Tesla's Slower Growth Rate and ServiceNow's Strong Results | Bloomberg Technology
FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG HEADQUARTERS IN NEW YORK. ED: AND I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE: TESLA SHARES SLUMPED AFTER A REPORT ON GROWTH RATE. ED:
WE SPEAK TO THE SEAT F O OF SERVICE NOW. CAROLINE: MICROSOFT CUTTING JOBS IN HIS GAME SECTION INCLUDING ACTIVISION. FIRST, LET US CHECK IN ON THE RECORD HIGHS ON THE S&P 500. WE LOOK AT A STRONG GDP FIGURE COMING IN AND CHECK OUT THE CONCERNS OF TESLA. MASTEC IS NOT AT A RECORD HIGH BUT UP AT .35%.
THE EURO, AND WHY THEY DID NOT MOVE RATES. WE ARE UP .5%. WE ARE CURRENTLY FLAT ON BITCOIN. WE ARE AT THE TRADING LEVEL WE HAVE SEEN BUT NOTABLY BELOW THE MARK. WHAT DO YOU HAVE ON THE MICRO? ED: INTEL IS OUT WITH EARNINGS AFTER THE BELL BUT A DEAL ANNOUNCED WITH THE TAIWANESE CHIPMAKER THEY GET ACCESS TO 12 NANOMETER TECHNOLOGY AND INTEL GETS UTILIZATION OF HARDWARE. THIS IS A GREAT WHEN OF ON
SHORING MANUFACTURING IN THE U.S.. WE WILL LOOK FOR MORE ON THAT DEAL, IBM UP AFTER A STRONG OUTLOOK AND SALES. THEY ARE WORRIED ABOUT THE WORKFORCE REDUCTION BUT THE PUBLIC LIKES THE OUTSIDE. CUTTING 19,000 FOR MICROSOFT. BUT THIS HAPPENED SOMETIMES IN
M&A. WE WILL TALK FURTHER TO TRY AND UNDERSTAND IT. TESLA IS DOWN 10%.
THE BIGGEST DROP SINCE OCTOBER. IF IT CLOSES NOW AT 11.5%, WHY? THE MARKET IS ZEROED IN ON THE GUIDANCE THAT PRODUCTION OR GROWTH WILL BE SIGNIFICANTLY LOWER THAN IN 2023 AND THEY DROPPED THIS GUIDANCE OF COMPOUND GROWTH WHICH GOES BACK TO THE END OF 2020. THERE IS A LOT OF OPTIMISM ABOUT AI AND ELON MUSK'S ROLE WITHIN THE COMPANY. THERE'S A LOT TO DIGEST. LET'S BREAK IT DOWN WITH TASHA KEENEY. A NEXT GENERATION TV PLATFORM IS COMING. WERE COMING OFF THE BACK OF A
MODEL THREE Y YEAR ERA. TASHA: WE ARE FOCUSED ON THE LONG-TERM OUR CONFESSED. THEY DID MENTION PRODUCTION, GROWTH FOR THIS YEAR WILL BE SLOWER. THEY ARE FOCUSED ON THIS PLATFORM AND DISTRIBUTING PART OF THE CAUTION ON PRODUCTION.
YOU KNOW AS WELL AS ANYONE I'M EXCITED ABOUT THE OPPORTUNITIES WHERE THEY ARE BUILDING A ROBOTAXI. WE HAVE FSD 12 ROLLING OUT TO CUSTOMERS THAT SHOWS CONFIDENCE AND HEARD THAT OPTIMISTS MAY BEGIN SHIPPING NEXT YEAR. TESLA IS A BEHEMOTH IN THE AI SPACE AND THIS WILL BE ONE OF THE GREATEST OPPORTUNITIES IN A LONG TIME AND TO IGNORE THAT IS WRONG. ED: WILL THE NEXGEN VEHICLE PLATFORM JOINED THE TRADITIONAL CAR STORY? WHAT DID WE LEARN, THEY ARE MAKING PROGRESS ON THE START OF PRODUCTION AND HE SAID TAKE 2024 WITH A GRAIN OF SALT. DID YOU LEARN ENOUGH TO FIGURE OUT WHERE WE GO FROM HERE WITH THIS FUTURE TAXI? TASHA: I THINK ELON IS MORE CAUTIOUS THAN HE HAS BEEN IN THE PAST. HE HAS BEEN REALLY OPTIMISTIC WITH TIMELINES AND WHO CAN BLAME HIM? HUMANS ARE BETTER AT PREDICTING PROGRESS.
