tv After the Bell FOX Business May 2, 2018 4:00pm-5:00pm EDT
they are learning to monetize their users. liz: facebook is higher on news perhaps cambridge analytica, that got it into so much trouble, is going bankrupt. stock tumble in final hour of trade, earnings from tesla and more, right now. melissa: dramatic final hour of trading. down 174, s&p and nasdaq following down to red. david: we're glad you can join us, this is an important day. for what shapin what is happenin beltway, after the bell, more on big market movers, but first. a very busy hour, shake up in trump legal team. details behind departure of white house lawyer ty cobb and the man replacing him. a name you may remember from when he represented bill
clinton. and unacceptable return on our investment. nikki haley following up on her promise to take names, slamming countries for not giving u.s. more support, what she says may happen now. and a frightenin frightening frh a southwest plane. >> the dow falling in last 4 of trading, ending day near session lows, below 24,000, nicole is on floor of the new york stock exchange. talk to me about the market. reporter: we saw late day selling, this as the dollar moves to highs of providing headwind to stock market, dollar showed strength, you saw verizon big la laggard,.
and nasdaq was up about 1% yesterday. it pulled up. oil moved to upside, goal -- gold down. apple was a winner. looking at apple up 4.5%. facebook. look at facebook same time hearing cambridge analytica ands had parent filing bankruptcy. and snap dropped 20%. not seeing advertisers and user growth. the redesign hurt the company. back to you. melissa: thank you. david: a big drop. in the panel, jonathan hoenig. and daniel demar tina booth. the fed shows concerns about
inflation. investors are worried. that means threat of higher interest rates? >> absolutely, the fed changed language in what would have normally been a lame duck meeting, why put a scare in the market. inflation is up close to fed's 2% target, it came in 1.9% last month, and more important, jpowell, founded industrial group at carlyle corporation, he is following these earnings reports, hearing companies lamenting how much input costs have come up, if it is hurting companies and their bottom line it will hurt individual as well. david: gas price, a whole range of indexes. todd, you thought we could have a rate hike today? what lead you to that belief?
>> watching market earlier i saw heavy selling, i think there should have been a rate hike today. this going to happen again, in my opinion fed is behind the curb. rates should be higher. instead of worry about what stock market is doing, stock market has been up for 10 years, we need to get the economy back, only way to do that is free up money for small business. david: market does not like it, market wants more sugar, fewer interest rate hikes, and maybe more tax cuts, president does not want higher rates on interest rates. he is tel telegraphed he may waa phase two of the tax cut. >> i think it is clear market is trying to digest what is the next move. to todd's point after a decade a plus of micromanaged interest
rates. a lot of interest-rate sensitive stocks have lagged, even broad market has lagged. i see as big trend right now are panel has talked about higher interest rates, and fed might be behind the curb on this. look out below for stocks. melissa: from big apple to music city. alliance bernstein is moving, company said its headquarters, ceo and most of new york workers are relocating to nashville. one of main driving factors, state income taxes, hard to compete with zero percent in tennessee. and let's bring our panel back in. i imagine there are a lot of places where they are talking about this. i was at a conference not long ago, it was main topic, do we
get heck out of new york. there is an opinion piece in "wall street journal." right now headline is people fleeing new jersey like it is so fire, the actual headline, jonathan did you know this was going to happen? >> yeah, happening in illinois, all of the high tax states, even after president's tax cuts, they lot of top earnings finding taxes higher, great, thigh are e now able to rolo kate -- relocate. but back in '90s charlotte started to exam into its own. with banking deregulation, this is a great thing for migh mighty midwest. melissa: and it is often texas, a lot of companies heading there. >> melissa, i would move in 3
