In more than 150 news bureaus around the world. Bloomberg newsroom, bloomberg west is next. Emily im emily chang and this is bloomberg west. Elon musk takes shareholders down memory lane at the annual meeting. We will bring you the details. Uber gets a Million Dollar credit line from wall street. It may help the company grow but how do drivers deal . The white house looks to sponsor entrepreneurship in africa. Assistanteak to the secretary of African Affairs for more details will details. The tesla Shareholder Meeting is underway with elon musk treating investors to Something Different a look back at the history of the company, its beginning, its motivation and the story of what has happened over the years. we always try to do the right thing. We care about that. When we make mistakes, its because we are being foolish or stupid or whatever. Always made with the right motivations. Walk through teslas origin story comes a time when tesla is trying to meet an ambitious production schedule for its model three. Many analysts have said getting it right is likely to make or break tesla. We are joined by someone who was with tesla from the very beginning. Ian wright. Hes now developing electric powered trains for larger vehicles. My guest host for the hour is David Kirkpatrick. Thank you for joining us. Since you have been following the Shareholder Meeting, what do you make of the latest developments and the act that hes not sharing his vision of the future but instead looking back at the past . Had gottenhe time i to come here, he had only gotten to the point where they were developing the roadster. Im sure most of the interesting things will be in the q a which at the pace he was going will probably be sometime around 7 00 Pacific Standard time. Emily the q a time is always very entertaining for tesla shareholders meetings. He was going back to a time when you are still at this company and Everyone Wants to know how production is going for the model three. Interesting a very history and if you go all the way back to that, one of the goals was to change the way people look at electric cars. At the time, people that they were golf carts. Hey were heavy, ugly and slow now Everyone Wants a tesla. We have exceeded beyond everyones wildest dreams. Now they are working on premium, fully electric vehicles. Tesla has never had competition in that market. Can they stand up to it . Think the tesla brand is incredibly strong now. Emily you are one of those who put a thousand dollars down hoping they can meet the production schedule. What do you make of the skepticism . Refundable,oney is so im optimistic but pragmatic. Im just curious to ask ian a company goten this started that you are so intimately involved in, was the idea that electric vehicles would sell so well that it would begin to be self funding more is this the kind of tesla we have seen funded by continuing to sell more shares and operating at a loss for a long time what was anticipated all along . Sayt having its fair to we were quite naive about what it takes to start and run a car company. Emily how so . Guest the original business thought it would raise 25000 and it to break even. Have any teslat shares anymore. As part of the reason you left as you could not die into the decision that buying electric cars could be economic and fully mainstream . Guest yes. They are wonderful things. They are fantastically fun to drive. Everyone i know loves it. But they are not cheap. Nobody buys electric car to save money. Trucks burn 14,000 gallons a year. City cars burn 200. The economics are compelling for average trucks. Are focused on bigger vehicles like garbage trucks, so why is that eschewed mark guest because the economics are compelling. Even though we sell a power train for a garbage truck for a lot of money, they save enough fuel and maintenance unless it is three or four years. Its a compelling economic opposition. Therefore it will be widely deployed and make a huge difference in cities where all this fuel consumption happens. Do you make of the thought here that what tesla is trying to do is it impossible . David certainly not impossible but the company is being valued as a disruptor and you are talking about 50,000 units globally out of 100 million. Its one thing to be a niche 100,000 but its another to become a volume automaker. The amount of that would the from 50,000 for a million is going to be a lot and is going to mean losses and cash burn for a long time. Isly if what tesla attempting to do is not necessarily impossible but maybe improbable or just extremely difficult, where does that leave tesla in the future . I would argue that its never smart to bet against elon. Emily its not something we havent discussed at length, but quality problems with the car one of our analysts believes are undercovered. I know a lot of people with teslas and they are all 100 happy with them. I dont have any firsthand reports of any troubles so far. Emily where do you see tesla in five years . Guest its really hard to say. Emily but you are not betting against elon . Guest no, im not. Emily the tesla cofounder thank you so much. David kirkpatrick is my cohost for the hour. You are sticking with me. Now to a story we watching softbank says it will sell 7. 