news necessarily to the average investor. >> and a little bit of a pickup in the vix, but again, same with yields, steady, nothing to worry about. >> not yet certainly at these levels there's a little bit of an increase in correlations among different stocks that sometimes bumps the vix higher i don't think any of the signals say that we have to be raising alarms just yet. >> that does it for us today on "closing bell," thanks so much for watching "fast money" starts right now. i'm melissa lee, and this is "fast money. tonight's trader line, guy adami, and founder of new street advisers tonight on fast we're all over the after hours action shares of tesla and nxpi those stocks on the move on earnings are breaking down their quarters straight ahead. plus, time is ticking on a correction that's the warning from morgan stanley's mike wilson. why he's calling for a big pullback. and the big rumor that sent amazon shares rallies today. we'll take a trip to the options pits to find out what's with really going on. shares on the move after the beat on the top and the bottom

lines. phil lebeau's got all the details. >> this was a substantial beat on the bottom line with tesla earnings $0.93 a share versus the estimate on the street of earning $0.79 a share. top line coming in better than expected at 10.39 billion versus the estimate of 10.29 billion. let's look at the numbers behind the numbers. in other words, as you look at the first quarter, what are some of the key metrics people will be focused on. automotive gross marge getting a lot of attention coming in at 26.5%, nearly 100 basis points better than expected free cash flow, 293 million, capex and this has to do with the gigafactorys being built in germany and texas coming in at $1.35 billion. the number that everybody wanted but they didn't get, at least in the earnings report, maybe that will change during the conference calm, del, deliveries year, no new guidance from tesla. they said they will increase annually by 50%, some years a little more than 50%, some years a little less. the street estimate is for

799,000 vehicles to be delivered this year. as you take a look at tesla shares year-to-date, the conference call starts 29 minutes from now we'll see if elon musk has anything to say in terms of the guidance as well as some of the other key topics people will be focused on certainly the gigafactorys in texas and berlin, they're scheduled to be open, melissa, later this year, that was in the earnings report. did they give us any more color during the conference call we'll be on it we'll have more in the back half of the show. >> thanks, phil lebeau we did see tesla shares down about 3% initially now down about 2%. k guy, what'd you make of this quarter? >> i'm not great at prognosticating as you know, mel. i will tell you the first question he will g categorically is why did you make the decision to sell 10% of your bitcoin holdings good for him they've done well with that. they still have 90% of their holdings and they had a huge profit that will be the first question whether that's justified or not. next question should be about zero emission vehicles

you know, the zev credits when do they run out? obviously a big kick to their revenue number was that as well. i think it's actually a good quarter. i mean, i know the naysayers are going to at me on twitter and the people that love him will say you weren't enthusiastic enough what i'll tell you is this 720 level is spot on 50% correction of the march 5th low of 540 or so in the recent all time high of 900 it gives you something to trade around my instinct is short of some tape bomb on this conference call that the stock goes higher. >> you mentioned the credits and phil was mentioning the automotive gross margins, automotive gross margin excluding regulatory credits was 22%. that was an improvement year on year as well as sequentially for anybody who's saying it's those credits that are helping them, sure, they're helping them but they're also improving margins without those credits. delano, you're a shareholder of tesla, what did you make of this quarter? >> i thought it was good i thought what we really wanted to do is the delivery number

i think that's why we're trading off a little more after hours and hope we get more color on that from a top down approach what you want to look at in tesla is you have a couple of backdrops that are positive for the company. obviously on the political front they've done a great job looking overseas, entrenching themselves overseas which is also something that's really, really important when you think about the electric vehicle ecosystem in general, right the u.s. is about 3% of electric vehicle -- electric vehicle and the automaker overall, and you're looking at, you know, china at about 5% and the average globally about 4%. that's going to be a big batch that i think is important. i want some more color on that in the earnings call i think generally, you look at the numbers, tesla does a great job of beating expectations when it comes to delivery i'm definitely interested to see what managers have to say on the full year guidance overall i think it's a great quarter. >> it does feel like a stock in a holding pattern in the after hours session. down 2%, karen, is basically flat for tesla

