Boeing CEO Shake-Up, A Meme Stock Rally & Building a $4.2B Aerospace Company 3/25/24

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I'm Contessa Brewer, and for Brian Sullivan tonight. Right now on last call, call them the quiet meme stocks. Why a flurry of overlooked names suddenly are surging. Right on Tesla ORG's tail, another auto giant could take Tesla ORG's title as the world's biggest carmaker. Buckle up, a wild trading debut awaits Donald Trump's truth social tomorrow. We have a special preview. And back comes Bitcoin, how the newest rally could be giving the most bullish signal yet.Plus, breaking in just the last couple hours, Dodgers, Megastar, Showy Otani PERSON speaks out on the scandal rocking baseball. And it's make it Mondays. We'll meet the entrepreneur who has 3D-printed rocketsthat are giving SpaceX ORG a run for its money. All that and more over the next hour. Last call is up for right now. Good evening on the East Coast and good afternoon at West, a major shakeup at Boeing playing out right here on CNBC ORG. CEO Dave Calhoun announcing he'll step down at the end of the year. Boeing's chairman, Larry Kellner PERSON, will be right behind him when his term is up.And Boeing commercial airplane CEO, Stan Deal PERSON, out immediately. The big turnover in leadership amid a number of high-profile safety incidents involving Boeing ORG planes, including the recent gaping hole in the side of that jet during an Alaska Airlines flight? Well, earlier today, Dave Calhoun sat down exclusively with CNBC's Phil LeBoe PERSON.

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We have another mountain to climb. Let's not avoid what happened with Alaska Air ORG. Let's not avoid the call for action. Let's not avoid the changes that we have to make in our factory. Let's not avoid the need to slow down a bit and let the supply chain catch up. We got to get at that, just like we got at the rest. And we will get through

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that. Calhoun PERSON also spoke on what he hopes to see in a replacement CEO. It's not just the

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production of the airplane. It's the development of the next airplane. Our next leader is going to develop and call out the next airplane for the Boeing ORG company. It'll be a $50 billion investment. That will all happen on that next leader's watch. So I would like somebody who clearly has the experience inside our industry.

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Boeing ORG stock is down more than 25% year to date. We have lots of questions at the moment. Will the shakeup fix the problems, the safety issues at Boeing? Will it be enough to get the stock moving in a forward trajectory? Joining me now, Yale School of Management ORG, senior associate dean and CNBC contributor, Jeff Sondonfeld. Jeff, it's good to see you today. First of all, what does Boeing ORG accomplish with this massive change in leadership?

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Well, thank you. It's good to see you, too, although it's tragic again to see this kind of governance carnage. This is a revered company. It's obviously an iconic, a global pillar of American greatness, and it's badly hobbled right now. So what this leadership change does is somewhat symbolic, more than substantive. But what I'm hearing from lots of Boeing insiders is this is the first day that they've gone back to work with a smile on their faces.Dave Calhoun PERSON, I have to tell you, it used to be a neighbor of ours here. I know him. I like him. I like Calder. I knew Mr. Calder from his prior life. And there's somewhat of the, somewhat of it was symbolic sacrifice. But David Calhoun PERSON was not loved when he came in there. He wasn't seen as the warm and fuzzy guy. He is not a culture carrier. Seeing that interview both inspires you and gives you the chills that you're looking at a mini Jack Welch PERSON come back to life. That production-drivenculture is what he stood for. That wasn't what the company needed at this point. They're missing their production yardsticks, which is why the airlines were all mad at him. He's a better communicator than his predecessor, Dennis Mullenberg PERSON. None of these people are villains.

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And by the way, David Calhoun PERSON came in and it was dealing with the fallout from the max jets and has been really trouble plagued since then. Let me get another perspective on this. Allied Pilots Association spokesperson, American Airlines pilot, Dennis Taser PERSON. I know you have voiced concerns, Dennis, about Boeing ORG planes in the past. Do you think this reassures investors,the flying public, and those who work inside Boeing ORG that the company is ready to go in a new direction? Dennis PERSON, can you hear me?

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Well, we're not as enthusiastic as...

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I can. I can. Can you hear me? I can. Go ahead.

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We're not as enthusiastic as your guest with, you know, we've seen this before. Yes, Mr. Calhoun was different than the previous CEO, but Boeing is O for two in CEOs. I fly the 737, Max PRODUCT included. I'm on a trip now. And we've got to see

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a realignment from a shareholder economy into an engineering and quality control economy

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for Boeing ORG. So, you know, we're a little bit of meet the new boss, same as the old boss, suspicion here. So bottom line is Boeing ORG's got to get its act together and changing the names may help, but we need to see the corrected outputs before we have a trust re-built.