9 billion of its share in alibaba to pay off its debt load. Its the first time they sold any shares in the chinese ecommerce. Another half 1 billion would be sold to a major sovereign wealth fund. However, the sale of softbank will remain one of alibaba pass biggest shareholders. Those shares are lower in afterhours trading. Apple shares slid after the nikkei reported the company may extend its iphone up rate schedule to every three years. Currently, apple releases a major upgrade every year with a of trade in between. The iphone seven, due to release in september is set to look to nexturrent iphone within major upgrade not coming until we see the iphone eight. Coming up, uber making big moves to bring more drivers on board. We will hear what drivers have to say, next. Emily one stock we are watching ecommercebased site. It slid 9 in frankfurt on tuesday. The latest Earnings Report showed tepid growth was some of its european holdings. Losses and other food ordering site widen for the quarter. Key are often seen as a barometer for german startups and is under pressure to prove backing companies are capable of longevity. Now to uber lost wall street extending a billion dollars in credit to uber leasing business. And uber subsidiary called exchange will use the funds to lease cars to drivers rejected by other lenders. The goal is to put 100,000 drivers on the road, but is it safe . Piece big indepth my cohost, David Kirkpatrick is still with us. They have been building out this program in the United States and the inhouse program has been incorporated. They have been trying different strategies but this is clearly a different sign. Emily you interviewed half a dozen drivers who participated in this program. Many of whom were not happy with the results of the program. Uber says they are not profiting from this program in any way. Talk to us about what drivers told you. Guest there are two camps. A couple of drivers we talked to, they have terrible credit one woman i spoke with had medical problems that caused her to get into debt. Another said it was hard for her to get into a car. Uber and exchange was a pass a half to make more money. It was an alternative, but she was paying huge sums to keep the car going. Emily 12,000 more than the total of the car. Guest they are very expensive. If you are poor in this country and you want to get a lease, it is very expensive. Emily you talk to another driver who got into an accident and would not have been able to get a lease any other way. Ultimately, they rates and he could not keep up the payments, so he just left the car outside with a note to uber saying thanks, no thanks. And someone came to pick it up a few months later. Uber has gotten itself into the repo business. Theres definitely some serious turnover. And hetes in january felt like he couldnt make the money, so he quit. His car was parked out there with a note tacked on it. And then someday in the bill of the night, someone came and took it away. Emily we got a statement from the person running this, the head of the Exchange Leasing program. They issued a statement saying the popularity of uber auto lease is incredible and it provides access to hike wally cars with no restrictions on miles and the ability to rake the lease early with minimal fees. What is your reaction to the details that have been uncovered with this program as a passenger . He did a great job with the story. It is breaking great new ground. The company plays hardball at every turn. Prices allting low over the world but it raises the prospect that the driver is going to be someone who doesnt even have good enough credit to buy their own cars or lease it through conventional means. It sounds like it allows almost anyone to walk in off the street and think they are going to get a job because they will get a car and the requirement to use it to pay back the lease in hopes of making a little more money. But i have had mixed experiences with uber drivers as im sure many have and it does not reassure me about my customer experience. Says they need to get more drivers on the road and whos to say any of these people shouldnt the driving, but thats a fair point. As some of you has had mixed experiences with uber drivers, you are getting into a car with these people. Guest theres a huge appetite to grow the number of drivers anyway they can. We did not get into it in this story but people with poor Credit Ratings may be more likely to be bad drivers and some of that is because of how you get a bad credit rating. There are certainly questions to ask there if uber is encouraging people with poor credit to get on the road. I did not get into it with this story but that is part of it. Big theo we know how program is at this point . Guest they have discounts and other finance programs, it is through their cumulative finance effort that i found out about the ilion dollar debt the silty late in the game, so im curious to see how that changes their expectations. Emily how subprime is this . Guest no prime is one phrase you might use. They have subprime drivers and technical rating bands and for uber, its not a matter of whether you default on a car before but i know they are going to pull money right out of your income. If you are driving for over, they are going to take the money right out of your paycheck. What do you think about the idea of more wall street institutions david i want to ask, hes speaking to drivers recommended to him by uber did you say ive got a job and im paying off my lease and making tons of money . One of the lead drivers we talked to was from uber. Certainly the driver uber recommended was still working for uber. She was happy with the program and if you look at the number, i dont think you would walk away thinking shes made a lot of money. The job over papa johns, so shes making tradeoffs but i dont think you would look at it and think shes making a ton of money. Make helped her helped her get a car. Say this is america and uber is trying to help people get one. Emily thank you so much. Up, oracle is back in court, but this time playing defense. We will head to washington dc for details on the companys big legal battle just days after losing a 9 billion case to google. Emily turning to the next leg legal drama a week after losing a copyright case to google, oracle is back in court this time defending claims that it drove the collapse of an ap chip. It is a 3 billion dollars claim dating back to the 90s thats likely to drop some of the bad blood that has developed between these two tech giants. Joining us from washington for some background is our litigation analyst, matt larson. One of the first point to mention is mark hurd ended up going to work for oracle where he is now coceo. What can we expect from this trial . Hp is going to be making the case that when it was going to withdraw Software Support that it caused the business to crater and caused losses. Nobodys going to want it because of the status of the software. There are other market indicators and indicators from