what did you make of the quarter? >> yeah, for tesla that's flat lining yeah i thought the quarter was pretty good, right? impressive i did notice china asp's down a little bit, so there's some pressure there, but also talked about in some of the text of it, you know, expecting the why to become the best selling car in the world. i don't know when that would be. you know, i don't own it it's just on a valuation, i never got there, but the story's very much intact to me, this is an interesting sort of proxy for what's going to happen to companies that report great quarters but whose stock has already run up, right? i think we're going to see that over and over and over again so there wasn't really anything not to like in the quarter, particularly if you're a bull. i don't think there was anything super dramatic if you're a bear, so this two -- you know, down 13, 14 points, maybe a little bit more now is really flat lining for them. we'll see. i also want to know what made him agree to go on "saturday night live," just maybe that it

was fun, maybe that's the third question after the bitcoin i hope the bitcoin is a side show that can't be a recurring -- you know, a recurring revenue expectation, so that's kind of a side show, but good trading for them, you know what, i don't know, sometime early in the first quarter so it was a good quarter, but it's just not for me too expensive. >> yeah. dan, you think they talk about a semiconductor shortage i mean, what's striking about tesla is they have been able to deliver all the cars they've promised and then some despite a global chip shortage that actually hurt its competitors. >> yeah, i think it's an easy mulligan no matter what the end market is, if you're feeling a chip shortage just like we're hearing all the talk about inflation, you might as well say it because the s&p 500 is at an all-time high here, you know, and tesla in particular. lie gi like guy said the range is 900 on the upside a couple of months ago. it was a low of 525 also a month

or so ago. here we are in the midpoint of that range i think it's important to also remember in mid-november when s&p announced it was going into the s&p 500, the stock was at $400 and literally felt like it was going to just crater at that point. so you have a good quarter here. i don't think there's much to shake in it. i think i see a headline saying that they should achieve 50% annual delivery growth this year if that's what people are looking for, fine, they did that i just don't know what the catalyst is to take it back up towards those highs with 50% of the global auto market cap in this name here so to me the competition's coming they all have these chip shortage issues here i'm just not sure what takes tesla up here. it's not going to be short interest, that's at about 6% or so. >> let's get more reaction bring in fast money friend, gene munster. great to have you with us. what's your number one headline here >> we need to take the quarter into context tesla reports its quarter as all

automakers do with two releases, one is the delivery number and second the earnings that we got tonight. the earnings tonight were essentially in line. we saw a bounce back with the important auto gross margins, but for the most part as expected, which brings me back to, i think, what the real takeaway here is what happened a few weeks ago around the delivery numbers those were up 109% year-over-year it was up 66% in december, 44% in september this is accelerating delivery growth off of higher numbers, which by definition is a growth story. these are very rare that they happen, and therefore, we have what karen is talking about, which is high valuation. i just want to anchor the view of this quarter in context of those delivery numbers if it is true that evs are the future and they're 3% today and tesla has what i believe is the most compelling value proposition, if all that's true, i have a feeling we're going to

be having deja vu this year around quarters where the stock -- the delivery numbers continue to be impressive and i think that eventually the company will more than, i think, exceed that 50% target for 2020 deliveries. >> do you think that tonight management comes out and says that they're going to exceed that 50% number only because it looks like consensus is looking for a lot more than that at this point. so even if they say 50, that may not be good enough >> they'll likely say 50 that's kind of -- they didn't say anything last quarter, the quarter before they did. sometimes they do, sometimes they don't say anything. assuming they did, that 50% to your point, melissa, is that i don't think that that would be viewed as a necessarily negative i don't think that they would inch up the bar. i think elon is slowly learning the virtues of being public ceo of keeping expectations low and trying to beat them. it's not in everything that he says, but to answer your

question, i don't expect them to inch higher than 50, but the street now for the june quarter is looking for deliveries up 70%, and of course we have this pretty easy comp coming in the june quarter, and so putting it all together, i think that despite any sort of commentary from the company, i think investors are going to leave the call optimistic that we're still early in this transformation >> gene, how important is china in this equation karen mentioned the sps in china being a little soft. i don't think it's that big a deal, but can the chinese effectively pick a winner and loser in this space if they, let's just say start to favor nio for example, is that something to be concerned about? >> i think long-term we should just assume that china's going to be led by chinese makers, and to answer your question is how important is china china is important it's really important for the story over the next few years. it's less important over the