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How do they do that? How does Boeing ORG try to make it an engineer's a company rather than one that is operated by or owing two shareholders? Well, they need to bring in somebody who knows the

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business. And I must have clarified my prior comments if my fellow guest thinks that I'm euphoric about this change. The change hasn't happened. We've seen some management accountability by a board that bears some culpability here. There's some fabulous people on the board, but we haven't seen them step up before. So we're just seeing the beginning of accountability is who they pick now. There's some fantastic candidates. Greg Smith PERSON, their former CFO, is tremendous. He's beloved in there. He knows every part of this business. Mark Allen PERSON, who is head of international, just recentlyleft. He's fantastic. Both these people in their mid-50s, they know the industry called Dave Getland off the board. I should also mention, by the way, Smith PERSON is the current chairman of American Airlines he's so well thought of their former CFO.

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You know, it's interesting that when we're looking at who's already been tapped to take over, the board chair has an insider taking over, the head of commercial ORG has an insider taking over. There is nobody to take over yet for Dave Calhoun PERSON. Should the board have already been looking at a successoras soon as they brought Dave Calhoun PERSON in? They failed have already been looking at a successor as soon as they

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brought Dave Calhoun PERSON in? They failed. He's like a wounded animal in the corner. It's great to have somebody in an ambassadorial role if it's a positive succession on his own schedule. This is not his schedule, and it's dangerous to have him there. He should be exited as soon as possible, and he should have no voice in the naming of successor. Phil PERSON's interview was superb, but he should not be the guy who's picking the successor. It should be probably somebody, as you suggest, from the outside. And there are some fantastic candidates out there as a fresh start.

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Dennis, what kind of change would make you feel safer when you're at the helm of Boeing ORG planes?

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Well, to the person I'm on with, here, here, we stand with you. There's no way he should be involved in this. So bottom line is the captain failed. The board has taken control of this. Although we still wonder some of those names you mentioned, we'll just see what happens.

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Because you think they're too inside baseball, you think that they've been too close to the organization as it stands now? Absolutely. You know, I don't run a corporation. close to the organization as it stands now? Absolutely.

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You know, I don't run a corporation. I fly the jets with the souls on board that I'm tasked to protect. And you failed to instill that trust. And we were on round two here. So, you know, the real captain of ship is board of directors. And, you know, it's gender excluded.Good old boys network. I don't want to go that deep in calling it to account. But the bottom line is your output is not producing as safe, as safe in airplane as it can be. You know, and Mr. Calhoun PERSON said that they had a quality escape when a door blew off. Well, now we're looking at a leadership escape to use those words.

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And recently mentioned the Max PRODUCT was the safest airplane out there because of the scrutiny. You said that right after the Max PRODUCT returned to service after the MCAS ORG disasters. So we've got to see the words, you know, the words in the clever slogans are great for these types of interviews. But what I need to see is an airplane that's been vetted, engineered, and properly assembled so that I don't have to run special checklists in an emergency. I just do my job and run the normal error trapping.

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Dennis PERSON, the captain is right. They still have a safety problem. They still have a governance problem,

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and they have a production problem. They've lost a lot of their talented engineers,

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post-COVID, a lot of their skilled workers. And they have, you know, 171 maxes have gotten permission to take off. That's great.

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They were the max nines. But we have a thousand max nens that tens that can't get off the ground.

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Good for the FAA ORG, by the way, for taking such a severe hand at this point. When Mike Whitaker

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went out there to take a look at the factories, nobody even talked about safety there. And that's about $100 billion of revenue that they can't get back up in the air. So when all those airlines go off and want to meet with the board without the CEO, that's not a good sign for the CEO.

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So at this point, we stay and watch who the replacement will be. Jeff Sonnenfeld at Captain Taser ORG. Thank you very much. I hope you have the safe rest of your flight. Let's take a look at what happened to your money today. The Dow, the S&P, the 500, the NASDAQ, oh, all down across the board.You can see the Dow off almost half a percent, S&P by a third of a percent, and the third, too. On to our studs and duds, the biggest winner of the day, Super Micro Computer, up 7.2% on a bullish call from J.P. Morgan ORG. The biggest loser, Take 2 Inter interactive, down more than 4% on reports of delays with Grand Theft Auto 6 PRODUCT. Let's get a look at futures right now. It looks likewe're ticking higher, slightly, but higher. Up next, truth. Donald Trump's PERSON social media company prepares for its trading debut tomorrow. It may get even wilder than some expected. Plus, the automaker that could soon put Tesla ORG in its rear view. Stay with us. Remember the Tye Cave Rescue EVENT?

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What about the mission depicted in Black Hawk Down or the epic rescue shown in Captain Phillips WORK_OF_ART? You've probably heard of all of these, but did you know that the U.S. Air Force Special Warfare ORG played a pivotal role in all of them? These airmen are the most highly trained warriors on the planet. Other forces like the SEALs and Army Rangers call on them to provide skills no one else can. Not many people make the cut. If you think you can, visit air force.com to learn more. You can visit air force.com to ORG learn more.

