What they have to say about what elon musk is doing right and wrong. Facebook and apple are poised to post earnings wednesday. More on what wall street wants to hear. First to our top stories. Shares of amd fluctuating in afterhours trading. Earnings met analyst expectations for both the top and bottom line. That includes thousand in mind revenue forecast. Suggesting the number two maker of computer processors is getting on intel. Gaining on intel. Lets talk a little bit about the share price reaction following afterhours trading. A little light. 50 million. The stock was down than up and down. Down then up then down. Gross talking about 50 growth from a year ago. That is not bad. I hope that people hope for more when they put so much to work in the stock. They have put a lot of money to work. I am coming into a chart that shows the stock is already up about 14 yeartodate. How much of this was expectations early and high . How much was good news from the company we got today . It is the perfect mix of what people got. It is what they expected to get. The bad news is this Chip Division cells into Microsoft Xbox and the sony the station. People are not buying those machines. They are quite old. Sony playstation. Those machines are old. People want new. Taylor pc shipments have been strong. Some of the Data Center Gpus and cpus, did that see some strength . That is where amd has to show strength. It absolutely dead. Higher shipments, higher average selling prices, higher revenues. The performance is buried inside of that unit we just talked about. A little hard to pass that one. They just said no in general terms. They cost so much money. What are the highermargin chips . Are you seeing enough sales of those . The stuff i just mentioned, that was the one we really wanted. If you want to see amd make out of this cycle. That is where the margin on those kind of things are absolutely enormous. Andntel has had a very big strong hold. Where is amd making gains . We have been hearing they are making games for a while. Intel has been holding on. Are we saying enough to pivot that scale . In what of strength, highend , amd has made a move there. The volume of the market is in the laptop computers. We are seeing flow again. The third factor is back to the data center, dr. Supplying google. The chips are relatively recently in the market. That traditionally moves more slowly. We are seeing some progress but not massive share gains. We are nowhere near the corner of the market. They are still in the singledigit percentage points. Ylls look at another chart we are showing in the terminal here. More that you typically seek around earnings and the volatility dropping off for all of these companies. Intel, amd. Did you get anything from the Earnings Report that would either push volatility higher or not . Did this feel very much in mind . It was very much in line. Amd has been a hedge case for so long. They were a company struggling to survive. There has been a lot of showed interest. A lot of volatility in their stock. They are not traditionally are being on rest of the industry are doing. The fact that they can in mind, the fact that things were roughly where they were supposed to be, that was good for them. Taylor could we do any reapers to some of the other chipmakers . Any sense that maybe the trade war has calmed down for now . We will have to hear what they have to say on the call. There will be questions about the general demand environment. She has really been concentrating on the look. These are our new products. Their story is very much what damage can they do . What damage can they do to nvidia and graphics . Said, they had yet to start. What is the one thing . We want to hear where the sales came from and get some more precise numbers. Can, thank you so much for joining me. Work was to get into video gimmick despite being in a crash crush video gimmick despite being in a cash crunch. Hired a handful of staffers. Coming as it is so not some of his businesses after its delayed ipo and restructuring. I want to get the and a baker in new york. Gaming now . We were looking for different ways to make a profit and leverage all of this office space. A lot of investors have done pretty well in the esports space. Comcast has been building a 50 million sports arena in philadelphia. We were looking to get in on this. The question is if it is too vague. Esports have seen has seen a lot of growth in the last year. Taylor explain this to me. In the last month, we saw them try to sell off some of their strategies, get out of the education business, focus on office sharing. How does each aiming fit egaming fit into the core strategy core strategy . We do not know when we work started looking into this. This could be part of the old establishment of we work. There were linked in postings, looking for more staffers in this space. Until the Company Rolls out its plans, we wont know how serious it is about esports. There are a lot of companies in the sector. Activision, blizzard is huge. It could be a way for we work to ofand its core business looking for tenants. That is one way to think about it and have it may how it may leak into the core business. How it plans to branch out is the core concern. Taylor there have been concerned about the weword Business Model. It has not been tested in the recessionary environment. If they went into the egaming b usiness, would that offset any concerns about what the Company Looks like in the recessionary environment . It makes sense that environment . Is so crowded. There are Many Companies looking to profit off of this. It has to be seen if it was new room for a player. A key time to be expanding as a player. Im curious what softbank say about this recent move. They put in another 9 billion to bail it out. It will be up to what softbank thinks about this venture. Taylor you are leaving me there. Beenl have to ask, it has a week since they infused the company with more cash. Any sense of how this is going . Reported