five-year if you have the advantage of owning something for the next five years. just a quick recap of why it's important over the next few years. it's about 35% of total global eds are sold in china, and so it's a big opportunity eventually it just is going to get difficult. all my years of covering u.s. companies who are trying to do business in china, eventually it gets difficult, and so i would just look at this as kind of a few year tailwind to ultimately a global opportunity for tesla >> gene, thanks so much. we'll check back in with you when tesla's call gets underway. that happens in about 20 minutes now. shares of lyft on the move in the after hours session the company making a big announcement on its autonomous driving unit dierdra bosa has the details >> lyft has agreed to sell its autonomous driving unit to toyota for $550 million. this is a move that will help it save 100 million in operating expenses and reach adjusted ebitda profitability by the third quarter of this year

now, keep in mind uber has also told investors that it would reach that measure of profitability this year, but has not specified when also keep in mind the larger ride sharing company also sold its own self-driving unit to aurora last year at a $10 billion valuation. now, for both of these companies, uber and lyft, auto autonomous driving was always this long-term play, a way to leverage their networks and ultimately reduce one of their biggest costs. that being drivers however, as the pandemic hit bookings over the last year, both companies cut expenses significantly, refocused on their core now, as the economy reopens, ride sharing recovers, the new problem is supply, getting enough drivers on the road and that has proved costly as well so by shutting their own efforts in autonomous driving, both these companies are saving costs. from a broader perspective we are seeing this shift in the landscape, partnerships being formed between the networks and the technology companies versus each of them going their own way. lyft and toyota, uber and aurora, one final thing to note,

melissa. lyft also has a partnership with waymo, which is seen by many in the industry as leading the field in terms of tech and a company that could potentially have its own network up and running quite quickly. >> deirdre bosa, it does seem more efficient to partner as opposed to build yourself. dan, what do you think of this move >> yeah, i agree i think this is fairly well telegraphed and i think that waymo deal is probably the future for autonomy for lyft, and i'll tell you one thing, if waymo gets it right, waymo could be a bigger company than lyft in the not so distant future, so the tables might be a little bit turned here. so i like the focus on profitability. i know, you know, itseems to b one of those things that was holding the stocks back in the year or so after their ipos, but when you look at the performance off of the lows, i think this is obviously a big reopening trade, and you know, it's kind of come a little too far, too fast i'm not sure they had to sell it for this i know the understanding about

getting to that profitability, seems to be something they needed to do i don't know future is going to be autonomy for these companies, so how they get there, now they have to partner. >> i mean, right now it makes a lot of sense in a few years, will they wish they had been more heavily invested in this way back when as da na mentioned waymo could be the head to head competitor with a lyft or an uber or it could be tesla for that matter with a fleet of robo taxis delano is this shortsighted? >> i would agree with dan here i think this is a smart move i've actually been out of any of the ride sharing companies, looking from a year back, from ipo it looks smart, they're down about 20%, lyft is if you're looking at from a year time frame, the reopening trade, it's up, you know, pretty h handlely there these companies, margins, profitability, the bottom line and this something that has to be played for when you think about it from an investor standpoint that's the reason why i stayed out. i think it's an area that's

super competitive as mentioned and that lends to possibly price wars when you're talking about getting driver out into the road and the pie is split many different ways that for investors you want to really watch those numbers. so for that reason i've kind of been sitting on the sidelines when it came to lyft. >>. we're counting down, tesla's conference call kicks off in just moments first, we've got another earnings report, nxp, we'll break down the after hours action in that name. plus, check out the move in shares of gamestop the stock is rallying. we'll tell you why much more "fast money" in two.

