Tensions on college campuses. Last night, officials at nyu asked the nypd to remove pr protesters from the campus. The palestinian protests had not been authorized and asked police to enforce trespassing violations. Students and faculty among those arrested. And then at columbia university, classes for the semester would be hybrid and remote when possible as billionaire donors are rethink going support of columbia. In a statement, patriots owner robert kraft, is not comfortable supporting the university until corrective action is taken. When asked if he would pause support, leon cooperman said i cannot say that yet. He doesnt hold the administration possible for the demonstrations. He said the kids are out of control. Cooperman will join us live this morning at 8 00 a. M. To talk about the protests and donations and other plans as well as views, of course, of the market. Back to corporate news. We are watching novartis. Reporting better than expected First Quarter results and raised full year guidance. Strong growth in the sales of the entresto and the other treatments. The ceo of novartis will be on money movers which airs at 11 00 a. M. On cnbc. We are watching shares of apple. Bloomberg reporting that iphone sales in china fell 19 in the march quarter. The worst performance in china since covid struck back in 2020. The report said that apple fell to third place in that market behind local brands of vivo and huawei. Business has been tougher for apple in china after beijing restricted state agencies from using apple in a retaliatory move. Every social Media Company from the United States is banned in china and has been for ten years. When is tiktok, if it happens, go away . I hear it will never go away. It depends how you believe it well work. If you read the bill, it is possible it would sit on your phone and never been upgraded or updated. I think it would devolve in threetofive months. That quick . Instead of taking it off the phone, they cant update it. At some point people will go to other platforms. It is listening to you and doesnt know if it likes you or not . I dont believe these things are happening. Why . To the extent that tiktok is a National Security threat, it is only a threat prospectively. I do not believe that they are actually using the data in some kind of nefarious way today. They have the not shown us any evidence. They said they will not cooperate with the Chinese Government. There is not a company. Just ask jack ma. It is only a National Security threat if you think they are trying to participate there is no reason to believe our college kids are influence in some nefarious way. They are all acting well. It is not just tiktok. It may be a function of tiktok, but not because tiktok built the algorithm to do this. There are people who argue the other side of that. None of whom have shown any evidence whatsoever that it is actually the case. We have a guest who has the stuff on this. He may come on. All the tents look like they were bought by the same people. Who bought the tents . Can we find out who bought the tents . Lets talk about boeing. It expects a increase in production because supplier shortages of the few key parts. They have been trying to boost the output after quality problems and suspending deliveries for two years. Boeing was producing five dreamliners per month as of late last year and said it samaimed get up to ten per month next year. We will have more from boeing tomorrow before the opening bell when the Company Reports the quarterly numbers. We will talk about those and the state of the company. Former President Trump set to receive 36 million shares of trump media today as long as the stock price remains above 35. 50 share price. The receive of shares is based on the benchmark within the 30day trading period. It would bring the stake in the company for trump at 4 billion. The question is when he will access that 4 billion. As of now, he would have to wait until september. In the meantime, United Health saying private information on americans may have been come promised in the february data attack. This comes as they are dealing with the repercussions from the attack. The company paid a ran zosom ine attack to protect patient data. The hackers breached the Company Systems a week before they were detected gaining access through compromised credentials without authentication. Checks that were enabled. Wired reported that a Hacking Group received a 22 million bitcoin payment on march first. United health has deliclined to comment on that report. And ftc is filing a suit over the tapestry and capri deal. The ftc said the combined company would harm shoppers and employees as the Companies Currently compete on everything from clothing and eye wear to shoes. In a statement, tapestry said the federal agency misunderstood the marketplace and the way that consumers shop. Pepsi out with Quarterly Earnings of the beat by 9 cents with the adjusted earnings. He may be gone, partly because of his blockbuster appearances on squawk box. I still get the bag. Do you get the baggi . I did get the bag yesterday. I dont know. The big bag. It shifts around. They were still delivering to my old address before. The young, youthful ads for bubbly. Bubbly will replace soda. I tried it. They sent me one. Bubbly is a pepsi product. Do you like it . I like it. Im looking for a case. What flavor . I had a weird fruity pine pineapple. Five or ten calories. It tasted just like soda. No sugar. No calories. I drink carbonated water with no calories. Thats fine. Bubbly has had no calories. One had five and the other had ten in it. A 17ounce bottle. I can handle five or ten. I cant handle 180. You have to get it shipped. No. Segue. Story about u. P. S. Here. You have to have it shipped. Im trying. U. P. S. With results this morning. Delivery service earning 1. 