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First, to the lead. Tesla is raising money, they have expanded their offering to raise 140 million more than they already have. What will they spend it on . Why are investors excited . I am joined by our panelists. I want to start with why are people so excited . The reason they are spending this money, they are spending it for the growth on the model 3, they are seeing this and see this pentup demand for their products. That sends a strong signal to the market level of growth is coming down the road. That is why people are excited about this. Emily the same time, eric, they made it clear that they will not be able to make as many cars as they thought they were going to make this year, isnt that cause for concern . Eric the development of a vehicle can cost a billion dollars and takes many years. It is not just for the current environment that they are worried about this. It is the development of the model three and other future projects. You need capital well ahead of time to finance development. Eric is right. When we first talked about this, we asked why they were raising more, the question is that they should raise all they can. They can issue equity relatively cheaply. They have 1 billion on the Balance Sheet. When you buy a 70,000 car when it only has one years cash, i dont think you would. They know it is difficult, and they know it takes longer. I am in east i am glad they got this done. Emily dan, it seems like there are suspicions that tesla does not have enough money, that they may not be looking get to the end of the year, is there anything to that . Dan no, i dont think so. If you look at the cash flow and some of the items inside, some of the operating cash flow is not counted even though it should be. They are generating they are turning cash flow positive by the end of the year. I believe it is true, because they have ramped up the model x. They will get more money as they deliver these models. Model x is ramping up quickly in the fourth quarter. That should take care of cash flow issues. If you move into 2016, obviously they will be selling thousands of model xs, that will be a very good thing. Emily eric, how much enthusiasm is riding on the model x . What if it does not come out september . Eric we have already seen a delay of two two years. Up to two years. There is a lot of excitement. But there is a lot of anticipation and expectation that this thing has to come out in september. We heard that production has started, by all accounts we should see the model x rolling out in mass by the end of the year. Emily do you have a tesla rory . Rory i do not. I am so not a car guy, but i have admiration for what they have done. What they are attempting is it so hard and has been done in many years. New set of technologies, and on top of that they are building , a new battery type, they are rolling out new cars. I did not say they are going to run out of money at the end of the year. I would want to make sure that i have a Balance Sheet that would last five years. You can write it out. They are financing for a fiveyear play. Emily dan, is this a fortress looking like a Balance Sheet at this point . Dan i completely agree with the two others. Its all about the fiveyear play. We have done some proprietary survey work that shows demand for their cars. There is not a demand issue and as all they do not have that, they will not have a Balance Sheet issue, because they will start producing more cash flow as they sell more cars. Looking at from todays mortgage todays perspective, there may be doubt, but if you believe the end of the story and demand, that should allow for a much stronger Balance Sheet as time goes by. This is a fiveyear game. This is not a shortterm gain. Emily eric, what do they spend this money on . Eric youve got to spend it on future development costs. Tesla needs to become the new massmarket brand. Gain a nietzsche luxury in electric automaker simply isnt going to pay the bills. Gaining a niche luxury. There was a report earlier this week that indicated that the future of electric vehicle revolution could come from small vehicles such as golf carts rather than a topdown approach from a brand like tesla. Dan, and rory thank you everyone. Now to comcast, preparing a major new video platform that could arrival facebook and youtube in online video. The platform is called watchable. Comcast is majoring with fox, but speed, nbc sports buz zfeed, nbc sports, and awesomeness tv. They are going to upload all unlicensed content on demand. It will be ready to be bundled for Comcast Xfinity setup boxes at some point. Coming up, wall street reacts to rumors on the search for twitters new ceo. Still to come apple hits pause , on the live tv service. Delaying its rollout until next year. We will explain why next. Emily twitter shares of getting a push from the news that a ceo could be named as early next week. Expects abert hecht triparty leadership. Dorsey returned to the company as interim ceo last month after dick costolo resigned after a fiveyear run. First of all, we should pour a little cold water on this report. Sarah and i have talked to a lot of people and there is no indication that this would happen next week. Its going to take a lot longer than that. Sarah this is a