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welcome back to "fast money. stocks of gamestop rallying. the offering maxed out with all 3.5 million shares sold. the stock is up 16% right now, karen, on this news. what do you think? >> well, so they announced this at the money offering, so they do it in the market sort of whenever they want, and they came out with the shocking news that they completed the offering, which apparently was worth quite a bit of money as an event. that's astounding to me.

so they sold it at $157 a sharish, give or take, good for them for raising the money i really -- i clearly don't get it i don't understand why this is such positive news they did what they said they were going to do >> okay. >> well, that's good news. i mean, that proves execution. >> that is. >> commitment to a plan, guy i guess the next question for gamestop investors who are in for the fundamentals and i'm sure there are many out there who are like a roaring kitty, the next step is to see what ryan cohen's got up his sleeve when he takes over as chairman in june. >> which is a lot, and we talked about this a few weeks ago i know you remember because you remember everything. i used the comparison of the new york cosmos back in the '70s, just basically unsuccessfully clearly, but remember i said they were bringing in people from all over the world. the best in their fields for the cosmos, it was the best of their positions and they wound up having a seveix or seven-year rn

that's what's going on with game stop it feems ls like it wants to continue good for the reddit crowd and roaring kitty as you mentioned earlier. >> delano, your thoughts >> i would agree with the crew here it sounds like, you know, management is listening to sounds like actually the message boards and they're actually taking into account the strategy going on in the message board. some of that's done a great job when it comes to e-commerce. they're able to flip to that strategy, i think that would be a strong move. we've got another earnings alert, nxp semi on the move. josh lipton's got all the details. >> remember head sbing into thi report, nxp was about 30%, now heading higher here in the after hours. in terms of their guidance for kwoous at the midpoint, they're looking for 2.57 billion

the street is at 2.56 billion, basically in line. segments automotive, 1.23 billion their other big one is industrial, 571 million for the quarter. dy i did check in with stacy razz gone, he thought this was solid. strong for q1 and that q2 guidance q2 revenue guidance would have been stronger. his bet is this auto recovery has legs and he says nxp is a smart way to play that the conference call on this one happens tomorrow. >> josh, thanks. dan, you know, karen had mentioned that maybe tesla is going to be the example of the stock that has done very well, reports a pretty good quarter. we'll see what the stock reaction is. maybe nxp is a better measure. i don't know what do you think? >> yeah, i think the supply demand dynamics is the really weird wild card here you know, this thing has been, you know, bottom left, upper

right here it's held that uptrend i think it's also important to remember this is stock trading at a market multiple like 21 times, so it's pretty reasonably priced here. we know that they were the eye of qualcomm a few years ago. china scuttled that deal i would think in a $55 billion market cap, once we get by some of these supply constraints, you might see some m&a activity again in the space and nxp could be on some people's shopping list >> guy, would this be on your shopping list? >> again, going back to your unbelievable memory, remember the stock draft a couple of years ago when i looked at you and remember we said nxpi should come off the board early do you remember that, right? >> i think you were going to mention zi links >> anyway -- >> go ahead. >> it's not an expensive stock here, and if you look at it, they're in the right spot. half their revenue is automotive operating margins came into 30.9%. which year-over-year is a huge jump for them.

i think the stock can continue higher good for nxpi. >> karen, what would you be listening to on this call in relationship to other chip names out there? >> i mean, i want to hear the shortage obviously just one headline, tesla said they've navigate a chip shortage with new suppliers in q1 i wonder who that is i don't know if we'll hear that or not but i mean, that's going to be critical to the rest of the auto space as well, this chip shortage, which is going on longer than i thought. >> new suppliers, that's so intriguing somehow they managed to find new suppliers and everybody else couldn't find new suppliers. where'd they hide these guys >> that conference call, by the way, tesla's conference call seven minutes it starts. up next, morgan stanley's chief equity strategist mike wilson says the clock is ticking. tesla's call kicks off in minutes as i mentioned we'll bring you all the market

