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tv   Bloomberg Technology  Bloomberg  July 3, 2019 11:00pm-12:00am EDT

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caroline: i am caroline hyde, in for emily chang. this is "bloomberg technology." coming up in the next hour, closing in on a deal, t-mobile on the cusp of securing a deal from the u.s. justice department for a merger with sprint. will this merger advance the introduction of 5g? and a bloomberg scoop. broadcom seeking to expand into the profitable software business with a possible symantec acquisition.
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and what a first half for tech ipo's. nasdaq announcing 97 initial offerings raising over $17 billion in six months. can it be sustained? we ask a nasdaq exec. first, to our lead and another turn in the sprint-t-mobile deal. the u.s. justice department is on the verge of approving a merger. dish could become a strong competitor in the u.s. wireless market. let's bring in our reporter. you broke it. congratulations. how close are we? it has been a long time coming. reporter: this is a happy turn of events for investors. shares are getting very close. they are being told there are a couple issues remaining but not insurmountable. our sources say the board of
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deutsche telecom, which owns t-mobile, met yesterday to discuss the package that is being discussed at the boj as these other remedies that will help the doj approved the deal. caroline: remind us who they are. nabila: they are selling three prepaid brands as there will be -- spectrum as well. they are talking about how dish gets customers across to their network and there will be arrangement where they share the network and spectrum. caroline: this is what regulators have been grappling with, worrying about. but this alleviates that element. it is perhaps not just the department of justice that is having issue with this. not just regulators, it is the states themselves. some of them have filed lawsuits. nabila: 13 states and the district of colombia are against this deal. they are worried he will be bad for consumers and raise prices, taking away one of the players from the market at face value, never a good thing for consumers. but if the doj and the fcc both approve this, it makes the case
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weaker because they have to argue to the court why they are not going along with the governing bodies whose job it is to assess competition and continued protection. caroline: we wait with bated breath. there i am sure will be to break the details. now let's talk about another bloomberg scoop. on wednesday shares of symantec soared after broadcom announced talks to buy them. there was a value of $13.7 billion and this could be an expansion into the more profitable software business. symantec would make perfect fit for the broadcom portfolio. i want to first go out to you, because talk to us about why this is a perfect fit. >> thank you for having me on the show. i think symantec at the initial stage passes the smell test for broadcom.
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broadcom has 52% operating market, so for them to consider acquisition, it has to be immensely profitable. there are not a lot of companies that can reach or have the potential to reach 60% plus i would say would be the threshold for them to look at acquisition. the last deal they did which was to be the associate -- performing extremely well and when we look at something like symantec, it has shares similar to ca in terms of the two businesses, one already 50% operating margin and another possibility of 60%. and the other they could drop into this platform and strip it of costs, mostly marketing and sales costs to drive operating margins were there. -- further. from that angle it could be an immensely profitable profitable deal and extension of the portfolio they have with ca. caroline: we have been waiting for years for what they would work out to go after ca and after qualcomm fell away.
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what makes symantec vulnerable to being bought out? >> there has been a lot of drama at symantec. their ceo has been ousted a few months ago. there had been an accounting investigation and star board came on the scene and was pressuring the company and they got a few board seats. it really is a vulnerable time for symantec for a takeover. caroline: we were talking about a t-mobile-sprint deal and regulatory issues, are there going to be problems with this deal considering broadcom in the past wasn't able to get past qualcomm? liana: before they went after qualcomm, they had a singapore headquarters. they are now totally in the u.s. to alleviate that issue. but cybersecurity is a national security concern and symantec does do work for the u.s. government. the review is definitely something investors will be
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watching to see how it goes. there could also be an e.u. review. no slam dunk for any large deal where there is a national security element. caroline: putting regularly -- regulatory concerns to one side you have spelled out why this might be a perfect fit. interestingly, other analysts are questioning management's strategic direction here. do you think it is the right direction to be going focused in cybersecurity? we have seen other players do it but how does it fit with the chip space? harsh: i think broadcom is focused similarly on capital returns to the shareholders, driving profitability. understand, this is a company that was on the cusp of 50% operating margin, a region no other company approached in the semiconductor land. with the ca deal, they were able to push it closer. now running about 52%.
