LIZ: EDWARD, GREAT JOB.
THANK YOU VERY MUCH.
EDWARD LAWRENCE.
I NEED TO GET TO CHARLIE
GASPARINO, WHO IS IN THE
NEWSROOM NOT ONLY ON TESLA
EARNINGS AFTER THE BELL, BUT YOU
JUST WATCHED JAY POWELL HERE.
WHAT ARE YOU HEARING FROM YOUR
SOURCES AND YOUR IMPRESSIONS?
>> WELL, LISTEN, I DEAL WITH A
LOT OF STOCK TRADERS AND THEY
LOVED THIS.
IN THE BACK OF THEIR HEADS, THEY
ARE ALL SAYING THIS, THOUGH, AND
I TELL YOU, THIS IS PRETTY KEY.
CORPORATE EARNINGS ARE SLOWING
DOWN.
THE ECONOMY IS SLOWING DOWN.
THAT DOESN'T MEAN WE ARE GOING
INTO RECESSION, BUT OVERALL, I
KNOW WE HAVE ONE GOOD NUMBER
TODAY, BOEING, RIGHT, BUT WE
HAVE HAD A LOT OF DISAPPOINTING
NUMBERS RECENTLY, AND THE TREND
IS TO SLOW DOWN.
THE GLOBAL ECONOMY IS LIKELY
SLOWING AS WELL.
THAT IS NOT NECESSARILY A TIME
TO CELEBRATE IN THE MARKET, SO
THIS IS, A LOT OF PEOPLE ARE
SAYING A KNEE-JERK REACTION TO
THE FED SAYING WE ARE NOT GOING
TO RAISE RATES.
BUT I TELL YOU, IF YOU THINK
THIS IS LIKE, YOU KNOW, THAT
THIS IS AN INDICATION THAT WE
ARE GOING TO GET 3.5% GROWTH FOR
THE REMAINING TWO YEARS OF
THE -- OF TRUMP'S FIRST TERM,
YOU'RE WRONG.
THAT'S WHAT THEY'RE SAYING.
I WOULD JUST BE REALLY CAUTIOUS
OUT THERE IN THIS MARKET.
THIS IS NOT A GREAT TIME FOR
CORPORATE EARNINGS.
I DON'T CARE WHAT ANYBODY SAYS.
WE HAVE TRADE WORRIES, STILL OUT
THERE.
CHINA, HAVING AN ISSUE WITH
CHINA MEANS THEY DON'T BUY SOME
OF OUR STUFF AND THEY DO BUY A
LOT OF OUR STUFF.
DON'T LISTEN TO PEOPLE WHO SAY
THEY DON'T.
SO I WOULD JUST BE REALLY
CAUTIOUS.
LISTEN, YOU WANT THE MARKET TO
BE UP, NOT DOWN, BUT I'M TELLING
YOU, GENERALLY, WHEN MARKETS GO
UP ON INTEREST RATES NOT GOING
UP, THAT MEANS THAT, YOU KNOW,
IT'S KIND OF A RELIEF RALLY.
LIZ: IT IS.
KNOW WHAT'S GOING UP?
TESLA.
IT'S UP ABOUT 3%.
THEY ARE, JUST SO YOU KNOW,
MAKING SOME TWEAKS BEFORE
UNVEILING THEIR EARNINGS REPORT
AND SOLIDIFYING WHAT HAD BEEN
RUMORED AND THAT IS SOME CHANGES
TO THE LINEUP.
>> YES.
THERE'S THAT.
BUT I THINK THE BIGGEST QUESTION
FOR TESLA IS THE BOTTOM LINE
QUESTION.
THIS IS WHAT INVESTORS WILL BE
LISTENING TO WHEN ELON MUSK,
THIS IS GOING TO BE A VERY, YOU
KNOW, A VERY BIG EARNINGS CALL
FOR ELON MUSK.
THEY WILL HEAR IF HE HAS ENOUGH
CASH TO PAY THE $920 MILLION
THAT COMES DUE IN THOSE
CONVERTIBLE BONDS.
HE HAS TO PAY THAT IN CASH --
LIZ: MARCH 1st?
>> SOMETHING LIKE THAT.
IN MARCH.
THE STOCK ISN'T ABOVE 360,
THERE'S A GOOD CHANCE IT'S NOT
GOING TO BE ABOVE 360.
LIZ: 306 RIGHT NOW.
>> YOU NEVER KNOW.
THIS IS A VOLATILE STOCK.
IT COULD GO UP TO 360.
THEY WILL SEE IF HE HAS
BACK-TO-BACK PROFITABLE
QUARTERS.