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>> you've been cautious for a while, and you say that you've been getting it wrong. what makes you think that this time around the correction is actually going to happen >> yeah, well, i think there is

a correction going on under the surface, right, so the s&p 500 has not really corrected at all. in fact, it's making new highs every day, but we have had a correction in the expansive stocks when the rates went up. then we had one in small caps. it's kind of under the surface we're seeing a rotation towards quality and that's really been our call since early march, and you know, the s&p 500 is the quality index of choice. so that kind of makes sense. now, it's gone further than i would have guessed, but you know, we're right on that line i mean, it probably starts to spill over now to the quality stocks what are we worried about? what we first want to see is seasonality, are difficult as you go into may. everybody knows that the second thing i would say we've got a peak rate of change on virtually everything we follow we think we are kind of moving into this mid cycle transition that's faster than normal, melissa. normally it takes about two years for that to happen this recovery is happening so quickly that's happening now i'll give you the years when we had a mid cycle transition it's '04, '94, '04 and 2011.

and all three of those years saw a 10 to 20% correction that's no guarantee that's what's going to happen but that's what we expect. multiples should come down that's what should happen at this stage of any bull market in a recovery from a recession. >> 10 to 20% in the next few months, is there a place to hide, so to speak, if it's going to also be the high quality names. >> the high quality names should go down less in other words it doesn't have to be 10 to 20% for everything we've already had a bit of a rolling correction in certain things we're trying to differentiate. the biggest risk we see is kind of in the reopening itself, right? so the reopening stocks, tremendous opportunities to reopen the economy, but there's cost issues now. you know, everybody's finally figuring out that reopening an economy is more difficult than shutting it down a lot of the reopening stocks quite frankly have cost issues, supply chain issues, labor availability and things like that so i want to separate sort of the reflation trades, things like materials and financials

and maybe some of the commodity areas, they probably hold up better ironically because the longer term story is quite good there. the other thing i would say is defensive stocks will obviously hold up better so health care is an area we prefer within the defensive. >> hey, mike, it's dan hey, so jim cramer had a really interesting tweet this morning saying that many of the forecast ers he watches think we're at a peak economy and therefore, if that's the case, then jay powell would be right to keep rates lower and keep his foot on the pedal. what do you make of that, and how do you think the fed plays into this call that you have >> yeah, i'm not really anticipating anything from the fed that's different than what they've been saying. i suspect they're going to be very dovish at this meeting. they're going to continue to put their foot on the pedal as you say. i think that's their job right now to make sure we get to the other side of the virus, and people are vaccinated and we can actually reopen. they're going to wait to see the

whites of the eyes for that recovery i don't think the fed is part of this particular correction if we're going to get one however, the peak rate of change is going to play into the market's anticipation that the fed's next move will be a tightening i think it's hard to argue they're going to do more whether that's in june or in jackson hole, they start talking about tapering or what their plan is to exit this extraordinary monetary policy, that is probably sometime in the next six months, and the market being a discounted machine will start to think about it. i don't anticipate the fed doing anything proactive in that regard >> hey, mike, it's karen so i read your notes and you talk about equity risk premium, contraction, sort of being at probably the bottom, even if the fed keeps the position, is it possible that we just see the market move rates enough that that causes the contracts you're talking about, i mean that causes the correction you're talking about? >> yeah, that's right, karen you can get a multiple contraction a couple of different ways, equity risk premium blows up or rates go up.

we got that in the first quarter. that was our call back in january that the expensive, you know, long duration stocks would get hit as rates went up so that adjustment is happening. and it's interesting to me that those stocks really have not rebounded. a willot of those stocks are st down 20, 30% because they were too expensive for where rates are now. i think the next adjustment will come through the equity risk channel. equity risk premium at 280, 285 is too low given this reopening risk we see the fed's next move being a tightening and something we haven't even talked about is taxes and some of these less friendly that are going to happen next year. >> we're going to leave it there, thanks so much. mike wilson of morgan stanley. karen, just to follow up on a question you asked mike, how are you starting to think about valuation? >> nervous, pretty nervous i want to own protection here with the vix that's, you know, lower. i don't like to sell what i own, but i do need more protection. i feel like inflation's here,

rates are going higher. >> when i hear mike talking about the fed not doing anything and remaining dovish, karen talking about rates can go higher anyway no matter what the fed does, i also think about the fed being dovish, which could actually mean inflation gets hotter and that's bad for the markets, particularly when the markets are starting to factor in a tapering of the fed's bond purchasing program before the end of the year, at least telegraphing of that how do you put all of this together >> well, i've been trying to put that together for quite some time, and every time i sort of connect those dots it leads me to believe we're going to have the scenario that mike wilson just talked about. it's been the incredible one i'll say this in terms of what mike pointed out it's very similar to what savita from bank of america pointed out. i'm just saying the thought process is very similar, and oh, by the way, tony dwyer said similar things sazas well.

