:00:00. > :00:00.The breakthrough could help eradicate inherited diseases,
:00:00. > :00:08.but critics fear it could lead to the creation
:00:09. > :00:16.And now it is time to join Sally Bundock for World Business Report.
:00:17. > :00:20.Sales surge at Tesla, but can it stay number one
:00:21. > :00:26.in electric cars as rivals plug into the business?
:00:27. > :00:28.Plus hard labour for Nissan as workers in Mississippi vote
:00:29. > :00:42.on the right to form a union after a 14-year battle.
:00:43. > :00:47.Welcome to World Business Report. I'm Sally Bundock. It is good to
:00:48. > :00:49.have you with us. the Dow closes above 22,000
:00:50. > :00:52.for the first time. We'll get the latest
:00:53. > :00:54.from the Asian markets. We start in California
:00:55. > :00:58.with electric car maker, Investors have been taking a huge
:00:59. > :01:05.gamble on the company, betting it's the future
:01:06. > :01:07.of the car industry, and pushing its share
:01:08. > :01:09.price ever higher. Late last night, we got
:01:10. > :01:12.its latest set of results, In the three months to the end
:01:13. > :01:19.of June it made revenues That's well over double what it made
:01:20. > :01:24.in the same period last year, and way more than Wall
:01:25. > :01:26.Street was expecting. It's still losing money,
:01:27. > :01:28.though, over $336 million But it wasn't as much
:01:29. > :01:38.as investors feared. Some were worried about the speed
:01:39. > :01:41.Tesla is burning through its cash pile as it builds its position
:01:42. > :01:44.in the car market, Tesla says it delivered almost
:01:45. > :01:49.26,000 vehicles over the period, a big jump of 40% on
:01:50. > :01:52.this time last year. And that number could
:01:53. > :01:54.soon be a lot higher. it's the company's first real
:01:55. > :02:02.mass market vehicle. It has taken around half a million
:02:03. > :02:06.orders and the first cars Tesla hopes the Model
:02:07. > :02:09.three will keep it here at the top of the
:02:10. > :02:11.electric car industry. But two Chinese rivals
:02:12. > :02:14.are already in the top five, Plus the German car giants
:02:15. > :02:19.are investing heavily as they try to put
:02:20. > :02:32."Dieselgate" behind them. One other very interesting fact,
:02:33. > :02:35.how the design of these cars The Tesla Model three has
:02:36. > :02:44.less than 7,000 parts. That makes it simpler to build
:02:45. > :02:49.and less likely to suffer When he spoke to the BBC last year,
:02:50. > :02:53.Tesla boss Elon Musk predicted his company would
:02:54. > :03:03.transform the world of transport. I think all transport, with the
:03:04. > :03:09.exception of rockets, will go fully electric. That's why I see the value
:03:10. > :03:27.of Tesla as an accelerant, as a catalyst in that transition. I think
:03:28. > :03:30.Tesla, maybe, when one looks back on it from a historical perspective, it
:03:31. > :03:33.might accelerate that transition by a decade, maybe more.
:03:34. > :03:42.I say he has cast a spell over Wall Street and investors. They were
:03:43. > :03:46.bigger than Ford and GE at one point, but when you look at the
:03:47. > :03:51.numbers, it is incredible. These numbers that came out overnight show
:03:52. > :03:58.us they run the right track. That is right. There has been doubts in
:03:59. > :04:05.terms of delivery which has delayed things in past years. And now, Model
:04:06. > :04:10.three, the first handover was last week, they want to encourage
:04:11. > :04:16.investors they are on the right track. They are hoping to be making
:04:17. > :04:24.25% gross margin next year. He is setting up the more expensive third
:04:25. > :04:30.models first. Then he wants to increase production. There seems to
:04:31. > :04:35.be real momentum behind the electric car story. Governments are changing
:04:36. > :04:41.policy. There is appetite for the cars in the market. Then there is
:04:42. > :04:44.infrastructure. In terms of that speed, of how this is moving and
:04:45. > :04:51.changing the industry, what are your thoughts? Last week, the UK said
:04:52. > :04:57.they want all cars to be electrified by 2040, not only electric, but
:04:58. > :05:03.hybrid. France said the same thing. Germany were discussing it yesterday
:05:04. > :05:07.as well. We are going to see a big roll out in the next few years in
:05:08. > :05:18.terms of every brand, German premiums, the big rivals to Tesla,
:05:19. > :05:26.and we won't see them in 2019 in the UK. We have the Audi Quatro,
:05:27. > :05:33.carmakers people inherently trust. At that point, Tesla will have more
:05:34. > :05:37.competition than it has now. In terms of the outlook for Tesla, but
:05:38. > :05:42.also in terms of the outlook or the car industry, what is your thinking?