BUT WE HEARD THEY CAN START PRODUCTION NEXT YEAR AND I THINK THERE IS A LOT OF CAUSE FOR OPTIMISM. WE DID HEAR THEY ARE CUTTING COSTS IN A WAY THAT IS REALLY UNPRECEDENTED. THEY ALSO SAID THAT EVEN THOUGH ON THEIR CURRENT PLATFORM THEY ARE REACHING THE LIMITS OF COST PRODUCTION THAT DOES NOT MEAN THEY ARE DONE. WE'VE HEARD ON THE DESIGN SIDE
IT IS COMMODITY PRICES THERE IS STILL OPTIMISM THERE AND I THINK IT'S AMAZING. WHEN YOU LOOK AT DVDS AUTOMAKERS ARE CUTTING BACK ON THEIR DVDS. THEY ARE ALREADY COST COMPETITIVE AND IT WILL ONLY GET CHEAPER. THIS IS THE FUTURE AND TESLA IS THE LEADER. CAROLINE: YOU HOW TO VALUE PER SHARE PREDICATED ON THE IDEA OF THE ROBOTAXI WHERE DO YOU STAND RIGHT NOW WHEN HE SAYS TAKE 2025 WITH A GRAIN OF SALT? WHEN WILL WE SEE THEM IN USE IN IN-PLACE? TASHA: WE ARE UPDATING OUR MODEL FOR 2028 AND OUR RESEARCH PRESENTATION ON THE TECHNOLOGIES ARE COMING OUT BUT OVERALL, IF YOU THINK ABOUT IT IN THE FIVE-YEAR TERM HUMANS ARE BAD AT PREDICTING AI.
WE ALREADY SEEN FROM PLAYERS LIKE WAYMO AND TESLA THAT ROBOTAXIS ARE POSSIBLE BECAUSE YOU CAN WATCH CONSUMER VIDEOS THAT SHOW PEOPLE WITHOUT INTERVENTIONS TAKING POINT-TO-POINT RIDES. IT'S JUST A MATTER OF WHEN. I THINK IT WILL HAPPEN IN THE NEXT FIVE YEARS. THE CONFIDENCE IN FSD 12 WITH MAKING THE ROAD.
CAROLINE: YOUR THESIS IS THAT IT IS INTRINSICALLY LINKED WITH AI AND ROBOTICS BUT ELON MUSK IS THREATENING TO TAKE THAT INNOVATION ELSEWHERE IF HE DOESN'T GET 25% VOTING CONTROL? ARE YOU WORRIED BY THAT THREAT? TASHA: I THINK THAT'S OVERBLOWN. WE'RE VERY HAPPY TO HAVE ELON MUSK INCENTIVIZE TO CHANGE THE WORLD. HE IS CAPABLE OF AMAZING THINGS WITH ROBOTICS AND AI SO WE WANT HIS INCENTIVES ALLIED WITH TESLA.
TESLA HAS BEEN INVESTING IN THIS FOR THE PAST DECADE AND THEY ARE YEARS AHEAD OF THE COMPETITION IN TERMS OF AI. TESLA VEHICLES ARE ABLE TO ACCESS 2 MILLION MILES PER DAY AND SELF-DRIVING. THAT IS IMPORTANT TRAIN DATA -- TRAINING DATA.
WAYMO, HAS SINGLE DIGIT MILLIONS AND DRIVING DATA. TESLA IS FURTHER AHEAD WHEN IT COMES TO SCALE ALREADY. I'M EXCITED FOR THIS COMING YEAR. GENERAL-PURPOSE ROBOTS COULD BE A HUGE MARKET. THERE ARE SO MANY EXCITING THINGS AHEAD FOR TESLA.
TO FOCUS ON THE SHORT-TERM IS A SHORT-TERM FOCUS WHEN YOU WANT TO BE LONG-TERM FOCUSED. CAROLINE: TASHA KEENY FROM ARC IN FEZ. WE HAVE TALKED ABOUT HOW MUSK IS HOPING TO GET A BIGGER CONTROL OF TESLA. HE IS THREATENING WITHOUT IT HE WILL TAKE HIS PRODUCTS ELSEWHERE. HE SAID WITH SO LITTLE INFLUENCE I COULD BE VOTED OUT BY SOME RANDOM SHAREHOLDER ADVISORY FIRM. THERE HAS BEEN PRESSURE CAMPAIGNS WAGED AGAINST THE COMPANY.