again, none of them said they can time this thing. clearly i haven't been able to, but the warning signs are absolutely there. >> we've got tony dwyer joining us tomorrow, actually, so we'll check in with him on his call. speak of the devil delano, how are you feeling? because now that more strategists are moving to the cautious side of things, do you feel like maybe you're more emboldened to remain long? >> yeah, you know, i haven't really taken risk off, but i've been diversified and there's a couple of areas and pockets where investors can look to to be defensive, and i think health care is one of the areas where that's just to make sure they're defensive and also, you know, obviously an option as well, but you know, it's probably the best bet. obviously you know, i love being long some of the growth and mega cap stocks b u the diversification for myself and investors is going to be the best play in the case of anything with the market happens. coming up, tesla's

conference call, it is now three minutes in we are dialed in we'll tell you what the company is saying about the quarter. plus, a melt up iast jumps to its highest level in nearly ten years. we're breaking down the hot trades around this monster move. stay with us "fast money" will be right back.

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welcome back to "fast money. check out the metals and mining etf ticker xme rallying 2.5% it is our move of the day. the gain comes as copper soars to its highest level in nearly a decade cleveland-cliffs all chargiing higher the stock got hit with a downgrade at keybanc, but it still rallied. guy, what do you make of this action >> yeah, it's interesting so sector perform they downgraded too in terms of cleveland-cliffs, which i get. i understand why they would be sector perform in terms hoff t o that company specifically because they're probably better names. and i know for a fact if tim were he'd say it as well this is a stock we've talked about for at least the last year and a half as going to be a big winner in this whole reflation resource trade that's coming to fruition. this stock has not seen these levels i think, since the fall of 2012. i'm sure somebody will correct me i think that's accurate, and

despite the move higher, i still think it has room, just overlay a copper chart, and you'll see and by the way, it's not just copper it's every other base metal, soft commodities something's going on whether that's inflationary or not, i don't know, but it's clearly positive for the names we mentioned. >> if you like the thesis behind industrials, karen, which i know you do generally, do you have to like the resource trade? >> yes that's such a good question, you know, just looking at the copper curve and the curve actually shows copper prices lower, you know, a year from now let's say. so does that -- must that necessarily correlate with industries that is a great question for now i'm keeping my industrial, uri, fedex, u.p.s., but that curve does -- it is one i guess part of the fed's argument that these inflation factors are transitory. >> right, right.

for the reopening reflation, housing, whatever boom sort of theme you want to play delano, is copper or some of these mining stocks the way you would do it? >> yeah, i think for some people that'd with the way to do it i myself have kind of stayed, you know, away from that in general, but i think generally speaking, you know, any of these reflation reopening, you know, home building e plays are going to bode well, have been really high performing areas for a while here, but for myself i stayed away from the copper. >> dan nathan. what do you think? >> i mean this is -- it's really funny, you know, we have like wilson and i were talking about pete this, peak that there's nothing normal that's gone on obviously in the last 20 -- i don't know, whatever, 16 months or something like, that and really from here on out it's just like how much worse are things going to be off this 221 peak i go look at fc and, and i look at that chart and say to myself,

every time it's a hat size over the last 20 years, it goes from five, six, seven and goes to 40, 50, 60, whatever you'd be crazy to short it at $40 here, but i guess the other part of this is how much stimulus are we going to get globally here in the states we've had $10 trillion between fiscal and monetary at some point this all runs out a little bit so the idea of playing fcx for a breakout here at 40 playing for 50 or 60 based on what might happen in the back half of this year seems to be like there's a lot of good news incorporated in this sort of stuff i don't know, you want to keep chasing it, you're making a bet that global stimulus is going to continue at the pace it has, at least over the last six months. >> i was waiting for a have at it or have a ball for you dan nathan i think this is a good point i think this is the question that gnaws at every investor, at this point in time whether it be copper or steel or how -- whatever stock -- have we seen the best setup for these stocks that we will see in a while

