Years ago, but they are now back with a new model that will run on the android system. Global slowing Smartphone Market. But first, our top story. For its goal, tesla did not meet its predictions. Shares are falling on late trading after the news broke. Earlier this week may analysts mentioned that the 100,000 delivery goal may have been talk in order to divert attention away from the falling revenue. To discuss, i am joined over the phone with our guest. But david is here. Not00 is a record, but 100,000, so is it good or bad . David it is a record for them, but not by much. Elon musk said they could get to 100,000 if they pushed. I wonder if he had not checked said anything if things would look better. The more alarming thing is the fact that most of the vehicles being sold are now the lowerpriced model 3s, and you are starting to see a lot less ,ake on model s and model x which are the expensive vehicles. The question is where the prophets will come from if you are selling the lower margin vehicles. What is your take on the 97,000 number . Gene, what is your take on the 97,000 number . Gene it is a good number. It wouldhat camp that be perceived better if not for that email. There is what is going on with the fundamentals, and what is going on with communications intesa. Elon musk continues to say things that are not good for the stock. And separately, if we look at the fundamentals, the most important is the fact that they got a record. The 97,000, to put that in context, it puts them on track to hit a range of 360,000400,000 vehicles for the year. Originally, investors said it was absurd today that. But they are tracking toward that. So i think it is, despite the mix of the greater model 3s, the 82 , that is consistent with the june quarter. My simple read is i think that this is a sign that the demand question, which is no longer about production, this is a demand question and continues to be answered. And it seems the u. S. , and parts of europe, are ready for avs evs. Taylor what is your take that they are sacrificing price for the sake of market share, selling the lowerpriced vehicles . Gene it is true, that is a fact. Is my view is the sweet spot going to be in the lower cost, lower margin vehicles. And it is still 2 of vehicles in the u. S. So even though that is at a high level, that is not a good trade from highermargin to lower margin, but the size of the irket is so massive that think this is the right thing for them to pursue, to pursue that part of the market. Taylor how is demand in china . David there is Strong Demand relative to other markets. The government is helping that thata lot of programs makes themselves those first certain credit systems. And if there are incentives to purchase them. You cannot get a new registration for your vehicle unless that is a plug in car. So there is good demand in china. Genes was a good point, to get scale they will have to sell more lowerpriced vehicles, and there is an appetite for it in china and in europe. But the question Going Forward is still one of margins, because tesla will have to lower costs and to show a profit on the vehicles. They have a very big staff at their plant, they are not the most efficient manufacturer. They have been trying to lean things up in their new factories, but they need to show they can make a profit on these vehicles as they ramp up volume. That is going to be a matter of building up their systems and Getting Better scale. And proving that they can really operate this company. The shares are no longer trading on the hope that they will grow, they are trading on whether they can execute the business. Taylor any path to profitability . Gene i think eventually, yes, the scalability that david was talking about they are taking an approach in china and in europe, so the markets more recently have not been favorable to them. That is not news to anyone. But what is important is when you have these massive opportunities, and at the that this falls in a group of undeniable truth, i think that investors will be, despite the trend in the market toward profitability, i think they will be more lenient toward it tesla. I think that they have been and they will continue to give the company room, as long as the demand is there i think they will give them room and a path to profitability. If i am wrong and they continue to burn cash, i think that if they demand is there they will be successful at continuing to raise money. They do not need to raise money for a few years. I do nothing profitability is the critical question right now, with demand that they are doing a great job. Taylor we have been talking about founders becoming ceos, any pressure on elon musk to change things here . Gene no additional pressure, but he has been if you look at the number of people who have left, it is symbolic of an organization that runs fast and i think his leadership style burns people out. Tesla would not be tesla without elon musk, i think it is a good thing that he continues to play a major role at the company. But the stock would go up if they brought in more seasoned types of a Management Team that would stay. Taylor gene and david, thank you both for joining me. Coming up, slow down selloff, the stock market has hit a low and more indicators that the u. S. Economy could be hitting the brakes. We take a look at being in the red. This is bloomberg. Taylor u. S. Stocks hitting their lowest level in a month and economic slow down fears continue to mount. All three indexes down about 1. 