WE NOTE THE ERA, THERE WAS AN ANTI-SEMITIC CONTROVERSY AROUND ELON MUSK. WHAT DO YOU SAY TO 25% OF THE COMPANY? >> THIS IS AN INTERESTING AND COMPLICATED CEO. WHEN WE WERE TALKING ABOUT ANTI-SUBMIT TO MS. SEMITISM. THE CEO IS UNIQUE ON INNOVATION
AND ABILITY TO STEP OUTSIDE THE BOX AND GO AGAINST THE STATUS QUO AND IN LOTS OF WAY THAT'S IMPORTANT. HE HAS NOT TIED TO HOW THINGS ARE DONE IN THE PAST AND WANTS TO DO THEM DIFFERENTLY. WHERE WE ARE CAUTIOUS IS WITH THESE INFLAMMATORY STATEMENTS. HE WAS 25% OWNERSHIP HE HAS HAD THAT IN THE PAST, HE'S DOWN TO 13% HAVING USE THAT MONEY TO PURCHASE X.
WHAT DO YOU MEAN ABOUT INCENTIVES? WE ARE IN AGREEMENT THAT WE WANT THE CEO TO HAVE INCENTIVES FOR THE LONG TERM OF THE COMPANY AND YET, MONEY IS NOT AN INCENTIVE TO THE WORLD'S RICHEST MAN. HE DID MAKE COMMENTS IN THE EARNINGS CALL ABOUT ISS. THEY MAKE RECOMMENDATIONS AND THEY MAKE RECOMMENDATION FOR VOTERS RIGHTS. WE LIKE THOSE REGULATIONS SO WE CAN REIN IN CEOS FROM TIME TO TIME. ED:
HIS NICKNAME FOR THEM IS ISIS WHICH IS CLEARLY INFLAMMATORY TO THEM. FOR IMPACT INVESTORS, MANY SAY THAT ELON MUSK SAYS THINGS THAT UPSET PEOPLE. HE SAYS THINGS THAT ARE CONTROVERSIAL BUT AT THE SAME TIME OVER A 10 YEAR PERIOD HE HAS GROWN TESLA AND CHANGED THE GAME FOR SPACE TECHNOLOGY AND MANKIND'S ABILITY TO REACH A LOWER ORBIT. HOW IMPORTANT IS IT THAT YOU GET SOME KIND OF RESULT WITHOUT OFFSETTING WHAT IT IS QUITE CLEARLY A CAPABLE LEADER? >> THANK YOU FOR THE QUESTION. CAPABLE LEADER, I WOULD SAY
THAT IS UP FOR GRABS. HE IS LEADING IN AI WE WERE INTERESTED IN THAT BATTERY PLAY AND HE HAS SHOWN THAT IT'S IMPORTANT FOR THEM TO ROLLOUT. WHERE WE HAVE QUESTIONS AND CONCERN IS SOME OF HIS STATEMENTS. COMPARING ISS TO ISIS IS INFLAMMATORY AND IT DOESN'T EVEN MAKE SENSE. THEY PUT OUT PROXY
RECOMMENDATIONS THAT THEY HELP IS GOOD FOR THE LONG TERM OF THE COMPANY. THEY HAVE NOTHING TO DO WITH ISIS. THAT IS PROBLEMATIC. HE HAS MADE COMMENTS ABOUT DEI THAT CAUSE CONCERN BECAUSE WE NEED TESLA TO HAVE A REALLY STRONG BRAND FOR THE CONSUMER SIDE BECAUSE PEOPLE NEED TO FEEL STRONG ABOUT PURCHASING AND DRIVING THAT CAR AND USING THAT BATTERY. WHAT WE ARE CONCERNED ABOUT IS HIS ABILITY TO ATTRACT AND RETAIN TALENT IF PEOPLE DON'T SEE A PLACE FOR THEM WITHIN THIS INNOVATION. ED: WE ARE GRATEFUL FOR YOUR TIME ON THE PROGRAM. LET'S STICK A LITTLE LONGER WITH TESLA. WE SPOKE IN ADVANCE OF EARNINGS
AND I'M JUST GOING TO GO FULL SET. LOOK HOW CLOSE I CAME. CAROLINE: IT'S FUN BUT IT'S ALSO IMPORTANT THAT PATSY DID MENTION. DE I, DID HE INSULTED AN ANALYST? OR WAS IT CUT OFF AN EXECUTIVE? HE LIVED UP TO A LOT OF ANTICIPATION. WHAT WAS THE ONE THAT TOO MOST BY SURPRISE THAT HE DID SAY? ED: BY SURPRISE? THE FED AND I WAS STRETCHING BECAUSE HE BASICALLY SAID INTEREST RATES. THAT WAS MY REAL CARD, CHECK IT OUT. CAROLINE: THAT WAS A GREAT GAME. YOU HAVE TO FOLLOW AND ON TWITTER WHEN HE HAS EARNINGS.
