TODAY, IS SOLID, VERY GOOD AND
STABLE.
LIZ?
LIZ: THAT'S GOOD TO KNOW.
I WANT TO LOOK AT TESLA STOCK
RIGHT NOW.
CHARLIE GASPARINO IS AT THE
MOMENT ABOUT TO BREAK SOME NEWS.
I'M JUST LOOKING -- CHARLIE, YOU
JUST MADE THE WIRES.
WE HAVE TESLA JUMPING ABOUT 6%.
>> NOBODY CLEANS UP FASTER THAN
ME.
I WAS IN THE GYM AND CALLED TO
BE ON THE SHOW IMMEDIATELY TO
BREAK THIS STORY WHICH IS WHAT
I'M DOING RIGHT NOW.
LIZ: THEY CAN'T SMELL YOU.
I CAN.
>> STOP IT.
I HAVE CLEAN SWEAT.
LIZ: GO AHEAD, GO.
>> LET'S LAY THIS OUT THERE.
THIS IS A HOTLY CONTESTED STOCK
BETWEEN BULLS AND BEARS.
LISTEN TO WHAT I'M SAYING.
WHAT SOURCES ARE TELLING THE FOX
BUSINESS NETWORK IS THAT BANKERS
ARE STILL APPROACHING TESLA
OFFICIALS AND BOARD MEMBERS WITH
FINANCING IDEAS AS ABOUT $1
BILLION OF DEBT COMES DUE.
HERE'S THE INTERESTING THING.
AT LEAST AS OF NOW, TESLA
OFFICIALS ARE TELLING BANKERS
THAT THERE'S NO NEAR-TERM
FINANCING PRESSURE DESPITE, AS I
SAID, A BILLION DOLLARS OF BOND
PAYMENTS THAT ARE GOING TO COME
DUE OVER THE NEXT SIX TO EIGHT
MONTHS, BETWEEN NOW AND MARCH,
OVER $1 BILLION OF CONVERTIBLE
DEBT WILL BE DUE IF THE STOCK
DOESN'T HIT A CERTAIN LEVEL, I
BELIEVE 360 ON TESLA, YOU OWE
THAT MONEY IN CASH.
THIS IS A COMPANY THAT HAS HAD
SOME CASH FLOW PROBLEMS.
LIZ: NOT THERE RIGHT NOW.
$275.89.
>> NOT QUITE THERE.
HERE'S WHAT'S INTERESTING.
THE BANKERS BELIEVE THE
COMPANY'S BEING OVERLY
OPTIMISTIC ABOUT THEIR NEED FOR
FINANCING, AS THESE BOND
PAYMENTS COME DUE.
OFFICIALS ARE TELLING BANKERS
THAT THE COMPANY IS FOCUSING ON
GOVERNMENT ISSUES SUCH AS
PICKING A NEW CHAIRMAN,
INDEPENDENT DIRECTORS, AND IT
BELIEVES -- THEY ARE TELLING
BANKERS, WHAT THEY ARE SAYING AS
OF I WOULD SAY THE LAST 48, 24,
48, LAST WEEK OR SO, THEY ARE
TELLING BANKERS THAT THEY
BELIEVE THAT THE OVERALL
BUSINESS AND CASH FLOW IS
IMPROVING.
THEY THINK THEY CAN GET THROUGH
THIS.
AT LEAST THAT'S WHAT THEY ARE
TELLING BANKERS DESPITE THE FACT
THIS WAS A COMPANY THAT'S HAD
SOME CASH FLOW ISSUES, IT'S BEEN
BURNING THROUGH A LOT OF CASH TO
PRODUCE THE MODEL 3, AND A LOT
OF PEOPLE ARE WORRIED IT WILL
HAVE -- WHETHER OR NOT IT WILL
HAVE ENOUGH CASH TO MEET THOSE
PAYMENTS.
LIZ: SINCE IT WENT PUBLIC, I
DON'T KNOW IF WE CAN GET THE
CHART UP, BUT I'M ALWAYS
INTERESTED TO SEE AND PUT THINGS
INTO PERSPECTIVE.
>> WHAT I'M SAYING IS, THERE ARE
TWO STORIES HERE.
THERE ARE THREE STORIES WITH
TESLA.
THERE'S THE EXTREME BEAR CASE.
YOU CAN SEE THIS ON TWITTER ALL
THE TIME, THIS THING IS A
MASSIVE PONZI SCHEME, THERE'S NO
MONEY HERE.
MUSK IS A FRAUD.
LIZ: OKAY.
LET ME TELL YOU, THEY STARTED
THE QUARTER WITH PRODUCTION OF
11,500 VEHICLES.
THAT'S NOT A FRAUD.
>> OKAY.
THERE'S THE EXTREME BULL CASE
THAT THIS GUY IS GOD, OKAY?
