include specific numeric targets for testing capacity, supply chain capacity and projection of shortages? >> thank you for that question and statement, senator is murray yes, we are, as i've stated, we continue to have a work in progress as we build the testing capacity we have established the targets with the states of over 12 million tests over the next four weeks. we think those targets are going to be good in may and june, but as dr. fauci said, we really have to be evidence based. we expect those targets to go up as we progressively open as communities go through phase one and then into phase two, and certainly those numbers will feed to go up significantly again if the fall when we potentially have influenza circulating with covid yes, there will be targets the targets will need to change based on the evidence that we see, but we are highly committed to securing the supply chain we've worked daily with every manufacturer and i'm just pleased we're in may and june able to get ahead of the states so that we can supply them what they need so they have those assurances there's not going to be any doubt about that. >> my comment to you is when you put out that specific plan that you are required to do, we will see numbers that you are going to tell us that you will reach, targeted for testing and supply chain capacity and projections instead of just saying we hope to have a million this week, next week, you will give us the specific targets, correct? >> we know specifically -- i will say yes, ma'am, we know the specific amounts of tests we have over the summer >> not have. how many we need >> so yes, ma'am, we developed the need statements by working with the states individually with epidemiologists, with the cdc, so that overall in may we'll be testing about 3.9% of the overall u.s. population. >> okay. but what i'm telling you -- >> well over time, for murray. >> how many we have but how many we will need not just for may but in the coming months so that we can be prepared to have them. >> yes, ma'am. and not to be repetitive, but we need to be evidence and data driven because what we may see in may or june will drive differences in the amount of test goals we have so we really just feed to be very humble about this we these need to look at the daa we know the testing needs will go up over may and june as we progressively open we have to see what the data and evidence show at that time >> okay. i appreciate that. mr. chairman, again, what our strategic plan requires is what is the goal, not how many we have, but how many we need and that's what we'll be looking for. thank you. >> thank you, senator murray senator enzi >> thank you, mr. chairman i particularly appreciated your opening statement where you had the very succinct list of -- >> you are looking at a committee hearing virtually held by senate health as dr. fauci of nih, admiral giroir, and the head of the fda and cdc talk about therapeutics mitigation and testing. good morning welcome to "squawk alley." i'm carl quintanilla with jon fortt coming to you live from separate locations a recap of what we heard over the past 20 minutes with elylan mui. >> you heard dr. fauci talk about the inevitable return of infections as the country begins to reopen. he said his main message would be to warn the potential for needless suffering and death if states did not follow the white house's guidelines for reopening, including making sure that they open up at the appropriate time when they were starting to see a downward trajectory of cases but making sure they had the capability to respond to any follow-up surges that might occur in addition, during his opening statements he talked about the potential for remdesivir as a therapeutic. he said those trials have shown some modest success, but he said that the nih is looking for not just a single drug or combination of drugs that could boost the efficacy of that medication as a therapeutic. hes also gave an update on the agency's work with ma derna on a potential vaccine and hopes to move to a phase two or three trial by spring or summer and then have a good idea of whether a vaccine is working by late fall or even in the winter his hope, he said, there could be potential vaccines, multiple winners or as he put it multiple shots on goal. back over to you >> really quick here, he did say that having a vaccine in place for the school season if the fall in his words would be a bridge too far, which led to the discussion of whether or not we can do 40 to 50 million tests a month by september and now the debate is going to be whether or not that's a large enough percentage of the population to make contact tracing and mitigation efforts successful as we reopen. >> yeah. i think that's one of the things you're going to hear democrats in particular press the administration officials on today. of course the white house saying that it is now directed $11 billion towards testing. that money comes from the c.a.r.e.s. act they are making a significant increase, but you also heard in his opening remarks the chairman of the committee say that even though the u.s. has done incredible on testing so far, certainly a lot more needs to be in place before consumers, before americans have confidence that the country can fully reopen safely. >> ylon, it's