY MIND,
I DON'T KNOW IF I WOULD LOVE
TESLA STOCK THIS YEAR.
YOU HAD ELON MUSK OUT THERE
SAYING HE'S SECURED FUNDING TO
GO PRIVATE, HE DIDN'T.
GOT IN A LOT OF TROUBLE WITH THE
S.E.C., AS YOU KNOW, LOST HIS
CHAIRMAN JOB.
THEN YOU ALSO HAVE THE POT
SMOKING.
THESE ARE JUST A COUPLE OF
THINGS THAT REALLY CEOs
SHOULDN'T DO.
>> WIT
>> LOT
>> LOOK, THAT'S WHY THE MUSK
FACTOR HAS DEFINITELY BEEN A
RISK IN THE STOCK AND YOU SAW
THAT WITH THE PRIVATE TWEETSTORM
BUT YOU HAVE TO SEPARATE IT
BETWEEN WHAT'S HAPPENING ON THE
TRANSFORMATIONAL GROWTH STORY
THAT WE COMPARE IN SOME WAYS TO
WHAT WE SAW WITH APPLE AND
iPHONE GOING BACK A DECADE AGO,
BECAUSE YOU LOOK AT THE EV
MARKET, LOOK WHERE TESLA IS,
ESPECIALLY NOW GOING INTO EUROPE
IN THE FIRST QUARTER AND CHINA
IN 2019, I THINK THAT'S WHY IT
CONTINUES TO BE A BULL/BEAR
FIGHT IN THE STOCK BECAUSE THAT
MUSK FACTOR'S THERE AND IT'S
DEFINITELY BEEN AN OVERHANG, BUT
FUNDAMENTALLY, THE STORY,
ESPECIALLY ON PROFITABILITY
GOING FORWARD, IS I THINK ABOUT
TO HIT AN INFLECTION POINT GOING
INTO THE SECOND HALF OF '19.
CHERYL: THAT'S GOING TO BE
INTERESTING.
THE WHOLE CHINA SECTION OF THIS.
JAMIE, THAT QUESTION IS TO YOU
WITH THE AUTO INDUSTRY.
ELON MUSK OBVIOUSLY WANTS TO
BUILD IN CHINA BUT WE ARE IN THE
MIDDLE OF A TRADE WAR WITH CHINA
AND I'M WONDERING WHAT THAT DOES
TO HIS OUTLOOK OR YOUR OUTLOOK
FOR TESLA FOR 2019.
>> YEAH.
IT'S INTERESTING YOU BRING UP
CHINA, BECAUSE THEY ARE THE ONLY
MANUFACTURER TO DATE THAT REALLY
HASN'T PARTNERED WITH A CHINESE
DOMICILED MANUFACTURER TO FORM A
JV AND BUILD INTO THE CHINESE
MARKET.
THEY ARE GOING AT IT AT A MUCH
HIGHER DEGREE OF DIFFICULTY.
LOOK, FROM A TRADE PERSPECTIVE,
I THINK EXPECTATIONS ARE VERY
LOW THAT WE ARE GOING TO GET
LINE OF SIGHT ON A CONCLUSION IN
2019 OR CERTAINLY NOT IN EARLY
2019.
SO THE STOCKS ARE MAYBE OVERLY
DISCOUNTED.
TO THE DEGREE THERE IS ANY
INCREMENTAL SORT OF PROGRESS
MADE, WE WOULD SEE THAT AS
UPSIDE NOT ONLY FOR TESLA BUT
FOR THE AUTO INDUSTRY BROADLY.
TO GO BACK TO THE PRIOR POINT,
LOOK, LARRY ELLISON BEING A
MEMBER OF THE BOARD COULD BE
THAT BRIDGE TO POTENTIALLY
PARTNERING WITH AN APPLE.
WE SO
WE SEE THAT AS AN INCREMENTAL,
ALBEIT IT IS A SIGN ELON IS
STILL MVP I
STILL VEP I
STILL VERYI
STILL VERY MUCH IN CONTROL OF
THIS COMPANY AND THE BOARD.
CHERYL: LARRY ELLISSON, CHAIRMAN
AND CEO OF ORACLE, ALONG WITH
ANOTHER KEY EXECUTIVE THAT
JOINED THE BOARD, YOU ARE SAYING
THOSE ARE GOOD THINGS FOR THE
COMPANY, IT SHOWS MAYBE ADULTS
ARE IN THE ROOM.
I SAY THAT IN ALL SERIOUSNESS
BECAUSE OF THE BEHAVIOR OF ELON
MUSK.
BUT I DO WANT TO GO TO ONE OTHER
THING.
I WILL NEVER FORGET HOW MUCH WE
TALKED ABOUT A POSSIBLE I-CAR
WHEN IT CAME TO APPLE.
THESE THINGS AREN'T SO
FAR-FETCHED TO SEE THESE TWO
COMPANIES PARTNER UP DOWN THE
LINE.
IT'S POSSIBLE.
BUT WHAT ABOUT THE I-CAR?
I KNOW WE HAVE A LOT OF THINGS
WE ARE EXPECTING FROM APPLE.
A CAR'S NOT ONE OF THEM.
THEY HAVE BEEN SILENT ABOUT
THAT.
THEY WERE NEVER REALLY VOCAL
ABOUT IT BUT WE SAW PROTOTYPES
ON THE INTERNET.
>> YEAH, LOOK, I THINK COOK AND
CUPERTINO HAVE TRIED A NUMBER OF
PROJECTS IN THE LABS THERE AND I
THINK WHEN YOU LOOK AT AN I-CAR,
THEM GETTING INTO THE AUTOMOBILE
SIDE, IT'S DEFINITELY SOMETHING
THEY PLAYED AROUND WITH.
RIGHT NOW, APPLE IS DEFINITELY
BACKS AGAINST THE WALL IN TERMS
OF WHAT THAT NEXT GROWTH
DRIVER'S GOING TO BE OUTSIDE OF
SERVICES.
IS IT GOING TO BE CONTENT, DO
THEY BUY A STUDIO, DO THEY
PARTNER WITH A COMPANY LIKE
TESLA.
RIGHT NOW, APPLE IS DEFINITELY,
THERE'S A FORK IN THE ROAD
SITUATION.
THEY HAVE TO MAKE SOME TOUGH
DECISIONS.
WHEN YOU LOOK OUT THE NEXT FIVE,
TEN YEARS, TO MAKE SURE THEY
DON'T MISS OUT ON SOME OF THESE
KEY GROWTH AREAS, WHICH IS WHY
WE HAVE PARTNERSHIP WITH TESLA,
DEFINITELY SOMETHING THAT COULD
BE ON THE TABLE.
CHERYL: I WOULD LIKE TO THANK
YOU FOR TEEING UP MY NEXT
SEGMENT.
THAT WAS PERFECT.
IT'S EXACTLY WHAT WE WILL BE
TALKING ABOUT IN THE NEXT PART
OF THE SHOW, WHAT IS NEXT IN THE
WORLD OF STREAMING.
YOU'RE RIGHT ABOUT APPLE.
THAT WILL COME UP AS WELL,
RESPECTING THE AIR PODS AND A
NEW iPHONE, AND BLAH, BLAH,