4a share for the First Quarter. Compares to 1. 29. Revenue is below the consensus, joe. Past 6 08. Coming up, shares of tesla trading at the 15month low ahead of the quarterly results. We will tell you what to expect from the automaker for the quarter. A programming note, on thursday, longtime tesla investor, ron baron will talk about the results and the slide in the stock. Squawk box will be right back. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. Giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. 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In summary, you think most of what were seeing is in the price already as far as discounted. You think this is an attractive level to take a position . Thanks for having me. Thats exactly right. The stakes could not be higher heading into the afternoons earnings release. As you mentioned, the stock down 40 year to date after which shares more than doubled. They missed each of the last two quarters on the bottom line. Theres a lot of pressure, much more than normal, on tesla heading into the earnings release. We think the company, no question, they face the fair share of challenges here. The ev market is oversaturated. The rproduction ramp up of the cyber truck has been slow. You had a recall recently. You had cuts and more price cuts. There is unscertainty with the lower priced mass ev. These challenges are well understood by investors at these levels. We like the stocks risk reward here. Just the classic fundamental fundamentals you watch like sales is an out l outlier. What about the conjecture about elon musk . Hes in demon mode . He is now a wartime ceo. That tweet. Now a fundamental shift in the strategy. A lowcost vehicle may be on the back burner in favor of who knows how robotaxis come about . Are those bigger discounts . There is a lot of news flow over the next gen ev and robotaxis. Tesla has a more immediate problem with the cyber truck. Reportedly they have a reservation count of up to 2 million customers waiting for the cyber truck. We think it is more about execution and working out the issues with the cyber truck which is not unusual to have production issues with the new model. We are looking at production numbers of the cyber sttruck an we are looking at 2025 event potentially. We will hear more this summer with the a. I. Event in august. Estimates have come down significantly for the company. We think the bar has really been lowered significantly. You know, we like the shares at these levels. The ev problems in general for the industry as a back drop, too. It is not like youre unaware of those. You point out strong sales on the competitors with tesla. You acknowledge the overall industry is tough especially with price cuts in china and some of those makers. It is a very difficult business right now. You have a strong buy on tesla . We have a buy on tesla. 220 price target. We are updating that following the release. We have been bearish on many of the pure play ev manufacturers for a long time. Strong sell on lucid. Sell on rivian. We had one on fisker before dropping that coverage. Tesla has more going for it than those companies. Investment grade balance sheet. Sitting on 29 billion of cash. Industry leading margins. Still generating a significant amount of Free Cash Flow after the price cuts. We think they have an Attractive Development Pipeline looking out the next few years. The other thing is other auto manufacturers are dialing back ev investment and growth laplan. We think that means less c competition for tesla in the long term. Many governments have put ev mandates in place. The Market Opportunity is there for the company longer term. We view this as a Good Opportunity and thaentry point the stock. S an analyst said there is no doubt the stock will undergo a painful transition in ownership base as investors that used to be all about ev volume and cost advantage and everything elses, they give up. Those will be gone. It will have to have a new share owner base that is buying tesla for a different reason. That could create nearterm volatility in the stock. Do you think that will happen . Do they need to attract new investors after the old ones throw in the towel . Really, what they need to do is prove they are worthy of the valuation premium that they receive in the market relative to other automakers. That means proving they are more of a Technology Company than auto manufacturer. This is a Company Trading at eighttoten times of other manufacturers. They invest billions and billions of dollars in a. I. And in developing the new battery technologies. What they need to show is breakthrough investments they have been making internally will have a return in terms of Earnings Growth over the long term for investors. You know, musk really needs to layout that vision. The stock has hit a speed bump. The story has hit a speed bum hebump here. If you were investing in the company for the robotaxi, when does that become a real product . When do you see the Company Making money in that business . When would i get in a robotaxi . The opportunity is the sale of that software. Full selfdriving auto pilot. Each update continues to improve. Where does it get to the point where it