jon, good morning. good to see you. i'm wondering what the political subtext is here? i seem to be hearing between the democrats and the republicans some criticism from the democrats, perhaps of states led by republican governors that are opening up trying to get dr. fauci to say that understand certain circumstances that's not safe republicans pushing in other direction. give us a sense of where the political fault lines are here as we continue to watch this and see what the reactions might be? >> it seems to me that dr. fauci was being very careful even in his answers to that first question from the ranking democrat on the committee, not going quite as far as he did to the new york times, not bringing up the needless suffering and death that senator murray did try to get him to discuss. however, i will point out that fauci's appearance here at all is already a political flashpoint the white house had banned, blocked fauci from testing before the house the president called democrats haters so the appearance of all four administration officials here today is something of a win for democrats, but certainly we will see how this hearing plays out and i believe that democrats will have some very tough questions for fauci, chuck schumer, the top democrat in the senate, did tell him to let it rip today. we'll see if he takes that advice. >> all right ylon mui, watching that for us, thank you very much. want to bring you a headline there is a report out, at least one from bloomberg i believe that uber has approached grubhub with a takeover offer. grubhub's stock there up some 30% plus carl, this is interesting on a number of different levels one, m&a during this crisis, we've been talking about this over the past several days, there's some concern even among politicians that some stronger companies might take advantage of weaker companies during this period that might not want to be acquired but might feel they have to. also in this case of uber and grubhub, uber has just done a number of layoffs of its own employees, perhaps looking to acquire grubhub. as i look at the numbers, grubhub has about 2700 employees as of the last 10k i have to look at the uber number grubhub's market cap about $4.4 billion before the spike anyway. uber's at about 53, $54 billion, carl >> fascinating turn of events here if, in fact, this gets borne out, although i will couch it, jon, and say we've seen other reports of discussions regarding potential takeovers in the entertainment and media space and those have turned out to be debunked, at least for the time being we got to pay attention because there's going to be all kinds of exits that will be more and more creative as the situation gets more dire over time for some of these companies that have not been able to access the capital markets in ways they would have liked. >> yeah. i have toimagine the regulator situation is even more uncertain than usual here given some of the things we just mentioned speaking of, let's bring in the global head of technology investment banking at jpmorgan which is holding its annual technology, media and communications conference virtually. good morning >> good morning, jon good morning, carl >> so i want to ask you about not specifically this uber/grubhub thing, unless you have something specifically to add on it, but about the environment for m&a in general right now. some companies are in a strong position to make acquisitions but i'm sure they don't want to look predatory how much m&a in tech is really possible here and when do you expect tloimtlimits to come off >> first of all, thank you for having me and thanks to cnbc for kicking off our technology, media, communications conference just on that, we have about 200 companies presenting over the next couple days with about 3700 investors signed up, which by the way is all virtual and almost double the number of investors we normally have in boston every year in person. fw going back to your question we saw m&a take a little pause in the second half of march when everybody was focusing on what does this mean and shoring up their business balance sheets and so forth i think we are past that, especially in tech, and i'll comment on the financing, but in particular we advised last week on a 38 billion pounds merger between virgin media uk with o 2 uk, all done virtually the last time the management teams met in person was early march, so the entirety of the deal was done, you know, in a very virtual way which has never been done before, especially of that magnitude on top of that, in that deal we also raised close to 6 billion pounds, five times leverage in these times. i share that because i dothink companies that are very familiar with the counterparts, companies who know that sectors deepen will start think about it. i do think that tech has continued to become more pervasive which is forcing some of these bigger companies to thing more strategically what does this mean and how do we capitalize on it. >> if you're not google or facebook, do you have perhaps fewer limits in this environment do you think, or if you are google, facebook, amazon, and you try to do something and acquire like a grubhub do you think the regulatory would be more scrutiny and preventative >> here's how i think about this we are past the point of i