After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported for its fiscal second-quarter earnings.Retailread more
The sexy image that once boosted Victoria's Secret has been haunting L Brands more recently, as women are steering clear of the brand's hot pink, lacy and bejeweled lingerie.Retailread more
See which stocks are posting big moves after the bell.Market Insiderread more
"I'd love to say that the optimistic universe is most likely to prevail, but the talking heads talk endlessly about how a recession is inevitable," CNBC's Jim Cramer says.Mad Money with Jim Cramerread more
Read the fine print in your Apple Card contract — one clause means you give up your right to be heard in court.Technologyread more
Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battleThe Fedread more
President Donald Trump signed a memorandum on Wednesday to automatically cancel the student loan debt of disabled veterans. More than 25,000 service members will have their...Personal Financeread more
Jim Nussle, a former director of the Office of Management and Budget, told CNBC on Wednesday that a strong U.S. consumer is the only thing keeping the country from recession.Marketsread more
In response to questions about challenges ahead for Tesla in 2019, Kirkhorn said:
"We did make pricing adjustments to our products in Q1 which puts pressure on margins, so that's part of what we will see in Q2. The teams are all working extremely hard and making terrific progress on improving the cost efficiency of the business without sacrificing growth. That, in combination with the efficiencies from 'unwinding the wave,' is where we feel we'll be comfortable returning to a place of profitability in Q3, once all those pieces are in place."
At the same time, Tesla's need for capital is growing. CEO Elon Musk and President of Automotive Jerome Guillen talked up its progress and plans to improve logistics, build a new battery and car plant in Shanghai, and start production of a crossover SUV, the Model Y, later this year. Guillen noted that Tesla won't begin production of its all-electric Semi until next year.
A senior technology analyst at Sanford C. Bernstein, Toni Sacconaghi, asked Musk whether Tesla plans to raise capital to support these and other ambitions.
"Given that you used up about $2 billion of cash in a quarter, aren't you potentially trying to go through a very thin space while trying to grow quickly, and be self-funding, which quite frankly, may be unrealistic? Why not raise capital? Why do you view that as something Tesla shouldn't or wouldn't do?"
Musk replied, "I don't think raising capital should be a substitute for making the company operate more effectively." He added that he does not believe capital has been a constraint on Tesla's growth so far, before finally acknowledging there may be merit to the idea.
"Tesla today is a far more efficiently operating organization than it was a year ago, we have made dramatic improvements across the board ,and so I think there is merit to the idea of raising capital at this point," Musk said.
Morgan Stanley's Adam Jonas asked Musk how important it is for Tesla to remain a publicly traded company, given all the alternative sources of capital it could tap into beyond the public markets?
Musk said, "It may surprise you, but I would prefer we were private. Unfortunately I think that ship has sailed."
Musk added, "Being public does feel like the price of the stock is being set in kind of a manic depressive way....It is a bit of a distraction at times, but I'm not sure what to do about it."
Musk had to pay a $20 million fine to the SEC last year after he spontaneously tweeted that he was considering taking Tesla private for $420 a share. Shares in Tesla shot up after that tweet, and the financial regulators halted trading. Musk and the SEC are still locked in negotiations over how the Tesla CEO can use social media to disseminate potentially material business information about Tesla.