TWO QUARTERS IN ROW WOULD BE A
GREAT ACCOMPLISHMENT.
CONNELL: THANK YOU FOR YOUR TIME
TODAY.
GOOD STUFF, KEVIN HAS SIT FROM
THE WHITE HOUSE.
WE'RE MOVING TO THE PANEL.
US BRANDYWINE PORTFOLIO MANAGER
JACK McINTYRE.
WANT TO GET TO ALL SORTS OF TOP
I CANS WITH THE THREE OF YOU
WITH TESLA.
JOHN LONSKI, REACT TO KEVIN
HASSETT ABOUT THE ECONOMIC
GROWTH AND THE SUSTAINABILITY
ABOUT THE BOOM WE'RE IN, WHAT DO
GROWTH IN THE THIRD QUARTER WILL
BE ABOVE 3%.
MAY NOT QUITE MAKE IT TO 4% I
THINK WE'LL CONTINUE TO SEE JOBS
CREATION PROCEED AT A HEALTHY
PACE.
THAT WILL LEND IMPORTANT SUPPORT
TO CONSUMER SPENDING TELLING ME
RETAIL SALES AND CONSUMER
SPENDING AS OPPOSED TO OPPOSITE.
CONNELL: IN THE MID OF ALL THIS,
KRISTINA, THAT TESLA STOCK PRICE
IS REALLY GETTING HAMMERED.
IT IS DOWN BY YOUR SCREEN 9%.
REMARKABLE INTERVIEW ELON MUSK
GAVE TO THE "NEW YORK TIMES."
LATER IN THE SHOW WE'LL GET SOME
OF THE DETAILS, EMOTION OF THE
INTERVIEW, ALL THIS KIND OF
THING THAT ELON MUSK TALKED
ABOUT, FROM THE AMBIEN TO
EVERYTHING, BACK AND FORTH.
TO ME THE MOST IMPORTANT THING
FINANCIALLY, THAT TWEET HE PUT
OUT SAYING THE FUNDING WAS
SECURED TAKING THE COMPANY
PRIVATE, IT TURNS OUT IT WASN'T
>> NO, IT ISN'T.
WHY YOU'RE SEEING THE STOCK DOWN
THERE ARE REPORTS THEY COULD
MEET WITH THE SEC AS EARLY AS
NEXT WEEK.
THAT IS CONSIDER WE'RE SEEING A
POSTING THEY HAD SUPPORT.
SUPPORT DOES NOT EQUATE TO
FUNDING SECURED.
NOBODY HAS COME FORWARD.
IF ANYTHING, ONE OF THE BIGGEST
STAKEHOLDERS, T ROE, FIDELITY,
THEY DROPPED SHARES OF TESLA,
DECREASING THEIR PORTION RIGHT
NOW.
NOT A GOOD SIGN OF ELON MUSK
WHEN HE NEEDS CONFIDENCE FROM
HIS SUPPORTERS.
CONNELL: ACCELERATION IN THE
STOCK SELLOFF, JACK, DOWN MORE
THAN 9%.
>> I LOOK FROM THE WORLD AT
40,000 FOOD STANDPOINT.
IT IS INTERESTING HEADLINE.
TESLA IS OBVIOUSLY UNIQUE TO
TESLA.
CONNELL: RIGHT.
YEAR-TO-DATE, TESLA'S STOCK IS
DOWN ONLY ROUGHLY 2%.
SO THE EQUITY MARKETS PRICING OF
GREAT.
LOOK FOR MORE DOWNSIDE.
THAT IS A INTERESTING POINT,
KRISTINA, AS MUCH AS WE'RE
FOCUSED, PEOPLE ARE SAYING I'M
SURPRISED IT DIDN'T SELL OFF
MORE GIVEN THE HEADLINES AND
TODAY'S "NEW YORK TIMES" STORY
ADDED TO IT.
MAYBE JOHN'S RIGHT.
WE HAVE MAYBE ONLY GOTTEN TO
305.
WHAT DO YOU THINK?
>> I THINK THERE WILL BE
DOWNSIDE FOR A WHILE.
