We talked to a former board member about jack dorseys latest move. First lets get caught up with our bloomberg first work news. U. S. Stocks extended a rally today with the s p 500 hitting a three month high. Chevron gained as crude oil climbed to a three week high. The energy group has rebounded 22 from an august low. Visa and apple helped send the nasdaq 100 to an alltime record, topping its previous record from march 2000 during the dotcom bubble. Volkswagen said approach indicates an additional 800,000 cars showed your regular emissions output. The german carmaker said the economic risk amounts to volkswagen may be liable for fines of as high as 18 Million Dollars and faces further cost from lawsuits in the u. S. And europe. The u. S. Government is fining airbag maker takata for lapses in the way it handled airbag recalls. They may add up to 130 million to the penalty if takata doesnt obey the terms of a fiveyear agreement. They can explode spewing shrapnel into drivers. Jon stewart is teaming up with hbo. They have agreed to an exclusive for your production deal that includes a first look option for film and tv ventures and short form digital content. Stewart hosted the daily show for 16 years. Now to the lead, tesla shares rising in extended trading as the electric carmaker narrowed its forecast for for your cells volume and named a new cfo. Jason wheeler takes the job after 13 years at google where he was most recently vp of finance. Tesla reported 1. 2 billion in sales, 32 increase, but saw a 230 million loss. The company will need to deliver 16,820 cars this quarter to reach the low end of its fullyear target of 50,000. Ceo elon musk had some big news, a more affordable model three. He said we will see it in early 2016. Joining with me to discuss is the author of the book, elon musk. Also our editor at large, cory johnson. What is standing out to you . Obviously it is significant that they are saying yes, we can deliver those 50,000 cars this year. There is not a big dropoff in the sedan sales. Its been on the market for three years. I think everybody has been looking to see if the car is going to saturate the market. There are only so many wealthy people who can afford this ring. For that number to stay that i i think would be what is pleasing investors. Corey its an interesting quarter for tesla. They said at one point it would be 55,000, then they said 50,000. Now they are saying 50,00052,000. The mid range is falling on that number. Its also interesting to see what they are doing in terms of delivery. In the quarter they delivered the most cars theyve ever made before, but thats not the most by a long shot. If you look at the 11,600 number, that is a good number, but its less than 100 more cars than the previous quarter. Its a 1 increase over the previous quarter. So that is the lowest increase the company has seen. Emily what do you make of what cory is pointing out . What they are saying they can deliver is gradually going down. Cory is totally right, they have moved the target around a bunch of times. Cory around could be up or down. They have only moved in one direction. It has been struggling to get this manufacturing operation down for a long time now. We see with the new car that just came out, they put out six at the launch. We have not heard much about how many will be delivered week. They still have supply chain issues and it had to Start Building the middle row of seats in house because they could not a good supplier for that. I saw that in 2012, so this is an issue that had a lot of time to fix and they just dont seem to be able to fix some of these core things that are stopping them. Emily they cannot get the second row, enough of them delivered so theyre just going to make them themselves. Cory he is a very tall guy, i have sympathy for him in that respect. What jumped out at me with these results, here they are making the most amount of cars they had made out of that factory. Waffict thing should become and the better the Gross Margins should be. Add to that, the gross margin should be Getting Better. On a yeartoyear basis, Gross Margins fell compared to 3 the previous year. Youve seen sequential growth margins decline with the busy factories. It should be just the opposite. They are losing money on every sale and not making it up. Emily they have now said the model three will be revealed in march of next year. A lot of people are saying this will be key, this will determine whether tesla can become a mainstream car manufacturer. That is true, that will be the first time we see if it can be a mainstream carmaker. We are supposed to see what it looks like in march. The big problem of course is they are saying it will be delivered in 2017, and teslas track record of delivering products on time is pretty abysmal. They need to get this car out quickly to address a lot of things cory is saying. They have to show they can act like a proper carmaker and they need the volume to back that up. Huge questions, but i think people really are excited about the model three. Emily the new cfo, erin wheeler, any comments on him . He has been one of elon musks most trusted hands for a long time. Tesla has been your bankruptcy several times and hes had to suffer through that and take tesla to better days. Its a big loss for elon, he has a small group of confidants and he was definitely in that group. Emily moving to another car company, bill ford was at the web summit in dublin and he said hes happy to see Tech Companies entering into the auto world. He said self driving cars are awesome. We talked about how quickly technology is advancing. When you get on a technology path, the time frame becomes very truncated. If i thought something was going to happen 20 years from now, its probably going to happen in seven or eight years. There is so Much Development happening. And so much money being thrown at solutions. Emily the executive chairman of ford there. Activision shells out 18 a share to the maker of candy crush. But is it buying a onehit wonder . We will discuss if its worth the price, next. Plus a changing of the guard at zynga. Pushing the release of two expected games. Emily zynga, the maker of words with friends is up slightly after posting thirdquarter results it be estimates. Its chief Financial Officer is stepping down, but they did not give a reason for the departure. Two games that wont come out until next year. Gamers will have to wait longer for them. Staying with gaming, i want to turn to the video that is rocking the industry today. Activision blizzard is paying 5. 