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Selling smoothies is what I do, but for small business insurance, I chose my State Farm ORG agent. He's a small business owner, too, so he knew how to help me personalize my policies. Like a good neighbor, State Farm is there. Talk to an agent today.

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Here we go. Tomorrow's News tonight, the stories you and Wall Street will be talking about. First up, Adam Newman, the former CEO and co-founder of WeWork ORG, is trying to buy the company back. According to the Wall Street Journal, Newman recently submitted a bid to buy the now bankrupt company for more than $500 million. But it's unclear how he would finance that purchase. CNBC has also confirmed now that the $500 million offer per person familiar with the deal is adding intrigue to it. CNBC's Dear Drobosa just obtained a statement from Flo, which is Adam Newman's PERSON current company,and it says, quote, two weeks ago a coalition of half a dozen financing partners whose identities are known to WeWork and to its advisors submitted a potential bid for substantially more than the Wall Street Journal reported without contacting us. Again, that coming from our colleague, Deirdre Vosa PERSON. What is the true price here?Time will tell. We're going to bring you more details as we get them in. Next, DWAC ORG soaring ahead of merged trading with Donald Trump's truth social. Shares jumped 35 percent today after a court reduced the bond the former president has to pay in order to appeal a New York fraud ruling by 60 percent. And with the move, Trump enters the list of the world's 500 richest people with a net worth of $6.5 billion.The merged media company begins trading tomorrow under the ticker, D.J.T., Trump PERSON's initials. What should investors know ahead of its debut? With me tonight for more is Axios Business Editor Dan Premack PERSON. Good to see you, Dan PERSON. Thanks for being on last call. We saw the chart there of the stock sort of justmoving along and then reduced bail and it took a pretty significant leg higher. Why do you think

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that was? Yeah, I'm not sure it was about the bail. I think it was about Dwax ORG said that they were going to start listing tomorrow, that they were going to relist as DJT ORG. They'd gotten the shareholder vote last Friday. We assumed they would list at some point this week. They announced they were going to list tomorrow morning. I think that was what moved the stock. People who want to buy this thing got excited and decided they wanted to get in before

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DWAC becomes DJT ORG. Okay. And so we've got the relisting tomorrow under this DJT under a new

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ticker in this point. What about his shares? He has to hold onto them a while. Does he have any window to sell ahead of his hold pattern? He does not. He is under a six-month hold for his shares, which are in the tens of millions, maybe around 70 million shares. He has a six-month hold. Now, he can ask the board of directors for a special dispensation to sell ahead of that inside that six-month window, and it is worth noting. The board includes his own son and a couple members of his former administration. But it's a really tricky balancing act, because if he asks for that, if it looks like Trump PERSON himself is heading to the exits, some people, other people might run. And then there's the question, is there enough market demand to buy such a large number of shares that he'd be looking to offload?So it's a little bit tricky. He could sell some, perhaps, if he got the board to let him, but then that could tank the value of what he's got left.

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Is there a reason for him to want to borrow against those shares? To borrow against those shares?

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Sure. I mean, he clearly has a bunch of, you know, he's got a bunch of court penalties against him, even though he got the amount reduced today, it's still a lot of money. So there's a reason he would want to borrow against them. Whether someone would be willing to, though, is another question. The underlying company here is lousy.I mean, you're talking about a few million dollars in revenue for this thing. I mean, there's been a bunch of comparisons to this to GameStop ORG. I mean, maybe if GameStop was Google ORG, the company here, there's not much of a company underlying this. So to lend against it, you're taking a pretty big risk as the lender.

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Dan PERSON, good to talk to you. Thank you for joining us on last call. Thank you.

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Still ahead, taking the air out of Tesla ORG's tires, the automaker that may soon surpass the EB giant.

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Next. Remember the Thai Cave Rescue EVENT?

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What about the mission depicted in Black Hawk Down or the epic rescue shown in Captain Phillips WORK_OF_ART? You've probably heard of all of these, but did you know that the U.S. Air Force Special Warfare ORG played a pivotal role in all of them? These airmen are the most highly trained warriors on the planet. Other forces like the Seals and Army Rangers ORG call on them to provide skills no one else can. Not many people make the cut. If you think you can, visit air force.com to ORG learn more.