thatas the new chairman of we work is looking to turn this around and cut costs. He may bring in his own management. It is still early to see how this company is going to turn around. We will see what the future holds. There could be a thesis for softbank to recoup its large investment in an ipo next year. The story that keeps on giving with liana banker. Liana baker. Rose inea shares afterhours trading. The company has been under competitive pressure. It is looking over to the release of Star Wars Jedi order. Tumble in theales Third Quarter. What it means for the electric carmaker. If you like bloomberg news, check us out on the radio. You can listen to us on the bloomberg app, bloomberg. Com and in the us, sirius xm. This is bloomberg. Taylor despite reportingtaylor surprise thirdquarter profits, a new sec filing shows a 40 drop in tesla u. S. Revenue. That is the largest market. Their sales fall 2 billion dollars. Sales in china rose almost 700 million from 409 million. Now bloomberg is hearing from tesla directly. Bloomberg polled almost 5000 honors. Ree tesla has finally figured out how to deliver cars with your problems. Here is tom randall. He covers tesla for bloomberg news. Let talk about thafcc filing. We know the story, 97,000 cars. Did you learn anything new from this report in terms of the geography of the sales tom not too much. Sales . Tom they are expanding their geographic footprint overseas. We are comparing that to the other Third Quarter of 2018. That is when tesla figured out how to massproduce cars. They started cranking them out and they started flooding the u. S. Market to satiate two years of those that demand. After they satiated that demand, they moved in february to start selling cars overseas. The u. S. Numbers drop considerably. I think some people will look at that number and say is this a warning signal that u. S. Demand is dropping off a cliff . I just dont think there is a lot of evidence to support that. If you go to tesla. Com, there is a twomonth wait to get a model three. That is the longest wait to have had since about this time last year. Signal. It is representative of what is happening when they expand overseas and smooth out their production. It was a record quarter for unit sales and i think we will continue to see that wrap up ramp up as we see their shanghai factory go up. Taylor you are actually doing the work and rolling up your sleeves and questioning 5000 tesla owners. As you take a look at the first part of the survey, what is the key takeaway . Tom this is a massive survey. Nothing like this has ever been conducted tesla. When we wanted to get at is that now that tesla is cranking out 500,000 cars per quarter, what is the experience of owning one . Can they provide the quality and experience of volkswagen or toyota that will attract the next round of more mainstream buyers . We started looking at quality. There are two kinds of quality. It was the driving performance and high tech features that people love about tesla and people raved about those things. Then there is the quality of the manufacturing quality and decision. We measure that by asking how many problems did you have with your tesla when you first received it . Peaks inthat that rate q3 of last year. In that quarter you will remember, that is when tesla famously created a whole new production line in their parking lot under a tent structure. They tripled production. Since then, their defect rate has dropped significantly. Down 44 in the Third Quarter of 2019. Taylor what was the most common complaint that has now gone down . Tom most of the complaints are superficial in nature. It is paint defects. Panel gaps. Dents and scratches. These sorts of things. These dont really affect your driving experience. In the automotive industry, people see that as a signal that attention and care is being paid. If you can provide a perfect paint job, you are giving that same care to what is inside the car as well. Those are the things that give tesla a lot of trouble early on. Of tesla model2 three honors had some sort of issue with their paint. Owners had some sort of issue with their paint. They are continuing to get better. Taylor doesnt bode well for the company that the complaints were not structural or mechanical in nature . That they were purely cosmetic . Do they need to do a better job of getting the whole thing right . Tom they were not purely of cosmetic nature. We saw issues that were unique to tesla and electric cars. There were several electric motors that had to be replaced. At least one highvoltage battery had to be replaced. It is painting a picture. This is a different kind of car. They also have Software Defects that they had to deal with that most Car Manufacturers would not have to do it because they are not operate these advanced features. Most owners said the software fishers issues were fixed with no loss of convenience of the vehicle. I think we are seeing signs that tesla is becoming better at offering the kind of quality one would expect of a mass manufactured car. Overall, tesla owners truly love the car. I think one of the indications of that is when we ask people about their favorite features of the car, 99. 