seconds if i could leave chicago, you look at states with high taxes, they are in trouble, they don't function well, they rip our eyes out charging taxes. i don't blame any corporation for moving to texas or nevada anywhere you don't have to get involved in the ridiculous taxes. melissa: danielle, in new york we're paying 25% more to the budget than we have with our previous mayor. only there is more home lessness, more trash, more problems, more crime. things are so much worse as we pay so much more to budget. todd made that point. why are cities that charge highest taxes the most a wreck? >> i think one subject will be discussed more and more, will be a huge challenge for our politicians, in states like connecticut, new jersey, illinois, and california, is the pension system, we have poured
more money to public pension in country to detriment of taxpayers who are not on pension. in state of texas, 10,000 companies have migrated to texas from one state, california, over course of last 12 years. companies are looking for -- and families, they are looking for better ways of life, and having to payless in to the coffers to deal with base ebbly political corruption for years, that has blown the pensions up. melissa: so depressing, i am going to weep, give to david. david: u.s. trade delegation, steve mnuchin seen here meeting tomorrow and friday with leaders in china. chinese officials saying they will not yield too any trade threats made by u.s., we go to edward lawrence, hardball? reporter: very tough talk. topping legals of items -- topping the list of items for u.s., protecting intellectual
property. and allow companies to freely sell more often in china. right now you have to have a chinese partner in some sectors. and we have a heavyweight team going over there. you mentioned mnuchin. also u.s. trade representative robert lighthizer, secretary of commerce wilbur ross, and peter navarro and larry kudlow. u.s. got china to table by imposing in part tariffs on steal,, and lu alunl -- aluminug machines and solar panels. >> we're bringing fairness and reciprocity to our table with china. reporter: some expert on china say we need to play hardball more than we are to get chinese to take notice. >> we ought to say they can't
invest in united states there are so many sectors of chinese economy that are closed, off limits to u.s. investment. but virtually no limitation on chinese investment in united states. states. reporter: china is downplaying developments that become out of the meetings, chinese foreign minter spokesperson saying it is never very practical to imagine that all problems being wiped out through one time consultation. but the u.s. now has china at the trade table. david: what a table, kudlow, and navarro, you have good cop, and bad cop, chinese will be caught in middle, thank you very much. because it is so interesting fox business will report live from beijing starting tomorrow, connell mcshane will be there from beijing, reporting on all details, we'll be reporting on
that as well. yesterday florida senator rubeo appeared to slam the tax law when an economist article came to light he said there is no evidence what so offer that money that been poured back in to the emergenc the american wo. today, senator rubio seemed to shift his position. saying overall, republican tax cut bill has been good for americans. that is why i voted for it. but it could have been better for american workers and their families. we reached out to senator from clarification, if we get one we'll bring you his response. melissa: new immigration showdown this time over so-called dreamers, texas and 6 other states trying to force trump administration to end daca program. ken paxton will join us. david: big shake up in trump legal team, details behind
departure of ty cobb. melissa: trump slamming what he calls a rigged system, what appears justice department for slow walking documents to congress. a live update from the white house next. >> they should understand by now, department of justice is not going to be extorted, we'll do what is required by the rule of law, any threats that anyone makes will not affect the way we do our job. elevated comfort powerfully efficient and one more thing the world comes with it ♪you can go your own way...
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think up after hours. reporter: it is up about around 2%. that is because loss is not as bad as expected. we're seeing adjusted earnings come in. a loss 3.35 on revenue 3.41 billion, that is higher for the quarter. we know a big number was cash. at end of last year, 3.4 billion, but this quarter, cash in at 2.7 billion. a little bit less than previous quarter. also we talk about production. so for april, they produced 2720 model three cars for week, their goal is to produce 5,000 model 3 vehicles per week. they will try to hit the goal in about two months.