WE'RE TALKING ABOUT THE BIGGER
PICK YOU ARE OF THE ECONOMY AND
ALL THAT WHEN YOU HAVE A LOT OF
COMPANIES HOLDING DEBT,
CONSUMERS HOLDING DEBT
CONTRIBUTING TO THE RETAIL SALES
GROWTH, THAT WILL BE A CONCERN
GOING FORWARD.
WITH TESLA, LIKE MANY OTHER
COMPANIES IT COULD POTENTIALLY
BE HIT IN THE LET'S SAY MEDIUM
TERM OVER THE NEXT LITTLE WHILE.
BECAUSE HE WILL HAVE TO GO
THROUGH A LOT OF LITIGATION,
LAWSUITS, COSTS.
THAT WILL HURT THE STOCK.
CONNELL: SINCE THE TWEET, RIGHT,
DOWN 19, 20%.
AS YOU GUYS SAID, WE'RE TALKING
BIGGER PICTURE, WE WERE WITH
KEVIN HASSETT WHERE THE ECONOMY
IS AND SOME BIG ISSUES THAT
SURROUND THAT SO, JACK, LET ME
GO TO YOU WHAT I THINK IS AN
INTERESTING POINT THE PRESIDENT
BROUGHT UP FOR DISCUSSION TODAY,
THIS IDEA THAT COMPANIES, IT
KIND OF PLAYS INTO THE TESLA
SITUATION TO SOME DEGREE, IF YOU
BELIEVE ELON MUSK'S REASONING
FOR WANTING TO TAKE THE COMPANY
HEAR FROM PUBLICLY-TRADED
CEOs, MAN, I DOESN'T WANT TO
GUIDANCE EVERY QUARTER THAT KIND
OF THING OF THE PRESIDENT
SUGGESTIONS THAT HE GOT THE IDEA
FROM INDRA KNEW WHICH, THE
OUTGOING CEO FROM PEP SIGH, THAT
WE GO TWO TO TIME AS YEAR
MAKES SENSE BECAUSE ANYTHING
GETS AWAY FROM SHORT-TERM
ORIENTED TO INVESTMENT.
WE NEED A LOT OF INVESTMENT IN
THE PRIVATE SECTOR AND PUBLIC
SECTOR.
ULTIMATELY THAT WILL HAPPEN I
THINK IT IS POSITIVE IT WILL
IMPROVE PRODUCTIVITY AND
INFLATION WILL REMAIN TAME AND
SUPPORTERS OF THIS IDEA BUT
DIMON AND WARREN BUFFETT WROTE
A QUARTERLY BASIS.
NOT EXACTLY AN ENDORSEMENT ON
THIS BUT LET'S NOT BE FOCUSED ON
SHORT TERM GOALS.
>> ONE OF THE PIG PROBLEMS WITH
THE QUARTERLY REPORTING, THAT
MEANS CEO, CFO, TOP MANAGERS,
HAVE TO PUT A LOT OF TIME FOUR
FORECAST, WHEN THEY'RE DOING,
THIS PUTTING FORECASTS TOGETHER
THEY'RE NOT TAKING CARE OF THE
UNDERLYING BUSINESS.
THEY'RE LOSING THEIR FOCUS ON
GROWING THE BUSINESS OVER TIME.
CONNELL: THERE ONE OTHER SIDE,
KRISTINA, AS FINAL POINT, I
BROUGHT IT UP TO KEVIN, COVERED
THIS FOR A LONG TIME, NO ONE IS
FORCING YOU TO BE
PUBLICLY-TRADED COMPANY,
INVESTORS WOULD ARGUE THAT SOME
HAVE THE RIGHT TO MORE
INFORMATION NOT LESS.
WHAT DO YOU MAKE OF THAT?
>> THERE YOU GO.
ELON MUSK, WHEN YOU'RE A PUBLIC
COMPANY YOU NEED TO BE HELD
ACCOUNTABLE FOR YOUR FINANCIALS.
I DO THINK IT WOULD DECREASE
VOLATILITY AND GIVE YOU A BETTER
PICTURE OF YOUR COMPANY.
HOWEVER THE FLIP SIDE YOU CAN
HIDE THINGS A LITTLE BETTER WHEN
DEALING WITH LONGER PERIODS.