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so for them to be able to expand and build on that, they need something outside of hardware, something outside of semiconductors. typically software companies have extremely high growth margins and spend a lot of money acquiring new clients. the strategy with ca revolved around what i would call dig deep and all-you-can-eat strategy. dig deep with clients. don't worry about getting new clients. in sears' case, there was $100 billion of acquisitions per year. that cost went away. with symantec it would be easy to go back to the same clients with a bigger portfolio and thus drive profitability. that is why we think it is a perfect fit. caroline: interesting. caroline: we have seen shares of symantec, up closing 14% higher. what sort of premium to you envisage? because this is a company that has been under some duress. there could be a
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bidding war? could it go higher. harsh: it is possible other people could come in. i am not an expert on m&a or by any means investing -- investment banking aspects, but there is certainly a little premium of current prices would still work as far as broadcom's ability to take it and generate the kind of returns, especially given success with software in the past. caroline: interestingly both of these companies have private equity background and history. pe in any way be involved with this? liana: symantec's board has representatives from bain and silver lake. they will definitely have to be involved somehow, their major shareholders in the company. broadcom was built up through private equity roots, worked originally with silver lake and other firms. private equity does weigh heavy here, but at this point we don't know exactly the structure of the deal and how it will participate. caroline: we will wait you to break that next.
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liana baker, harsh, we thank you. coming up, the eu continues to crack down on tech companies because of antitrust issues. this time it is cracking down after facebook. we bring you the latest next. if you like bloomberg news, check us out on the radio and bloomberg app, bloomberg.com and sirius xm. this is bloomberg. ♪
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caroline: facebook is the latest tech company to come under e.u. scrutiny. they sent questioners about a range of practices as they seek to determine whether the social network uses its size to squeak -- squeeze out competition. officials are also looking at
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the sales platform and how it uses shares data from apps. the company will respond next week. the e.u. is also looking at amazon collects data from retailers and have previously fined google. to discuss we are joined by david kirkpatrick and max chafkin joining us. max, i will start with you. does facebook have something to worry about? have companies, competitors voiced this as a concern? max: at the end of last year there were internal emails that were made public that were read by some to imply facebook was cutting rivals out of its platform, other social networks such as vine, the twitter-owned video network, which kind of reminds you of allegations levied against microsoft in the late 1990's where the allegation was microsoft had the dominant
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platform, internet explorer, and it was forcing it on to people's computers. problem and it does play into a larger narrative of tech power. caroline: something you know all too well. we have heard facebook particularly saying bring on regulations to a certain extent. their tactic has been to go out and say gdpr, it has been a good way of means of regulating us. how will they react to this sort of anticompetitive regulation? david: he may say he wants it but not antitrust review wants help with the speech controls and that sort of thing, privacy advice from the e.u. which he claims has been beneficial. but i think the kind of thing you were talking about with max and this new investigation, is potentially very problematic for the company. partly because we see in so many instances that they didn't
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really have the control or the internal behavior to get through these deeper scrutiny situations without malfeasance being discovered. so the chances that there might be something there is reasonable but the other reason it is problematic is that everybody uses facebook for marketing. any company, you can't not use it if you have a consumer product. it is pretty much necessary, and that includes digital products, many of which might be seen as competing with facebook. it is certainly easy to imagine that companies that facebook perceives as potential competitors have used facebook in order to advance their own cause. and facebook had data about them it just gets from operating the platform that they could quite possibly have used against potential competitors. in the case of vine there was reason to think from mark zuckerberg emails that that had happened. caroline: you talk to the wider theme here.
