The National Press club is criticizing president erdogans security detail for getting into conflict with reporters. In a statement, Tomas Berdych writes, we have increasingly seen disrespect for basic human rights and press freedoms in turkey. Erdogan does not get to export such abuse. The California Legislature has approved and sent to governor jerry brown a proposal to raise the statewide minimum wage to 15 an hour. The increase would take effect by 2022. Governor brown is expected to sign the measure. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Im mark crumpton. Bloomberg west is next. Cory im cory johnson, in for emily chang. This is bloomberg west. Coming up, tesla gets a pigment from apple. Thousands lining up to drop a grand on the car they still have not seen. We will look at the review of the tesla model 3. Fitbit shares up today. The ceo has Interesting Data about how people are using their fitbit. And he has got 99 problems, and title is definitely one. Jayz crying foul on the firm that sold him the music streaming service. But in the league, tesla taking first reservations for its massmarket vehicle. 35,000 model three. People around the world lined up iphone style to put down 1000 on a reservation. They would not take reservations online, only in lines, until after the close. The car will not be in full production, the company says until 2018. , they are still taking those deposits. Elon musk, ceo of tesla master , plan laid out a decade ago, to enter the market on the high end, then drive down the market as fast as possible to higher unit volume and lower prices with each successive model. Well that did not happen with , the model x. But will it happen with the model 3 . The indenting joins us and says tesla does need this model three to sell like crazy. Reporter teslas model is three arguably the companys most important model yet. It wont launch next year until the earliest. It will be more for the massmarket. But with massmarket comes a mass competition. Atlas success to date tightening fuel efficiency standards means competitors like gm and bmw are working hard to catch up. Just five years ago, there were only 4 electric models in the u. S. At the end of next year, there are expected to be almost 60. As any car dealer knows, the more rivals you are up against, the harder it is to make the sale and the more you have to , spend to promote, market, and jazz up the product. This uses up a lot of cash. And tesla already burns a ton of it. Worse those competitors have one , big edge on tesla. They tell millions of regulators and the trucks to absorb the losses made on perfecting their own model three challengers. All of which is a problem for investors paying top dollar for tesla shares. Tesla right now is valued at 30 billion, putting it in the top 10 carmakers in the world. But it sales dont come close to matching. Take a look. You cant even see them here. To buy the stock of this price, you have to believe that tesla can both change the global car market and beat everyone else. While it does so. The model 3 will have to move fast to catch up with teslas investors. Cory all right, now joining us from portland oregon, looking at the company in detail. I think that was appropriate set up for this, the tesla model 3, the whole shooting match for this company and its current valuation. Reporter i think liam hit on the most important issues here. You know, tesla it takes a huge , number of challenges going forward. They have said all along even as , a luxury car company, their brand is underpinned by the idea that they are on this mission to make cars available to everyone. This is really the first vehicle and that is going to take a meaningful step in that direction for the company. Execution is everything here. Cory we dont know a lot about the car itself. We know that is going to be steel rather than aluminum. We dont have a price, at least we think we do. Talking about a 35,000 entry price. They had a car that was 60,000 that they pulled off the market in short order after releasing it. What do we expect do we expect it to be 35,000 . What do you think . Edward it will probably be 37,500 at base. Because, i think tesla is counting on 7,500 federal tax ,redit to get that price below down to about 30,000. 200 miles of range is the general specs sheet we have been looking at. They are real problem there because these subsidies expire after 200,000 units. Were they start to reduce within nine months of that. It is certain to look like by the time tesla gets this model three onto production lines, even assuming there are no delays, that subsidy may have already begun to expire by then. Cory wait, lets go back. Tesla has been fueled by in part big subsidies. 7,500 off, some states have added to that, even. We have seen those subsidies going away, particularly in europe. Have been even greater in countries like norway. But the suggestion is by the , time this thing gets out, they are going to they say theyre going to ship in the last quarter of 2017, the last car they say they would ship in a quarter. With the last car with a bunch of deadlines, they only made 6 cars. Full production, they say 2018. We look at all the competition that will be out there then. The audi q7. The bmw, mercedes. We have got a lot of cars that will be there to compete with them in the all electric space even before this thing is in full production. Edward i think thats why tesla is taking this unprecedented step of going ahead and collecting deposits before they have even shown the car. I think they want to create the perception that they will be the first to market with sort of a massmarket luxury car with 200 miles of range. And the reality is that theres going to be a lot of competition by the time they actually get to the market, even assuming they dont delay the actual launch of the car, which they have for all of their vehicles. Huge challenges there. Cory so, and again back to pricing, is that 35,000 youre guessing 37,500. That probably does not include the extras that people are going to want with the car. We have seen that with the other model teslas where the average price is much higher than the basic