Phones years ago, and they are back with a new model running on googles android. Is now the time to be getting back . With the slowing Global Smartphone market . But first, our top story. Elon musks 100,000 deliveries goal wasnt met. The company had 97,000 deliveries in the third quarter. Shares fell in late trading on wednesday after the news broke. Earlier this week, analysts mentioned the 100,000 delivery goal may have been talked to divert attention from the potential for a less flattering trend, falling revenue. To discuss, i am joined by gene munster, and david welch. David, lets start with you. 97,000, a record, but not 100,000. Good or bad . It is a record for them, but not a record by much. Hey could probably get to 100,000 if they pushed. I wonder if he hadnt said anything, if shares were reacting better, because it really was a solid quarter. More alarming for investors, most of the vehicles now settled are sold are lower margin s,el 3s, and less model model x, the really expensive vehicles, so where are the profits coming from if you are selling these lower margin vehicles . Gene, what is your take on the 97,000 number . I think it is a great number. Also, it would be perceived as much better if not for the friday email. Here,k theres two topics whats going on with the fundamentals of tesla, and the communication around the story. And elon musk continues to say things that arent good for the stock, in this case. If we look at fundamentals, whic at should be most important, the fact they got a record. Incontext puts them loosely on track to hit below end of the range of three and wheno 400,000, they said that range investors at first said that was absurdities, and they are tracking toward below end. I think it is, despite the mix of the greater model 3s, 82 model 3, it is generally consistent with the june quarter. My simple read, i think this is a sign the demand question, no longer about the production question, but the demand question continues to be answered. It seems the u. S. At least in parts of europe are ready for evs. What is your take on what david welch mentioned . Sacrificing price in those margins for the sake of market, selling the lower price vehicles . That is true. But my view is that the sweet spot of electrification will be lower cost, lower margin vehicles, and its still 2 of vehicles in the u. S. Even though that is a highlevel, not a good trade from highermargin to lower margin. But the size of the market is so massive, i think it is right for the company to continue to aggressively pursue that part of the market. David, how is demand in china . Very strong demand, relative to other markets, for electric vehicles. The government helps that, with manufacturere that and sell the vehicles, credit systems, incentives for consumers to buy them. Cities, youhe new cant get a registration for a new vehicle unless it is a plugin car, so there is good demand there. Good one. Of gene is a to get scale, they have to sell a lot of model 3s, lowerpriced vehicles. That will build this market. Theres an appetite for it in china, and probably europe as well. The question moving forward is one of margins. Tesla will have to lower costs. They have a very big staff at the plant. They arent the most efficient manufacturer. They have been trying to lead things up in fremont, and in the new factory as well, but they have to show they can make a profit on the vehicles as a ramp of volume, and that will be a matter of building up their systems, Getting Better scale, and proving they can really operate this company. Shares are no longer really trading on the hope they will grow, but on whether or not they can execute the business. Gene, any path to profitability . You know, i think eventually to, the if i am wrong, i think if the demand continues to be there, they will continue to be successful and raise money. They dont need to raise money for a few years, but i dont think profitability is the critical question. I think that demand is, and they are doing a great job. We talked all week about founders becoming ceos, Corporate Governance issues like at wework. Any pressure on elon musk and Corporate Governance to change . No additional pressure, but i think if you just look at the number of people who have left, its symbolic of an organization that runs fast, and his leadership style burns people out. Tesla would not be tesla without musk, and ultimately i think its a good thing that he plays butjor role in the company, the stock would go up if they brought in some more seasoned type of management teams that would stay. Welch, munster, david thank you both for joining me. Coming up, sears selloff. More indicators the u. S. Economy could be hitting the brakes. His is bloomberg. Easy comparison to make, but i dont think it is completely legitimate. It should be said that windows looked extremely dominant back in the late 1990s to early to thousands and made it impossible for users to replace Internet Explorer with competing browsers. Of course, apple is only 30 of the market. Be working could again. Anything that could benefit from this change . Any phone or messaging apps, iphonese more usage on from this, but i feel the diehard iphone and whatsapp users were already using siri by saying, message through whats app. Mark gurman, thank you for joining me. Coming up, no longer impossible to find because impossible foods is in supermarkets. Where else can you buy the meatless burgers . I ask ceo Patrick Brown next. And bloomberg is streaming on twitter. Check us out technology and check out our global breaking news network at tictoc on twitter. This is bloomberg. Meats are here to stay according to a new survey. Nearly 65 of the 94 peop 9400 people surveyed in the u. S. Believe that products from Companies Like impossible foods are worth 80 premium price. Thats good news for impossible foods, which made its debut at 27 gelsons markets. They will expand their retail presence in the Fourth Quarter and early 2020. Joining me from the tech c runch