call it the rescue capital in tech. since corona we've raised about $100 billion off capital and that's across debt and equity and, by the way, 80% was done by jpmorgan for our clients, and i think where we are entering is the capital if you think about it was raised to deploy that in be a opportunistic way and without getting names of specific companies, you know, how do they, whether it's investing to acquisitions or even more importantly organically, investing in the businesses and fortify their position, i do think that will continue i think there are companies in tech in particular who are very well positioned with very strong balance sheets and even currency will continue to cap on it with regards to your question on regulatory it's very few onced and case by case specific situation that you have to analyze and it would be hard to comment broadly. >> we should mention on uber/grubhub, the "journal" is now -- dow jones is matching what bloomberg had originally that uber has made a takeover approach and all stock combination and that they continue to discuss. i'm interested your point about the debt raising that we've been seeing as it pertains to tech. your view it's not really survival capital at this point they're harnessing ammunition to go on the offensive over time, right? what is the mix of trying to shore up a balance sheet to withstand economic stress and the other part of sort of going off and trying to take out some competitors? >> yeah. so i think here's how i would frame that i would say there are some sectors like travel which was pretty severely dislocated and we raised about $15 billion of capital, 80% of that capital was raised by jpmorgan for our clients, and i would say there were some very defined pockets where that capital was raised to shore up the balance sheet now what folks forget, usually tech companies generally operate with a lot more cash on balance sheet than other sectors by virtue of cushion building in the overall ecosystem, then if you think about the rest of the tech, i would say this is where folks are shoring up the balance sheet as i mentioned to -- whether it's to avoid any uncertainties down the line because you don't know what you don't know nobody knew where we are two months ago but also i think folks are realizing how important tech is becoming i mean, think about if corona had hit us 20 years ago, we couldn't be doing this, working from home. i mean america has gone to work without really skipping a beat in a lot of areas and largely because of tech and i think more of those business models have accelerated like some projections you would have expectd to see in 2030 are happening now, like e-commerce i think most folks would say somewhere between 5 and 9% was penetration in the u.s i think we may be operating close to where china was china is operating close to 30%. and a lot of that, means you have to go with capital, build up your businesses, scale up and capitalize on your position. we think a lot of this capital in tech in particular is being raised where the stronger companies or even the companies that have a marginal dislocation in the near term are shoring themselves up to come back strong and even better >> you mentioned china lighthizer has a piece in the "new york times" in which he argues that he doesn't know any ceos who are not at this point admitting that they underestimated the risks of decisions to move jobs overseas, rely on overseas production, supply chains. what happens to cross-boarder activity as a result of this realization if it's true >> i do think -- actually a lot of this started last year with the china trade war. i think most tech companies have been proactively thinking about their supply chains, where do we go and how do we build and where do the raw materials come from i think there's a lot of proactive thinking well under way. i think this will -- corona will accelerate that. i think the companies have built a lot of their backup plans in terms of, you know, where the disruptions come from. what's interesting is, despite china was shut down for the first two or three months of this year, if you really analytically analyze the destruction it has caused from a supply chain, there have been very small pockets, you know, but it's not a broad-based shutdown i do think that trend will continue and what's also changing is, i think the acceleration of software in particular, most companies are reinventing and will reinvent the business models, i think in the '80s if you think about software used to fill in like an er, hr system, you will see a lot more areas within the businesses where the processes will be -- using software in particular and how do you automate it and make these a lot more seamless for customers, consumers, to function and be more efficient >> congratulations on the conference and pulling this off in this new world. everyone is going to have to do it you're one of the early ones to do it successfully thanks for the time. >> thank you >> global head of tech investment banking at jpmorgan jon? >> yeah. we are now getting numbers on boeing's april orders. phil lebeau has the latest phil >> jon, another rough month in terms of orders and deliveries for boeing commercial airplane orders for the month of april, negative 209 planes almost all of