melissa: good luck. reporter: they announced within this next upcoming quarter, they will have close production site for 10 days to deal with bottlenecks, same thing, they have a lot of robots working, they need to fix it out so robots can work with people. david: a musical here called promises, promises, i think of that when i think of tesla. reporter: are in a seeking new capital is a big thing. david: great thank you. >> me melissa. melissa: panel is with us. jonathan, promising 5,000 models when they could not hit 2500 before. they are burning cash, but lossa not as dramatic as people thought, that is good news. >> and stock is up in after
market. tesla making promises and not delivering, and stock moves up as a result, this happens, interestingly, a lot of people are short this stock. 30%. any time, news is not worse than expected, you will see shorts cover. stocks like apple and amazon high, tesla could be higher. melissa: does that sound like a recipe for eventual burn out. we've been waiting for this stock to collapse and fold, it keeps not doing it. they keep missing their promises. you know mars, and hyperloop and solar panels and dealership, we couldn't do 2500 cars so now we'll do 5,000. >> this is producers, david said. they have no chance in my opinion. i think you know, only help they
have is somebody buys them like a google. but they are not -- they can't make money. some point in time you have to make money. as jonathan straighted there is a lot of short flow, every time news is not horrible they get a little bit of a bounce. i am short tesla, i think it is going lower, i don't see any other reason other than car is fantastic. elon can sit in his office all he wants. david: they have a time frame to double to 5,000, in two weeks. melissa: wow. >> excuse me two months. melissa: i got a bridge to tell you, danielle, that thing that you know a great salesman. a genius, people love the cars, they can't figure out how to make them profitable. >> we started at top of the hour talking about interests, tesla has been crafty at coming into high yield market with huge
deals to offset depleting cash levels, i would not be surprise if the a positive moment for company saw them come back to high yield market, as long as people are willing to buy enough paper to keep them this, i think -- them in business, i think they will continue to stream us along. melissa: reports maybe billion in next decade, we'll see. >> that is a lot of debt. melissa: thank you. david: stock down now after hours after being up. >> revolving door continues in the beltway, foxconn formerring tie -- confirming that ty cobb will retire as white house legal cancelcounsel. emmett. reporter: you have to go back a couple decades, emmett flood is back in spotlight replacing ty
cobb as president's inhouse council here. flood will join president's legal team. he represents former president bill clinton for his impeachment hearings. that was not his only high profile client. after that representing former president george w. bush and dick cheney. flood is in. emmett flood will join white house staff to represent president and administration against the russia witch-hunt, ty cobb, a friend of the president, who has done a terrific job will be retiring at end of mob. month. in reson weeks, they have neighbor turnover. dowd, and president brought in rudy guliani now flood in as questions bubble up to whether or not the president might sit down with robert mueller for a
interview. if show, under what condition. guliani said he would be open to that idea if mueller considers possibility it is jim comey not the president who would be one telling untruth. >> if they have an open mind, then is something we would consider, if they don't, then given all irregularities of this investigation, we would be foolish to have him be interviewed. reporter: part of president's thoughts on this today, there was no collusion, it is a hoax, there is no obstruction of justice, that is a set up and trap, and writes, witch-hunt. david: thank you blake. here now sarah carter, investigative reporter fox fuse contributor, first. on mueller. the talk is that he gave the president or legal team saying, if you don't appear before my in person, president, we will
subpoena the president. if there is a subpoena, do you think that president will go or refuse? >> i think that this is why he brought emmett flood in, during clinton 1 -- clinton administration ken starr trial that is what they did. i think in this case, a little bit different, i think that they will be really fighting here, i think that is why they brought flood in. david: i should mention, flood and rudy is a heck of a team. >> a huge -- a powerhouse team. and let me tell you, i don't believe that rudy jie jewel guli believes they will give president the benefit of the doubt. there is no evidence of any type of crime. and does appear to be a perjury trap, they are setting up a
powerhouse team, going up against another powerhouse team, mueller and rod rosenstein. and they will win this, there is a lot of questions still to be answers on rod rosenstein. david: the crux of the issue or in past two thundershower 24 hod rosenstein, yesterday he was out pushing back on idea he is slow walking release of documents that congress has requested. documents that may talk about why we had this war an, fisa warrant, weather trump dossier was reasons, and et cetera. here is how he responded. >> i think they should understand by now that department of justice is not going to be extorted, we're going to do what is required by the rule of law, any kind of threats that anybody makes are not going to affect the way we do our job. >> this morning tweet from president that seemed to be eless at this time from comments, a rigged system they
don't want to turnover documents to congress, what are they afraid of? why so much redacting? why such unequal justice, he puts justice in quotes. >> i make a lot of this, go to may 9, 2017. rod rosenstein himself issued memorandum to fire comey, it was him, he fired comey, now you know we see him then he sets up the special counsel, to then investigate the president on obstruction. david: is that not a conflict of interest? the firing of comey that ill -- eless -- set up of counsel. >> this is say major question, that rod rosenstein needs to answer. and he needs to answer it, he
was the one, it was his signature that lead to comey's firing, now he is playing the victim. no, you are a witness, you should recuse yourself from this investigation. true, a number of documents i have seen the documents are high highly redacted, even august 2 memio, giving mueller basically carcarte blanche to investigaten forth and russia contacts. so this is reason that congress is so upset, there is a reason why congress has to keep threatening contempt before rod rosenstein turns over documents. david: not just congress but -- it is extraordinary you think that rod rosenstein serves in his office at pleasure of the president, not a lot of pleasure there. >> there is not a lot, he is not serving at pleasure of president, president had every
authority to fire comey as well. that was his prerogative. david: what a situation, sarah carter thank you very much. >> thank you. david: appreciate it. melissa: southwest making an unscheduled landing for an equipment issue, just two weeks after its fatal flight. >> and which nations have america's back at the u.n., and which don't. ambassador nikki haley is well aware of which countries are in our corner, that is coming up next. .
