Bringing you the latest poll results. And apple involved in a patent fight in china over the iphone 6. But the status of the company that holds the chinese pat nlt may actually surprise you. We have new details on that. And a rare interview with vice ceo shane smith. Well play that for you coming up. Starting with this story of elon musks tesla making the bid for elon musks solar city. Phil lebeau has the latest comments. Take a look at shares of tesla and what happened once they announced this deal yesterday. And whats happened today with shares of tesla once the second solar city bid was announced. There you see it right there. Down more than 10 . When you take a look at this deal, what a lot of people are still trying to wrap their heads around is why this has to happen. Why are there synergies there. Solar city, a company that is cash flow negative. Is not profitable. As the 2. 8 billion deal that elon musk says will have a lot of synergies built in to allow this company, tesla to become a Sustainable Energy company. Here is musk last night talking about why the deal works. You walk into the tesla store. And in one place you can yes, just id like a great Solar Solution with a battery and electric car. Done. Five minutes youre done. Completely seamless, painless, easy. And everything just works. It may work this his mind but in the eyes of the analysts it does not work. Colin langan saying what are the synergies. Buying solar city a neat idea but tesla may be asking too much. Bottom line is this. You have a lot of analysts still scratching their heads trying to figure out exactly why this deal makes sense, especially gimpb the financials of both companies. And by the way look at where the share price of solar city is trading. It is certainly not pricing in. I it is only trading about 22. 50. What happens if the blowback, especially from tesla investors is big enough that musk has to walk away . He could do it. There is not a walk away price built in here to my to my knowledge. But they could walk away from this deal. In fact a lot of people are wondering is elon musk floating out this proposal here in order to say, okay, whats the best we can do to help out solar city . At the same time he does believe that tesla ultimately an energy company. That is clear from this proposal and the way they have been moving with the giga factory etc. While it makes the sense in terms of a Business Plan down the road, near term investors are saying this is not why i bought tesla. The one thing the two companies have in common is elon musk. Exactly. Thanks phil. Tesla shares sliding lower through the day. Little more than 10 right now. Cnbc contribute are ser s contributors on their thoughts. Bob, what do you think about where tesla is taking its business. I think people are finally beginning to figure it out. They have drunk the elon musk koolaid, you havent heard my next big idea yet. They have drunk it long enough. And nothing is working. This is analogous to the titanic taking on water after hitting the iceberg, and then tying up to a freighter that is going down. And there are probably synergies in the pumping efforts and the rescue efforts. I say there may be synergies in the salvage efforts down the road. But this deal makes zero sense. It is going to further put a huge amount of financial pressure on tesla, it is already in financial trouble. And lets not forget, solar city has a cash drain of 6 for every dollar spent. I dont see how even the morgue stanl stanley. Electric cars and people love the tesla. Well see what he does with the model. I think this is too far taking on solar city which has enormous losses. I think hes treating these Companies Like hes theyre private companies, hes the sole owner and he can do what he wants to. And i think hes going to come. I agree with bob on that. And im not sure this deal be actually go through. And he says hes ab energy company. Being an Automobile Company is tough enough to. Take on the energy field is mission impossible. I was going to ask what do you think is the difference between him and john malone. Malone has combined and recombined his own companies for years. Well lets look at the earnings and see. People stayed with jeff bezos because they believed in the model. Basically hes saying the same to the investors. There are no profits here but you have to believe in the model. Hes got to prove that model out. So he needs to make that work. I think he should cut solar city free. Sell it to someone. Do something totally different and separate that. These companies are in two very different you can call them all energy but it is not an oil company. Whats he going to do next. I think he has to take another look at this deal. I know you have never been a fan of elon musk for many reasons but isnt it possible that we are dealing with a visionary here who is used to bending the rules to get to that vision. That is a longterm vision. Not something hes trying to do net the next couple of years here. I like elon musk a lot. I think he is a visionary, a brilliant guy. I just disapprove of the way hes running the business. Automobile companies finally, you can be visionary all you want and plan for a distant green fossil free future and everything. But in the next 20 years you have got to make money in the automobile business. And the fact is hes losing over 16,000 per car on his high end cars. I will make a bet on tv right now. The model 3 will not come out on time. It will not cost the 33 or 35,000. And tesla will not make money on the car. And