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interestingly what is coming from capital hill is the call to split up these companies, particularly from 2020 presidential hopefuls like elizabeth warren. margaret of the e.u. said she doesn't think splitting this company up is the right way forward, but how do you envision this, the e.u. debating this company? max: it is hard to imagine splitting up facebook. the u.s. and regulators around the world kind of had a crack at this when facebook bought instagram. it is a little strange to say we are going to turn back the clock and change things. i think it is more likely to be regulations around data usage and sort of fair access to data, that sort of thing, or just big, fat fines. the thing about both of those outcomes is neither of them necessarily hurts facebook that badly. it is such a dominant platform that if regulators are paying
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-- picking away at their business business at the margin it doesn't do much damage. caroline: what does a $5 billion fine get your when they bring in billions per quarter? david, your perspective on how facebook continues to evolve and take on regulatory scrutiny. are they starting to seeming to handle it in the right way? david: they have made enormous progress in the challenges they face. i was in aspen and heard zuckerberg give a speech that was more contrite than some. one in which he does acknowledge a lot of things that they are doing differently and need to do differently than they have in the past. i often wonder why they let things get so out of control in the past. but certainly they are moving slowly in the right direction but they have some structural problems that will make it hard. the very nature of their ad model and the way it demands our attention and we are targeted, it tends to encourage the use of content that is very incendiary.
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and they are constantly going to be fighting against that particular problem. caroline: what about, max, of course regulators have been focused on announcement of the so-called cryptocurrency libra even though it is not until 2020? do we see the regulatory negative -- narrative continuing, and are you seeing a way in which the company can navigate this, successfully remaining whole in all its forms? max: the real risk to facebook is less regulatory and more about brand risk. people forget because it has been the subject of more negative headlines the last couple of years but facebook has a wonderful brand. most people really like it. it has this amazing founder story. mark zuckerberg, for all the criticism, is still a relatively popular guy. the risk for them is you go through a couple of years of
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this and it turns into a steady drumbeat of negative criticism. people around the world stop seeing facebook as their friend. in the long run that will hurt the company because they will lose users. to date, that has not happened yet. if i were sitting in their shoes, that is what i would be most worried about. max: -- yvonne: i would -- david: i would disagree because i think with educated users it has happened good people have been affected by the endless coverage of facebook mistakes and serious problems we have heard the last couple years, particularly since the election of donald trump. in the real key markets where they are growing around the world, developing countries, india, south africa, brazil, it isn't a factor really and there is still really just raking in the growth of those markets. the question of libra is very interesting. i think it is a very promising opportunity for them. we have heard about blockchain
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and bitcoin for a while. it is only because a big company is doing something that sounds like it might work that people are saying it is a threat to the global banking system. maybe they will be soft, but i think it is one of the smartest things they have done. caroline: david kirkpatrick and and max chafkin. tesla hitting a two-month high. record deliveries for the second quarter. how it is affecting the outlook from here. this is bloomberg. ♪
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caroline: tesla has set a new record for quarterly vehicle deliveries. on tuesday tesla announced they had handed out 95,000 vehicles in the second quarter, beating the average estimate of 88,000 units. this is due to accelerated shipments to europe and china and u.s. consumers rushing to buy model 3 sedans before the tax credit shrank in half. as ceo elon musk told employees last week the company was close
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to setting an all-time record. urging them to go all out in the last few days of june. joining us now is our trading analysts. only a $70 -- fears or are there seasonal factors? >> it puts a serious dent in concerns over model 3 demands. there was reason to people freak out assad first quarter numbers which were really ugly. excusesheard musk make about seasonality or the early part of the year is the worst time of year for car sales, which is true. also there was this issue of the tax incentives that you referred to. they actually also halved from december to january so there was this sort of rush effect in the fourth quarter. so you had this sort of big payback first quarter.
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obviously they have come back on the model 3. x,th the model s and model there is still concern. they are getting older, much more expensive and you may be seeing cannibalization going on. that is causing concern about profitability. caroline: he said every day the value of the brand is going down. do you still feel that when you see deliveries such as this? brad: i do. our research indicates that the quality and reliability issues have become a big problem. by the end of this year tesla will have one million cars on the road and that is without a service and -- network that is difficult to support that. we have seen everything from paint issues to cars being sold with 1000 miles on them and prior accidents. i really think that the real challenge is cannibalization.