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Time for a last call. Watch the lesson tonight. It's bound to leave a bitter taste in your mouth because just in time for Easter weekend, a relentless surge in cocoa prices is somehow getting even worse. Some new financing issues for Ghana's cocoa industry fueled yet another jump today. Prices gained more than 7%. Now, most cocoa supplies come from West Africa LOC. They have been hammered because of dry weather and disease. After today's gain, cocoa prices are now up more than 50% in the past month, up 130% since the start of 2024, and they have more than tripled over the past year. The run-up is so intense that cocoa now costs more than copper on a metric-ton basis,and which would you rather eat? So that's the next candy bar or the chocolate Easter egg essentially is more valuable than one of the world's most critical industrial metals. And experts predict that cocoa costs are likely going higher from here. So my take is chocolate. Get it while you can still afford it. Welcome back. Long time Tesla Bull, Adam Jonas PERSON, out with a new call on the auto market,and it's raising some eyebrows on both Wall Street and in Detroit GPE. In his latest note, the Morgan Stanley analyst compared Toyota's surging value and Tesla ORG's weak stock performance, saying, quote, Tesla would hand its crown of being the world's highest valued auto company back to Toyota ORG. Is Jonas PERSON right? Toyota's shares have surged nearly 40% so far this year, while Tesla's have fallen 30%.Now, look, this is important because Jonas is sort of like the OG Tesla ORG bull. He's making what many thought were wildly bullish calls over a decade ago. So if the analysts who saw the Tesla ORG bull case before anybody else now says Toyota ORG could be king, should investors listen?Joining me now is Gerber Kawasaki PERSON, CEO, and Tesla investor, Gerber Kawasaki PERSON, and GLJ Research CEO and longtime Tesla ORG bear, Gordon Johnson PERSON. Thank you both for being with me here on last call. All right.So we've got this call on Tesla ORG. Ross PRODUCT, give me a sense of what you think. I mean, he's just basically saying Toyota's coming back from behind and Tesla ORG better watch out.

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First of all, Adam Jonas was not a Tesla bull back in 2018. In fact, he downgraded the stock through a $20 price target at the worst time. It was actually me and Kathy PERSON and a couple other people where the only bulls at that time. And Adam PERSON was no help. That is for sure. But that said, you know, Jonas is making, I think, a fair point that the problems that Elon PERSON has caused Tesla has definitely lowered the valuation and the perception of Tesla ORG's future to a point that maybe a boring car company like Toyota might compare to an exciting tech company like Tesla ORG.But any comparison, I think, is almost moved.

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I don't know if you know the old fable about the tortoise and the hair, but in the end, the tortoise wins. Slow and steady wins the race over the hair that's bouncing all over the place and gets there really fast. Also, by the way, I got to say, Gordon, we saw on Twitter that Ross PRODUCT has kind of thrown down the gauntlet.I have the dubious honor to debate Gordon why Tesla is a thousand times better company than Toyota ORG. Go ahead.

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Give it your best case. Yes, so we've always argued that EVs are a niche and that they were going to go away. And I think we're seeing that slowly happen. You've had a number of companies, whether it be the battery companies, CATL, Panasonic, LG ORG, the car companies Ford, Stalantis ORG, etc. All pull back billions of dollars to plan investment EVs.Here's why Toyota bet on basically plug-in hybrids, Tesla ORG bet on pure electrics. And here's why plug-ins are better. Very simply. The cost of an average plug-in, 27,000. The cost of an average VEV, 44,000. Keep in mind, with a plug-in, PHAV, a plug-in hybrid vehicle, your first40 miles you get electric. Most people do not drive more than 50 miles a day. So the first 40 miles you get electric, and then if you have that range anxiety, you shift over to your gas. That's number two. So it's much more efficient for the car buyer, cheaper, more efficient. And then number three is the resale value. Tesla ORG's resale values have imploded. Why? Because the more you drive that car, the more the battery drains, and thus the less value that battery has long term. So when you look at normal people,not rich people like Ross Gerber, not the 1%, but you look at the 90% of people who can only afford one car, the pHEV is by far the most efficient. And we're seeing that real time. Look, Tesla's currently valued at more than Toyota and BYD, despite the fact that they sell just 16% of the cars they do. And it looks like in Q1, Tesla sales are going to be down year over year. That's the first time outside of COVID ever Tesla sales are going to be down year over year. And it the first time outside of COVID ever Tesla's cells are going to be down year over year.And it looks like it's going to repeat in Q2. The market is saying loudly, no matter what Ross says, we don't want Tesla ORG's cars, and we're seeing that in the numbers. Ross PRODUCT?

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Well, EV sales are up substantially year over year.

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So I don't know about this niche thing that he's talking about.

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In fact, in California, 25% of cars sold

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our EVs right now and growing, and we're the fourth largest country in the world. So that said,

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if California is doing this, it's going to happen across the country. The only issue with Tesla is the fact that Elon PERSON has turned off the core demographic. The company itself is phenomenal, making phenomenal products. I mean, if you put a Model Y next to a Corolla, it's like two different vehicles.

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Well, what are you saying? Wait, are you saying that Tesla would benefit from the kind of leadership shakeup that we're seeing at Boeing tonight?

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No, I'm saying that one of the things that's hurting Tesla is Elon Musk's PERSON ownership of X and his opinions about many things that are incredibly divisive. And it has turned off an enormous amount of consumers. And it really is distressing to me. That said, okay, Tesla ORG is an amazing company. For example, it has a charging business, a monopoly on the charging business of the future. But not enough of them. I mean, the infrastructure

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across the United Nations ORG.

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They can double the amount of chargers they have no problem and keep growing and growing and growing.