situation where you have a lot of people with very strong opinions about what is definitely going to happen. Emily everyone thinks they know. Sarah we are hearing things on the opposite of the same spectrum saying that they are interviewing outside candidates and will take a few months to do this. Its just a matter of looking through the noise and saying, okay, here are the things we know. We know that jack is running both companies. We know that he is making an impression of twitter, making changes internally. Making them push forward on their product direction. Emily and he cares. Sarah he cares deeply about most companies. I think it makes the board look at him more favorably. Emily how do you view this as an objective investor . I have no information whatsoever, but i have been on a lot of boards and i have done ceo searches, it would make sense to wait a little. Its going to be an interesting and controversial distention. If you step back to when dick stepped down, there are usually only three reasons to do it. The ceo wants to get out for personal reasons, whatever, second is that you have an emergency, third is that you have to try someone else. It doesnt appear to have been the second. Twitter is a 2 billion revenue company. So it may be the third. This is an interesting and controversial choice. Wouldnt you like to say, i did a try before i buy . Emily jack already has a job, a fulltime ceo job. At that point, who knows whether they acquire square to go public. But we know that is the case. As we said, he cares deeply about both companies. Its a difficult position because the board has said it is the person that cant have two fulltime jobs. Sarah but you can also look at that strategically. They would have to walk back on what they said. You can look at that is something that the board was trying to do to nudge jack. About if thisalk is even humanly possible. The only example that we can think of is that steve jobs ran both apple and pixar when they were both public companies. There is not another similar comparison. In Walter Isaacsons biography of steve jobs they talk about , how rough this was. It was the worst time in his life, he had a young family, he would go to pixar at 7 00 a. M. , the kids would be in bed, i literally couldnt speak i was so exhausted. All he could do was watch a halfhour of tv and got vegetate. It got close to killing me. Do you think he should be allowed to do both jobs . Allowed is a vague word. What law is going to stop him . Two have done it, elon and steve jobs. Jack dorsey says, i want to make that play. It is an interesting challenge. He will be drawn into wanting to do it. The board will want to have a clear ceo. And if they want and as a candidate there could be a , dynamic going on. Maybe they get an outside candidate. Emily the other factor is that chris sacca, when the biggest investors outside saying that this is what should happen, which we saw from suntrust, we see him repeating what was wanted. Sarah sacca has been very vocal about what his opinion are. He thinks jack can run both. He is showing that he can now. According to chris. He is elevating adam bain. Aura argument. Emily we talk about founder ceos, they have a certain moral authority sarah and jack has always been very high level about his management ill. Maybe that helps. The fact that the companies are only i block away from each other, that helps. What do you think should happen rory i have no idea. You have no idea unless you sit on there on the Search Committee and a look at all candidates, there are pros and cons for everybody. There are a lot of pros about it jack dorsey. He has a product vision, he is a founder, he has enthusiasm. But you have to make a product choice by looking at the candidates. When you secondguess, you can say, i did the best i could and i interviewed, i went to the process, i picked a candidate. If steve jobs number two comes up and is willing to do one ceo job at a time, they will probably take them. Sarah they are going through the Spencer Stuart playbook. Rory you start with the dream portfolio, some buddy that has done it before and run a 200 billion Public Company and is charismatic, and by the way, has no other job. They will make comprises. Napoleon used to say, the graveyards are full of indispensable men. Emily we should all take that advice. Rory absolutely. [laughter] emily sarah and i will continue to talk about this as best we can. We all want to know what is happening inside that Search Committee. Thank you guys very much. We will talk about apple now. The stock was trading slightly, but closed higher today. Bloomberg news learned it will delay its live tv plants until next year. Plans next year. They were ready to and feel the service as early as next month, but sources say that apple does not have enough content or Computer Network to capacity yet to do this right. One reason for the delay is the price of the content. Just as apple once convinced music labels to sell songs for . 