chip manufacturers that this was not a profitable endeavor and that they were withdrawing support and had no legal obligation to continue support. You will see those play out over the course of the next several weeks in trial. The chipu covered years ago, what do you think . Chaos i covered a lot of of which mark hurd was very involved with before he jumped to oracle. I wonder if it extends to some leverage hp had because of the experience that oracle . Did they get oracle to agree some things that may be you are going to come back to bite them here . They are going to dredge up some of that bad blood. You are going to see some of the old discussions. And oracle wasce presenting this as its not a binding contract and we agreed to continue as business partners. Its not a specific, Binding Legal documents. When they resolved some of the trade secret litigation going on, the idea was we continue working together but it doesnt mean we are going to continue pouring money and effort into an unprofitable business. I think you will see a little of this back and forth. On oracle, we did not agree to help you with an unprofitable project. Emily now oracle is entering this fresh off of losing a 9 billion case to google, what is next there . on the google side, they are going to continue to fight the loss. Billion ineeking 9 the slice of the android pie. Withs going to continue posttrial appeals and i dont think they are going to give up just because the jury did not find in their favor. Things goingot of on in different venues so it will be a profitable time for their lawyers. Emily thank you for the date. David kirkpatrick, you are sticking with me. Coming up, a u. S. Ambassador with extensive experience in africa joins us to discuss the biggest areas of potential tech disruption. Ambassador linda thomas greenfield is next. , you are watching bloomberg west. But start with a check of your bloomberg news. Prosecutors of the work times trying futile at one time obey or testifying before the trial. Many witnesses were elderly and said would not be available when the trial start sometime next year. Public depositions would taint the potential pool. Scientists say the water in flint michigan is safe for washing and bathing. The water became tainted in 2014. Flint resumed using detroit water last october. A puerto rico tourism official has said the zika virus has led to the cancellation of at least 32,000 Hotel Reservations through 2018, translating to 28 million in lost revenue. Puerto rico has been hit harder by zika than any other part of the u. S. Donald trump is lashing out at that media for the media trying to pin down trying to find out how much money he raised when to veterans. He said the event raised 5. 6 million and it is all being sent. He said he had not wanted any credit or helping to raise the money. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. From bloomberg world headquarters, im, chandra. Its just after 6 30 in new york. Its 8 30 in sydney. Im joined by paul allen for a look at the markets there. just the one market opened in the asiapacific right now and that is new zealand. The index looking pretty flat after the first 30 minutes of trade. Expecting a flat start in the k as well. Today cks to watch the bank of china aviation is not what it sounds like. Its going to make its debut in hong kong after raising 1. 1 billion for the ipo. Japans softbank will be in focus after announcing its going to sell almost all of its stake in alibaba. 7. 9 billion will be sold. Trustlion will go to a for qualified institutional buyers. China, we are expecting manufacturing and nonmanufacturing pmi with slight declines expected there. Theost is expected for australian gdp. Thats just some of what we are watching today. Emily some of the biggest names in tact will descend on Silicon Valley next month for the Global Entrepreneurship summit. President obama is hosting the event at stanford aimed at fostering exchange across borders. Last years summit was held in kenya, putting a spotlight on Tech Innovations across africa. Africanbased startups are expected to hit up ilion dollars. For more, we are joined by linda thomas greenfield joining me in the studio. David kirkpatrick is still with us in new york. It is fascinating. I had not heard the term silicon savanna until today that apparently people are using these terms. How would you describe the tech scene in africa right now . You say they skipped a lot of steps to get to where they are today. Guest i would describe technology in africa as thriving. There is a huge interest in improving access to technology. Africanse areas where really get technology is in Telephone Technology where they never had land lines in an expansive way on the continent, but the use of cell phones became immediately popular. Inica really took the lead banking the a telephone and communication in a way that did not happen in the United States for a number of reasons. One being we already had other technologies. Emily so people have a cell phone and they are connected . Guest you could go into the deepest village in the middle of nowhere on a road and you will with aillage Woman Working cell phone. Emily what is it about now that makes africa right for tech disruption . In 2014 has six of the 10 Fastest Growing economies. There are opportunities on the continent of africa that were not recognized in previous years and companies are beginning to see the possibilities of the opportunities and the resources that are available in africa that they can invest in and they can beese opportunities very profitable. About techalk a lot in china, europe and india, but we almost never talk about technology in africa. Why do you think it has been so absent from the narrative . David i dont think we talk about africa enough in general, but that has been changing in the last couple of years. There is such enthusiasm among young people in cities all over the world but especially big cities in africa like cairo or lagos, nigeria or johannesburg or nairobi. Is s interesting to me and im curious to hear the secretary talk about this cairo and lagos were becoming big tech