Residential mortgage credit. Cory dudley said recent economic headline head winds like the jobs report are temporary. New data shows the biggest part of the economy is holding up Service Industries. They are roughly on the same page as february. Real estate firms, rental companies and management support firms among those Service Industries report the strongest growth last month. President obama spent the weekend defending the Framework Agreement over the iran nuclear program. He said the accord does not mean the u. S. Will forfeit military superiority or fail to protect israel. Here is the pred speaking to the New York Times president obama what im willing to do is make the kinds of commitments that would give everybody in the neighborhood, including iran, clarity that if israel were to be attacked by any state, that we would stand by them. Cory meanwhile, irans state news agency said the ayatollah had full knowledge of the nuclear deal. Some iranian hard liners criticized the agreement saying iran gave up too much. Greece is stepping up efforts to find allies in the u. S. And russia as bailout talks with e. U. Creditors remain stuck. The finance minister said he met with the i. M. F. Managing director in washington and reiterated a rei pay of payment 94 million later this week. Meanwhile, the greece Prime Minister is heading to moscow later this week to talk about food exports and other issues. Furious 7 proving to be a hit at the box office raising 146. 3 million, biggest Opening Weekend ever for an april film. Not just because the franchise producer comcast but driving shares of imax to 52week high. About 1 of the Box Office Sales were in imax theaters setting a record for imax in april. Now to the lead, an easter egg from tesla has the stock zooming today. Surprise announcement good friday, when markets were closed, tesla announcing First Quarter delivery numbers. Tesla delivered 10,030 electric cars in the quarter which exceeded the initial forecast by 530 units. And Going Forward tess will will publish the number of new car deliveries within three days of the quarters end. He said its an effort to thwart what he calls inaccurate sources of information used by others to scombroket the deliveries. But unlike carmakers rs tesla will not release monthly figures or tell us where the cars are being old, as other companies will. But it helped boost the stock pricing up over 400 million. Analyze raising stock targets but what does it tell us about teslas business . Joining fruss washington Vice President of steeple nicholas and via skype from palo alto, a new book tesla and space x and quest for van takes future comes out next month. Ashley, the changing delivery of metric seems to be a play out of the elon textbookment is this something we have seen in the past and will see in the future, the way numbers will come out will continue to change . He always likes to do things his own way and elon tries to surprise people as much as we can with these numbers. It looks like now theyre trying to set up kind of a more consistent way to deliver the number and under pressure to be a little more like rest of the industry. It seems like they will stick with ford but elon likes to like you said, task up these things at surprising times. Cory other carmakers released monthly numbers of the these are strong numbers from tesla. Most cars they ever sold in a single quarter. What do you milwaukee of these shipment numbers for the model s . First of all thank you for having me and good afternoon. I will tell you certainly theyre above our expectations. We were looking for 9,000 units for the quarter. More importantly i think it sets up well the conversation around demand. Its hard to sort of poke poles right now if you will in the demand thesis because they have continued to scale quarter in and quarter out. So we tend to focus more as a result on the supply side. Neither of the obstacles near term are going to be more clearly evidenced in their production ramping. We saw obstacles career themselves in the Fourth Quarter, which led to a miss. So it seems to us this delivery number is an indication maybe soft indication production continues to scale relatively steadily. Cory james, do you think used cars were included in this number . I do not. I do not. I do not believe they would add those in at this point. Cory so used cars are just mystery number because they havent told us anything about mystery cars, other than they are selling them at their dealers . I think you have an option. If you want to go to a tesla show room and wait for the presumably six week to nineweek model s wait period or there are some relatively new i should say demo, equivalent would be demonstrator version at a traditional dealership. You may have an opportunity to purchase those. I do not believe those are being captured. They would have been captured initially as sales to the dealership level is my guess. Cory you mentioned the growth number. Listen real quick there the growth number down to 2 in a sequential basis. Except for the negative quarter they had, thats the slowest growth rate they have ever seen. What does that tell you . Tells me that they are actually on track from a production standpoint. Theyre looking to ramp from just under 1,000 units per week on the assembly line, leaving 2014, to running at a 2,000 a week rate by the end of this year. I think the problem they had in the Fourth Quarter was in part driven by a little bit of an overreach. They were actually over 1,000 units per week during the quarter. There was some west coast shipment issues as well. They had to fly in parts, that was a bigger drag on gross margins. To see them sort of fall back into a more steady ramp i think actually bodes very well for not only the production and delivery ramp this year but from a gross margin perspective our outlook. Cory ashlee, let me ask you about that overreach . China strikes me as well they sold more cars in norway than they did in china in the last quarter, despite elons feckous on china