Tesla to raise prices in China on August 30 as trade war escalates



I'm macrey and i am joined by motley fool analysts. Emily flip and ron gross welcome. How are we feeling. Hey mac days of summer here dog days. I've i've had a nice little break so i'm tan seen you in months as look. I know it's true. It's been a very generous break. Thank you thank you thank you why feel well rested and we got lots to talk about. We've got some new health concerns with vaping and and i have a lot of questions about this vaping. I'm just i'm not sure it's a good idea. We're gonna talk about that. No no no i think it's the devil's playground okay and also we're gonna talk about target getting some disney magic target and disney teaming up here so we'll get to all of that but let's begin with tesla now according to reports tesla. We'll raise prices in china on friday. That's earlier than planned and tesla. According to the same report also considering raising prices again in december should the chinese tariffs kick in so emily. You're one of our resident experts on china and now we're seeing some of the ripple effects potentially really of all this trade war stuff tesla. We should add currently imports all of its cars. It sells in china. That's an important note right there. The fact that tesla as it stands right now how is selling every car in china that they produce here in the united states so the twenty five percent tariff on automobiles that china is putting into place or considering putting into place at the u._s. Would hit tesla very hard. That's an addition to a five percent tariff on auto parts as well so it's kind of a minefield for tesla tesla right now. They're trying to meet what they see. As expanding demand in china will still navigating the tariffs <hes> for the business as a whole. The most important thing is the fact that you know they've been working on the shanghai gigafactory so factory there in shanghai china that would produce cars that they could then sell in china for a while now but they've kind of been going to their own minefield and getting up and running so the fact is is that simply they're not going to have it up and running this year and they're probably going to start trying to front run deliveries to china china and advance at the december terrified ex yeah. I couldn't tell if this was a tesla story or a trade war story or a little bit of both but i think it's a it's an actual real world example full of how trade wars and tariffs can actually impact companies in this case u._s. Companies <hes> everyone should sit up straight and listen and see how how this can impact. It's it's not like tesla was kick knocking the cover off the ball so this this is another little thing that they're gonna little another thing that they're going to have to deal with and it is the consequence of trade awards. <hes> president trump said they're easy to win and maybe one day we'll say they are but as of now it doesn't appear to be the case and when we look at tesla's business us as a whole emily how important is china if i'm investing tesla or if i'm a considering investing tesla how much should this concern last time i looked china actually accounted for about one fifth of tesla sales so this is actually pretty concerning. It's a little surprising stock hasn't moved much day actually on on this news but that might be in large part because tariffs as we've found and trade wars in general tend to change rapidly so we don't actually know what the situation will be like in december. I think we all see how quickly <hes> you know. Administrations and politicians tend to go back and forth on things like trade wars but what's what's important is the fact that companies have to prepare in the environment in which they know right now so you know tesla which has had a problem for a while and and getting deliveries out of their factory non-tobacco on demand problem as they say but it's a livery problem whether or not they can really actually deliver these cars in advance of a tariff hike that basie coming in december is the big unknown here. I think we should add as least walking into the studio. I noticed the tesla has confirmed that this is actually the case as of now just a report a little bit more than a rumor rumer think but just a a report <hes> we'll we'll see tesla comes out with a comment later. It's august ron. I mean we need something okay. Let's move onto vaping illinois officials confirming that one person has died after being hospitalized with severe lung illness after using e cigarettes now this is the first death breath reported from a vaping related long illness. Emily there is so much that we don't know about vaping in about the long-term effects. 'cause i wanna be careful careful here but we do know that it's been marketed as a safer alternative to traditional cigarettes. So what do you make of of the vaping news and as our cannabis expert what do you make of the potential link or the implications for the cannabis industry. I'll take cannabis expert. Ah my title now i'm actually it's important to note the difference between smoking and vaping a lot of people may not be familiar so smoking obviously burning whether that be like tobacco for the nicotine tina facts and that's been for a long time now proven to cause lung cancer so vaping came up as a healthy alternative to smoking. He's as water taper to get you your addictive chemicals whether that'd be cannabis or nicotine <hes> and so it was perceived to be healthier alternative because that water vapor itself was was not linked to the tar in cigarettes that caused cancer so these new reports coming out that maybe vaping isn't as healthy as it initially seemed is not good for the the industry in large part. It's just that we don't have a lot of history to work on here with vaping. We don't have people that have been vaping for twenty or thirty years to prove proved side effects so it's almost like we have a generation of of many guinea pigs. Have you been the first generation to consume vapes in any large quantities. I expect expect that we'll see more reports like this. It is worth noting that the report is not nearly as bad as immediately causes lung cancer but is to say that there are likely health effects the facts to to vaping and using vapes as opposed to smoking cigarettes yeah at the risk of stating the obvious. I think we have to make sure we keep us out of the hands of of kids because kids kind of did learn the lesson about cigarettes. I feel and now boom just when we thought we were out of the water with that generation smoking cigarettes. They're there vaping more than ever <hes> so if it's the fruit flavors or the bubble gum flavors or it's the marketing to children i think the i._b._m. Phone firmly early in favor of stricter regulation when it comes to children i mean even nicorette i believe for example is a prescription is necessary so why can't vaping <hes> <hes> <hes> nicotine also be prescription. Perhaps i don't know if the industry will ever go that for but let's just try our best to keep it out of the hands of kids and it's so interesting. Can you say that because the f._d._a. has actually been targeting regulations focus that keeping it out of the hands of kids so the largest producer in the united states jewel has flavored pods is that the f._d._a. has recently sat are too attractive to children's so they've limited <hes> a lot of places that jewel can sell their flavored <unk> pot products and i believe san francisco's outlawed the sale of a vape vaping products completely <hes> you can actually use them. I believe in san francisco but you can't purchase them <hes> so maybe we'll see more of that and before we get to our next story. I want to say thanks to net suite now. If you don't know your numbers you don't know your business but the problem that growing businesses have the thing that keeps them from knowing their numbers is this hodgepodge of business systems. You've gotta system for counting. You've got another one for sales another for inventory emily and ron what a mess complete mess systems everywhere and it's so inefficient taking up too much time and sucking up way too many resources and that is where

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