disrupt conference in San Francisco is impossible foods founder Patrick Brown. As we mentioned, you most recently mentioned launched in Grocery Stores. Expand nextu both regionally and productwise . Sorry, i didnt hear the question, exactly. Say it again . Patrick, you Just Launched into Grocery Stores. Where can we see you next, in the Grocery Store space, regionally . Ok. Great question. We deliberately launched in two chains that are relatively small, for a couple reasons. One, it is our first retail launch, and we figured that would be valuable for us, to sort of do a test launch and see how it is received, and how to most effectively communicate to consumers and so forth. We just, we are still, recently came out of what i would say is a supply crunch, where the demand for our products got ahead of our ability to produce it, so we didnt want to launch into retail, too aggressively, until we knew what demand would be, so we knew we would have capacity to supply it. Now that we have data from the launch sorry . Go ahead, please. Continue. Well, so now we have some data from the launch, and a clear plan. Were definitely going to be doing broader launches next year, nationwide launches over the course of the year, and stay tuned, we arent announcing anything yet, but thats definitely going to happen. Do you see more growth in Grocery Stores, or restaurants and fast food chains . Oh, thats a very interesting question. We dont have enough actual data from retail, but i would say that what we do have suggests its going to be humongous. Our sales in fast food have been growing as fast as we can supply them, and we have tons of inbound demand. There has been huge growth, fivefold gsales growth this yer all in food service, so that is thriving. In retail, it vastly exceeded our expectations with the two l aunches so far. Our products have been by a substantial margin in all these stores outselling ground beef from a cow. All the ground beef from a cow fairway, where we have data, cells less than impossible foods. We have been outselling every other plantbased product b, combined, by more than a factor of nine. So, its looking super promising, and it is really exciting. Sorry . Justu know, beyond meat got a trial with mcdonalds. Are you still trying to push into mcdonalds, your partnerships . We love the partnerships that we have so far. You know, our partnership with burger king has been absently great. They are wonderful partners. Is no problem there. Us, as ithe issue for said, we are scaling production as fast as we can, and we have more latent demand that we see ahead of us than we can take on, were being i would very say measured, judicial judicious in taking on customers. When we take on a customer, we want to be certain we can keep them supplied. So a couple of years. Talk to me more about this production issue, then. You have a partnership with osi group. Are you confident they will help you work out supply chain issues . Oh, yeah. Were already mostly through the issues we had earlier in the year, where growth in demand vastly exceeded expectations. While. Took a now we have gone from one shift in our oakland facility to three shifts, more or less 24 7, a big increase in capacity, more than threefold increase in production capacity. With osi as a partner, one of the largest Food Manufacturing companies in the world, they have huge expansion capacity, and were going to be able to increase capacity another fourfold the next several months, and beyond that theres further room for expansion. I think we have gotten through werehortage period, but just being careful now, not to get into another one. Thats why we had to do the smallscale rertail launch. It is a good thing we did, because demand has been through the roof, and if we had been going nationwide at this point we would right away be a shortage. Impossible foods ceo Patrick Brown. Thank you for joining me. The u. S. Announced a final list of retaliatory tariffs on european goods after the wto ruling on aircraft subsidies to airbus, including coffee, all of oil, fruit and cheese. An extra 25 tariff on scotch and Irish Whiskey and french wine. Tariffs go into effect october 18. Coming up, waze carpooling hits its oneyear anniversary. How users are sharing cars, not just traffic tips. This is bloomberg. This is bloomberg technology. And i am taylor riggs in San Francisco. Last week, an analyst called waze and google maps buried treasures for google and alphabet, and talked about Ways Solutions offer more to advertisers with all the Data Collected on users, which comes as waze reaches one year of its carpal feature, completing 100,000 shared rides last week. Joining us is the waze ceo and founder. Congratulations on the oneyear anniversary of the carpool. How many people are using it . Over one million users have opted into the service. They use it in different parts of the world. We are known for taking time out of your route, but we feel traffic keeps getting worse, and the only way we can really impact everyday traffic challenges is to get more people car, and that is what carpooling is about, very different from ridesharing or forprofit businesses. This is about trying to Work Together to lower the number of cars on the road and improve our daily life. Talk about how much revenue it contributes to waze . We havent released revenue numbers. The rider pays a portion of the costs of driving the car, and the driver gets a portion of the cost back to them. There is money changing hands, but all below what we consider profit. You arent paying taxes. You are not a commercial driver or a ridesharing business. We limit you to two rides a day. It is, the rides are happening anyway. If you are driving to work anyway, take someone with you. Do you consider uber pool a competitor . Not at all. We are focused on the long haul, suburbs to the city. In the city it makes sense to use all the Ridesharing Services and transportation services, but if you live in the suburbs at are sitting 1. 