visits to china, james used the word he overreach certainly reaching out to china. How does this fit into the character elons shown us over the years in the way hes run over businesses . Well, theres no question elon sets aggressive time lines for things, agreive projections for things. In my book we kind of talk a little bit about hes kind of conscience with this and when they started they thought they would go from nothing to sending the first rocket up in two years and it ended up taking seven or eight. Elon talked to me about that was a mistake and trying to rein themselfs in over time. In china and tesla, i think tesla thought the market would be stronger. I think everyone thought the market would be a lot stronger. Elon is definitely a celebrity of sorts at tesla. So they thought the interest would be there. It hasnt even been close. On the other hand you see this quart he come through with the numbers it has so theyre making up for a lot of demand that we expected to come from overseas. Cory finally, james, you mentioned production issue and i think thats an important condition of this company. The Global Equities researcher has a note about of friends of his who ordered cars or told the cars would not be available until the end of april, and already shipping at the end of march. But that tells me the back log wasnt what it used to be and they dont need to expand production because they have cars or inventories gone from well over 300 million of finished goods. Doesnt that tell us there isnt much of a back log and they dont need to increase production right now . They have plenty of production as it is . It might tell me that i need to find new friends. I dont know that i have the same pry pry terry check that he does. At the end of the day, i think were embarking on pretty unprecedented transition here, right . Number one, every other manufacturer in the world is downsizing production. Tesla is on the upscale. And to the point on china, by the way, ashlee is absolutely right when it comes to expect aces and elon perpetuating these lofty expectations. Bear in mind they have not j. V. d with anybody in china. I think thats the impediment they ran into as opposed to demanddriven, executedrelated problem. Look, i think model x is coming. Theres going to be some consumers that remain at bay as a result of that and i do think the streamlining of production is making for shorter and shorter delivery times and that may be something thats sort of evidencing itself in my sounds like my competitors analysis. Cory james, steeple a big book on elon coming soon. Rush to the book store, wait outdoors. Wait until bloomberg west is over. Coming up we will talk about the company that turns five years old. Five new products. Interesting future. Talking about amazon versus ebay as well when bloomberg west continues. Cory im cory johnson. This is bloomberg west. Well xiaomi celebrates five years with five new products. Sliv tv drops the ball during march madness, because it drops the ball, march madness, the basketball. We have to talk about satellites as well. First, check of the Bloomberg Top headlines. Electronic Trading CompanyVirtu Financial moving ahead with an i. P. O. The idea shelved after the book flash boys by Michael Lewis accused spigespeed traders of rigging the market. Virtu trying to raise 14 million, turned profit of 190 million last year in revenue, a 9 increase over 2013. And toshibas setting up a committee to look at possible accounting irregularities. The japanese chipmaker and Electronics Company said it may have underreported the costs of some projects. And irobot wants to sell robot lawn mowers. Its asking the s. E. C. For permission to sell the lawn mowers guided by radio waves. Theres a cash. They are running at fierce opposition from astronomers National Radio observatory. Theyre asking the s. E. C. To block the plan saying the plans for bandwidth will interfere with telescopes. Telescopes theyre using to map the milky way. Chinese smart Phonemaker Xiaomi turns 5 years old today. The fifth largest smartphone vendor in china, overtaking samsung last year for the full year. To celebrate, xiaomi is launching five products scale, smart power strip, smart tv, smaurt home but not smartphones . Is that the strategy for xiaomis global domination . Joining us hong kong managing partner of b. B. G. Capital and early xiaomi investor. Really hans, whats up . Phones, i thought they made phones. What about the phones . Cory, you know xiaomi is never just about being a phone company. Its really a lifestyle company. Its all about lifestyle. So its aiming towards selling interesting products that will show up in the home of buyers in china and other emerging markets as well. So we see a wave of new products coming out aimed at the Smart Home Market with these users. Cory interesting they would do this. I guess, again, this is selling hardware too. I thought what xiaomi said was were going to sell hardware with virtual no margin. We will make it up by selling services and software later on. Is this yet another sort of portal to more software and Service Sales . Thats exactly right. These gadgets are interesting for a smart user who wants to have a better lifestyle and once you have more data and other users through a variety of gadgets and gateway, you can offer more services on top of that. Cory so when are we going to see these services . Well, i think on the phones you are already seeing that. It has its own app store. Becomes a gateway for apps integrated to the xiaomi phone and you would see that over time in the smartphone business as well. Cory i guess im wondering about the services that will be xiaomi specific. A lot of apps in the xiaomi store, i think most of the apps in the xiaomi store, are the same kind of apps that can be used on h. T. C. Phones, samsung, any android phone. And their ability to customize android really sent clear to me. What are we seeing in china first . Then we can talk about the rest of the world. I think in china, if you have a