those were the 737 max. it was down 207 last month commercial plane deliveries, they pretty much shut down almost all of their production which meant few deliveries if any, they delivered six planes last month in terms of commercial airplane orders this year, negative 516 remember, they have had four straight months of negative orders the commercial plane backlog is 4,834 planes let me put that into some perspective. it was close to 5900 at the beginning of 2018. that backlog lowest for commercial airplanes since 2013. guys, back to you. >> phil, give me the bottom line here for boeing specifically boeing was in crisis before the rest of the global economy was in crisis. now its customers are arguably in a more severe crisis than boeing was in to begin with. so does this make boeing more essential and, therefore, relatively more stable or does it deepen the sense of uncertainty around the company >> i'm not sure if it deepens the sense of uncertainty it's a double wham kwee they're facing right now a lot of the pressure was relieved with two things that have happened within the last month. one, the company going out and saying we're going to raise $25 billion in a debt offering so that they've got the liquidity, their suppliers have liquidity, so that eased some of the pressure there the other issue is production and they eased some of the pressure there by saying look, we're going to have lower production rates across the board and we still don't know what the 737 max production rate is going to be once it is ungrounded, if it's ungrounded as they plan in the next couple months and then production begins this fall >> phil, thanks. we didn't even get to tesla this morning. a lot going on on your beat as well phil lebeau. we will take a short break here and markets not moving a whole lot in either direction, although the session high for the dow was up 160 we'll follow the uber/grubhub story as the wires match it on a 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side we're seeing that business actually substantially accelerating that was a big business for us already growing very quickly in the 50% range and in april we saw the growth outside of india which we invested around 89% as more and more people sheltered at home and as more and more restaurants signed up for our service and obviously delivery is a very, very growth area for us >> that's uber's dara khosrowshahi on friday following the company's earnings up and dow jones and bloomberg say uber has made a takeover approach to grubhub in an all stock deal we're going to watch that along with deirdre bosa. good morning >> hey, carl that cnbc as well. we have matched that headline that uber has made an approach to grubhub and this is according to a source familiar with the deal as you said the stocks of both companies are surging and that sound bite fromdara, the ceo o uber, is a glimpse of what they've been saying over the past few weeks uber eats is seen as a strength as ride sharing falls off a cliff. uber eats last quarter grew 50% but i would remind our audience uber eats is losing money. ride sharing is becoming more profitable uber eats isn't there. it lost 300 million in terms of i adjusted ebitda last quarter it is seen as a bright spot amid the covid crisis uber has said they want to be the number one or two player in a market in which uber eats operates there's discrepancy between the data second measure which we use often puts uber as number three in the u.s. market a combination with grubhub would certainly vault it into even the number one place, i believe, ahead of door dash. it would be a step up. remember that grubhub has shown profitability in the past so perhaps uber could get there a little better with grubhub's experience, but also remember that uber has retreated from some of its smaller markets in terms of food delivery over the last few weeks and it's really been trying to cut costs we saw a massive round of layoffs, we've seen them unloading, for example, their micro mobility scooter and ebike units. it's interesting you're seeing the stock pop 5% clearly investors agree and they see that uber eats is a bright spot and really a place where uber can capitalize as its ride sharing takes a huge hit from the covid crisis, guys. >> deirdre, it's jon it strikes me if this were to happen, it would dramatically alter the strategic chess board for uber i think a lot of people expected if uber is driving consolidation it might be lift that uber buys, but this would actually move it outside of that ride sharing core and it would also move further away, i would argue, from the automated driving story that some people saw as lowering uber's costs and set up more of a two-front battle between the likes of lyft and doordash what do you see uber's strategic strengths as being if it's engaged in that kind of a two-front bat until. >> i think uber would probably tell you that autonomous driving is still critical to its future so it's still focused on that, but i think what you mentioned, jon, speaks to the moment that we are in right now. there are so many questions about ride sharing, even though uber and lyft have said they've seen improvement over the last few weeks, there's questions as to whether ride sharing ever fully recovers are they going to get back to