Skyler shows Walt Jr. his sixteenth-birthday present, a PT Cruiser, but he's quietly disappointed. He goes to his dad's and Walt, recovering from his fight, lies about his injuries, saying they came about because he was gambling again; he breaks down, confiding to his son: "I made a mistake. It's my own fault." Skyler has Saul concoct a story about an inheritance to give Ted enough money to pay off his back taxes, but Saul follows up and finds that Ted immediately spent some of it on leasing a new Mercedes. She urges Ted to pay the IRS, but he refuses; Skyler finally tells him that she gave him the money. Jesse, Mike and Gus fly to the cartel's meth lab in Mexico where Jesse acts tough in front of the cartel's condescending chemist and Jesse's replication of Walt's formula results in an impressively 96.2% pure product; however, Jesse is then informed that he now belongs to the cartel. When Jesse, Mike, and Gus go to Don Eladio's estate to celebrate their alliance at a party with all of Don Eladio's capos present, Gus gives Don Eladio a rare, but poisoned, tequila. All but Mike and Jesse drink a glass, but Gus has previously taken an antidote. He goes to the bathroom soon after drinking, forcing himself to vomit it up as, poolside, Don Eladio and his men begin to die. During the trio's escape under fire from the estate, Tio's grandson Joaquin shoots Mike. Jesse kills him and drives away with Mike and Gus, who is still mortally ill despite his precautions.