9 billion for the maker of candy crush. King digital. It gives activision a foothold where it previously had none in the mobile gaming market. A space were revenues are expected to grow by more than 50 in the next four years. But wall street has not been kind to king over the years as it tried to duplicate the success of candy crushed. So does the deal makes sense . Our guest is the chairman of patriarch private equity and investor in activision. Last time you were on the show, you said activision needs to make a mobile play. Is this kind of deal you were looking for . Its clear that activision watches bloomberg. Who knows what im going to say later, they may buy it next. This is a smart move, i said it before. They had less than 10 in the mobile space and they were getting decimated in mobile. They are now actually going to be a player. It is a premium of 1620 but a good move overall. It will get them close to 33 of all their revenues now in mobile, which they need to do. Emily is this the deal you would have done if you were running activision . Its a story of a traditional game publisher not having a share of the largest growing portion of the game market right now. I think it is a yes. Right now growth in the Game Industry will not come from the tens of millions of next generation consoles are the hundreds of millions of pcs out there. It will come from touchscreens. A company like activision must have a significant share. There are not that many players that you can acquire to get 300 million playing these games. These are very casual gamers, which is different from activisions core market. Emily eric, what do you think about the price here . It still slightly above the current market cap. This is a company that still has to prove they can make more than one hit. I think the price is fairly relative. If you were to go to some of the companies right now that our are private, you would pay an even bigger premium. Somewhere between nine and 11 times earnings. It gives them a huge base which is significant. They can try to move over some of their intellectual property. It is female driven. A lot of women are playing these games, which gives them access to all these women where they can sell some of the other games. I think it makes strategic sense. This will not be their last big acquisition. I think youre going to see more. Emily what is next . Say it on bloomberg so we can take credit for something else. Its possible that you could see Something Like kabam or even k2, where they would make that kind of acquisition to make themselves an even bigger player. These are smart guys who get the fact that there are not that many be Gaming Companies that are good at mobile. The ones i named are pretty darn good. They have really done a smart move but there are other good ones also. Emily what do you think . I would be a little more cautious. The mobile gaming scene itself is changing very rapidly. The Revenue Streams have been flat for a very long time. Hundreds of Million People who will get exposed to candy crush have never seen it before. Emily does king have the talent to create another hit . They have wonderful studios. The audience maybe moving toward more touchscreen gaming. To me its really about execution. Can they Work Together in order to build core franchises for touchscreens . Emily in terms of execution, do you have any advice . Make sure your games work. For instance, guitar hero live. I downloaded it and tried it. It was three or four days it was down on the ipad and iphone. Its frustrating. Its not a good User Experience. They need to make sure that organically this is one of the reasons they bought this company. They need to get the block and tackling down. They will. They are smart guys and im sure they will figure it out. When it actually works, its a great game. The games are good but they have to get the fundamental components down and make sure mobile is a greater part of their dna organically as well as through future acquisitions. Emily we will be watching for the execution. Thanks so much. The company that upended the book industry is going back to basics. Amazon opening its very own bookstore in seattle. It will carry books based on customer rating, preorders, and online sales. Customers can testdrive other amazon products at the store. Prices in store will be the same as those on its website. Coming up, etsy reports mixed thirdquarter results. Investors wondering if the company can continue to thrive with amazon in its backyard. Emily groupon has a new ceo. Rich williams was promoted to the top job, replacing the cofounder who had been in the position since 2013 after andrew mason was ousted. Etsy is out with thirdquarter results. The company says sales total 65. 7 million, less than 66. 