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And they also make battery packs that every utility in the world needs.

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They have a technology.

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But Gordon PERSON, are you?

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Self driving. That's quite there.

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Could I jump in there? None of it.

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Yeah.

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Go ahead, Gordon PERSON.

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Yeah.

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So Ross talks about Tesla being a technology company when 93% of their revenues came from selling cars and nearly 100% of their gross margins come from selling cars.

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Ross PRODUCT talks about them having a monopoly on charging, hello Ross, talks about them having a monopoly on charging where they've open source their charging network. Their charging revenues are less than 1% of revenues. And over 90% of the charging that Tesla ORG owners do is at home. They don't notice superchargers. That's right. So that's another key flaw in this continued argument from Ross PRODUCT that it's more than a tech company.It's a car company. And car companies are highly capital intensive and low margin. Tesla's operating margins are now below VYD, below Toyota, below Ford ORG, below up, basically everyone else, and about to move lower. So Tesla ORG's a car company. They don't have any technological advantage.Their 4680 PRODUCT batteries have lower density than the prior iteration. They buy batteries from CATL, Panasonic, and LG, and their FSD PRODUCT is anything but. They rank last on...

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That's it, Gordon, if you bought Tesla stock five years ago... So this is a company that's not a tech company. It's a car company. And they're being valued as such. And I think Adam Jonas PERSON is coming around. But if you look at Adam Jonas' PERSON valuation,he gives Tesla $100 billion for Dojo PRODUCT, which doesn't even appear in their 10Qs or 10Ks PRODUCT.

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He's giving the value of this valuation. But they're not even in. But I also want to get your perspective then on the value of Toyota ORG because what he's basically saying is that the fact that Toyota has a solid, it may be boring, but a solid performing vehicle and the hybrid seems to be the way that consumers are going, that this is what gives it real power in outstripping Tesla Ross PRODUCT.

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Consumers are not going to hybrids. Hybrids are an option for consumers that I think are a good option for many consumers, especially if you're price conscious and you're okay driving a Prius PRODUCT or Corolla. But many of the young people today want to drive cool cars that have some value. You don't have to be rich to afford a $40,000 car. So I don't know where Gordon lives, but where I live in Santa Monica GPE, there's a diverse community of people, and they all choose Tesla ORG's if they can afford them.And that is one of the issues Tesla ORG's dealing with is lowering the prices to try to bring in more consumers. But that said, you're talking about a car company, you know, Toyota ORG, and you're talking about a tech company that makes cars because Toyota ORG doesn't have any robot plans, does it? It hasn't rolled out any robot plans recently. So what we're really talking about here is why isn't Tesla ORG executing as well as it should, but it has nothing to do with what consumers want. They want EVs. They want the best cars on the road. They're the cheapest,most efficient cars to run over time. And Tesla ORG's batteries have been phenomenally performing, Gordon. They last forever. You can keep a Tesla ORG forever. Okay? So we have Tesla's on the road forever. So we haven't gotten there yet.

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The only reason Tesla is up because Japan GPE is doing well right now.

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That's it.

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Ross, consumer reports, J.D. Power, what car in Europe all ranked Tesla ORG last or close to last in reliability?

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So when you say they're the best, the experts disagree with you.

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That's not true.

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That's just not true. Tesla cars drive perfectly fine as well as any car. Now, Toyota ORG makes reliable cars.

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Ross, you keep cutting me off. Let me make the point on valuation. So you've had hundreds of car companies emerge as a result of free money policies from the Fed ORG.

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In 2020 to 2022, if you said you were an electric vehicle company, you were given billions of dollars. There is too much supply. This isn't just a Tesla ORG issue. This is a car writ large issue. There's too many car companies right now, and thus you're going to have a price war. So with respect to valuation, I think margins are going to get competed lower. I think not only Tesla ORG's going to suffer, keep in mind, Tesla trading

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at 56 times forward earnings for six to seven times. I think that's a fair point. A lot more downside for federal. I think that's a fair point. Okay, guys, I'm going to leave it there. It reminds me back of my days on MSNBC going at it at politics. We're on primary time. That's a lot of fun.Gordon, Ross PRODUCT. Thank you, gentlemen.

Speaker 01655.8s - 1687.96s

Coming up, Bitcoin bounces back. It may now be getting its strongest bullish signal yet. Plus, where a quiet meme stock rally looks to be underway. We haven't seen quiet yet in this show. We'll see it next. Well, Bitcoin has been having a bumpy last few days.

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Today it's up and back above 70,000.

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But as you can see last week, Bitcoin was trading much lower, sliding as low as 60,000 at one point. In stark contrast, while Bitcoin is up, Bitcoin ETFs hit a record in outflows. Last week, the 10 Bitcoin ETF saw $888 million in total outflows. That's about 94% of total crypto fund flows, according to Bloomberg ORG. Where's the disconnect? Let's bring in CNBC's McKenzie Sagalos PERSON.Why are we seeing Bitcoin rise and everybody ditching ETFs?