6 of drivers said it was a pleasure to drive. Part one of four of the survey. You can drive the car until you charge it. We await part 200 series later this week. That was tom randall. Have had u. S. China trade wars and the hong kong protests impacted growth . That is next. This is bloomberg. Taylor lets take a look at the top tech calls. Shares tumbled after analyst from wells fargo credited bank of america and cut the price target on the stock. Wells fargo cut the stock to 100 a share and competitive entrants are ramping up. This is leading to competitive turbulence for the stock. Slid. Of health of that even after they were held for stability after their turbulent start of the year. Analysts at j. P. Morgan says that they reported no fireworks. The tech giants performance was strong allaround. Rate at 14601420. Grubhub tumbled. They get a Fourth Quarter , analysts were extremely bearish with at least three grams firms questioning their price target. They said we struggled to find any Silver Lining in these developments. Now, ctrip is chinas leading china agency. The Company Provides onestop travel services such as accommodation and ticket reservation as well as vacation packages. It has had a rapid growth since its start in 1999. They have seen decline during the u. S. China trade work and hong kong protest. The ceo spoke to Tom Mackenzie in beijing. Take a listen. Jane people will still probably travel but maybe instead of four times a year, they may reduce to three times a year. Instead of traveling longhaul, they might travel to asia where within china. I think travel for middle to natural customers is during Chinese New Year . Break. Chinese new year course summer break. Tom is it being weighed down by the weakness in the economy . Jane yes, it has a negative impact on our topline. We will see through it and make a strong investment in the long term. Tom how would you characterize the impact of the trade work on your business . Jane i am hopeful that the leaders from both countries will have the wisdom to focus on our shared interests. There is so many things we share together. We should maximize our shared interest. Then, both countries will be benefiting from her collaboration. Our collaboration. Tom we know that tourism to hong kong has been under shenanigan pressure. Can you quantify how it has played out . For the mainland tourists looking to travel and stay in hong kong . Jane the impact is on our total revenue, 5 . Tom 5 . When you expect that to turn around . Will bepefully the area stabilized very soon. Governmentink both and people will look into the future. Ook forward what is the best for hong kong. Tom i think our focus has been to grow in lower tier cities. Smaller tier cities in china. How much success have you had there . What was your target for growth . I saw one target of an additional 50 of revenue coming from those smaller targets. Tom we have about 8000 offline stores. Jane we have about jane we have about a dozen offline stores. The growth has been tremendous. They have been in the third tier, fourth tier, 50 or cities. It has been working quite well. It is more than 50 yearoveryear. Tom you expect those numbers to continue in terms of growth . Our as long as we keep education, we will be able to gain more market share. Taylor that was the ceo of c trip. Electric vacation is proving extensive. One major u. S. Automaker says it will be putting most of its money into ev. We discuss next, this is bloomberg. Taylor this is bloomberg technology. Im taylor riggs, in for emily chang, in san francisco. All eyes are on electrification. On tuesday, General Motors laid out an aggressive approach to electrifying its lineup, saying the bulk of r d will be spent on evs and not Combustion Engine cars. But is demand for evs still there . In a regulatory filing, tesla reported their u. S. Sales fell 39 in the Third Quarter. The numbers continue to raise questions about how much incentive is needed to keep customers enthusiastic about electric cars. Joining me from new york is Morgan Stanley analyst adam jonas. Adam covers the automotive industry. Great to have you. One of your most recent notes really highlighted the connection between Climate Change and evs. As you look at the landscape, how much does Climate Change start to really drive the shift to evs . Adam so, taylor, first, thanks for having us on. I just got back from Morgan Stanleys inaugural Sustainable Investing summit where we had a couple of hundred clients, skewing very senior, towards cio and portfolio managers, that really focused on this topic. Look, here we are 111 years after the model t, the average car emits almost five metric tons of co2. There are 40 tons per second of co2 emitted by all the cars in the united states. 40 tons a second. Yet, the worlds most valuable auto company, toyota, makes zero evs today. It is kind of a shock. And then on the flipside, you have the worlds most shorted auto company, tesla, that only makes evs. So, something has to give and investors really want to understand how to play that multitrilliondollar shift in capital as we reinvent the industry. Something has to give. Taylor how does technology play into this . I think of early days of tesla when i was not sure if tesla was a tech company or an automotive company. Where is technology in this . Adam we think tesla is more of a software company, and a hardwaresoftware Fusion Company that, in an ideal world, will be covered by a tech hardware analyst rather than the auto analyst community. We will take what we can get. We think the connection between tech and autos is when you see these large multitrillion dollar tech platforms like amazon, alphabet, and apple that clearly have their eyes set on the Auto Industry as a domain. Not necessarily to make cars, but perhaps apple wants to make your car into an apple store. And so, as they try to look at this internet of cars marketplace, its a multitrillion dollar market, theyre getting drawn in to that 40 tons per second in the u. S. Ecosystem. Its happening within cities where ridesharing vehicles might emit 25 tons in a year, five times more than the average car. As tech firms get to that Autonomous Vehicle topic and the shared and connected car, they are being drawn in and have the resources and capital and frankly the obligation to do something about it. Taylor in your other latest report called the Global ElectricVehicle Market monitor in october of 2019, you talked about within the u. S. , we are down yearoveryear, but up yeartodate in terms of u. S. Sales in the battery electric Vehicle Market. As you look towards 2020 and beyond, paint the picture for me. Where are we . Is there demand . Adam we think the stock market is still defining the ev adoption through the wrong lens. They looking through the lens of wealth