THIS IS BLOOMBERG TECHNOLOGY. LET'S BRING IN SERVICE NOW CFO FOR MORE. YOU DID MANAGED TO OUTPERFORM THE SECTOR AND YOU HAVE ONE OF THE FEW OFFERINGS WITH REAL CASES AND BILL CUSTOMERS. IS THERE ANY CANNIBALIZATION WHEN THEY ALLOCATE TOWARDS TECHNOLOGY, DOES AI COME AT THE EXPENSE OF EVERYTHING ELSE IS AND IN ADDITION? GINA: WE CLOSE THE YEAR WITH ANOTHER EXCEPTIONAL QUARTER, REVENUES OF 25.5% OPERATING MARGIN OF 29%. ALL AT THE HIGH-END OF OUR GUIDANCE AND RENEWAL RATES OF 99% AND LOCAL GROWTH. -- LOCAL GROWTH. WE CROSSED 10 BILLION WHICH ONLY ATE SOFTWARE COMPANIES HAVE ACHIEVED IN YOU ARE ABSOLUTELY RIGHT, WE HAVE INCREDIBLE GIN AI PRODUCTS WHICH LAUNCHED IN SEPTEMBER.
OUR FIRST FULL QUARTER AND WE SAW THE LARGEST CONTRIBUTION FOR OUR FIRST FULL QUARTER OF ANY OTHER PRODUCT RELEASES. GENAI IS RESONATING WITH OUR CUSTOMERS BUT WE ARE NOT SEEING ANY CANNIBALIZATION AT THIS POINT. ED: WE WERE PLAYING BINGO WITH TESLA'S EARNING CALL BUT IF WE PLAY BINGO WITH YOURS WE WOULD HAVE HAD CRPO. THOSE LOOKING AT IT AND SAYING WHY IS THE FORWARD-LOOKING STUFF LUKEWARM? WHY ARE YOU NOT MORE BULLISH ABOUT GROWTH FOR THE REST OF THE YEAR? FGINA: WE RAISED OUR REVENUE GUIDANCE TO 10. 75 FROM 10 POINT 4 BILLION. WE ARE BULLISH AND EXCITED ABOUT WHAT 2024 WILL SHOW BUT THE MACRO IS STILL UNCERTAIN.
FROM A GUIDE PERSPECTIVE, WE WANT TO BE PRUDENT IN HOW WE THINK ABOUT THINGS. WE ARE SEEING GREAT DEMAND ACROSS THE BOARD. OUR PIPELINE LOOKS STRONG IN THE DEMAND IS THERE IN GENAI IS ON THE FOREFRONT OF WHAT EVERY CEO AND CFO WANT TO INVEST IN. OUR PLATFORM IS IN A STRONG POSITION TO CONTINUE TO BUILD ON THE MOMENTUM YOU SAW IN 2023. CAROLINE: IT'S SUCH A GAME OF FRENEMY'S BECAUSE YOU HAVE GOALS ALONG WITH MICROSOFT IN HELPING AMAZON WITH ITS OWN OFFERINGS AND I AM INTRIGUED AND HOW YOU CAN OFFER SOMETHING DIFFERENT IN COMPARISON TO COMPANIES THAT WANT TO EAT YOUR LUNCH. GINA:
IT IS THE STRENGTH OF OUR PLATFORM AND RELATIONSHIP WITH OUR CUSTOMERS. IT'S OUR PEOPLE AND TIME TO VALUED THAT PLATFORM DELIVERS. WE ARE A CUSTOMER CENTRIC COMPANY UNDERSTANDING THE NEEDS OF OUR CUSTOMERS AND OUTCOMES ARE TRYING TO GET AND HOW OUR PLATFORM CAN DELIVER. WE'RE EXCITED ABOUT THE
PARTNERSHIPS WE HAVE ANNOUNCED. ONE WITH AWS. THIS OPENS UP A WHOLE NEW MARKET FOR US, AND IT'S A PARTNERSHIP WE ARE EXCITED ABOUT. WE ALSO ANNOUNCED A STRATEGIC PARTNERSHIP WITH VISA WHICH IS A FIVE-YEAR STRATEGIC ALLIANCE TO USE OUR PRODUCTS TO TRANSFER PAYMENT SERVICES. END-TO-END DISPUTE RESOLUTION. EXCITED TO CONTINUE TO PARTNER WITH THESE COMPANIES AND NO ONE HAS TO LOSE FOR US TO WIN AND WE WILL CONTINUE TO OUTPERFORM. ED:
SERVICE NOW CFO, GREAT TO HAVE YOU ON THE SHOW. CHINA'S DOMINANCE, WHY THE TIME NOW FOR TALKING TECH. FOR THE FIRST TIME THE IPHONE HAS RANKED AS THE TOP PHONE IN CHINA. THEY HAVE HAD THE MOST SHIPMENTS IN THE FOURTH QUARTER ADMITS CONCERNS FOR INVESTORS ABOUT PLUMMETING SALES IN THE REGION.