:05:43. > :05:49.Tesla is definitely pushing the mass-market model now, which he has
:05:50. > :05:54.to. Most admire it, but we cannot afford it. Tesla has been a
:05:55. > :05:57.disruptor of this industry. Many people had not even heard of
:05:58. > :06:04.electric cars when they came out. It has raised the game for the whole
:06:05. > :06:09.electric car industry. And now we have to look at battery is. Most
:06:10. > :06:15.cars in the next two years have a 310 mile range. Most people could
:06:16. > :06:19.live with that. Some on the market today only have 100 miles as a
:06:20. > :06:23.range. That makes people anxious they cannot get to where they want
:06:24. > :06:30.to go. Infrastructure is the other thing is that the UK have recently
:06:31. > :06:36.announced big announcements in infrastructure to aid in that cause.
:06:37. > :06:38.Thank you. There is more on line. You can find the whole interview as
:06:39. > :06:40.well. We are also in Canton Mississippi,
:06:41. > :06:43.where workers at Nissan's factory vote today and tomorrow
:06:44. > :06:46.on the right to form a union. Ahead of the deadline,
:06:47. > :06:48.tensions have escalated with the union describing it as "one
:06:49. > :06:51.of the nastiest anti-union fights" Michelle Fleury reports
:06:52. > :07:06.from Canton, Mississippi. They have launched this antiunion
:07:07. > :07:14.campaign. We have done our research on the UAW. We are at a plant where
:07:15. > :07:22.we have to struggle and fight just to have the right to vote. The fight
:07:23. > :07:30.to form a union at a Nissan factory in Canton, Mississippi. We are
:07:31. > :07:36.fighting for the rights to rely on each other. For 14 years, workers at
:07:37. > :07:42.this plant in Canton, Mississippi, have an engaged in a battle with
:07:43. > :07:46.management for the right to have a union. Mississippi has typically
:07:47. > :07:54.been resistant to letting in unions. This time, workers here are hopeful
:07:55. > :08:02.they have a chance. I want a plan. I want health and safety. Equal
:08:03. > :08:09.opportunity. I got hurt and I have been dealing without the whole time.
:08:10. > :08:14.So, it has been a rough process. I think the union would stand up for
:08:15. > :08:19.us. Not everyone wants the union. The best thing that has happened for
:08:20. > :08:25.this state. We are campaigning hard to keep the UAW out of our plant. We
:08:26. > :08:33.don't need anyone to tell us how to do things. Nissan has posted
:08:34. > :08:41.antiunion images inside the company, putting them in trouble with the
:08:42. > :08:46.board. They say voters have the right to know the company's
:08:47. > :08:49.prospective. For those that remember first-hand the South's troubled
:08:50. > :08:54.past, it is not just work rights, it is civil rights. If you went to
:08:55. > :09:01.register to vote, someone might come out of their house wearing a hood.
:09:02. > :09:05.Now they don't do that, but they come by and say we are going to
:09:06. > :09:12.close the union, we are going to close the plant. Vote yes! The union
:09:13. > :09:18.wants to turn past failure in the success. Victory here may spark the
:09:19. > :09:21.US labour movement across the south. Michelle Fleury, BBC News, Canton,
:09:22. > :09:27.Mississippi. Let's talk about the financial
:09:28. > :09:32.markets now. The Dow Jones Industrial Average
:09:33. > :09:35.closed above 22,000 points for the first time in its 121
:09:36. > :09:38.year history on Wednesday. So has that euphoria
:09:39. > :09:45.continued in Asian trading? Sharanjit Leyl is there for us. Tell
:09:46. > :09:52.us about the euphoria in Asia. That is correct. Not much euphoria here.
:09:53. > :09:56.Asian markets are going in the reverse direction to Wall Street,
:09:57. > :10:00.actually falling. Only because they have been surging to their highest
:10:01. > :10:06.levels in recent days. The highest levels in a decade, actually. There
:10:07. > :10:09.has been profit-taking as a result. South Korean shares saw their
:10:10. > :10:15.biggest fall since November, with Samsung Electronics wiping out any
:10:16. > :10:21.gains this week. It has not helped that the president of South Korea is
:10:22. > :10:26.planning to raise taxes on big corporations. The US dollar is
:10:27. > :10:30.holding at two year lows. That is actually after the Federal Reserve
:10:31. > :10:38.expressed caution about interest rates. Believe it or not, Apple have
:10:39. > :10:43.had stellar results but are now having the reverse effects. Asian
:10:44. > :10:50.suppliers have succumbed to profit-taking today. OK. It has to
:10:51. > :10:55.happen eventually. Thank you, Sharanjit Leyl. It was good to see
:10:56. > :10:56.you. That was Asia Business Report. We will see you