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with the model 3 you get most of what you got with the model s for 60% less and that is the problem for they missed the mark with the model 3, and the company will keep earning cash unless the model s index rebounds. recent quarters it has been tracking down 45% year on year declines for the two models. caroline: what do you think of the next generation of models, the y, the likes of the suv? is that not going to be enough? brad: i think the focus is wrong. the focus should be on low-speed vehicles, also called neighborhood electric vehicles, allh are lower speed, electric cars, like the one which has a max speed of 25, 30 miles an hour but is a great neighborhood car, inexpensive. if we want to offset our carbon footprint for transportation as a country, what we need to do is
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use local cars that are electric that are more inexpensive. 80% of the trips taken in the u.s. are one person going less than three miles. driving suburban on that trip is like taking a 737 from san francisco to monterey, it is too much car and unnecessary. caroline: although people always love the luxury feel and the power of these cars. is it enough to make sure guidance holds up? it was interesting they didn't reiterate guidance. craig: that was something a lot the bears were seizing on. you had sort of this nightmarish first quarter deliveries number that was reported and even so they say we stand by the 360,000 to 400,000 forecast for the year. they left out any reaffirmation of that for this release. to get to that number they would need to average 100,000 units the next two quarters. that will be challenging for them to do and it would get them to the low-end of that guidance.
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there is still reason to be concerned about their ability to stand by that forecast. caroline: even though you think perhaps overall tesla should go more downmarket, cheaper vehicles, i am interested in your take of the executive leadership. there has been more trip of drip of people leaving. we understand europe and a key engineer is gone. is this a worry? craig: there has been a ton of turnover at all levels within the company and i think it is very alarming and brings questions to the overall continuity of the story. i think the investor messaging has changed a lot from 2012 when the company went public. it was all about the mainstream electric vehicle. now the model 3 is still a $48,000 average selling price car and far from the $35,000 level. i think the price, as it comes down, they will burn more cash. caroline: thank you for spending time with us.
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coming up, we will be talking tech ipo waveaq this year and what it means for momentum to continue. "bloomberg technology -- this is bloomberg. ♪
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caroline: this is "bloomberg technology." i caroline i am a caroline hyde in the for emily chang. in the first half of 2019, nasdaq welcomed several exchange traded offerings. joining us now in san francisco is the nasdaq head of western u.s. listings. jeff thomas. congratulations. l.is is a big hau you claim to have won 88% of vc-backed deals. how do you hope to continue this? >> it has been an incredible first half of the year.
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as you mentioned, we had 97 new members join the nasdaq emily. year. family this we have a great lineup for the second half. we will continue working with companies throughout all phases of their life cycle from the earliest stages through nasdaq private market, helping companies evaluate the right time to go public and providing great support to them throughout their lives as public companies, and, hopefully, the markets will cooperate. caroline: in some cases, it felt like it didn't quite caught rate, particularly for the older generation, if it's lyft listing on nasdaq or uber, which did not. how do you and sure that the investor base doesn't think the companies are waiting to long to come public market? >> one of the major differences now and between five and 10 years ago is the amount of capital available on the private markets which allows these companies to stay private so much longer, creates challenges for them around providing liquidity to employees and shareholders and really making a judgment about when public markets are right for them. as you mention, companies that wait longer, there's fewer gains
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for new investors in the public markets, so we are there to help companies evaluate that and supply the liquidity that they need and make that decision. caroline: how do you win uber next time? >> there are a number of great, iconic brands are looking to come to market, and our playbook is really the same on all. it supports them as they are evaluating the public markets and provides the best trading platform, the best investor relations solutions and the best marketing and trading platforms for all companies. caroline: interestingly, some public companies perhaps have done badly from a not always intuitive manner. i'm thinking of beyond meat, which i think was completely mispriced. what went wrong? trading77 on the day of -- 167% on first day of trading. our bank is not pricing ipo's correctly, considering we get more and more popping in price on the day of trade? >> one thing is clear, that investors are willing to pay for