that point if a world where they put emphasis on social distancing will people prefer to take their own cars food delivery is seen in increasing in popularity and youth amid the crisis as more people don't want to venture outside of their house or in a socially distant world this is a company that has always said it wants to be a platform for transportation, whether that's ride sharing or freight or food delivery, autonomous vehicles. this does fit into uber's thesis it has been pushing for a long time i do question the cost side of it remember dara khosrowshahi just last week on "squawk box" and yesterday for investigators said that the profitability remains a strategic priority by taking on more of a footprint in food delivery, does that push that timeline further out this is not a profitable business they're going to have to continue to compete against door dash which is a major player in this space and they've been cutting costs on a number of other fronts that's a key question for investors too, where does this put the profitability timeline. >> fascinating, deirdre. if your business is mobility, there are enormous head winds and tailwinds too and uber seems to be riding both at once. we thank you deirdre bosa watching uber and grubhub, that story is far from over in the meantime we continue to monitoring the hearing with dr. fauci in front of senate health. this is senator burr a few moments ago asking the doctor about pressure from the white house. >> has anybody in this administration ever asked you or any member to take the foot off the gas of trying to find a cure or any type of countermeasure? >> no, senator, not at all as a matter of fact, we at nia as you know have right from the very beginning put our foot right on that accelerator in every aspect, including the development of vaccines and therapeutics as i described in my opening statement, we actually started that in january, literally days after the virus was known and its sequence was published i have never been told by anyone to hold back on the development of any counter measure or any basic research project that we've been involved in. >> thank you, dr. fauci. this question is for dr. redfield dr. redfield we have authorized in this committee and appropriated out of congress -- >> joining us to discuss this morning is the dean at stanford medical school, dr. lloyd minor. dr. minor, it's great to have you back thanks for joining us again. >> thank you it's good to be with you >> i would love to have you just reflect on a couple of the headlines out of the hearing so far. one is fauci talking about eight vaccine candidates at various stages of development and then the admiral talking about testing goals, 40 to 50 million a month by september are you seeing any surprises in here >> no. i think those are all the appropriate goals and i think we're making progress towards them we have to continue to really focus on the science, on the clinical trials. we need to focus more on the outpatient setting, identification of drugs that may be effective at treating people at the time they're diagnosed and hopefully keeping them safe and recovering at home >> he did say that a vaccine in time for the school season in the fall was a bridge too far, which i think was already baked into people's expectations but he's not really giving us any clear guidance in terms of a timeline beyond that what's your thinking >> i think it's very uncertain at this point. we know the areas we need to focus on and increase testing, adopt symptom tracking much more than we do today we they'd to plan for, recover, restore and reopen, but we have to do it safely. we have to protect the safety of employees, of consumers, and of the public writ large. >> dr. minor, i thank you again for coming on. i want to ask you about that in the context both of stanford as a place that's providing medical care and as an educational institution. i believe you're resuming almost all procedures now what set the groundwork for you to be able to do that and when you have medical students back on campus, will it be in a distanced way? will there be different sorts of procedures to make sure that's safe how have you come to those conclusions? >> going back to early march we prepared for a surge we thought based upon what we were seeing in early march, that we might have as much as 200 or more hospitalized patients with covid-19 fortunately that didn't occur probable because california and the bay area went to shelter in place and social distancing very early. we then received permission from local authorities and the governor to begin the resumption of deferred surgical cases and done that starting a couple weeks ago up to about 75% of our normal volumes we know that deferred care is not care that's not needed it's care that has had to be postponed and we need to catch up with that care in order to protect the broader safety of the public for medical education, medical students are not rotating on the clinics in the clinics in the hospitals today, but we have plans for resuming that in january if things remain safe. the safety of our health care work force and of the patients who entrust their care to us is of absolute paramount importance i'm so proud of the very intelligent, brave people who work here every day who