Good friday morning. Welcome to squawk alley. I am Carl Quintanilla with Morgan Brennan and jon fortt at post nine of the New York Stock Exchange busy market day. Were going to start with tesla obviously, elon musks reveal of the companys new cyber truck. Phil lebeau has more about the window shatter heard around the world, phil. And a lot of people are watching that, carl. Cant say the unveils from tesla are boring they showed the cyber truck last night, the design had people saying whoa, what is that. When you look at this truck, it starts at 39,900 when delivery starts in late 2021, early 2022 range of 250 and 500 miles right now, analysts are underwe underwell whunde underwhelmed the appearance was met with criticism. Colin rush says we anticipate the majority of consumers will not be inspired by a vehicle so different from current norms as for the armor glass windows and failure, heres what elon musk had to say. We threw wrenches, literally threw the kitchen sink at the glass and it didnt break. Weird reason it broke now, i dont know why not the first time a live reveal of a new vehicle hasnt gone as planned. As you look at shares of tesla, keep in mind this is a truck they say will go into production late 2021, and they expect theyll have deliveries then or early 2022 thats when we get a slew of electric pickups, or at least thats the plan from the big three and from startup companies. Guys phil, thanks for that were sticking with tesla and elon musk and bring in mike isaac from New York Times and kevin delaney. Mike, your tweet said sorry, but the truck is good. Why . I will defend the truck this time look, it has to be a tesla move to do something totally out of the ordinary i didnt think they would have an iterative design of slightly more sleek and i think they needed to make a statement with this look, i think they expected most folks would be polarized on this i imagine the enthusiasts will go for it, and perhaps drive adoption later on it at some point. I think these were the cars that we thought were going to be part of the future, this is the stuff i played on super nintendo when i was growing up, wanted to be in my life at some point maybe for nerds like me it is an actual success as for the window, kevin, musk is a smart guy. I cannot believe he did not know this was going to happen. I cant believe they didnt do that 100 times before zooido you think this is a b creator . It was an epic fail in real time they didnt anticipate. Different pauball, heat of the moment changed the dynamics. I dont think it was for buzz. It goes against his m. O. To overdeliver. Not one window, let me smash the other one in a vehicle thats supposedly impossible to break. Youre supposed to land the rocket thats the elon musk brand the window is not supposed to break. Mike, we have seen this before those of us that covered tech awhile, steve jobs had demo fails, he was the demo guy it is amazing how you get people to Pay Attention when it comes down to it, do they just have to sell enough of these to teslas existing base, is it about being able to immediately recognize this on the road and continue to have that sense of something being special or does this really hurt yeah, look, i think this is one of those things where they do get the real early adopters on this, they sort of if you look at the past history of the past two years of product unveils, it is big leaps forward. They wanted to do trucks, some of the power stuff, power wall and it is never something thats very slow and iterative. I think thats how they keep that momentum. I dont know if this is a blockbuster, obviously it is polarizing, not a mainstream vehicle right away i still think it is a positive if they sell to a lot of their base and get that publicity, positive publicity among those folks for awhile. As mike says, it is a vehicle for nerds. Nerds are not the core market for pickup trucks. It is a category and prices are higher than general sedans makes sense for tesla to go after this does it make sense for tesla to go after this with a nerd vehicle, and it is important to recognize that tesla still has operational controls the latest quarter looked better, they have two other vehicles they announced that they have to get out, a crossover and semi truck they have their hands full to create a niche vehicle when we know big truck makers with off the charts buyer loyalty, more than any other category, people love their ford f 150 or chevy trucks and theyre all coming out with electric trucks as well. This is about youre a truck owner, want an electric vehicle, i dont think you buy one of these. Mike, heres one of the things overlooked. You have a truck built of the same cold world steel alloy as the starship rocket system that spacex is developing now, too. Youre basically creating more market for this type of met american league, thal, potentially driving down cost for steel that the two companies are looking to use i wonder if thats a piece of this too that there will be more cross pollenation, maybe talking about a truck that makes its way to the moon as nasa is looking to release requests for lunar rovers and the like. I really like the idea that the products sort of reinforce other products the companies are building i would amend my statement to say it is a truck for nerds and preppers that are basically preparing for driving off into the woods at some point. He said it was able to withstand a nine millimeter bullet at some point. I dont know i think it is conflation that futurists are looking for. I dont know how big a marked it is, but it is fun to look at. You know what i think the target market us rahul sewell pretty sure i saw him post on facebook yesterday that he is buying one of these. He was in the ford raptor camp, custom, cutting edge he is not doing it to haul his neighbors furniture theres a demographic in there that isnt doing farm work, likes trucks i think thats who this is for. For 100 put a deposit today. 