5 hours in traffic, you dont have many options. No one is Building Public transit or investing in roads. The government wont save us. So we have to take our future into our own hands. Look at the cars around you. We have extra seats. We take care of the friction of finding someone, dealing with payments, handling everything around that so you can leave your car home and ride with someone else. Taylor are you still doing data sharing with cities . Correct. We are sharing data with a lot of cities, and cities have been very supportive of our carpooling efforts because they see the same problem. If you think about d. O. T. , or any disability, they are challenged a municipality, they are challenged to get less cars on the road. So we have cities that are actually sponsoring our service, even subsidizing rides for their citizens. San diego and miami are great examples. Cities who started as partners but have gone much deeper to help promote our Service Together to their citizens. Taylor are there any concerns about privacy and the data sharing . Obviously, you opt into the service. You only share the data you wish to share. And our goal is to allow users to make their own choice. We will show you who the users who could ride in the car for you, but you have to decide who you feel comfortable with. We have a feature that allows you to ride only with people of your own gender. We have a feature that only allows you to ride with people from your own company. It depends how you feel in terms of trust. But when you think about it, at the end of the money, youre leaving money on the table by driving alone. It is extremely expensive, and at the same time, you are creating traffic. Here is a way to make a little money, save time getting into the hov lane, and doing better for the world because 30 of global emissions are coming from transportation. Taylor at the top of the show, we talked about how an rbc analyst said maps and waze had the potential to be monetized. And could contribute to google and apple. Do you see that monetization of maps helpful, or does that hurt waze . As any business, we have to be rational. We have to have income, have to be profitable. If not, we can never achieve our mission. There is a thin line between being Mission Driven and being rational in terms of financials, and we are very focused on that and this is why we have to have a rational Business Model, and there is tremendous potential in maps in general. Transportation is a multitrillion dollar business being reinvented in the current years, so theres a lot to go around. That said, how and who is something we are all working on together as an industry to try to figure out. Taylor Elizabeth Warren has been gaining in polls recently, and she talked a lot about breaking up big tech and breaking off waze from alphabet and google. How you respond . I raise my hands and say im not going to get into it. Taylor thank you for joining me. Four Payments Companies have joined facebook as founding members of the Libra Association , but are rethinking signing onto the currency project. Visa, mastercard, paypal, and stripe are undecided about formally signing onto libras organizing charter. The reason concerns about , maintaining positive relationships with regulators who have reservations about the project. To discuss, im joined by kurt wegner. Why are they backing out . Kurt anyone who associates with facebook these days has to think twice about it. This is a company that is being investigated by 4 different people for antitrust, constantly being called into congress to answer questions about privacy. Anyone who writes their name on the same piece of paper that facebook does really needs to think is this the kind of company i want to be in bed with . Taylor is it really about maintaining relationships with regulators, or are there fundamental concerns about the project . Any time you talk about something this bold, the vision is this will literally be a new global currency, there is a good chance this is not going to work and that this vision is great, but what actually comes to this is something a lot less than that. And so i think it is probably easy to say we are uncomfortable because we have relationships we need to maintain. I think there has probably also got to be some fear or realization, that do we want to line up for a project that may or may not work . Taylor how concerned should facebook be that some of the original members are now thinking of not signing up permanently . Kurt its not a good look. Especially when you look at the four you mentioned, these are Payments Companies, the companies that are supposed to understand this industry and this opportunity better than anybody, so for facebook, it is not that they cannot be replaced. Were told there are hundreds of companies waiting to join this association. Everyone cannot wait to get in. Its not as though they will not be able to find more companies to replace them, but it does not look great to have somebody who was in at the beginning even on the fence about if they want to move forward. Taylor what does facebook do from here . They have this nonbinding agreement. Some of the partners do not sign on fully officially. Kurt the next step is just getting the charter official. Coming out and saying, these are the people who have now signed, right . Originally, they gave kind of a verbal confirmation they wanted to be in. A lot of these people did press interviews. Getting them to actually commit and sign the charter is another thing, so once facebook gets the charter going, that kind of solidifies this association, which allows them to create rules around what libra might look like and Start Talking to regulators with more concrete plans. The next step is figuring out who is in and who is out, and basically moving forward with the people who want to do this. Taylor they had a sense that because it was nonbinding, people may not want to come back. Wasnt that sort of a given . Kurt i thing so. Any time you have someone just raise their hand and