. melissa: wasting even more of your money. a newly released state department report shows which u.n. members vote with the united states despite getting millions in aid. nikki haley issuing a statement on the finding saying this is not an acceptable return on our investment. here now is claudia rosette, a foreign policy fellow from the
independent women's forum. is that fair saying we're only -- it's like a bribe, only going to pay for, this only give you money if you vote in our best interest. is that a way to look at it? >> yes, the united nations is extraordinarily fair, it's honest and straightforward which is unusual at the u.n. but a good idea. melissa: it's staggering that we contribute 22% of the budget. this reminds me the conversation over nato. the next closest japan 9.6%, china, 7.9%. germany 6.3%, no one else is even in double digits. except for us, 22% and the quarter of the resolutions they pass and argue over have do with just israel versus palestine. there's a lot more out there. >> yes, and the resolutions are illustration of anti-semitism at the u.n. unfortunately which is not what the u.n. was founded to do, and part of the problem here isn't simply that america pays out all this money
to countries that vote against us and against the free world to an incredible extent. five out of six major votes in the general assembly will be against our position. it's also that it has made america look like a complete fool for a long time. melissa: really? >> yes, subsidizing your enemies is not something that earns you respect in the world. melissa: so how do you reform it. we were talking about this earlier today and they put up the u.n. as a place where rather than having a world war, we can meet and have a place to talk and you have a place to delegates and a place to get together rather than miscommunication and all these other things. is that still valid and is there a way to do it more efficiently? >> you could do it more efficiently by renting a gymnasium in siberia, seriously, and inviting them to come talk. there is value to being able to talk with each other. on the other hand, the u.n. is
now an enterprise system, it spends more than $50 billion a year which america provides the biggest share. to have all that money attached to it has been a big mistake. it's both morally corrupt and invites financial corruption. melissa: yeah, do you think anything gets done about it? nikki haley has been outspoken, she's been a star in this administration, and you know she's really sat there and been very, very tough but to what end, do you think? >> it's very hard to reform anything at the u.n., it is like moving mud with a teaspoon, but to do something is at least a good move in the right direction, and for ambassador haley to be taking names, calling out countries, cuba, south africa where our money goes into it and they vote to a staggering degree. melissa: this administration has turned things upside down, they got results out of nato that people didn't expect, north korea another problem that nobody said could be
solved. maybe this is another that has a chance. thanks for coming on, appreciate it. david: a new legal hurtle for daca. seven states are going to court looking to end the obama era program. ken paxton is one of the a.g.'s. nancy pelosi making the case for her future leading the democratic party, but are her comments too much even for her own democrats? hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab.
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. david: taking daca to court. seven states are suing the federal government seeking to end the obama era program that protects young immigrants brought to the country illegally. texas attorney general ken paxton filed the lawsuit and joins us now. good to see you, general paxton. a lot of folks have argued, legal experts that daca was unconstitutional to begin with. is that your basic argument? >> absolutely. it's very similar to the lawsuit that we filed a couple years ago in dapa that we took to the u.s. supreme court, has exactly the same legal theory with president obama doing something only the congress has to do under the constitution. david: three federal courts have blocked president trump from just ending daca, and that led general -- general? he wishes.