THEN THERE'S THE PEOPLE IN THE
MIDDLE, INCLUDING MANY ON WALL
STREET, WHO BELIEVE HE'S CREATED
SOMETHING GOOD, HE'S
INTEMPERATE, HAS REAL EMOTIONAL
PROBLEMS, HE NEEDS A LOT OF
OVERSIGHT, BUT HE CREATED
TREMENDOUS VALUE AND THOSE ARE
THE PEOPLE THAT ARE SAYING,
RECOMMENDING TO TESLA THAT YOU
ARE BASICALLY UNDERESTIMATING
THAT YOU NEED CASH IN THE NEAR
TERM TO GET THROUGH THIS BUMP
BECAUSE THEY WILL HAVE A BUMP.
THEY NEED $1 BILLION OF CASH
OVER THE NEXT YEAR AND THEY'RE
JUST NOT SELLING ENOUGH CARS
ACCORDING TO SOME PEOPLE.
LIZ: DON'T WE ALL UNDERESTIMATE
OUR NEED FOR CASH?
OH, THAT LANDSCAPING DEAL.
THAT'S A LOT MORE THAN I THOUGHT
IT WOULD BE.
>> IT'S DIFFERENT WHEN YOU'RE A
PUBLIC COMPANY.
LIZ: TRUE.
OTHER PEOPLE'S MONEY.
>> OTHER PEOPLE'S MONEY.
I CAN JUST TELL YOU WHAT THE
BANKERS ARE TELLING HIM WHICH IS
HERE ARE SOME IDEAS AND THE
IDEAS RANGE FROM RAISING DEBT TO
STOCK, YOU NAME IT.
THEY ARE ALL OVER THE PLACE.
THEY ARE COMING BACK, THE
OFFICIALS AT TESLA ARE
APPROACHING BOARD MEMBERS AND
OFFICIALS.
WE DON'T SEE A NEAR-TERM CASH
FLOW NEED, CASH NEED, FINANCING
NEED, WE DON'T BELIEVE THAT IT'S
ARMAGEDDON.
BASICALLY WE ARE, OUR FINANCES
ARE IMPROVING.
NOW, HOW LONG THIS CONDITION I
JUST LAID OUT STAYS AT TESLA, I
CAN'T TELL YOU.
I CAN JUST TELL YOU THE
CONVERSATIONS THAT ARE GOING ON.
FOR ALL I KNOW, THEY ARE WRITING
A BOND DEAL TOMORROW AND THE
WHOLE THING, IT WILL BE A SEA
CHANGE.
THEY WILL ISSUE MORE STOCKS
TOMORROW.
BUT I CAN TELL YOU THAT AS OF
THE LAST WEEK OR SO, BANKERS ARE
HAVING THESE CONVERSATIONS,
THAT'S WHAT THE TESLA PEOPLE ARE
TELLING THE BANKERS, THAT
THERE'S NOT A DIRE NEAR-TERM,
YOU KNOW, EXISTENTIAL NEED TO DO
FINANCING.
AND THEY THINK, THEY ARE SAYING,
CASH FLOW'S IMPROVING, BUSINESS
CONDITIONS ARE IMPROVING.
WE SHOULD POINT OUT THEY ARE
GOING TO RELEASE EARNINGS PRETTY
SOON, RIGHT?
I WOULD THINK IN THE NEXT WEEK
OR SO, WE WILL GET SOME
INDICATION WHETHER THEY ARE
MEETING PROFITABILITY TARGETS --
LIZ: WILL ELON DO THE CALL?
>> OH, ABSOLUTELY.
DON'T YOU THINK?
LIZ: YEAH, I WOULD THINK.
>> HE'S NOT HIDING.
LIZ: CAN YOU NAME ANYBODY ELSE
FROM THE COMPANY?
>> THE GUY'S NOT HIDING.
LIZ: HE'S THE ONE WHO KNOWS THE
BUSINESS INTIMATELY.
HE'S CRAZY LIKE A FOX.
CREATED AN INCREDIBLE COMPANY,
INCREDIBLE CAR.
>> HE MIGHT BE BLOWING IT WITH
SOME OF THESE ANTICS.
THAT'S THE DEBATE BEHIND THE
SCENES RIGHT NOW.
WE ARE -- BASICALLY NEAR TERM,
THEY HAVE TO PICK BEFORE THEY DO
ANY FINANCING, PICK A CHAIRMAN
AND SOME DIRECTORS.
JAMES MURDOCH OF FOX, OUR PARENT
COMPANY, HIS NAME HAS BEEN
FLOATED OUT THERE.
I HAVE NO IDEA IF HE'S GOING TO
GET THE JOB OR NOT.
JUST THROWING THAT OUT THERE FOR
FULL DISCLOSURE.