given the fed backdrop, given the reopening, the pent up demand, you name it. it's never going to be replicated, and it's happening right now. >> that's clearly a cogent argument karen mentions the curve there's some people who look at a back ward dated commodity like that and say it's extraordinarily bullish. everybody makes a great point in this i understand why dan is being exercise dan now in terms of why would we be looking at the stock given the run that it's had, but i will tell you these commodity potentially super cycles last a long longer than people think they do. can it continue to grind higher? i think the answer is yes. do they make very compelling arguments of the late innings of this game? yes as well. i happen to think the early innings is right they think the late innings is right. that's what makes markets and i'll do it for you, have at it either way, mel. >> all right, for more on the moving copper and where wall street sees it going head to

cnbc.com/pro and be sure to catch jim cramer's exclusive interview with the cleveland cliff's ceo at the top of the hour on "mad money." what is behind this big move, we'll dive into options pits for more on that. tesla's earnings call is underway, gene munster is dialed in manninghe r ted phone he'll bring us all the stock moving headlines next. stay with us ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember.

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welcome back to "fast money" shares of tesla still lower despite a beat on the top and the bottom let's get back to phil lebeau with the latest. >> i'm not sure if we'll hear from elon musk we are cutting the bite of him at the very beginning of the call essentially reiterating much of what they put in the earnings release i think the most interesting thing is what they said about the shift in customer demand and in particular, their expectations for the model y being the best selling vehicle in the world perhaps by next year we'll talk about what that means in just a little bit, but guys, do we have the bite from elon musk talking about shift from

custom demand in q1 we do not have it. let me summarize, he basically said they've seen a real shift in customer demand if the first quarter, which is noteworthy because typically they start to see a slowdown in demand in the first quarter, then an acceleration through the rest of the year that was not the case, and that's not a surprise given the fact that we've seen a real shift in overall consumer interest, not just here in the united states but around the world in electric vehicles, and tesla being the worldwide leader in sales of electric vehicles should certainly benefit from that shift melissa and in terms of whether or not the model y can become the best selling vehicle, some perspective here the ford f series is the best selling vehicle in the united states, and it sells roughly speaking, 750, 800,000 vehicles a year that's just here in the united states for the f series. so he said it would become either the best selling vehicle car or vehicle next year, so you

would have to see a dramatic increase not only in model y sales but overall sales for tesla for that to happen next year again, the call just started we're going to hop back on it. one other thing, he is talking about the importance of the work they're doing on auto pilot, and on full self-drive, and the fact that he said this before, melissa. it's the hardest problem to solve. it depends on artificial intelligence they believe that they're making progress, so at least he is addressing this topic which has gotten a fair amount of attention here over the last couple of weeks. melissa, back to you. >> phil, thanks. let's bring gene munster back in gene, anything that struck you, and have you heard anything about this new chip supplier, which enabled tesla to avoid entirely or seems entirely this global automotive chip shortage? >> don't know who it is, melissa. i do know that elon said productions and delivery have been even higher in the march quarter if not for that. so that 109% growth i talked

about probably would have been 120, 120% plus if not for that shortage so we don't know who it is, but that really jumped out phil's comments jumped out at me about the model y and that production piece also was notable early into the earnings call here. >> if you extrapolate that, what would the growth be in terms of production that would be astronomical >> yeah, it's -- we can't run the equation in reverse, because we don't know what the actual units missed were, if you'd add an extra few thousand vehicles potentially as, that as i mentioned gets you to that 120% plus growth in march that would have been about double the percentage growth over the moddecember quarter it plays back to that theme about this is definitional to a growth story, importantly elon did add that those shortages have -- and also some covid restrictions in the shanghai factory in the march quarter in terms of some workers that has

eased and they expect -- they don't see some of those he headwinds as significant in the june quarter, which kind of plays into this theme that june should be a good quarter for tesla. >> i'm sorry, gene, did you say shortages did you mean the chip shortage specifically? >> chip shortages specifically, exactly. it sounds like they're working through that they've largely worked through that >> all right gene, thank you. gene munster of lee ventures so they are able to work through it you got to think that some of the other oems are thinking what are they doing i want their playbook, karyen. >> yeah, i wonder if the other ones got too conservative at the very beginning of the pandemic and didn't order and tesla still thought we're going all out, and so they maintained that chip relationship and got i guess a better place in line, i don't know exactly, but good for them. i thought, though, phil's point about the math to get to the y being the best selling car in the world was interesting.