our own legal expert andrew napolitano to opine about what you're doing, take a listen. >> this should be resolved, by congress and not by the courts. i'm disappointed about a fourth lawsuit, i think it'sive from lou, i think they're going to lose. david: he called your lawsuit frivolous, what do you say? >> couldn't disagree more. this is similar to the dapa lawsuit. they stepped into the role of the president and stopping him from rescinding what we view and what the president viewed as an unlawful executive action. there's no reason they should have stepped into effect what the president was doing, and so we're back to our same issue, this was unconstitutionally done by president obama. same argument we made in dapa you're going to see in the end we're going to be successful. david: let me move to sanctuary cities, something you have been successful about. they have backed your efforts to crack down on sanctuary cities within the state of texas. what's the latest on that?
how is that going? >> actually very well. legislature passed sanctuary city bill basically to do two things, one is allow law enforcement to ask about immigration status, and two to require that elected officials turn over illegals who have committed crimes. while we took that to the fifth circuit we were successful in getting law put back in place and completely upheld. we're living under the law as we speak. david: have there been cities that have been trying to defy that law? >> as far as we know that's not happening. we have a complaint process on the website. so if people are aware of that happening, they can complain and we investigate and if there's a problem, you know, we pursue it. david: and as a result of this, are there are any indications that things have changed, that there are fewer crimes by illegal immigrants, et cetera? >> you know, so we're going to be measuring that. our state police measure this on a monthly basis, and you know, we keep track of the statistics and kept track of
that since 2011, but over 600,000 crimes committed by illegals, interesting to see if the number of illegals coming in, obviously should impact our crime statistics in a positive way. david: interesting stuff. texas attorney general ken paxton, thank you so much for being here, appreciate it. >> appreciate you having me on. melissa: southwest in the headlines again today after plane made unscheduled landing, flight 957 from chicago flying to newark. look at the picture. when a crack on the outer panel of one of the passengers was discovered. the flight was diverted to cleveland. the plane has been taken out of service for maintenance. yeah, i guess. david: another one. i wonder if southwest can survive all this? going to be tough. solution to the homeless crisis, seattle has an idea that may not sit well with big companies like amazon. we're going to give you the details, coming up next. as a control enthusiast,
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the homeless, seattle proposing a new tax for some of america's most successful companies. dan springer has the details from seattle. hi, dan? reporter: hey, david, the so-called head tax would cost the biggest and best job creators $540 a year for every full-time employee doing work in the city. companies have to gross $20 million a year to qualify. tax is calculated at 26 cents for every hour worked. about 600 companies affected. by far the biggest impact felt by amazon with 40,000 employees in seattle. amazon will have to pay $21.6 million. but now the company's fired a warning shot, it announced it has paused construction on an office tower and would consider subleasing space in a building tower under construction if the head tax is passed. that could be around 7,000 high-paying jobs not created, and with amazon looking for a second headquarters, some
expect job losses. >> what amazon is doing is keeping options open. they're saying they're going to set up a headquarter in another city and transfer work from seattle to other places as needed and it's just a basic business decision. reporter: the tax will raise $75 million with the money going towards the city's growing homeless problem. nearly 4,000 people living on the streets, 20% increase in two years and despite $200 million spent on the crisis. businesses pay 60% of the city's tax revenue and many of the leaders say council to council is anti-business, point to tax increases, new regulations and shocking statement from a council member who suggested a government takeover of boeing after the company moved some jobs to south carolina. >> if you want to go, you can go. the machines are here. the workers are here.
let us take this entire productive activity into democratic public ownership. reporter: by the way, she is still on the council. seattle tried a small head tax and scrapped it during the recession of 2009. this will be 22 times larger and by far the biggest in the country. david? david: and the soviet union tried the tactic of taking over private industry. melissa: works out great. david: thank you very much, dan, good to see you. melissa: the post office, that works great, the dmv, you tax what you want to discourage, that's not job creation. don't tax job creation. david: better when the government takes over. melissa: no intention of walking away from the table. how nancy pelosi is defying calls from fellow democrats? alerts -- wouldn't you like one from the market
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. david: breaking news, the u.s. is carrying out first transfer of prisoner out of the guantanamo bay detention center. the prisoner has been transferred to saudi arabia. that brings the guantanamo prison number to 40. melissa: we will win, i will run for speaker, i feel confident about it and members do too, this as democrat leaders are calling for her to step aside, here now is annika green and a former campaign adviser, joe, start with you, republicans love this kind of talk, it helps them so much. would you like to see nancy pelosi do more of this chating? do you feel it's helpful? do you feel it hurt the party? >> i'm confident with the leadership that nancy pelosi has provided in congress.