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future growth. you have he's out there with extremely high 03 and many are still lossmaking, so investors are willing to bet on the fact that these companies are going to continue their growth rates and eventually turn to profitability. as you try to gauge how much forward growth, what investors are willing to pay for, that is definitely a delicate balance, and is also some great consumer brands out there, like beyond meat, where they have a heavy retail following, which drives a lot of interest in the name and makes it tougher to gauge what that interest will be. -- in whatre you ways can nasdaq help with that? >> we have a whole team helping companies identify the likely buyers not only in their ideal but throughout their lives as a public company. we hope to provide that information through our investor relations services. caroline: why did it not work for beyond meat? >> every story is different. one thing that is clear is that companies that start out on an upward trend, it is a lot easier
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to continue that momentum than the opposite. caroline: what is interesting is although we have had a phenomenal number of these companies going public through you, there's still fewer public companies than there used to be. is this something that you think the tide will shift in some way? are we starting to see more companies attempt to go public? will the balance be restored in some way? >> we think that is a super important question. over half of u.s. american households are invested in u.s. equities. having a fewer number of companies to invest in is a big challenge in terms of keeping america competitive, both on an income as well as a wealth/equality front. that's why we launched an initiative two years ago called project revitalize to update some of the legacy regulations around going public, to make it easier for companies to go public, but i still think one of the biggest drags on companies' motivation to go public is the amount of capital available to private companies. as long as there is access to capital and liquidity in the
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private market, that will reduce companies' desire to into the public market. -- access the public market. caroline: given that we are expecting further liquidity in the form of cheap money, this pool of liquidity from private holders searching for yields does not look like it is going anywhere any time soon. is that sort of status quo here to stay? when do you feel that my shift? -- might shift? >> we think it is a structural shift and that is why we launched nasdaq private market five years ago. we have completed over 250 private market transactions through company-sponsored secondary liquidity programs. we think it is a very important art of the life cycle, as companies wait to go public, to be able to recycle part of that capital, provide liquidity to employees and early investors to help them stay engaged with future growth. caroline: is it going to be 97 in the second half? >> we usually benchmark a good
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year for us is about 140, so we are well ahead of pace, and we would love to see a double in the second half. as we look at it, we are going to have some great ipo's come to market in july that have already filed publicly. there's always a little bit of a ull inn august -- l august, and then an uptick on labor day. we will see how many more we can sneak in in december. we sure would love to see a double in terms of the numbers we did in the first cap. -- first half. caroline: jeff thomas, thank you for making some time ahead of a busy playbook. thank you. coming up, more on the twists and turns in the t-mobile-sprint merger and why it might finally be getting the ok from the doj. this is bloomberg. ♪
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caroline: a number of u.s. tech companies reported they shift may production out of china as a result of ongoing trade tensions. according to a japanese news outlet, hp and dell plan to move as much as 30% of the note book production out of china. microsoft, amazon, sony and nintendo are also looking to videogameve some manufacturing out. last year, apple hinted it might have to raise prices because of tariffs on products made in china. as we mentioned, t-mobile is on the cusp of securing approval for its merger with sprint. this after establishing a rather general outline of asset sales according to people familiar. , the justice department is hammering out final issues ensuring this can become a strong competitor in the u.s. market. joining us now to discuss is a technology and media consulting
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firm representative, michael wolff. he was also a former yahoo! board member. you are a man who knows content and communications. what do you think of the chances of this becoming a real competitor? >> i think dish -- one of the things it has going for it is dish has 9 million tv subscribers and being able to add another service to this those people is going to be rather easy. dish hasman of basically been the spend gully of spectrum. -- svengali of spectrum. they are likely to get off to a great start. they are not likely to be hampered by all the stores that verizon and at&t have. i really do think they will be able to make a go of it. caroline: interesting. the question of 5g, how quickly it can be here, verizon has already released it to some extent in the united states. i am from the u.k., where 5g has
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been announced by the likes of vodafone. with the interesting note of huawei, is 5g front and center for the united states? >> 5g is definitely front and center. there's a lot of people who wondered if the deal with sprint and t-mobile would take away competition. actually, it will enhance competition. we have three companies fighting for 5g. 5g is likely to light up so many things from virtual reality, augmented reality, mobile gaming. all of these things are likely to change the outlook for the sector. huawei is the leader in 5g technology today. the administration is now loosening the ban on huawei and i think some of that comes from the recent china negotiations. that's a good thing, but u.s.