4 million which wall street was expecting. The growth of total sales for the platform continued to slow. The company said gross Merchandise Sales grew 22 , down from 25 a quarter before. Joining us is the ceo and founder of shop kick. First of all, how optimistic are you about the future of etsy in general . I love it as a consumer, but it is difficult to search for things and you cannot rely on shipping times. We should not get distracted by one or two quarters of bad news. The main question is whether there is enough demand drives everything. If people love it, like you just said, then they will keep coming back. But the question is, why should they love it . You have to get into why is etsy so unique that over time it will continue to actually keep growing, even in the face of big competition with amazon. Emily how seriously would you take amazon . You dont think about amazon as a place where you go and buy handmade goods. Basically what Consumers Want is a mix of authenticity and simplicity and convenience. Amazon is fully focused on the handmade part only. Everything has to be hand manufactured, not just hand designs. So the artisans are designing the goods and then manufacturing. You might be waiting for four weeks so someone can actually make them, while etsy is going the opposite direction saying we will help you produce them once you design them. The people really want only handmade stuff did not like it. But you cannot have it both ways. You cant say you need to grow revenue but not allow them to scale. Both need to happen at the same time. Emily what would you be doing if you were running etsy right now . I think the strategy is right to have the handmade design be combined with professional production. That means you dont have to wait for four weeks. Same day delivery does not help production. Emily i had a halloween nightmare where pieces of the costume arrived well after halloween. The second thing is discoverability. If youre searching for a first year birthday card for a little baby, you will get 1250 choices. The only thing can sort by is price or relevance. What is relevant . For one person its blue, and for another it is red. There needs to be better discoverability. Theyre starting to do more in local, but making it my own personal experience, a similar marketplace in sweden is now letting the owner of the online store help you by text message while you are selecting stuff in the app. That makes it really personal. Emily at the same time talking about Amazon Opening a brickandmortar store in seattle. I find it to be fascinating. The future of shopping is not all online. Its an integration of online and offline. 92 of all sales or driven in the store. The future of shopping is a combination of a beautiful shopping experience. The steve jobs apple style store, and knowing what people want and what they like and dont like. Amazon is not great at a beautiful shopping experience. Emily i am curious to see how that is going to work. A correction from yesterday, etsys gross Merchandise Sales were down in the Second Quarter 2015. Sales were 24. 6 down from the previous quarter. Emily this is bloomberg west. Time for global tech business flash. Can promotions help the struggling wireless carrier with new customers . The secondquarter loss was more than twice analyst estimates. The number for carrier is struggling with turnaround efforts. The money it pays to other carriers to handle calls outside the reach of its network. Uber is investing 250 million in north africa. It will branch out to new cities in saudi arabia and egypt and enter pakistan for the first time. Uber says the investment will go toward paying drivers, expanding staff and enhancing its mobile app. The middle east and north africa region include some of the fastestgrowing markets. It Began Service in the middle east two years ago. Accusing alibaba of limiting competition. The company says alibaba is asking merchants to shun other ecommerce platforms on november 11. Alibabas Jim Wilkinson said date he is panicking because they are losing. They cannot match alibabas customer and merchant experience. Last year alibaba had more than 9 billion in sales during its oneday promotion. Twitter stars are now hearts. They changed its star or favorite icon which allowed users to favorite tweets. Take a listen to our interview on studio 1. 0. Even if you dont do a lot of work are going to find between you want and follow the tweets related to the debate or the game. You want a heart instead of a star . It makes you feel really good. Favorite, that word is like, is it really one of my favorite posts . Most people wont do it. Emily now its official, twitter is doing it. We ask about whether he is a heart or a star dive. I love it, no pun intended. I think it is great. I love the heart. They have been testing it, clearly they have gotten feedback that is working. It was available to a limited number of users of until now. I think it just makes sense. The heart is very obvious, you should know i love it. Its being rolled out and its a lot of fun. You can see hearts in your timeline. I think jack is doing a great job. Emily the question is, is twitter making big enough innovations with the product . We are not talking about anything major, really. Do you think twitter is really making the big innovations that need to be made . This is a refinement. Clearly the big change was twitter moments that was rolled out in the last few weeks. It just keeps Getting Better and better. That was a big one and it just keeps Getting Better. The first thing i do in the morning is check twitter moments. That is the big move the company is making and i am inspired. Emily what do you think the main challenges are Going Forward for twitter . There has been a lot of scrutiny and attention on the company. They have 300 million users around the world. The brand is exceptional and jack is back. But they need to show they can grow again and the community it bigger. They have to put the big numbers on the board. I am completely a believer. Emily you were on the board for many years, and so the story goes, you were one of the people that told jack to move on, essentially. Now he is back. What do you think about that . He is back in the role of ceo when a few years ago, you guys didnt think he could do the job. I know that three of us thought it was time to make a change and have ev run the company. That was many moons ago. Dick costolo did an amazing job with twitter. He took the Company Public and built the business model. All the Senior Executives in the company today, dick hired. Its a great team in there. Between jacks vision and leadership as the founder, thats why im so excited to see people coming back to the company. I think its really great. Jack is much more mature and experience that he was in 2008. He still has all the passion and vision plus all the maturity of an experienced ceo. Emily do you ever think, what if you hadnt kicked him out, if he had remained ceo . Of course i do. But ev