And now, with the production schedule, ceo elon musk is responding to the naysayers and saying on the conference call, what i find ironic for the naysayers they transition from saying it is impossible to saying it is obvious. I say, wait a second is it obvious or impossible, because it cant be both. Who is right, chanos or musk, pete . Well, in the short term or the longer teerm term, it is chanos, and the reason i is a they is because they have had nothing but production issues for quite some time now, and the delays and the issues and now talking about ramping up, and going from 50,000 to 90,000, and supposedly getting 80,000 to 90,000 this year, and if they can get that number, it is impressi impressive. Phil lebeau has been talking about i, and it is ing a graggro get to that level, and the 500,000 level in two years from now, and it is amazing, scott. We know great drives, and people are going after the model 3, and everybody put the 1,000 down, and maybe over 400,000 now, but they have to execute on the manufacturing, and so far, that is something that is definitely the laggard for tesla. And joe, they had a production dead deadline of july 1st of 2017 for the model 3 and they wont be able to meet, that and they are admitting that at this point, and what is the deal here, and who is going to be right in the end, and is there a credibility issue with mr. Musk . Le with n determi well, in determining who is going to be right, you have to look at the stock, and technically, it is so highly volatile, and josh brown talked about the possibility of there being a double top, and 282 top last july, and april goes up to 262 and fails and the fundamentals and credibility issue, i am not shure. And jeffrey gunlock did a fe nam nol job to identify, they made batteries, they would be okay, but it is batteries going into the cars, and accelerating the production, and are there is the free cash flow, because it is going to be burning like crazy, and now reintroducing the question that you asked us of aus month ago, do they need to do a caple tall raise and the answer to that is probably yes. And jim cramer had this to say about tesla, and elon musk this morning. He is getting a wway with th financial murder. Okay. I have to tell you that she is boast ing fing for the seemingl impossible. All right. Our own phil lebeau on the tesla story are, and phil, earnings, and executive departures, and you have heard what chanos had to say to us yesterday at the sohn conference, and what are you making of it . Does musk have a cred problem . Cramer say hs he is a financial and he is getting away with financial murder, and throwing whatever he wants out, and hoping that the street believes it. And the interesting part is that the street does not buy this 500,000 target. And i have looked at the analysts of the 06 or 07 of them them, and the estimate for 2018 sales, and it ranges from 129,000 on the low end to the most aggressive being 355,000, and nobody even think theys who even thinks they are going to bic 400,000 let alone 500,000. Why does he say it . It is something that he has to say it to grease the tracks for the Capital Raise. And he talked and it on the conference call, a debt, equity or some combination, the but they need the Capital Raise at some point to, pand the production and not only in freemont, but po ten sally another additional plant in freemont or china or europe, and they are not getting into the specifics at this point, but they need to grease the tracks, and what is interesting is that when you talk to the analysts or looking at the research notes, almost all of them say the same thi thing. That is that nobody thinks they will get to the 500,000, but Everybody Knows they need a Capital Raise, and this is setting the stage to ask for it. And forbes out with a column there today, and the gentleman said that teslas elon musk is ignorant of the basic facts of car production. [ laughter ] oh, well, i dont believe he is ig nornt, but they are too aggressive on the volume. Everybody agrees with that, and you cant get to the levels they are talk about, but however, when you talk to the people who have driven the model s or x, and yes, the x had production problems as they were developing it, but if you talk to the people who have driven the vehicles, and the folks at Consumer Reports and everybody in the auto industry, they say the same thing, it is a pretty darn good car or pretty darn good suv in the case of the model x. So once they build it, they are finding that the market is will there, and the question is can they build them as quickly as they had set out to do. And doc, people are not buying the stock because of the great consumer experience, but they are doing it to fill the Consumer Needs of make ing the car. Everybody likes to ride in the car. And everybody likes to ride in it, and likes to drive it, own, it, sense of pride to participate in the new wave. But judge, you are exactly right, there is no belief that musk can make it happen. The giga factory, plural, that you will have to put up to manufacturer that many cars is going to be an act of desperation when he said by 2018, and moving up the target by two years and i said, that he has pushed himself all of the way out to the edge of the cliff with that one, because as phil said, the highest estimate is 325,000 and not even 400,000, u but he is saying that 500,000 is a possibility, but it is not. And i was talking to John Thompson at villas factory. And he said they stole