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companies have to develop their own technology. caroline: it is a good thing in terms of embedding it in the 5g infrastructure. i've been speaking with the nokia ceo who says it's very easy to switch, and i'm sure ericsson would like to give it a go. >> i think that huawei is integral to the american chip companies and so many other things. what is happening now at this moment is huawei engineers are figuring out how to pull out every american component out of their products, and that just does not make sense for us. we want to have a very vibrant chip industry a net the same time, we want there to be competition for court equipment. we don't want the equipment to be too expensive, to stop wireless operators from rolling out their networks. caroline: interesting. we shift from 5g to another area that you are involved. what do you make of the push into sports networks that much more? we had the interesting bidding war at disney with its merger of fox and having to spin off its sports network.
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we have seen at&t with dish work -- dish network and having to do the same thing. what do you think? >> regional sports networks, fox was required to divest -- actually disney was required to divest the 21st century fox network. they sold it for $10.6 billion to sinclair. what was interesting about that process is you already saw some interest from tech companies. amazon at one point was one of the bidders. one of the networks that was pulled out of that was the yes network, sold for $3.5 billion to the yankees, but also amazon was one of the players. so more generally, at&t says it wants to sell regional sports networks, which are much more limited. they have the rockets, the penguins, the mariners. they are not nearly as big as the fox networks, but you are not integral to warner media. warner media is largely national media.
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networks are likely to be very interesting to companies that are local, like sinclair, two other regional broadcasters, but we step back and see all of the tech companies are now getting into sports more generally. we've got amazon, which is doing simulcasting of thursday night football. we had twitter, which is doing mls. we have facebook, which is supposedly bidding on international sports rights. we are about to see the tech companies get much more interested in sports. regional sports networks are likely to get a piece of that. caroline: and then sports teams will be able to cash and all the more. we thank you for being on. happy fourth of july. a drone device that people can build at home and turn into a completeught -- bot
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with lasers, bullets, and loads of ai software. we got an exclusive first look at the product. >> this thing right here might be the loch ness monster with an iphone 11, with footage of an alien drinking a milkshake in area 51. it is a highly guarded secret, and anyone who knows about it or has seen it has been forbidden for admitting that it exists for months. that is, of course, until it made its way to my kitchen counter and now to you. say hello to dji's latest creation. the robo master s1. you all know dji. it is the world's largest drone maker and perhaps china's most popular tech company. people obsess over its products with an apple fan boy-like lust, and dji delivers, bringing out one new drone after another, but
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now dji has decided to bring its talents to the ground. it has built a robot and that aimed at consumers who want to drive around really fast and that shoot each other with pellets and lasers. if there's one thing the world really needed, it is the violence of videogames brought to real life. the idea for this new robot started here -- the annual robo masters competition that dji holds in shenzhen. college engineering students show up for a couple of weeks and try to destroy each other with a variety of robots. as you can see, it's a lot of fun. the big idea, then, was to shrink these robots down to little ones that regular people could build and then use in their own battles. this fella here is the lead of
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the design team who helped bring this device to life. can you walk me through some of these different parts? >> a video transmitter, and here is the camera. and also the shooter mechanism. >> the bullets in there? >> yes, 90% of them are made out of water. when you hit things, it smashes and disappears. on each robot, the line here indicates the hit point. when you repeatedly hit it, it will wind up being destroyed. >> that's the object of the game, to chase each other around and hit these plates? is it like a laser? >> yes, and if you always aim at the center, you should be fine. >> because a dji's founder is a cruel, cruel engineer, you cannot just buy it and play with it. no, you must first assemble it by hand and learn things along
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the way about robotics and coding. here's a group of youngsters dji turned into its product testing guinea pigs. something they built at a summer camp. >> this robot is also a tool for teaching. for example, it can be used as an autonomous driving car, but we do not have building functionality for this. -- built in functionality for this. kids have to learn to program and solve to achieve functionality. >> the hope is this will teach kids a few things, get them hooked on robotics, and turn into a worldwide sporting phenomenon of sorts. >> we hope that in the future, robotics will become a major sport like football, basketball. that's our vision for this product.