is level four or level five technology where it is a true selfdriving car . They have been promising it for years and it is still years away. Thats the reality. You know, when that software has real value in the marketplace, thats really going to drive the significant longterm margin opportunity for the company. They are not an auto manufacturer, but software seller. Im waiting for the flying robotaxi. Push that out farther. That may be my children. Garrett, thank you. Ge aerospace just coming out with numbers. Lephil lebeau has the numbers. Reporter becky, this is the First Quarter. The final quarter where it will be a combination of aerospace and the split which happened on april 2nd. Ge reporting the beat. 82 cents a share. The street expecting 65 cents a share. The First Quarter orders up 34 for ge aerospace. As you look at the strength of what they are seeing in demand and execution, the company is raising guidance for 2024 in terms of profit and Free Cash Flow. Profit now expected to be 6. 2 to 6. 6 billion. Eps for the full year at 380 and 405 a share. This is the beat on ge reporting82 cents a share for the First Quarter. The street expecting 65 cents a share. Guys, back to you. Phil, thank you. Checking out that stock right now we took the stock away. Okay. It was up 29 cents right now. We will see phil in a few moments when gm reports. We have two rare interviews in the world of Artificial Intelligence. Up next, exclusive interview with the ceo of anthropic on the a. I. Model which may have overtaken chatgpt as the top large language model in the world and the partnership with amazon and google. Frenimies. And ill have an interview with the ceo of perplexity. A lot of people looking at that as a competitor to google. Squawk box is coming right back. Harry david makes mothers day easy. Share a gift, made with love, with the mom in your life. Choose from hundreds of stunning baskets and towers. Its the perfect way to say thank you for everything. Harry david. Life is a gift. Share more. Innovation in Health Care Means nothing if no one can afford it. At evernorth, were helping to unlock barriers. Using our 35 plus years of pharmacy benefits Management Experience to save businesses billions while boosting medication adherence. Helping Plan Sponsors and their members be at their best. Thats wonder made possible. Evernorth health services. Welcome back to squawk box. To the tech race in Artificial Intelligence. We have an interview with anthropic founder dario amodei. Maker of cloud 3 out in a. I. World. Anthropics partners include amazon and google. Unique combination. Both of which are also competitors with anthropic. I asked amodei about the frenemy relationship. Anthropic is a company that focuses on producing a. I. We dont focus on producing chips or provisions cloud or data centers to serve the models. These other companies that were partners with provide something that is complementary to us. I also asked about the argument that big tech is trying to hoover up and control the technology with the partnerships which have been made rather than mergers. The mere fact that were partnering with two companies to put our models on the cloud and various other aspects of the partnership shows that were not beholden to one company. Were an independent after Neither Company with board seats at anthropic. We will have more in the 8 00 a. M. Hour. He has become in the same league as sam altman at google and baidu. These Companies Keep leap frogging each other. This is the powerful model by a clear distance and the most interesting thing that happened last week is meta, which was counted out of the game, just came out with llama 3 which is the open source model. These are closed source models. Llama 3 is pretty close. The llama 3 thing. I thought it was interesting what he said at the end of the second piece to you was a slam at openai. Nobody has board seats. Were not controlled or owned by any of this. It may be a reference to that, but a broader thing going on and we talk about it. The ftc and we will show you more later, lina khan is investigating all of these partnerships because she believes the partnerships look a lot more like a merger than an actual partnership. Fair point. Were not the same. He is trying to say dont put us in it the same category as these other companies. Thats the interesting part. The partnerships that do look like more than partnerships. You can see it. Microsoft has done it which is with openai and with the acquisition, although they dont call it that, of inflection, where they took the top people and brought them on board and made a deal which looks like a merger. Then they have a separate deal with this company in france. What microsoft has done is very interesting to see what regulators will think of that on the relative basis. I see why microsoft does it. No one is going to say you cant make the acquisition. I think they will not say you cant do what you are doing because this is that. This is effect tively that. This is stealth. We see it. In the meantime, gm reporting the results. I want to bring phil lebeau in with the numbers. Phil. Reporter andrew, a beat on the top and bottom line by gm. We will talk about the guidance in a bit. The numbers. Company reporting 2. 62 per share profit. The street expecting 2 2. 15. The highest estimate on the street was 2. 53. Gm earning 2. 62. Revenue coming in at 43 billion. The numbers within the numbers in the First Quarter q1 margin of 9 against 9. 5 last year. In north america, gm made