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So this is definitely a gray scale problem. We've seen these record outflows in the last two weeks in GBT ORG, and a lot of that had to do the bankruptcy proceedings of Genesis ORG. As part of that,both Genesis ORG and Gemini liquidated about $2.9 billion worth of their GPTC ORG stake. Part of that's just shoring up the cash to pay back creditors. But even before that, Contessa PERSON,we just saw gray scale really struggle with flows because their fees are so much higher. We're talking 1.5% versus 0.3%. That's the next biggest fee here. Now, collectively speaking, we are still looking at $52 billion of assets under management across all the funds. So it's still a promising space, but Grayscale ORG has been

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struggling. All right, let's turn to an update now on another crypto-related story that we brought you a couple weeks ago. Two Binance executives held in Nigerian NORP custody. The country was investigating the platform for wrecking its local currency. And now one of those executives has escaped. Nigeria has filed charges of tax evasion against finance and those two executives. A finance spokesperson said it's been made aware that one of the executives is no longer in Nigerian NORP custody.Well, we just said that. What do we know about this?

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So this is a wild story. We've got Nadim PERSON now. He's a UK and Kenyan NORP national. He's, I mean, he's out there. And so it sounds somewhere.

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Yeah, somewhere. And it looks like the Nigerian NORP government's trying to work with Interpol ORG to track him down. Meanwhile, you've got Tigran PERSON, who is still in custody right now. This is an American citizen who actually worked for the IRS as a special agent for 10 years before he went to work for Binance ORG. It's unclear what's going to happen in terms of next steps, because when you think about it, Contessa, I mean, the American government just settled with Binance for $4.3 billion.They're also holding a Binance executive in the U.S. GPE until he faces his own sentencing. So, I mean, it's a complicated dynamic, but what doesn't look good is that Binance ORG is not paying its taxes in multiple jurisdictions. So a lot of countries now taking issue with the exchange.

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Mackenzie Sagalos PERSON, thank you for joining us on that. All right. Meanwhile, as Bitcoin is rallying, so are some mean favorite names. Take a look at Reddit, GameStop, Super Micro, and Robin Hood PERSON, all seeing significant gains today. Reddit alone closing up 30%. Look at this. This is crazy. 15% higher for GameStop. We mentioned earlier in this show, well, I said DWAC ORG, and then my guess called it DWAC, but it soared 35% before Donald Trump's social media company begins trading tomorrow under DJT ORG.It's popping even further after hours up 8.65%. Joining me now is Sirrat Sati, DCLA managing partner and portfolio manager and CNBC ORG contributor. Surat PERSON, it's good to see you. Tell me what's happening here. Is this like a little meme pocket that's rallying amid the

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broader rally? It is. And you know, you can add other stocks like Carvana ORG in there, too, that were almost taken for debt just a few months ago. A lot of this is option activity. I mean, you can buy options on these stocks for pennies and the leverage on these on the upside. And it is great, but you can also see it on the downside. So it is the pocket, but it's interesting. As the market's rallying and you're getting a broader-based rally, you know, the Mag 7 are not rallying. So investors are, I would call retail speculators are now finding other pockets, popping up stocks with volume. We saw this back during the COVID phase. And it's going to be interestingto see how this all ends because, you know, it's the greater fool theory, right? Who's going to be the last one holding the bag? These are not fundamental companies. Most of them are not even making money at this point. So the question is when you do get a pullback in the market and you haven't really seen one,we haven't seen one of these one or two percent days on the down. These stocks are going to have a huge beta. And what I mean by that is they're not just going to go down one or two percent. They could go down, you know, double digits at

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that point. We saw SPACs go through a period where they just sputtered. We've got tomorrow DJT coming out and the SPAC there. Do you think this is a stock that the memes keep powering it higher?

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I do. I mean, I wouldn't get in the way of if you were trying to short any of this. This is total momentum, speculative momentum, as best as it gets. And it can push the stock. But remember, when somebody pulls the money away, this thing could fall really fast, too. It's a roller coaster, and it's a pretty volatile roller coaster.So not trading on fundamentals, not trading on cash flow. So for a long-term investor, very hard to get your arms around. But for short-term, the charts kind of show these things are going up, but they could

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change at any moment. Sirot, good to see you on this Monday night. Thank you for that.

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Straight ahead. Coming out, swinging baseball megastar, showie Atani PERSON, speaks out on the scandal gripping sports. Where is this headed? After all this.

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I think for everyone, there's that secret sauce, and I think everyone has their own superpower. You are enough. You don't have to be perfect, and you don't have to fulfill a certain mold. I have to say today, I really think a lot about the younger people, like my daughter, Faith PERSON, and so many of her friends who are taking on the world in a brand new way. I find them incredibly inspiring.We have a bonus TNT ORG for you.