lift. Edward tesla has a choice here. Tesla can either have an Affordable Electric car that beats all the competitors by every metric, or they can have a car that delivers a solid profit versus the competition. What they cant do is both of those things. I think the real question here with this launch, what analysts are going to look at which side , of that equation has tesla erred on . Are they going to continue to try to beat the competition and build their brand by offering more for less than the competition, or at some point are they going to start generating profits with the ridiculously high valuations they have at the company . Youve got to air toward the latter, but consumers who are used to this very prestigious high level of execution on the product. Cory tesla model s is so cool. Even for 100,000, they lose money on every sale. It has so many features and everything. What are they not going to put in this car . If you lose money on every sale, you cant make enough on value. Despite the old saying. Edward absolutely. The other thing that has not been covered well in the media, you know, as great a model s is, the reliability and quality have been really quite bad. If you actually do the research into consumer feedback on this vehicle, drive units are 80 of all model s. Theyve had to have the drive unit replaced. Cory the drive unit . Edward the drive unit. Cory that is a big deal. Edward edmonds, a car consumer advice company, their test model s had to have its drive unit replaced twice. So they are on their third a drive unit as far as i know. As you get into this massmarket, people become more demanding. It is a little understood dynamic in the car market. Massmarket consumers rely on their cars more than the luxury segment, and they will be a lot less forgiving of tesla if these quality problems persist. As tesla ramps up its volume, from 50,000 units to 500,000 units without a great track , record of manufacturing quality already, those defects are likely to go up. All this put together spells a really tough challenge for tesla and musk and his team. Cory they are toss they , certainly seemed to be fearless when it comes to taking on new challenges. We will see with the preview shows us tonight and later on. Ed, thank you very much. The story weve been following u. S. Regulators vote to restrict , how Internet Service providers use information about their online browsing. That was a proposal from Companies Like comcast and verizon to get permission from subscribers before sharing their information with other companies, including advertisers. The rule does not apply to web companies. Google and facebook can do the same thing without penalties from the fcc. The rule is not final until another upcoming vote by the federal communications commission. Coming up, investors flocking to make driving obsolete. Looking at cellphone in cars next. Cory indias ride hailing started olaf, working from a broken system. A company says its making it easier for passengers to access the internet while writing to a destination. Both car booking sites already offer free wifi. Ola announces its riders dont have to log on. Making the cofounder say the company has a public internet project. One of the biggest rivals in uber looking to expand. Reporter the battle for londons ride hailing heart is heating up. If successful, this would bring the is really start up fleet to around 1000 cars, half of londons licensed taxis. It would become the british capitals biggest black cab service. Revenues raised 300 last year. They are set for half 1 billion in the company competes in 57 2016. Cities worldwide, including moscow, tel aviv, new york, and of course london. Competing with the likes of uber and lift does not come cheap. Get is seeking is said to be seeking 400 billions more. Not chump change, but a fraction of the 62 billion l. A. Wish and commanded by uber and less than half of lyft. Cory awesome, elliott. A story we are geeking out about, a robo race. The worlds first driverless car racing series. The streets of new york city know, they would not be the streets of new york city but formula e, they will begin this year or next. The cars were designed by daniel simon. Hes the creator of the light of motorcycles seen in the movie tron legacy. The vehicles will be able to hit speeds of 186 miles per hour. That seems perfectly safe. Good lord. Almost every carmaker is racing osition in driverless right now. A startup called Cruise Automation is known for retrofitting cars with fully autonomous kits. Here to discuss white investors like that field, we have reported. Good to see you. You work smart enough, or lucky enough, to invest in this early. We got into the series a led by sport capital out of boston. It was exciting because we syndicated the investment over angeles. This is the first major multibillion dollar deal that mentalist has ever gotten angeles has ever gotten. Cory what did you first see in this company . Kyle is really cory who is kyle . Kyle, the founder of twitch tv, which was sold to amazon for over 1 billion. He was really talking to me about what they were doing the , technology they had developed and where they were really going. Cory he was the one who convinced me that twitch was something to look at. And now, look at that and amazon. You see a big user base with this thing . Well yeah. Driverless Car Technology is going to be every vehicle on the road in the nottoodistant future. My daughter will never drive a car. You think about what is going to do and the way car copper it companies operate. Cory my daughter will never drive a car. Its just because i dont want her driving cars. They should walk. It is a big deal. It changes the world, driverless Car Technology. We are just Getting Started on where that will be at. Cory this is the first huge exit for the angels list. There have been a lot of angels going to zero. But this the future run. You can get a big return or hit zero. It is a signature turn, so my investors are really excited. I want to bring eric wyman into the conversation now. I wonder for you, when you look at the competitive issues at play here, so many Car Companies looking at these