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>> i'm coming for you! [laughter] caroline: still ahead, could this summer's travel trend revolve around electricity? this is bloomberg. ♪
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caroline: bloomberg has learned samsung has completed a redesign of its galaxy fold and will fix its embarrassing screen failures. they will debut its galaxy smartfound in time for the holiday season after problems with the screen were reported on test versions. tesla is surprising the street with record second quarter deliveries that beat estimates, using concerns over waning demand. for more reaction, i wanted to get the reaction from the ceo of a car-sharing marketplace that offers, among others, teslas.
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how popular is the tesla to your customers? >> tesla is very popular. the x, s, and 3 are all in our top 10 most popular vehicles last year. we recently looked at the latest. we now have tesla as the third most popular searched for make on the platform. caroline: are people making businesses out of this? i have done stories on turo on the past where people gather together high-end cars and make this their main moneymaking scheme. are people buying tesla on the proviso that they can help finance it via turo? >> a lot of people are looking at the economics of turo, which is helping people earn money on their car when they are not using it, and they are making the math work. a lot of people who could not afford a tesla are able to afford one with the earnings they are making.
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last year, the average host earn $6,000 a month sharing their car on average. tesla would deliver more earnings for hosts that own a tesla. many people realize that by sharing their car seven to 14 days a month -- so, a third to half the time -- they can afford a tesla and the car can pay for itself. caroline: what other trends are you seeing? clearly, there's a desire to get your hands on a tesla of the weekend. what about electric cars in general? what are people about to be using for this fourth of july break here in america? ev's are a big part of the holiday season. july 4, we are seeing record bookings of ev's. over the last 12 months, ev's have been growing 50% faster than the entire marketplace, both on the supply side and demand side.
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we are seeing people who feel that turo is a great place to try an ev before buying one. ev's are a big part of july 4. another big trend we are seeing van life.r is we are seeing an explosion of the vannigans of the world and toyota tacoma, and all these amazing vehicles that have been designed for camping or designed for van life or have been a retrofitted with the extras our hosts are providing to enable a unique camping experience. caroline: paint a picture of regulation and how able you are to grow the business at the pace you would like. here in new york, i have to go over the bridge to new jersey to rent a turo. how are you dealing with
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regulatory scrutiny and the ability to grow the business? >> unfortunately, we are not yet available in the state of new york, but the state of new york is, unfortunately for you and for all of our new york customers, an exception. we are operating in all other 49 states. there are some unique insurance related limitations in the state of new york and we are working with the right regulators and legislators to, hopefully, make a change over the next year, maybe even earlier. we are very hopeful to be able to operate in the state of new york. elsewhere, everybody is excited about seeing what this platform can do. i think everyone is realizing that cars are very underutilized. you know, we've got 300 million cars in the united states alone. people are in sometimes financial difficulties and unable to afford their car.
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last year, almost 7 million americans were behind on car payments. a solution like turo can help more people afford cars and make transportation more accessible, so we are going out and telling that story to legislators, to regulators, and i think most people are very open to encouraging peer-to-peer car sharing. we are also open to regulating peer-to-peer car sharing. we have had many successful sessions this year with many states passing peer-to-peer car sharing regulations that was actually very positive framework for the growth of our model, so we are hopeful more states are going to join that bandwagon. carolyn: we thank you. addad, ceo of turo. that does it for this edition of "bloomberg technology."
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we are live-streamed on twitter. july to the of american viewers. this is bloomberg. ♪
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