that's aggressive. >> yeah. very aggressive, which elon musk is known to be tesla shares are holding steady down 2%, delano, maybe even pairing those losses at this point. what do you still want to hear from the conference call >> i guess, you know, the big thing that stuck out to me was how the model y, you know, looking forward next year being the best selling, you know, car that i would love to see like understand more of the plan for that i think that's obviously an impressive and aggressive statement. you know, i'm not one to, you know, doubt management's ability to kind of meet their expectations that they've shown in the past that they've been able to do so. i think that stuck out to me greatly. i'd love to see the path towards that. >> all right, guy, just quickly, i know you like to play prognosticator, so you know, put that hat on. do you think this stock gets bought on weakness tomorrow? should there be no big tape bobs or anything like that? >> i'll play the game. i think this stock is higher when we walk in tomorrow, so tomorrow night's show i think we're talking about a $750

stock. when i'm wrong, and very good chance that happens, you can fast fire me playing the game 7:50 air time tomorrow night. coming up, the big rumor that sent amazon shares rallying today. we'll dive into the options pit to find out what is going on with this stock "fast money" is back in two. i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.

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earnings alert here, let's get back to gene munster who has been on the tesla call bha what's new here? >> melissa, i was wrong. they surprised me. they gave guidance that they expect deliveries for this year to exceed that 50% target. that 50% target is what they expect compound growth over the next several years we talked about earlier, the street's looking for 70%, so they're kind of giving a nod to that 70% my expectation is that given the easy comps here in june, i think that number's ultimately going to be greater than 70% the street's at 850,000 units. we could be pushing close to a million by the end of the day, but they did surprise me with that optimistic comment about demand for the june quarter. >> all right, gene, thanks for the update gene munster, shares are still

down about 2%. switching gears here, amazon shares jumping more than 2% on rumor oss of a potential stock split. amazon has not smresponded to or request for comment. let's bring in mike khouw. mike, what are you seeing? >> yeah, so we're seeing some bullish activity amazon did trade above average call volume today. calls outpacing puts by about three to one and the most active were the weekly 3,500 strike calls. almost 16,000 of those were trading for nearly $40 a contract so buyers of those calls are obviously expecting amazon could be higher by the end of this week on the heels of that rurmo. we saw implied volatility jump pretty markedly. that's not something you usually see when a stock is trading up a combination of a higher stock and maybe some higher volatility as well seems to be what the options market is betting on right now. >> now i know you guys on the panel are going to say splits mean nothing, blah blah blah, but when tesla split, when apple

split, it meant something, dan >> well, let me tell you who it does mean something for, broker dealers, man especially in the options market, if this thing were to split five for one, you're going to have a lot more volume on a daily basis, and that could lead to a whole other like set of speculative sort of things so yeah, you know, this thing has not made a new high since early september here i expect a split and a beaten raise in the stocks above this nine-month range it's been in. >> our thanks to mike khouw. for more options action tune to the full show friday, 5:30 p.m. eastern time up next, "final trade. ♪♪ ♪♪

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crepe corrector lotion... only from gold bond. . time for the final trade, let's go around the horn delano. >> sometimes full momentum does, i'm going with amazon. >> dan >> yeah, ford here moving higher. >> karen >> yeah, i'm long, always long but i am concerned about this market getting top good earnings don't move stocks, so buy s&p 500 put >> guy >> i mean i was so uninspired by

dan, ford moving higher. come on, ford, mel, love the valuation. that's how i would have handed it i'll give you cirrus logic in earnings i can see the fast fire on that at the end of the week crus my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer, welcome to "mad money. welcome to cramerica other people want to make friends, i'm trying to make you money. my job is not just to entertain but teach you call me at 1-800-743-cnbc or tweet me giantly, kindly, please