99, it now wants to offer popular challenges for just 40 a month. Half of the average cable bill in the u. S. Rory, what do you think apple is doing . Why is this happening . Can it happen . Rory also the questions. All separate questions. What would i like apple to do . They need a content sheet is so they can sell content jeep and complete with comcast and netflix. Its always hard to license a lot of content from a 34 media companies. The plan is to take that content Andrew Brandt and go compete. Emily what about this, if apple was able to accomplish this, would be that revolutionary . Rory you are exactly right, i dont think it is. This is not going to be revolutionary. The iphone was a new thing. It garnered dollars to apple that were not there before. What we are talking about now is a dogfight between comcast, netflix, amazon, google all of the cable companies, now you have at t playing as well. The whole motive is to decrease the spend. We are fighting over a pie that could be trading. If apple can do it, why not, why not get cheaper tv. But it will not drive the stock. Emily what about the self driving car . It is said that apple is further down the path ran earlier thought, that they are looking for places to test drive in San Francisco . Rory that would, obviously, be revolutionary. And every negative comment i made about being the 17th Cable Company and tv provider, you would be the first person to buy social interest. I would love a self driving car. I am not a car guy, as we established, i dont drive a tesla. If something can drive me to and from work, im in. The survey recently figured out that in the google car hasnt been in a lot of accidents, and when it was, it was the other drivers fault. Carays that the google drives so safely that the normal driver never expects it to do things. Emily it is a most too safe. I rode in googles self driving car three years ago. It was a little bumpy. Rory the amount of complex legal issues before the self driving car happens will be huge. Look at the stuff that mobile makes, there are a lot of ways that Technology Comes into your car today. Emily rory, you are sticking with me. Plus, the social network for lenders. We talked to a paypal employee that is turning your friends into your financial backers. Emily it is time for the daily byte, one number that tells a whole lot. Todays number is 2. 76 , that is how many htc shares rebounded how much htc shares rebounded after the company said they would cut its workforce. Also planning to reduce operating expenses by 35 . This after their loss was five times more than expected in a quarterly earnings. Htc was once the topselling smart phone brand in the u. S. , but now they are competing with xiaomi. Not the only Company Feeling the pain. Motorola also plans to get cut 200,000 now, the rise of alternative lending startups. There is the big peertopeer marketplace. There is a credit card alternative for online shoppers. Startups to parse risk. Expaypal a team of employees. The ceo joining me now. So, i find it incredible that someone could gauge my credit worthiness by looking at my facebook or twitter account. What is on there . I feel like have to address this question all the time. Really, youre going to look at my tweets . That is not at all what vouch does. It creates an entirely new social network, one based on credit. The same way that you might connect with people online in a lightweight way to share photos, you make connect anymore heavy, trustworthy in a more heavy, trustworthy way to get credit. Emily what is behind the explosion in alternative ending startups . Why is this happening . His recoveryll in mode from the Great Recession of 2008, doddfrank passed in 2010 really changed the landscape for how lending happens in the u. S. A lot of banks were pressed out subprime lending sector, and now we are in this vacuum where literally hundreds of millions of americans are in dire need of credit, but unable to access it through traditional mechanisms. That is the vacuum where these startups are pouring into. Rory i think there has been a massive vacuum caused by 2008 and the doddfrank. The risk is always worrisome in lending. You never know how you are doing 4 years out of 5. When gdp is low, everybody pays the loans back. You feel like youre a genius. Unemployment rises, and all those unsecured loans get up. You get all the bad news for 5 years packed into one. By the way, i really like your idea. One challenge of alternative lending, you simply dont know how good these businesses are until you see a downturn. Emily how do you respond to that . This is exactly why we founded the company and created it the way that we get. Alternative lending industry is ripe with all these new data players. We are taking unproven approaches, based off of hundreds of years of track record of community banking, cosigning, microfinance lending. As soon as you involve other people together on a financial product, you get amazing performance on of the loan. I think there is a much longer debate to be had. We will definitely keep our eye on this. Vouch, thank you so much. Rory, thank you for sharing your opinions. It is friday, have a great weekend. We will see you on monday. Mark im mark halperin. John i am john heilemann. With all due respect to Democratic Party unity good evening, sports fans. We are at clear lake iowa out in , front of a historic surf ballroom. We are not here for music. We are here for the democratic wing ding dinner. 2000 democrats in attendance and more than 1000 chicken wings will be eaten

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