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Baseball superstar Shoe Yatani has been embroiled in a scandal over his translator, Ipe Mizzohara's alleged gambling addiction, and millions of dollars missing. He spoke to the media just a short time ago to try and clear the air, and he placed blame for all of this squarely on his interpreter.

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I never bet on baseball or any other sports, and I've never asked somebody to do it on my behalf.

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In conclusion, IPE has been stealing money from my account and has told lies.

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Of course, this is the MLB's biggest star. He signed a monster 10-year, $700 million contract with the LA Dodgers ORG.

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Join me now, senior reporter at Front Office Sports, Michael McCarthy PERSON.

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Okay, so here you've got, I think probably the highest paid athlete in U.S. GPE history. And he says this guy who spends all this time with him, who's like basically his shadow, has taken money from him and he did not know it. Does this clear the air for you? Do you, does this put to bed any suspicions that you had about Otani's involvement himself, Mike?

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It does not, Contessa PERSON. I still have way more questions than answers. I mean, you're telling me this guy got access to his account and stole four and a half million dollars and he didn't know about it. I mean, if my daughter orders postmates at college, I know about it. And this guy's clueless about five transfers. It beggars belief.Now, I hope he's telling the truth because if he is telling the truth and he sure seems sincere today, he's probably in the clear. But if he's not, boy, Contessa, he's sure open him up to a lot of problems for both MLB and the Internal Revenue Service ORG.

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Okay. And those investigations are going on right now.

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That's right. The Dodgers ORG are looking into it. I will point out, look, Bernie Madoff PERSON was able to make off with a lot of people's much more than $4.5 million without people knowing it.

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So it does happen that people are stolen from and they don't realize it's happening, especially from those that they trust implicitly. What's next for MLB ORG? How bad could this get?

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Well, they have to figure out if he violated something called Rule 21 LAW, which is a very prominent rule that's in every clubhouse contessa where it says you cannot associate with illegal bookmakers. Now, Mitsuhara's bookie was an illegal Tony Soprano type down in Southern California LOC. The first thing they're going to look at is if O'Hatani PERSON had any connection to him. If he did have connections to him, then he's got some serious problems.

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And he's reportedly cooperating with authorities. He says he's completely cooperating with authorities.

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Yes, he is. Okay, I want to turn you from this because this is ongoing and we're going to get

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results down the road. I want to talk March Madness EVENT. The ratings are coming in. They're impressive.

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Do you think what we're seeing in terms of the nationwide rollout of legalized sports betting is driving some of these engagement and viewership numbers?

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No doubt, Contessa PERSON.

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March Madness has become the second biggest gambling event of the year, behind only the Super Bowl EVENT.

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This year we're going to wager $15.5 billion on these games. And the message to everybody is fill out a bracket and bet. That's the only way to enjoy March Madness EVENT. So there's no doubt I think that gambling is playing a big role in March Madness's TV viewership, just like it did with the NFL ORG.

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And tomorrow night, we're going to talk a little bit about that social betting and how that's driving the future for investors. Thank you very much, Mike. Appreciate your time tonight. Let's get to quicker than the ticker, all the rest of the headlines. Let's put 60 seconds on the clock. Florida GPE Governor Ron DeSantis signing a new law limiting social media access for kids younger than 16. They'd have to haveparents' permission. But for those 13 and younger, it's an outright ban on certain social platforms, though it's not clear which ones. Nissan is planning to launch 16 new electric vehicles in the next three years. And by 2030, the company aims to reduce the cost of EV production by a third. Joni Mitchell's PERSON comeback. The singers putting her music back on Spotify following Neil Young's PERSON lead. Mitchell had yanked her music to protest at the time, Spotify ORG, giving voice to what she called COVID-Lies.Chick-fil-A will resume using antibiotics in chicken. The company originally went antibiotic-free in 2014. Now it's promising not to use antibiotics important to human medicine. Warmer weather and more demand is hitting Canada's maple syrup reserve, hitting a 16-year low. It accounts for 75% of the world's maple syrup production. Saudi Arabia GPE will become home to the first ever Dragon Ball Z theme park. It's a hugely popular Japanese NORP anime show.Ooh, that's 60 seconds. All right, coming up, make it Mondays. We meet the CEO behind Relativity Space, a Mark Cuban-backed aerospace company shaping up to be one of SpaceX ORG's top competitors. That's next. Welcome back. It's time now for our Make-It Mondays, and tonight we have a special one. We meet Tim Ellis, the CEO and co-founder of Relativity Space ORG. It's a $4.2 billion aerospace company building reusable 3D- rockets. Relativity Space also appeared on CNBC's Disruptor 50 list the past three years. The list highlightsprivate companies seizing the biggest market opportunities. Let's take a look at an interview he did with our Make It WORK_OF_ART team while building his first 3D printed rocket. Hi, I'm Tim Ellis, CEO and co-founder, Relativity Space ORG. I was the youngest ever. building his first 3D printed rocket.

