Tell me in an exclusive musk, has tried to arrange a deferment of rent at some of his 80 showrooms here in the united states at least one of them in new york said no. We cannot defer the rent, but instead of paying the full seven hundred thousand dollars in rent a month in the last four months, musk has only paid half of that every month for the last four months, apparently promising he’ll pay it off in august. Some are speculating it’s, a scheme to save as many millions as possible these last three months, so that tesla could show a profit for the fourth quarter in a row. This past quarter and be eligible for inclusion in the s p. 500 tesla needs to show four straight quarters of profit for its stock to be eligible in the occlusion of the s. P 500, but as landlords are fuming because they want to be paid, we will see if he pays up by august or faces lawsuits from tesla landlords, deferring half a million here and half a million. There would certainly move the needle on earnings. The company reported net income last night, 104 million dollars in gap. Earnings tesla also reported its first full year of profitability on a gap basis, and that means it can now be considered for inclusion in the s p 500 index. All of this has the stock up, and it is up 280 percent this year.

Joining me right now to talk more about.

All of that is arc, invest analyst tasha keaney also joining the conversation this morning is fox businesses, dagan mcdowell, strategic wealth partners. President and ceo mark tepper and fox news good to see you let’s get into to tesla, and i want to get your take uh tasha on on on this story that uh we broke this morning, elon musk saying that he wants to defer the rent he hasn’t Paid the full rent in four months did that impact earnings in your view did is that why we’re seeing 104 million dollars in net earnings yeah, so i i think, um uh back in april, we had heard sort of some early discussions of you know he they Tesla was in talks um about about their rent, basically negotiating on costs during the coronavirus period. You know, while they’re trying to to manage costs and and be careful on that side um. I i think you know i’ll watch the story as it develops um. You know this certainly isn’t the first time that tesla’s been accused of of fudging, the numbers, um and past claims have have been proven. Uh, you know not to be false. Basically um i’ll say the one thing that you can look at is uh deliveries right, so so we know that deliveries beat on the quarter um by nearly 20 000 cars ahead of expectations. Around 90 000 cars um – and you know, during in their um investor report that they published tesla, showed this graph of um.

You know the deliveries in the first half of the year compared to other automakers, and you know i think you really can’t take away the point um that they’ve been delivering cars. While you know everyone else has has been much more impacted by the shutdowns we’re. Also seeing tesla gaining market share, their market share was about 26 years today, as of may uh, as opposed to 22 um last year. So i think i think you really can’t take those numbers away from the company um i mean they’re, a successful electric vehicle company and that’s, where the industry is going. Is there a growth story beyond cars at tesla? Yes, in fact, last night on the call i was excited that elon musk talked so much about fully autonomous driving um. You know maria we’ve been talking about this for years when everyone have come on on the past um. I think this is a major opportunity for tesla it’s. What gets us to our bull price target of 15 000 by 2024, and i think what was really interesting about last night’s call is that um musk has been more measured on these earnings calls. You can tell he’s sort of hedging some of his statements, he’s, saying things like in my opinion, um, but last night he seemed pretty confident that they were going to reach feature complete this year with the fully self driving platform. He said that he’d almost get from his house um to work fully autonomously.

This is, you know huge opportunity. It totally changes. The business model becomes a software as software as a service like business model with uh software as a service like margins um. This is a recurring revenue stream, as opposed to a one off sale right now that tesla gets with the vehicles. Um we’ve done some analysis to say that they could actually launch ride hailing this year with human drivers, even before full autonomy, um and – and this could be extremely profitable for tesla, because they basically have a cost advantage over uber and lyft it’s cheaper to operate, and They can vertically integrate finance and insurance um, so so we think that they can be. You know a really uh. You know a competitor to watch out for and um and and that’s even before they reach full autonomy. So we’re excited for that. Well, look. The company elon musk elon musk also said that the company’s latest gigafactory will be built in austin texas, five minutes from the airport and 15 minutes from downtown austin digging mcdowell. Clearly, wall street sees a real growth story in tesla, but he has not paid a full month’s rent for some of these showrooms in four months. When you look at these earnings, it would be a very different quarter if he paid his rent. It would be a couple of things: a lot of companies whose businesses were shut down, retailers, uh, negotiated on rent or didn’t pay.

Their rent remember back in april equinox, which is owned by related. The giant property company said we’re not paying our rent so related wants their tenants to pay rent, but that tenant gets gets a free pass. So this has really been across the board, but to your point in the wall street journal in the herd on the street column today points out that profits did not actually come from selling more automobiles. In the most recent quarter, revenue was actually down 4 percent and the six billion dollars in revenue that tesla reported included 428 million dollars from a regulatory credit sale to help peop. These manufacturers meet emissions mandates so in the numbers, if you’re thinking about jumping into this high flying stock, you’ve really got to break it down to what the road ahead looks like, but tesla does have firm ground to stand on in this way. My father and i both have purchased or leased new cars in the last six months, one from an american auto manufacturer, not a tesla and one from a foreign auto manufacturer, and they both broke down my dad’s twice in six months. Mine broke down after 10 days of ownership, so reliability is key and if tesla can deliver on that, he can business eat business from these other auto manufacturers. Are you telling me your beemer broke down after 10 days? Yes, oh my goodness, i did lease a bmw and it broke down after 10 days.

Actually, it was the compressor on the air conditioner broke in 100 degree heat, so i drove eight hours back to new york city on sunday with no air conditioning driving on the. I 95 unbelievable new jersey, turnpike with no air conditioner they’re taking care of it. They say maria bartarama tasha tasha final word here: the stock is up 280 percent year to date. You want to buy this stock right here, even though he’s not paying rent half the rent for the last four months. He says he’s going to pay up in august, but you know these landlords are getting ready to sue him. Tasha yeah. I i think you know this. This has never been a stock that was free of controversy, so you know i look forward to sort of seeing this story develop. Um but again we we think that there’s still a lot of room for this stock, especially if they reach full autonomy. This is a huge business opportunity and we think it’s really overlooked by the market.

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