5 , this as private payrolls fell short of expectations. The tech sector was not immune to the pain, as the s p tech index and faang both were in the red. The chip sector outperformed the s p during the selloff, interestingly enough. We now go to sarah ponczek. The s pks outperformed 500, which was surprising. How detective . Sarah did tech do . Sarah you look at it on a sector level, technology was the third worst performing sector in the s p 500, but it is interesting to acknowledge the fact that this was not a tech n entric selloff. The Philadelphia Semiconductor index outperformed the s p, but when you look at the major benchmarks, if you look at the order declining the least and at the most, you had the nasdaq composite and nasdaq 100 falling less than the s p 500 and less than the dow. Typically, when you see a tech centric selloff, you would see these benchmarks falling more than the average, but that was not the case. Interestingly enough, because this was about growth fears, you saw a lot of selling in transports and you saw a lot of selling in auto stocks as well. But interestingly enough, when you the about tech, you break it down between hardware, software and a semiconductors, typically semiconductors are the area in the sector that you tie into the economy. But they did not just outperformed the s p, they performed outperformed hardware and software, which was an interesting twist. Taylor we have seen Elizabeth Warren rise in the polls recently. Does she have any role in this as a she has been making calls the breakup big tex . Sarah big tech . Odds if you look at the of her clinching the 2020 democratic nomination, it has now risen to 45 and we saw a lot of these gains come last week. We saw many of the sectors, not just tech, that are very intertwined with her platform, we saw them decline. We have seen facebook moving outside of the tech space, but very much considered a big part of social media and big tech. They have been down seven of the last nine days. They were leaked tapes where Mark Zuckerberg did mention Elizabeth Warren. She attacked facebook yesterday. That is something to watch and more and more strategists are saying, you cannot put election risk aside, this is something that you need to be thinking about. Taylor sarah ponczek, thank you. And there is a big change in store for iphone users. Apple is planning to release a Software Update that will let siri default a messages outside of their proprietary. You will not have to explicitly tell siri which app to use, it will figure it out on its own. This comes as apple faces scrutiny over the power of its app story. We will now go to los angeles, where we are joined by mark. Why they change . Why the change . Mark this is something they have been working on, opening up siri. They have a new shortcut that will let people write their own commands. Toy have opened up siri things like pandora and iheart radio. Now this is another change to allow the apps, as you extremely and eloquently explained, defaults to what the user uses for messaging and phone. Not a major shift, but it is indicative of what the scrutiny is that they are under. Taylor does it open up the door for more competing thirdparty developer apps . Mark i do not think it will have a significant change on developers. The big thing in our story comes down to showing the apple now preinstalleds about 40 apps on the iphone. I do not see an issue with that. The problem is even though you likeelete the default apps safari, calendar and music, i could go on all week, it is not able to replace them with thirdparty options like gmail and microsoft outlook. That is where the problem is, that is why apple is at seeing some scrutiny on their apps strategy. Taylor does it help ease regulatory pressure over their app store . Mark the change does not. This is another bullet point you can add it to the list of anticompetitive behavior on developers from apple, but at the same time they have created an ecosystem that has enabled over 120 billion in revenue for developers, so there are pros and cons. It should be said that apple has not been fined or a big antitrust there has not been a big investigation into apple because of this issue, but it is something that people should be aware about. Taylor you quoted analysts in your story that talk about comparing apple to microsoft in the 1990s, what is that comparison and is it legit . Mark it is an easy comparison to make, but i do not think it is completely legitimate. I think it should be said that windows was extremely dominant in the 1990s and early 2000, and they made it impossible for users to replace Internet Explorer with other web browsers. Apple is allowing you to add additional web browsers, you just cannot replace them on a default level. Apple is not strongarming anyone, they are only 35 of the Iphone Software market. Taylor whatsapp could be gaining on this. Any other ones that you hear about the could benefit from the change . Mark any phone or messaging apps. Any of them could see more usage on iphones from this, but i feel like the diehard whats. Pp users were using siri taylor ok, thank you for joining me. And coming up, no longer impossible to find, because impossible foods is now in supermarkets. Where else will you be able to purchase their meatless burgers . I will ask the ceo. And we are livestreaming on twitter. Check us out and follow our global breaking news network at tictoc on twitter. This is bloomberg. Taylor plantbased meats are here to stay, according to a new survey. 