a factory that toyota left for dead, and the next factory is going to be in the billions, and this is true. He has to spend like crazy, and raise cash, and that means giga factories all over the country, and that is quite costly, and dlutive delutetive. Yes, they got freemont for a song. They were notch ngnat to get it because they came in right after the collapse of the auto industry, and gm and toyota were unloading it. It is a huge advantage for them, a and they wont have the advantage coming around on the next plant or the expansion of freemont if that is where they go. Jim . Well, one is the operational execution of getting 500,000, and whether or not he gets there, and frankly on that one, i would bet with elon musk on thx because this, because if you are looking at spacex, he has done it to launch a rocket out of nowhere, and so he can do this, but the fact is with chanos, it is the valuation of the stock. And elon musk has to be looking at the stock and saying, if i want to raise capital, the best place is to water down the stock, and this is why i am with chanos. What does it say about tesla wen you have a stock in need of capital and General Motors and ford stuck in neutral launching into the business, and why are they not dialing up tesla. Why are gm and ford not dialing in tesla . Yes, to solidify the entry into the business and the capacity problems and you want to grow the production of the cars, and with tesla, and do a partnership with gm and ford . No, that ist not in the dna of gm and ford, and they do the technology and the expansion internally. And look at how both of them were resistant to google in forms of, in terms of the simple collaboration on the test vehicle, and that is test vehicles and let alone collaborating on the broader scale. They wont do it. I would be stunned if you ever see an established auto maker reaching out to elon musk saying we have capacity, and come over to us. I would be stunned if that happened. Phil lebeau, coming over from chicago, and you will be scrutinizing those production targets, and now, scrutinizing the targets, David Einhorn making the case saying that the financial financials are healthy and thriving and do our experts agree . We have talked many times about the look at peak auto and whether or not it is here or not, and why in a strong auto market gm and ford cant get out of their own way . Well, peak auto is not what is experiencing here, and pent up demand, and the average age is high, and you should not be at peak auto here in the u. S. , but the other thing to Pay Attention to is that gm is a global company, and so if you are looking at europe, they turned around the opal division, and that is on the way to being profitable, and they are on of the Car Manufacturers winning in china. So a lot more than the u. S. Auto sales that are to look over. And one of the core parts of the thesis when einhorn was on the phone call, high margins. Yes sh, the margins are pick up in china, and the buick name plate is doing well in china, and also, a stock that trades six times the earnings with a 5 dividend deal, and a lot of downside protection, but the only thing that i dont like about the stock in the short term is the sentiment is overwhelmingly negative. We have been talking about gm for months, but it is stuck right here at this level. And why is the stock so n negative . Well, it is not going in iwhere, and you are not seeing it grow with the terms of the stock sale, and the opportunities for growth, and the lone opportunity looking forward is the emerging markets, and the emerging markets with a difficult time over the last 6 to 12 months, and going back to the question that i asked phil about tesla, why wouldnt gm and ford pick up the phone, because the reality is that they dont believe in the future being selling the electric. Well, i think that if anybody did a partnership with them at all, but i understand that they wont do it, and the only ones who would do it is a bmw or the mercedes might entertain the idea of a tesla in some sort of partnership in that regard, but back to gm for a second, because the fact that the emerging markets and everybody is so negative that is why you can be positive on gm. Remember, gm had every hedge fund on the planet piling in at 36 and expecting it to fly high ir and not happening, and now 30. So there is, jim i many, to your point, a put is in place, and a multiple, and 5 dividend yield, and the fact that you have emerging markets right there, and china could be something, and suvs, they have got them. Pickup trucks, they have got them, and gm is in a great spot. And i will disagree on one thing. Well, you can disagree on more. Well, no, the opportunity play, because the sales in the u. S. Are beginning to decline. No, they are not, and february and march were not good, but april above the 17 million, and so march and f february are much more like the blip, and you have several months of the 7 million times sar and that is a great number. It is about the sentiment. And everybody loved it at 36 or 37, but now at 38, nobody loves it. So i call it the upside. And now, here is what else you are going to love on the Halftime Report coming up. Thousands are evacuating as a wiltd fire is raging in oil canadian country. We will have the latest from alberta. And now, find out if anybody is buying the dip in the runway. And why is our panel picking with sarepta . It is all coming up on the Halftime Report. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. Back on the Halftime Report report and the oil is on the move as a wildfire rages through North Eastern alberta in the heart of the canada oil sand. Deidre is on the phone with the latest there on the wildfires. Deidre . Yes, and put another way, up in north dakota of canada, and all roads in are shutdown, and 8le 0,000 people have been evacuated and 80,000, and the latest development is that a state of emergency has been declared and Prime MinisterJustin Trudeau says they will match donations to the American Red Cross similar pledge from the alberta government yesterday. And for the oil sand operations, they are not directly affected, but the shutting off operations altogether affecting the operations. A and the market is estimating over 800,000 barrels are offline and you are seeing that reflected in crude today. We know you will continue to monitor it. Yes, and thank you, joe. Incredible pictures here. Yes, is it is a serious situation, and it does not change in terms of the market consequence, because the price of oil is up today, and the right thing the do, and energy is a great trade for the last three months burkt is time to pear ba pare back expectations, and go to the Consumer Discretionary allocations. And joe said the other day that the commodity run and the oil trade is over . Well, i am not sure it is over, but not the suggest that it is not a day here or there, but he is saying that it is ending. I am not sure that it is ended or not, but it has made the trade difficult, and i have taken off the positions, and the only thing that i have on is Conoco Philip s wis with the ex schoos sure and a cup cole of names with the pipeline. And that is why it is difficult to be short, because these type of events, and you see what it is going to do to oil, and the xle is way off, and well above the 200 average. And without the wile fire impa impact, you wonder where it is trading for oil . And i am not timing the right time to get in or out, but i am saying that the risk to reward right now in staling in a lot of the high beta names that kevin ta talked about with us last week that have been rallying in the energy space, i dont want to make that trade. I oknow that the technology has gotten slammed and names out there like a microsoft, like ackimide. And weatherford fell off of a cliff today. The cap x is going to be cut massive isly, and the number of momentum is immense and that one of them in my opinion rolled up into somebody else. We have talked about with baker hughes and halliburton pulling apart and not doing that dial, so we will see the Oil Field Service names getting together, and this going to be bought, and i dont think that the stock is going to be higher however, because they have the debt, and the problem wills, and that stock despite that, you look at the srp which is the price index for spdr which is up on the plc. And you have a trade . Well, im with joe. Oil is way ahead of itself, and part of the reason it is up today, is because of the libya fighting there is curtailing the supply, and iran is ramping up rap rapidly, and frankly, the situation with the isis is much more favorable for the west, and that means the Iraqi Oil Production which is already high is picking up. And now, from bit bit to dicks sporting goods, we have the trade. The athletic socks are selling off. And legendary invester will b be join voing us from the sohn conference. This clean was like, pow it added this other level of clean to it. It just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. [ thats a good thing, eligible for medicare . But it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. But are you gonna bring fiup that stock again . Well you need to think about selling some of it. My dad gave me those shares, you know. He ran that company. I get it. But you know i think you own too much. Gotta manage your risk. And youve gotta switch to decaf. An honest opinion, even if you disagree. With 13,000 financial advisors, its how edward jones makes sense of investing. Time for trader blitz on the Halftime Report. Four stocks making news, l brand s . Well, it is weak, and only up plus 11 , and the expectation was plus 5. That is perhaps having the effect of the easter week. So up plus 1 . And this is a stock that i would look at buying, and we are often critical of the analysts, but be complimentary of a nice buy there with that one with fit bit. Well, it did not meet my expectation, so i dropped out and now i am back in. And now, beating stocks up 8 , qorvo. Is that a supplier . Yes, and it is not going to break down how much goes to any one supplier such as apple, and they have a high presence in samsung and some of the chinese manufactu manufacturers, as well. One, the two take aways, the business is in china is doing well sh, and maybe some thought that the iphone se is getting a pickup. And what about this one dicks . Well, it is a downgrade, because looking at morgan stanley, what they have isolated on and this is a 1 to 3year call, and the Square Footage continues to the rise, and yet as they continue to expand, and yet looking at the store sales, flat or negative, and point out a couple of names, walmart, bed, bath beyond, and dicks is on that list, and they are take out the online brand, and just as brick and mortar not so great, and that is why there is a 39 target on it. We will talk to to a manager on a wild ride with the health care stock. Find out why he is keeping is a republican ta as a top fund