have dedicated their lives to providing outstanding care and also to pushing forward the science that ultimately will enable us to defeat this virus. >> what specifically about the ways that class will be held will studentis be required to wear masks and testing, perhaps several tegsz over a period of time, large lecture hall classes or no? >> well, lectures have pretty much moved to online you know, that actually has some advantages for example, in addition to listening to the lecture, students can ask questions in rae ti real time in the chat box and get answers from another professor monitoring the chat box. there are far more students that have questions that don't ask them and now we're having a much more interactive style of learning and i think that's a good thing when we'll get back to large lectures i don't know. that depends upon when we see a dramatic decrease in the number of cases and when we have the type of testing and tracking that we need to safely resume those lectures in terms of the hospital environment, the clinic environment, that's safe what we want to make sure is that we have enough personal protective equipment for all of our health care workers, that includes our medical students, and to do that obviously we have to be prepared for an additional surge should that occur later on those are all the factors we consider in making decisions about when to bring medical students back in to the clinics and into the hospitals. >> dr. minor, what's your advice to consumers who order say a serology test from quest diagnostics directly and get it done at the doctor's office or some of the at-home tests for covid, i wonder about reliability, specificity and then the degree to which that then changes their consumer behavior what would you tell them >> it's important not to place too much reliance on the result of any antibody test today because even the tests that are positive we don't know that those antibodies are protective or if they prevent a person from getting an infection later on. antibody tests that are done in certified labs, have gone through a rigorous evaluation process. some of the kits as we know from reports from the fda, some of those kits have not been validated and, therefore, we have to be skeptical about the results. but the bottom line is, if you get a positive antibody test from any source, that doesn't mean that you can assume you're not at risk to get infected. we need additional tests to determine that and we at stanford have begun those processes of scaling up the so-called neutralizing or blocking antibody tests and we hope to have those available to the broader public within the next month to six weeks or so. >> progress, one step at a time. dr. minor, please come back soon very helpful all the time. thank you. >> thank you best wishes. >> dr. lloyd minor, stanford medical school. later today do not miss cnbc's healthy returns, virtual summit begins at 12:00 p.m. eastern time learn more and request an invitation at cnbcevents.com/healthyreturns. >> but you have to hurry because that's coming right up. let's get the latest on the coronavirus outbreak and efforts to recover sue herrera has that for us. sue? >> i do, indeed, jon thank you very much. good morning, everyone in st. petersburg, russia, a malfunctioning ventilator may have causeded a fire that killed five hospitalized covid-19 patients it's the same model of ventilator that russia has sent to the u.s. to help with the outbreak here. russia will stop using the model ventilators until an investigation is complete. a new university of alabama of albany study of more than 1400 coronavirus patients suggests that hydroxychloroquine did not significantly help them recover, but patients who received a combination which included zithromax had a higher risk of cardiac arrest and heart attacks. disney world and disney land are accepting reservations for hotel stays beginning in july according to their websites. disney has not announced plans to reopen the theme parks. disney world had stopped accepting reservations before june 1st. as always, you can get more on our coronavirus coverage by heading to cnbc.com. jon, i'll send it back to you. >> thank you, sue. and now we're going to take a quick commercial break, but a check on the markets dow and nasdaq up slightly s&p slightly below the break-even mark. we'll be right back. stay with us still to come, elon musk and tesla restarting production today, defying a public order from california's alameda county we'll discuss the repercussions for tesla and california next. ♪ happy birthday! so, it goes... ♪ hold up your answers. how is mickey doing today? ♪ you're just a really hard worker. ♪ ♪ ♪ ♪ we hope you find our digital solutions helpful ♪ to bank safely from home. deposit a check with your phone or tablet. check balances, pay bills, transfer money and more. send money to people you know and trust with zelle. stay safe. stay home. together, we'll get through this. pnc bank - [female vo] restaurants are facing a crisis. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love. welcome back if elon musk makes good on his threat to move tesla's headquarters out of california, such a decision could pay off for him in a big way our robert frank explains. robert is. >> jon, a big way indeed if elon musk moved his home along with the tesla factory and headquarters he could save billions in taxes. california has the highest income tax rate in the country at 13.3% so is far that hasn't been a problem for musk and he doesn't collect much of a salary and hasn't sold much stock but now he's starting to hit the targets on massive new compensation program and if you move tesla and his tax residency to texas or nevada he would pay no state income tax last week he hit the first target on that plan, although it hasn't been officially granted, it would give him options worth nearly $800 million and he would okra cra nearly $100 million in taxes if and when he exercises those options. in texas or nevada he would pay no income taxes. the numbers keep going up. in total he could earn $55 billion over the life of that package which means he would save up to $7 billion in income taxes by moving to texas or nevada musk hasn't made any plans to move, but remember, he is selling all of his homes in california, which would make it easier right now to move jon, back to you >> all right robert, i'll take it as we continue to watch all kinds of stories swirling around elon musk. in the meantime we'll get back to our phil lebeau with more on the tesla story which has all kinds of angles today. hey, phil. >> carl a lot of people are questioning whether or not we're actually seeing production at the fremont plant for tesla be what's happening there, why haven't the sheriff's department or county stepped in and said you're not meeting these guidelines, there shouldn't be people here. let me bring you up to speed in terms of what we understand based on our conversations with people at tesla as well as with the county health department production did resume yesterday. you have that, that has happened out there. the production resumed the county health department has said, alameda county says they, tesla, has yet to meet all of the guidelines, all of the stipulations there having said that, we have not seen the sheriff's department step in and block people from going in to work nor are we seeing the sheriff's department come in and arrest elon musk as he said in a tweet, you know, if you're going to arrest somebody let it be me and me alone. in terms of whether or not he believes they should have production right now, he's tweeted yesterday, tesla is restarting production today against alameda county rules i will be on the line with everyone else. if anyone is arrested, i ask that it only be me again, he has said over the last couple of days that the state is of california approved their plan, the state of california said go ahead and build and yet we have not seen an official approval from alameda county >> phil, i'm trying to get a sense of how much of a likelihood there is that elon musk would really move tesla out of california to nevada and what that would take? looking on linked inn it appears that roughly 42% of tesla's employees live in california, live in the bay area. >> sure. >> that's a lot of people, perhaps without the means of an elon musk to just pick up and move, not that all of them would move to nevada if they moved the headquarters how difficult would that be? would it be much of a process or disrupt tesla's operations >> it depends on how you look at this look at it from elon musk's perspective. he knows he wants to build another gig factory in the united states, likely in the midwest or in the south, and how many states would fall over backwards saying come on in. we got a massive piece of land here you can build a final assembly plant, you can build a battery production facility. they're landlocked in fremont. he got that plant for a song because of what was going on back during the great recession, essentially the federal government after they put gm into a bankruptcy said what do you want he got it for dirt cheap no denying that. but he is in a landlocked facility and more expensive area to manufacture if he were to go outside of san antonio, texas, oh, man, he would get a sweetheart deal and you could really ramp up production there while it would be disruptive, it does not mean that it would not be a smart move potentially long term for tesla >> yeah. it would be interesting, phil, to see how that sweetheart deal would be perceived after all that drama regarding amazon's hq2. that's a story for another day phil lebeau covering tesla today. we'll take a short break here and when we come back is shanghai disney a proxy for theme parks in north america we'll talk to a former disney executive when "squawk alley" examines right back. 