65 of the people surveyed believe that products from Companies Like impossible foods are up what worth a premium price compared to hamburgers. That is good news for impossible foods, which just made its Grocery Store debuted. The company said it will expand its retail presence in the Fourth Quarter and in early 2020. Joining me now from the disrupt conference in San Francisco is the impossible foods ceo and founder, patrick brown. Thank you for joining me. You most recently launched into some Grocery Stores. Where can we see you next expand regionally and product wise . Sorry, i did not hear you. I did not hear that question. Taylor you Just Launched into Grocery Stores, where can we see you next in that space regionally . Patrick great question. We deliberately launched in two regional chains that are relatively small in size, because of a couple reasons. One, it is our first retail launch and we figured it would be valuable for us to sort of do a test launch to really see how it is received, how to communicate to consumers and so forth. Wecondly, we are still just recently came out of what i would call a supply crunch, where they demand for our products got ahead of our ability to produce, so we did not want to launch into retail to aggressively until we knew what the demand would be to make sure that we had the capacity to supply it. Now that we have data from the launch sorry. Taylor go ahead, please continue. Now we havel, so data from the launch and i think we have a clear sight as to what our plan should be. We will definitely be doing broader launches next year, nationwide launches over the course of the year. And stay tuned, we are not announcing them yet but it will definitely happen. Taylor do you see more growth in Grocery Stores or restaurants and fast food chains . Patrick that is a very interesting question. We do not have enough actual data from retail, but what we have suggests it will be humongous. Foodnow, our sales in fast have been growing as fast as we can supply them and we have tons of demand and if so forth, so there has been huge growth there. We have had huge growth in sales this year, all in food service, so that is rising. In retail, it has exceeded our expectations for the launches we have done so far. Our product has been by a substantial margin in all these stores outselling ground beef from a cow. All the ground beef from a cow in the Grocery Stores where we beenthe data, it has outselling every other plantbased product by combined by more than a factor of nine. So it is looking super promising. And it is really exciting. Beyond meat just got a trial with mcdonalds. That is seen as the holy grail. Are you trying to push into mcdonalds or are you happy with your current partnerships . Patrick we love the partnerships we have so far. Our partnership with burger king has been great, they are wonderful partners. Problems there. Is wet, the issue for us are scaling up production as fast as we can. We have more demand that we are seeing ahead of us than we can take on. And so, you know, we are being very measured and judicious in taking on customers. When we take on a customer, we want to be certain that we can keep them supplied. Maybe sometime in a mcdonalds will be a customer. Taylor talk to me about the production issues. You have partnered with osi group, are you confident they will help you work out those supply chain issues . Patrick yeah, we are already mostly through the issues we had earlier in the year when basically the growth and demand vastly exceeded our expectations, and we had to scramble to scale up production. It took us a while. Now we have gone from one shipment in our open shift in our open facility, now to three shifts, basically 24 7. As ahen with osi gotner, the largest Food Manufacturing company in the world, they have huge expansion capacity and we are going to be able to increase capacity another fourfold over the next several months, and then beyond that there is further room for expansion. I would say that we have gotten through this shortage period, but we are just being careful now not to get into another one. That is why we did a small scale retail launch. Good thing we did, because demand has been through the roof. If we had gone nationwide, we would be right away in another shortage. Taylor the impossible foods ceo, patrick brown. Speaking of food, the u. S. Announced its final list of rotella terry tariffs rotella terry tariffs on eu goods. Coffee,clude airplanes, fruit and cheese. An extra 25 will be put on Irish Whiskey and french wine. Tariffs will go into effect on october 18. E celebratesaz their one year anniversary. How people are sharing their traffic tips. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Taylor this is bloomberg technology. Im taylor riggs in San Francisco. Last week, and rbc analyst mapsd waze and google buried treasure. Toalso offered solutions maps advertisers thanks to the Data Collected on users. Joining me to discuss in new york is the ceo and founder of waze. Thank you for joining me. Congrats on the oneyear anniversary. How many people are using it . We have over 5 million who have opted into the service. Obviously, they are in different parts of the world. Started, our mission was about fighting traffic, but we are running out of options. We all feel this, right . Traffic keeps getting worse. The only what impact our every day traffic challenges is by getting more people into every car. This is what carpool is about. It is different from ridesharing or other forprofit businesses. Taylor talk to me about how much revenue carpool contributes to waze. We have not released revenue numbers, but carpool in general is about sharing a car, so the writer pays a portion of the cost of driving the car, and the driver gets the portion of that cost that to them. There is money changing hands, but its all below what would be considered profit. This means you are not paying taxes. You are not a commercial driver. We are not a ridesharing business. Its really about rides happening anyway. If you are driving to work anyway, take someone with you. Its not about you finding a new job. Taylor do you consider uber pool a competitor . Not at all. We are focused on the long haul from suburbs to the city. It makes a lot of sense to use the front Ridesharing Services and different transportation services, but if you live in the suburbs at you are driving in and sitting in our to happen traffic, you dont have many options. No one is investing in roads. The government is not going to save us, so we have to take our future into our own hands. When you look in your car, your cars and do. We have extra seats. We need to find someone dealing with pavements, handling everything around that so you can leave your car home and ride with someone else. Taylor a