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Hi, I'm Tim Ellis, CEO and co-founder, Relativity Space ORG. I was the youngest ever intern at Blue Origin. I did the first ever metal 3D printing at Blue Origin throughout these internships. I bought the first metal 3D printer and started taking off the 3D printing division. Right after leaving, I was committed enough to trying to 3D printer rocket. No one had ever 3D printed very large-scale aluminum structures with the robot arm before. And so it was really uncharted territory. Instead of having these big fixed tooling-based factories, bending sheet metal,or machining out these complex grid patterns on the inside of the structure, we're just going to print them in. And in fact, the lighter weight we make our rockets, the faster it is to print and cheaper it is to build. I'd heard from one friend at USC that Mark Cuban PERSON actually responds to cold emails. And I laid out from Plano, worked at Blue Origin, joined North at SpaceX. ORG Here's what our experience is. And then five minutes later, he said, well, what do you want from me?We're raising half a million dollars for our seed round. He replied back, you know what, I'll actually do the entire thing. I'll give you the full half a million dollars. We sell space on our rockets for people to put their satellites, and the business model is launching things to orbit. Same as what SpaceX ORG does and other private launch companies. And sowe have a launch site at Cape Canaveral. We also have one at Vanderberg Air Force Space FAC. In many ways, relativity is a playground for me to continue to learn from. And the more great people we bring on to the team, then you just learn even more, because now you have some of the world's best people to learn from.

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Well, since then, Relativity Space successfully launched the Tehran One PRODUCT rocket exactly one year ago this month. That rocket reached space, but did not reach orbit. Well, now Tim PERSON and his team are developing a brand new, larger, reusable rocket called the Turan R. And it's partially 3D printed and will carry a larger payload than Space X's Falcon 9 PRODUCT. Let's bring in Tim Ellis PERSON now.Tim PERSON, thank you for joining us on last call. When will that rocket try to lift off?

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Yeah, so great to be with you, Condessa PERSON. Terran R PRODUCT, which is a medium toto-heavy-lift, reusable rocket, building on top of our first launch to space of Terran 1 PRODUCT, is launching in 2026. So it is a 3.3 million-pound thrust rocket, about 40% larger than SpaceX's Falcon 9 PRODUCT,which is the largest commercial rocket currently flying and the most successful commercial rocket, currently flying telecom satellites, their commercial companies as well as governments globally. So really, the clear need is there to be a second quickly moving and disruptive launch company that is not just SpaceX.While they've been phenomenally successful, we really think and why I founded relativity was because 3D printing was a key technology that will help us iterate much faster and build a product that is competitive

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with what they're building today. Is the business still really about putting satellites into outer space?

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Yes, it really is. So we have sold $1.8 billion of rocket launches to date for Taryn R. PRODUCT This is across nine different customers, including some of the largest satellite telecom companies in the world. In almost every case, we're the second private company they have signed with, the first being SpaceX. So it really is the satellite industry looking for a diversified player. SpaceX ORG is now building their own satellite constellation called Starlink PRODUCT, which has been very successful. But there is a clear need in launch because there's a global shortage of launch

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capacity. There's far more demand than there is supply of rocket launches globally. This is really exacerbated by SpaceX building Starlink. But also companies like Amazon ORG, which are investing

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in their own satellite connectivity as well. Tim, I know you want to get to Mars LOC. When do you think that might happen?

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So we actually have a partnership with the co-founder and CTO of SpaceX, Tom Mueller PERSON, to launch the first privately funded mission to Mars LOC. We have exclusivity with this company, Impulse Space, through 2029. So we'll have our first launch attempt window in 26, and then a second one in 2029. So we are working to actually land a privately funded mission on Mars this decade. Your parents must be very proud of all

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that you have accomplished. Thank you so much, Tim PERSON, for bringing us a little bit of your story.

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Yeah, thank you for having you. Well, from rockets to rocket man, do you know what happened

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77 years ago? A rocket man was born. Elton John PERSON, March 25th, 1947, that's his birthday. Over the course of an illustrious career, Elton John put out 31 studio albums, five live albums, and 10 soundtracks with collaborations with artists

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in nearly every genre. His impact on the music industry, of course, is immeasurable. He just wrapped up his farewell tour, Yellow Brick Road, and is estimated to have brought in more than $900 million, the first tour ever to do so. So we say, well, I think it's going to be a long, long time, or something like that. Happy birthday, Sir Elton, and happy retirement. That's last call for tonight. Shark Tank WORK_OF_ART is next.Remember the Ty Cabe Rescue EVENT?

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What about the mission depicted in Black Hawk Down or the epic rescue shown in Captain Phillips WORK_OF_ART? You've probably heard of all of these. But did you know that the U.S. Air Force Special Warfare played a pivotal role in all of them? These airmen are the most highly trained warriors on the planet.Other forces like the Seals and Army Rangers call on them to provide skills no one else can. Not many people make the cut. If you think you can, visit air force.com to ORG learn more.