a lot of the 300,000 orders will evaporate by the time we get there. I like elon musk. Terrific guy. I get along well with him. But the business absolutely is lousy. And people are finally starting to figure it out. Do you want to take that betd, bill . I dont know about coming out on time but i think tesla has a winner in the car. And i think that ought to focus on that and not get distracted with other things. The other things is a distraction. The as small thing. Not a big deal. It is losing a lot of money and he cant bail out that because he lost 2 nirds of its stock value. Sell it, do something with it. He lost more money today on his own holdings, on teslas holdings than hes paying for the company. So whats that say about solar city. I would say do Something Different with it and focus on tesla and stop dreaming quite so big and get back to basics in the automobile business. I see a case study coming at Harvard Business school on one like this. Bill george, thank you. Bob lutz. Always good to see you. Thanks a lot. Closing Bell Churchill today. By the way happy brexit eve everybody. Joining us today are some awesome people. Ken pete, this market, were down 21 on the dow. It is in a Holding Pattern until tomorrow. It is going in a Holding Pattern until friday. I agree. Tomorrow as this vote goes on there is no exit polls so you are going get speculation. But were going to start to get first word maybe around 5 00 or 5 30 and then they start to report by 9 00 or 10 00 you will have more of a feel. By midnight we should really know and by 2 00 in the morning on friday morning our time the results should be out and then that is when i think it is going to get kind of exciting. I think the market has been held here. Weve been unable to pierce 2100. The market is still unsure which way they are going. I think if they vote to remain, then i think you see a swift move up through 2100 and test the highs and then the Global Economy focus again and etc. If it goes the other way, i think we go very quick break right through 20 50 and potentially test 20 which is a 200 by a moving arch. Away from the british vote. Every oil had a lot do with this market today. Crude headed lower and so too did stocks. And so too did the 10 years and the vix jumped. So what do you think is going on there . Well i think it is hard for me to tie everything you asked together. But i do think on the treasury side we saw yields move down and prices move up a bit because the auction ended at 1 00 eastern. So the concession game is over. With respect to oil, it is probably the tail wagging the dog is the Stock Traders are a little less aggressive with brexit. Really things are idled a bit. And with regard to the other markets and the outcome of brexit . I cant tell you what the vote is going to be. But if they choose to remain, i really do think that the Market Trends that have been quote unquote been pricing that in, the strong pound for example, i really think we go back to the markets where they were 6, 7 weeks ago. I think they have priced that in plus some. I think all the money to be made is if they decide to leave. And that money everybody is thinking is going to be in the uk. Im sure those markets will be active but i have a feeling the european markets are going to be more active. Think about everything mario draghi and brussels have done to push rates where they are in some of those weakers economies. That is control. Controlling outcomes. Putting your thumb on the scale. Should they decide to leave . All of that control starteds to get a few question marks. And those are big question marks. That is where the big volatility and statistically nobody sees that particular outcome. I do think one week from today when we look back, that the biggest thing to Pay Attention to in my opinion for all of the outcomes here are the Interest Rates and the southern part, whether it is spain, whether it is even france or italy and how they benchmark to the german yield curve. Ken, you have famously suggested that we could see the dow at 11,000 and change by the end of the year. Is this the kind of catalyst that you would anticipate if in fact they do vote to leave the European Union . Well, you know, in the names words of roblt duval, i love the smell of brexit in the morning. This could primt a reevaluation of what the stock market should be at. Yesterday janet yellen came out and basically told us that the uncertainty is on the negative side. Were not going to raise Interest Rates but maybe we will. We just want to keep you confident for the time being. But were worried about growth. Economists are telling us things are not as good as we would like. And plus weve got china and all these things. I dont know why the market valuations that we have near alltime highs right now are there. And i do agree with the idea that the english or the british are not going to leave the euros your zone. I think the fear factor, people will vote their wallets i believe. And they are being told you are going to lose job, pound is going to collapse. I think they have been scared sufficiently they will probably stay. But if if market goes up because of that, is that really why the market should test all time highs because the english where staying in the euro zone . I dont know when the bear market comes. I think we are long overdue. The fundamentals i see dont warrant the valuations and when the bear market does come i think the dow will go down 30 or so and that will put us around 11,500. You think that is going to happen