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>> i think there's baseline that is transferable across the world. you also have to consider these cultural nuances but at the same time i think guests are looking for the communication that they need to be secure and feel safe in the environment that their going to be entertained in or stay in or die in. the road map that i think shanghai disney will present for others, the learnings, i used to say as we open theme parks or hotels you always had the best laid plans and then you welcome guests and they roel sheally shu the things you missed. being pragmatic about that opening and studying of what works, i think will ben fits oth - benefit others in significant way. >> how important is communication ahead of time? how important is it that you're visible about some of the cleaning activities that staffers are.ca and actually change the look of the experience at the same time? >> that's a really great question i think you have to real that disney is famous for having those things sor s sort of in te shadows so that you forget the challenges of the real world now, guests are going to have an expectation that you're beginning to shgoing to show them how safe they can be you're not only worrying about when they are there, you're worried about draeti icreating e communication prior to their arrival so they can measure the risks they are putting themselves and families into the environment. they want to see and know you're being diligent about cleaning. they want to see and know you're holding others accountable for their actions. i think that's going to be a challenge, if you will, for some of these operators it will require more labor it's going to require more technical and operational functionality. a company like disney has the capabilities and have already been working with that technology, that contactless point of technology. it will make guests feel much safer in the environment for sure, they'll want to expect and feel a presence versus in the past they wanted that presence to be sort of in the background while they were entertain and immersed in the environment that they came to visit. >> mike, that's a great point. i thought one of the most illuminating things he said was this idea of masks in asia social security well accepted that people wear masks. it's not like in states. he said in areas in florida and orlando where it's going to get hot in stomachthe summer, wearik might get annoying how much of this is that they will be policed while there? >> toit's a good point. i view guests as signing a virtual contract they will follow the rules of the park and be respectful for each other now i think you'll have to be concerned with the potential for a bit of social unrest i've seen it already in daily life if someone gets too close to you and you're not wearing mask, they ask you to step back. you can full well imagine that to ensure that guests are come plying with these new rules and regulations and some of this will be deck indicaictate bid tl state, local levels, health organization and knowing disney and other big companies. other big companies will take extra precautions. the battle will be one with the consumer not only in the product and service you offer but also in the safety and held and the environment that you create for them to feel secure with their families and to feel like they can let their guard down if they start to notice that there is a lax in that, social media is very interesting these thi days they report on product quality and food service now they will be out there and looking for absence of the controls that need to be in place to protect the guests. i do think the company will have to be dill jenigent especially h near term. then they will have to have layered plans so as this disease subsides or becomes less they can lower the levels or increase the levels depending on how hot spots may emerge i think guests will want to feel that versus to see that in the background >> we always talk about theme parks but there's a hotel business layered on top of that. when you limit capacity, is that more painful on the theme park attendance side or the hotel check in side? >> i think it's probably both. i will tell you the masses of people that come into theme parks if you think about welcoming tens of thousands of guests and they arrive in patterns at the same time because they want to partake of the entertainment and get the most out of their experience where hotel guests will arrive wp a window of time, i think both will be challenging but i think that pre-arrival communication, what to expect, how they will be sequenced into the environment they're going to get into temperature checks r, bag checks the things they need to be aware o will help avoid. >> real quick, also, the ceo of salesforce was talking about efforts to reopen saying that timed entry into elevators like theme park tickets is something that people should look at to what extent do you think theme parks are going to become trend setters for other businesses opening as well >> they are big incubator. they have the ability to test a lot of guests all in the same place. timing of opening certain atracks. timing of entry and exit sequences. leveraging touchless technology. disney magic band is a great example of something that allows guests to pay for their food, merchandise, also have entry to their theme parks, hotels. all those devices will be a great way test guest behavior. >> mike crawford, ceo, thanks for being with us. >> let's get to the judge in the half thanks very much our breaking news coverage of the markets continue now welcome to the halftime report i'm scott wapner as stocks go for their longest winning streak since february. we'll debate where we might go next with our investment committee. let's begin where we all do. a check on where we stand. tech in the green. otherwise pretty mixed picture as you see there let's turn i

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