REMEMBER THIRD QUARTER WAS
PROFITABLE.
WILL THE FOURTH QUARTER BE
PROFITABLE?
THEN THEY WILL REALLY FOCUS ON
GUIDANCE GOING FORWARD.
WHERE TESLA HAS ITS BIGGEST
CHALLENGES, NOT IN THE FOURTH
QUARTER OF -- THE FOURTH
QUARTER, IT'S IN THE FIRST
QUARTER OF THIS YEAR, MEANING
NOW.
DOES IT HAVE ENOUGH CASH ON
HAND, DOES IT NEED MORE CAPITAL.
A LOT OF PEOPLE SAY IT DOES NEED
CAPITAL.
I WILL TELL YOU, PEOPLE AT TESLA
WERE INDICATING TO ME THAT AT
LEAST FOR NOW, THEY WANTED TO
STAND PAT, THAT THEY THOUGHT
THEY HAD ENOUGH CASH ON HAND TO
PAY THE 920.
THERE'S A DEBATE ABOUT THAT IN
THE MARKET, I WILL SAY.
WE ARE GOING TO GET SOME
CLARIFICATION ON THAT TODAY.
I'M TELLING YOU, THIS WILL BE
ONE OF THE BIGGEST TESTS THAT
ELON MUSK HAS AS CEO.
LIZ: KEEP TALKING, CHARLIE.
I'LL LOOK.
>> I WILL.
THIS IS GOING TO BE A HUGE TEST.
NOW, ANOTHER HUGE TEST WILL BE
TOMORROW, BECAUSE I BELIEVE GE
IS COMING OUT WITH EARNINGS
TOMORROW.
AGAIN, WE ARE GOING TO FIND OUT
DOES THE NEW MANAGEMENT TEAM IN
THERE THAT REPLACED FLANNERY,
ARE THEY -- HOW MUCH OF THAT
BALANCE SHEET ARE THEY WORKING
THROUGH.
HOW MUCH DEBT ARE THEY WORKING
THROUGH.
HOW MUCH ARE THEY GOING TO SELL,
IS THERE ANY NEW PURCHASE, ANY
NEW SALES ON THE HORIZON.
THOSE ARE THE BIG SORT OF
EARNINGS, TWO TROUBLED
COMPANIES.
I KNOW FACEBOOK IS COMING IN
AFTER THE BELL.
I THINK THAT'S GOING TO BE LESS
OF AN ISSUE.
I THINK TESLA IS GOING TO BE A
BIG STORY.
LIZ: WELL, I SEE TOTAL CASH ON
THE BALANCE SHEET RIGHT NOW AT
$2.97 BILLION.
THAT WOULD GIVE THEM ENOUGH.
>> THAT'S BACKWARD LOOKING,
RIGHT?
THAT'S THIRD QUARTER.
LIZ: OKAY.
>> THEY MAY HAVE BURNED THROUGH
SOME OF THAT STUFF.
THAT'S WHAT PEOPLE ARE WORRIED
ABOUT.
THEY DO HAVE ISSUES WITH BURNING
THROUGH CASH.
THE QUESTION IS, DO THEY HAVE
ENOUGH CASH ON HAND RIGHT NOW TO
PAY THE $920 MILLION IF THEY
HAVE TO.
DO THEY HAVE ENOUGH CASH ON HAND
GOING FORWARD.
ELON MUSK, YOU KNOW, SAID THEY
WILL HAVE VERY DIFFICULT
QUARTERS GOING FORWARD.
HE ACTUALLY SAID THAT.
THAT'S WHY THEY LAID PEOPLE OFF.
YOU KNOW, ARE THE NUMBERS ADDING
UP GOING FORWARD.
I THINK INVESTORS WILL BE
FOCUSED ON GUIDANCE, NOT WHAT
HAPPENED IN THE FOURTH QUARTER
BUT THEY WILL REALLY BE FOCUSED
ON GUIDANCE GOING FORWARD IN
TERMS OF CASH POSITION AND
REVENUES.
YOU KNOW, THERE'S A HUGE DEBATE,
I GET IT ON MY TWITTER FEED
EVERY DAY, TESLA SHORTS AND
LONGS, THEY ARE EQUALLY IDIOTIC
AT TIMES.
I'M JUST TELLING YOU.
IF YOU WANT TO ENGAGE WITH THEM.
LIZ: BUT YOU NEVER.
YOU NEVER.
>> I NEVER DO.
I NEVER DO.
YOU KNOW WHAT I DO?
I BLAME EVERYTHING ON YOU.