before the end of 2016 though. Isnt that what i understood . That this 11,000 is coming before the end of the year is this. I cant call that. Because right now i think the market is being helped up by confidence in the Central Banks ability to solve every problem that can come up. So if that confidence is shaken, then i think investors will look. Brexit may cause that confidence to be shaken because of what rick said. If all of a sudden draghi cant solve all of the problems because england has left, now what does the central bank do . And then we have confidence, disruption. And that can cause the market to fall. If england doesnt leave and they stay, then there is there little bit of relief which is what i say. But then investors focus again on the Global Economy and pressure once again. As much as i hear your story im not a believer that i think were going to lose 30 of market value this year at all. Well see. Thank you gentlemen. Finish each others sentences now. Weve come to that now. 45 minutes to go here and markets have turned negative. The dow is down 19. The s p barely lower and the nasdaq is down 2. Coming up new revelations about the chinese Smart Phone Company behind a patent dispute threatening to keep apples iphone 6 and 6 plus devices off store shelves in china. Very interesting developments there. Also ahead a former British Ambassador to the u. S. Makes the case to stay in the European Union and how a vote to leave could effect the country. Youre watching cnbc first in business worldwide. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing on their auto insurance. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. 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Mcdonalds has been stalling for a while but the rest of the group, wendys going down. Dominos the last quarter hurt very badly. The big fast food and burger wars. The wars may be over. There may be no winners. And secondly the fast food giant has reportedly received more than 6 bids for its chinese franchise rites it recently put up for sale. I think whats going on in the business is the migration of people to the fast casual. The better burgers. And these boutique burger chains weve been talking a about lately. I love that line. In the burger wars nobody ends up winning. If the category turns everybody on for a while and then leaves them ready for the next thing. There have been so many burger restaurants. Weve talked about this opening. And if there is slowing momentum now, what is the next thing . Arab rainbow bagels or something. Mcdonalds and burger king and everybody serving breakfast. We make burgers at home. You know that is an option too sometimes. The counten to the Eu Referendum vote is on in the uk. Joining us now Nigel Sheinwald with our own wilfred frost. Thanks very much. Always a former British Ambassador to the eu. So great pirn to discuss this topic with. You are on the remain side. You want britain to vote to stay. Are you feeling kcht . Im feeling anxious because i think it feels extremely close. But ive got to believe and optimist that our arguments will prevail with the if public. And i think they will but im not sure of the majority and im obviously concerned that we havent forged a greater margin. The has been the better argument in terms of resonating is on the economic side. This was never meant to be close when David Cameron announced the referendum. Has he unleashed all sorts of things in the british psyche that he cant control . I think on all accounts the fact is were better off win. Very clear britains place in the world would be weaker and more isolated if we left. I think the other sides arguments on that just dont hold water and on the politics and on solvsovereignty. The reality is britain has the best of both worlds in europe. Of course were cooperating in certain area asks that means we pool power in those clearly defined areas but our parliament remains sovereign, remains powerful an all the key issues of our national life. Budget, taxes, health and education. The things that really matter to people, brussels barely touches. And i think that is one of the problems with the debate, the balance in the position t detail just hasnt come through. That is the truth. You have been in these kind of war room, contingency rooms before ahead of big votes or big Foreign Policy moments. What kind of plans would be in place in terms of controlling the fallout . Well i think it is very difficult this time. Because the government has said it doesnt want any formal Contingency Planning to be done and im sure that british officials would have obeyed that. But people will be thinking ahead. They will be worried that there is no easy playbook here. No countrys every left the European Union. The only precedent is greenland leaving in the 1980s and that took five years too sort out. So people will be worried about the period of uncertainty. In the European Union treaty, in our rule book, there is a process by which a country can leave. And you are given two years from that. And in a sense you have two parallel negotiations which could be end to end. One is the disentangle the uk from the eu if we decide to. And the second is to try and work out what our next relationship would be with our former partners. And we havent really had a debate about that and that is going to be very difficult for a British Government which almost certainly will be going through a period of high turbulence and disintegration and the United Kingdom which will be under great pressure to stay uni