technologies. Autonomous driving is already happening. Just about every kind of car you get in the market. Most automakers are targeting 2020 for when they will have the technology deployable on the streets. The question of course is whether the infrastructure and Regulatory Environment will be ready for Autonomous Vehicles at this early point in the future. Cory i do not think you are being kind and fair to the folks in washington who get so much done, eric. [laughter] that may be. There are lots of challenges beyond the Regulatory Environment. The infrastructure, the least of which is not figuring out how , these vehicles are going to interact with the Traditional Cars that have a human operating vehicle on the road. Cory let me ask you zach, what , is it about Silicon Valley . Why are people in detroit looking for Silicon Valley to lead them . Zach you look at what elon musk did and what kyle did with cruise. They are able to go to the smartest people in some of these really big, bureaucratic companies that cant move fast. Kyle was able to say, we can move faster. We can build Great Technology quickly, whereas you have been stuck not getting this done for years. He was able to recruit a really strong people. Gm looked at that and said we know those people on the team. Cory good to see you. Blue shirt. It is not red. Cory thank you very much. Coming up, apples new iphone hit the stores today. The lines, we will take a closer look at what this might mean next. Cory apple is reshuffling parts, looking at lynch, and adding phillips, one of the biggest lighting makers. Dayrt comes out on the same when the nsa of the smaller iphone was announced. According to one analyst, the iphone s. E. An opportunity for apple to try out new suppliers ahead of the iphone 7. Alex webb covers apple for us here at bloomberg as well as allie longe. Youve got a story about this today. It is interesting, this opening of devices and seeing whats in it is one of the oldest games on wall street. Led which ish, the company supply, they are in a number of places across apple devices. And inevitably, the flash. If you hold the phone to the side of your face, the screen doesnt react. It has an infrared sensor, also supplied by these guys. The third thing is, on your watch, if you are fortunate enough to have a light one, underneath it which helps measure your pulse. Cory is this typical of apple . Yeah, they basically play with the supply chain. They risk by going to multiple suppliers. Cory low risk in terms of technological risk . Usually they work through that before they ship in volume. Just from the point of view that they were not expecting massive volumes to go out. Cory they want a new supplier who can bring on the volume before they go to the big, new iphone, which will ship in more size and volume . Literally more size and volume . Absolutely. If you want to introduce a new supplier, you can introduce a new supplier and have them wrap rampup volume. If you go back generations there , have been times when they have introduced a completely new technology and run into supply shortages. Cory we have seen them govern that by limiting the number of countries they sell to. I mean, you know the story because you were on the other side of the pond. You guys initially were not getting the brandnew iphone. U. K. Was added pretty quickly thereafter. Reporter yeah, often the dictate is a faster place to get it. But some countries china doesnt , have the s. E. , but it will come in a few weeks. For thestaggered launch reasons he says. Cory it is important this is an led we are talking about, not a semiconductor. , not a screen or something else. Its essentially not a Big Technology here. We look at it, they are maintaining the same technology they have in the previous generations. Thats the reason they can take on, bring on new people because they understand the technology really well. Cory when i think about it apple doesnt really dual source , things on a given phone. For most components, they lock in with a certain manufacturer. I guess they are with chip manufacturing though. Theyre using samsung as well. They have done global sourcing. Theyve done it for some assemblers and some components. Its only when you end up with one window, theres much high risk for apple. They would like to do also. If you remember back to when the introduced the new technology, and they had three windows. At that time they had wrapped , them up and they ran into production shortages back then. Those are the kinds of situations they want to avoid. Cory what were the lines like today . Reporter i think, that was expected, that they would not be massive queues around the block. They are expecting volumes to be lower. Cory you can say to queues here. Its a global broadcast. Reporter the language is english, and i am english. People are expecting 10 to 15 million tops for this phone. If you compare that to 200 million handsets sold last year, its a big enough number for any other supplier. But is not the biggest. Cory for the last five years on bloomberg television, i have maintained that apple, which successfully has chips, they get devices, screens get them in a , box, get them across the ocean and make all the deadlines and then be surprised by the lines . Come on, is a marketing gimmick. Even tesla has figured out. They are nothing if not good marketing gimmicks. Reporter we kind of buy into it. When i was in munich i would have to go down to the shops in munich and ask people what they thought. Cory alex webb, Bloomberg News, as well as mr. Hammes. Thank you very much. Coming up, shares on fire, we will check in with ceo james park about fighting off competition. Coming up next. If you like Bloomberg News, check me out on the bloomberg app. Bloomberg. Com and in the u. S. , serious xm satellite radio. Reporter top story this hour, chinese it shares are done as the jump in activity. The pmi for market boosted 50. 2, signaling expansion in the tyson act ties saying index also 40. 7. Chinas wide ranging fiscal and monetary stimulus may be kicking in. Stocks also lower in tokyo after the doj quarterly compound survey showed sentiment along large may factor has fallen