xiaomi phone and xiaomi known quantity and theres a contact list, its a Different Task that allows you to call anybody you want for services. Whether its banks, whether its Grocery Stores whether its utilities and so forth. All of these numbers are integrated well with the xiaomi contact list you have. And offer new numbers you may not have in your contact list that would be helpful to you. All the numbers you need to reach, one click away. That kind of interesting integration is what theyre experimenting with different services. Cory youre an early xiaomi investor. They have certainly done quite well in asia. I wonder when we look, we heard expectations for indy while they expect 9 million phones sold this year, thats a fraction of what other carriers or other phone makers expect to add in india. There are plans for the u. S. As well. I wonder about the true scale, global scaleability of this model. What do you think their biggest competitive threat is internationally . Internationally they are its a young company, as you know. Predominantly being china. So learning how to be more a global operation. I think their goal for india initially would be more modest but based on feedback i have from my friends in yained, people love the company xiaomi. The products at mass market prices. I think its being cautious but i think they will be doing better than what theyre projecting. Certainly thats been true for china as well. Cory hans tung of g. G. B. Capital. Early investor and its early in beijing as well. Appreciate it. Amazon have been fighting ebay for decades. But now maybe its working. We wil have that store we will have that story when bloomberg west continues. Cory cory johnson. This is bloomberg west. While Third Party Sellers are key to ebays business and now becoming more important to amazon as well. Amazon added 1 million sellers last year. Ebay added ville churly none vsh virtually none. But they have 2 million versus 1 million. Is ebay in trouble here . David, tell me about what we are seeing. What dynamic are we seeing where amazon doubles its users but theyre still a fraction of what ebay is doing . Sure. Ebays been around a long time, as you know. We see consumers moving more towards the convenience amazon offers. Both ebay and amazon offer a lot of selection on a lot of value but convenience is really the name of the game online. We see amazon pulling away from the convenience category especially around logistics and speed of delivery. Cory you say that but then why does amazon have 2 million compared to ebays 25 if low jestics are so difficult on ebay . Sure. Remember ebay is an open platform so anyone can sell on ebay. On amazon you have to become an approved seller. So part of the appeal of amazon from a consumer perspective is the bar to become an amazon seller is a bit higher and amazon did that to ensure that theres a quality of service and delivery that consumers experience on the platform. Cory this has bane longrunning battle. Going back probably at least to like 95, 96. From the very early days when amazon recognized ebay, while essentially very different was a competitive threat. Indeed thats probably why ebay bought paypal in the first place because they were afraid amazon would scoop it up. What was the dynamic that changed in the last year . Well, in ecommerce its about selection, its about value and its all about speed of product delivery. And back in 2005 2006 when amazon started offer prime, that really became the Gold Standard in terms of what consumers expect in terms of getting products in two days reliably and without additional costs. And amazon has invested considerable amounts of capital in building out their Distribution Centers and theyre really unrivaled in terms of their distribution cast today. This is why prime has become such a popular program. Our Research Indicates something on the order of 40 million prime subscribers today. So that becomes the default mechanism for people to do their Online Shopping because they already have an account with amazon theyve got prime. They know they will get the package and two days and start and end their shopping process on amazon for that reason. Cory if i were selling on amazon, i would be worried if my business is focus, i would be worried once i got successful amazon would just take over my category and start selling on their own. Thats not a concern ebay merchants have. Does that start to get real when the business is selling on amazon half scale . Its a legitimate concern and it has happened to sellers from time to time. The flip side is thats where the consumers are shopping. So if you dont sell on amazon, you can certainly make that decision but youre also giving up a substantial number of potential consumers. Cory yeah, and we have seen certain retailers, brad stones wonderful book the everything store, he talks about the knife maker and how they steadfastly refuse but amazon was consistently or at least sales of wouldveoff knives consistently showed up on amazon, even some they were concerned were not the real deal might have been counterfeit. Yeah, thats a legitimate concern. A lot of brands and manufacturers hiss toringly have thought twice about selling on amazon but the reality is more often than not their products are already being sold on amazon. Its a potential gray market. And as a brand or manufacturer, when that happens, you dont have control over the Consumer Experience or even the product as you pint out. It may not be even legitimate product. We see a significant shift where a lot more brands and manufacturers are embracing marketplaces, in particular amazon for that reason, they want to control the experience for the consumer. Cory deafed spitz, president and c. E. O. Of channel adviser. Thank you. Coming up web tv, sling tv. Its all in the air, just like ncaa. We will talk about that next on bloomberg west. Cory this is bloomberg west, where we focus on innovation, technology and future of business. Im cory johnson. Lets check Bloomberg Top headlines. Worl