if you look at her speakership, what she's done to lead the party and the minority, incredibly effective as a fund-raiser and legislator. she's helped pass some of the landmark bills not just for progressives but all americans and raised millions and millions of dollars for democrats around the country. nancy pelosi has the leverage to do whatever she wants and caucus will follow her and that's not a bad thing for democrats and the rest of the country. melissa: annika, do you think that is music to republicans' ears? >> nancy pelosi presided over losing the house in 2014 projecting to stay democrat. her great weakness is the fact that -- her weakness is the fact that she can raise money for the democrats but that is also a strength for them. so ultimately, they need to not stick with somebody who has presided over such loss and really getting up there. she's not projecting the face that democrats would like to
present to the electorate. melissa: joel, she has a lot of strength in raising money and obviously really good at whipping democrats into shape and into, you know, all moving in the same direction. the challenge it seems is that she has a lot of the same faults as hillary clinton with the crumbs comment, with being very wealthy and seemingly out of touch with working people and seeming like, i can't believe i'm saying this, a centrist versus a bunch of the democrat party that has a lot of enthusiasm. you know, like bernie sanders. do you think that that's a challenge for democrats? >> i think it's an interesting double standard here. nancy pelosi has been very effective for a very long time. i really don't recall hearing too many people other than his own party going after john boehner or paul ryan because they've been around too long, usually that was because they lost political support and nancy pelosi hasn't lost political support. she saw this coming, she's diversified and made her leadership team a lot younger
and more millennial friendly and a lot more ready to appeal to a new generation of voters. i think nancy pelosi is smart how she approached this. melissa: she has a lot in her own party, talk about a double standard. annika, a lot of people don't want to campaign with her and don't want her there because she does represent the old guard and being out of touch and just things, that's from democrats that want her money, but don't necessarily want her standing next to themselves, and maybe fear that if you're saying you elect democrats, she's going to be speaker of the house, that may not be a winning message for democrats. >> right, i don't think that is. telling people they are afraid to challenge her leadership. she's the one going to keep the party diverse, as an older white woman, she's not bringing that diversity that democrats would like to present themselves as the party of being, and ultimately they're afraid to challenge her because she does bring in so much money
and that is a challenge of the past. melissa: joel, is there anyone else you think would be great also, if you are a fan of hers, who do you think is the person that would be the next great person on the democrat side, if she were to decide for some reason she didn't want to be speaker? >> this is the point i was making earlier, she has been smart about building a bench. melissa: like who? >> joe crowley, positioning himself to do this. older gentlemen like steny hoyer and jim clyburn i'm not sure they have the younger designs of the office, my former boss barbara lee, others in the congressional black caucus. the good thing about the democrat party, there's a big tent and strong stretch of people that can step. in i think she has important people lock step behind her. melissa: thanks, both of you. david: breaking news from the corporate front, sprint ceo is
stepping aside and will be executive chairman. finance chief michelle combs will fill his role as ceo as the company is working on the deal for t-mobile to purchase them. shares are sprint are higher after hours. melissa: this bud's for you, george washington. the new brew based on the formula that would make our founding fathers proud.
melissa: patriotic beer inspired by one of founds father, budweiser announcing newest edition of its collect, a red lager. david: back to beginning of country brewed by company employees, they are military veterans, a portion of proceeds going toward a nonprofit that provides military families with educational scholarships, beer will be available starting this
month through end of september. i have been wary of special brands from budweiser. melissa: you are going for? david: taste and honor. melissa: i love it, it warm outside, let's do it right now. evening edit starts now. >> cash 6500 a minute, i think it is, they still have headaches with model 3. only thing that saves this company is elon musk, i think he can. >> they pay same amount of interest right now at ge. >> dow dropping. this as elon musk tesla announced earnings beat. electric carmakers, still burning billi