2022, might get one. Were going to see where that goes meantime, sasha bar a cohen taking down big tech in a fiery speech in front of the Antidefamation League last night. All this hate and violence is facilitated by a handful of Internet Companies that amount to the greatest Propaganda Machine in history the greatest Propaganda Machine in history lets think about it facebook, youtube, google, twitter and others, they reach billions of people the algorithms the platforms depend on deliberately amplify the content that keeps users engaged. Stories that appeal to basic instincts and trigger outrage and fear. He took time to call out what he calls the silicon six the silicon six all billionaires, all americans who care more about boosting their share price than about protecting democracy, imposing their vision on the rest of the world. Unaccountable to any government and acting like theyre above the reach of law it is like were living in the roman empire and Mark Zuckerberg is caesar. That would explain his haircut all right so for a long time the dynamic on tech has been under scrutiny from the government, but engagement is high among consumers. Would this change it we have seen the tide turn. I think theres more voter, seeing this in political campaigns, facebook is one of the targets of politicians, and thats both a thing that relates to regulators and to what they think will appeal to voters. I think theres a broader Cultural Movement under way. This speech follows Mark Zuckerbergs speech at georgetown i would recommend everyone go back, read the two speeches, transcripts of the two speeches, get them online. Two very different visions of things the core of it, if i had to summarize the core of disagreement, would be great if they debated someday, one is should facebook amplify speech thats problematic, thats sort of the nuance that zuckerberg doesnt fully address. Second, how do you deal with conspiracy speech. This is speech thats demonstrably false, but believed by people, but isnt necessarily crossing the line to child pornography or hate speech calling for violence directly against people, categories that Mark Zuckerberg says they police against. Those are two areas of disagreement, an important, interesting questions. Kevin touched on this mike, put it to you too. This is a discussion we have repeatedly on the set, is it free speech or amplification and distribution where do you fall . You know, it was interesting. I was initially skeptical when i hear he is making a speech but i read it after he delivered it yesterday, i was very surprised how well argued it was. I think one of his main points was cogent, using a common set of facts that people believe in to undermine bias or bigoted attitudes out there. Now were in a world with facebook and youtube and twitters of the world, were no longer able to rely on a shared set of reality and facts i think in the valley, ceos are grappling with the idea of do they want to be arbitors of reality, theyre in a period position, i would suspect they want to invite regulation just in terms of having more guidelines around what is and isnt allowable, they dont want to be the ones choosing that theyre really in a hard place now. A lot of good points from sas sasha baron cohen. Silicon six, makes me think of sinister six. An interesting callout somewhere out there theres a parallel universe where donald trump is a comedy star i wonder if this is about this age of data has kind of up ended some of the basic tenets on which governments and economies are based, has to be part of the trade war, you look at 5g, big data and ai and fear about one civilization dominating another. It feeds into the issue around what speech does to a democracy as well. I think that one of the questions, were seeing this play out with twitter banning political advertising and google preventing microtargeting, to the point of the amplification of it, what the platforms enable you to do is have conspiracy theories, test them, hundreds of thousands of times until you are to a point of maximum emotional effectiveness, then micro target them to people that are susceptible, including swing voters you can target with misinformation i think to your point, jon, this is related to the data capabilities of these platforms. I personally think that what google is doing by reducing availability of microtargeting for political advertising is actually probably one of the only meaningful ways to chip away at the monster these guys created. Given headlines from dowjones yesterday, do you think facebook is on a path to adjusting their own stance on that yeah. I was watching that journal headline pop we had a story this morning that basically got into whats going on in the ad world now yeah, we matched what the journal said, essentially facebook is considering moving microtargeting audience from 100 to a thousand. So making it slightly less granular but i think the dilemma is facebook has to essentially decide if they want to handicap the efficacy of the product it has been trying to sell to advertisers for years. In d. C. Now, political strategists and campaigns are freaking out because this is part of their Election Strategy going into 2020. Facebook has sort of initimated they wont russia decision like they feel google and twitter have, theyre deliberating, havent made any final decisions yet on what changes will look like if they come. Going to be one incremental thing to watch nice to have you together. Have a great weekend. Wework had an all hands on deck meeting hours after announcing the company would layoff 2400 employees. Deirdre bo deirdre bosa has more. Sharing a Strategic Plan he presented to wework board of directors earlier this week. Previous presentations outlined major changes, including divesting noncore businesses and major layoffs. The startup announced it would cut 2400 jobs, accounting for 20 of the total work force. That previous plan came before the softbank rescue package. In the last few weeks, more challenges have piled on according to bloomberg, softbank is looking to reduce the size of the 3 billion for wework stock, designed to limit the ceos billion dollar exit package. Wework is being investigated by the new York State Attorney general. Elizabeth warren piled on saying wework is laying off employees while the founder walks away with a massive golden par chute. This is an example of a rigged system i am fighting to put power in the hands of american workers. We reached out to the company and sources, we will update when we hear more thank you and after the break, a beat on top and bottom lines not enough to keep shares of in tieu it intuit the ceo joins us next. Sasan goodarz. It is nice. His haircut is nice. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats. Can your car do this . Man, yall getting a hook up and yall dont even work here. Dont act like im not doing yall a favor. Yall should be singing my praises. Pacificaaaaa with employee pricing, get 4,107 below msrp plus 1,000 bonus cash plus 0 financing for 60 months on the 2020 Pacifica Limited welcome back shares of intuit are down post earnings, 4. 5 , despite a beelt on top and bottom lines. Intuit didnt raise guidance joining us, the ceo of intuit. Good morning good morning. Thank you for having me. Great to have you tell me if im reading this correctly. Youre going to spend more on marketing, in the Current Quarter letting people know theres live help inside products like turbo tax, ahead of tax season. Thats part of the reason youre spending more, why you didnt raise the earnings guide thats right. Were proud of First Quarter earnings, beat top and bottom line, we grew double digits. In the mccarthdata, we believe s opportunity to raise more awareness that turbo tax offering can help customers get taxes done we pulled in more spend for Second Quarter we believe we have a great opportunity to deliver great experiences for customers. Tell me how it plays out. If you get more people out of the gate as soon as the w2s are available, to get in there and use the product to its fullest capability, what does that get you . Does that somehow mean you have more people completing the process during tax season or does it mean theyre more likely to trade up to higher margin versions of turbo tax as they get that help . Whats the benefit you expect from the marketing spend sure. First of all, turbo tax live is about connecting people to experts, providing help that customers need when theyre doing taxes, whether it is through chat or pushing a button, having a person on video to help answer questions that they have. Last year was the first year we started raising awareness throughout season. We had a lot of learnings. One was customers are looking for help through the entire tax season what weve done is shift more dollars to raise awareness now that theed product is delivering more Consumer Experience that should drive faster growth, conversion, help them understand choices they have throughout the season once they start into tax product. Were excited about possibilities. Lets talk macro. The cfo said on the call we have gotten questions about the macro environment, what were seeing in our business. At this time were not seeing evidence of a slowdown in business related to the Macro Economic environment tell me are you not seeing evidence of a slowdown in customers and the way they do business or are they relying on you despite what head winds they might be facing so your business is steady. Does that read across the board, not seeing a slowdown in customers or your business it is both. Were bullish about the u. S. Consumer one of the things we look at and measure is how much theyre spending with Small Businesses, how many employees our Small Businesses have, in charge volume, number of employees, we see strength we see strength in the number of employees. The second is the need for the platform we have a platform that helps field the success of Small Businesses from invoicing customers and getting paid to being able to pay customers, to getting access to capital when they need it and have access to crm tools to run their business. Were seeing a digital tail wind the ability to use our platform to drive their success most of those play hand in hand together which is driving the strength we see. There have been calls in recent weeks to have the irs work harder to close the tax gap. This past week, former treasury secretary somers if audit rates went up, that would be an additional tail wind for you, wouldnt it especially with turbo tax live where we provide help to customers, that includes auditing expertise, making sure they get help they need if they ever need it it may be a tail wind, but our hope is to do things in a wa that delivers confidence for customers. We partner with the irs to ensure it is a seamless experience, no matter what i want to dig more into ai capabilities and Machine Learning youre applying in terms of services and tools. I am married to a Small Business owner. Tax filing is tough, nuanced what can all of the technology do that human beings cant thats a great question ill use a specific example. When you do payroll and you have to do overtime in payroll, there are so many different industry, county and city codes. When you have to put all of that in manually, the error rate can go up. If you make an error, you get a letter where youre penalized for the error you made we use Machine Learning to digitize all of the entry of code, do it for the customer to increase compliance. We almost doubled the compliance rate to make it easy for customers to pay employees, ensure theyre compliant thats one compliance aspect another example i would use, we use Machine Learning to help our customers have access to loans they would otherwise never have access to, or for money they work hard to earn, having instant access to money. Those are Machine Learning capabilities we use, all focused on driving success and finding ways to put more money in their pocket