ASML CHIPMAKING MACHINERY BOOMED IN CHINA DESPITE AN AGREEMENT TO CURB DELIVERIES. A SPOKESPERSON FOR THE NATIONAL SECURITY COUNCIL DECLINED COMMENT. RUSSIA SHOWS HALF OF THE IMPORTED SEMICONDUCTORS WERE MANUFACTURED BY COMPANIES LIKE INTEL AND OTHERS. ED: SPEAKING WITH ST MICRO, MISSING ESTIMATES SHOWING OH WEEK DEMAND FOR INDUSTRIAL CHIPS. DOWN TO 3.6 BILLION COMPARED TO FOUR POINT ONE BILLION ESTIMATED.
IN THE INDUSTRIAL MEDICAL SECTOR HAVE SUFFERED FROM A SHORTAGE OF SEMICONDUCTORS. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY I AM CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. THE S&P 500 IS UP FOR A SIXTH STRAIGHT SESSION AND SOME OF THAT IS IN THE SEMICONDUCTOR SPACE. INTEL HAS THIS DEAL WITH TAIWAN UNC WHERE THEY GET 12 NANOMETER MANUFACTURING TECHNOLOGY IN ARIZONA AND INTEL GETS USE OF OLDER EQUIPMENT, DEPRECIATING ASSETS BUT THEIR INITIATIVE TO GROW THE BOUNDARY OF THEIR BUSINESS IN THIS EFFORT TO ENSURE THE SUPPLY CHAIN. THE COMMERCE DEPARTMENT WILL BE INTERESTED IN WHAT'S GOING ON HERE. THE BIG STORY DRIVING MARKETS
IS WHAT IS HAPPENING IN VIDEO GAMES. MICROSOFT GAMES IS UP BUT ADDING TO THOSE GAINS IS THE STORY, 1900 JOBS BEING CUT FROM ACTIVISION WHICH MICROSOFT ACQUIRED AND XBOX PERSONNEL. HOW OFTEN DOES THIS HAPPEN? WHAT IS THE REAL STORY HERE? LET'S GO TO BLOOMBERG'S JASON SCHREIER. JASON: WE ARE FACING CHAOS ALL ACROSS THE COMPANY.
PEOPLE DON'T KNOW IF THEY'RE BEING LAID OFF. I AM TOLD BY A BLIZZARD SPOKESPERSON THAT EVERYONE SHOULD FIND OUT BY THE END OF THE DAY, ALL 1900 PEOPLE. IT'S JUST CHAOS OVER THERE RIGHT NOW. CAROLINE: WHAT TOOK ME BY SURPRISE IS SOME OF THE SENIOR EXECUTIVES ON THE OUT INCLUDING THE VICE PRESIDENT WHO SAID HE WOULD HAVE TO BE DRAGGED OUT. JASON: HE IS REALLY THE FOUNDER OF BLIZZARD. WE ARE TALKING ABOUT A MASSIVE CHANGE OVER THERE. A LOT OF PEOPLE EXPECTED MIKE
IBARRA FOR VARIOUS REASONS, HE RUFFLED OTHERS OVER A COUPLE OF DISASTROUS MEETINGS AND DECISIONS PEOPLE WERE THRILLED ABOUT. IT IS A BIG SURPRISE, BLIZZARD CANCELED ONE OF ITS BIG GAMES CALLED ODYSSEY. I HAVE BEEN HEARING RUMORS THAT LAYOFFS MAY BE COMING TO BLIZZARD BUT THIS IS BIGGER AND BLOODIER THAN EXPECTED. ED: IN ANY BIG PIECE OF M&A WHERE A BIG COMPANY ENJOYS ANOTHER COMPANY THERE ARE OFTEN LAYOFFS BECAUSE IT'S OVERLAPPING ROLES.
BUT THAT MASKS THE BROADER IDEA OF WHAT MICROSOFT WAS GETTING IN HIS PURCHASE OF ACTIVISION. DO YOU HAVE ANY SENSE OF HOW THAT INTEGRATION IS GOING IN THE FOCUS OF THE PRODUCTS ON CONTENT AND TITLE SIDE? JASON: THAT'S WHAT WE DON'T KNOW. IT IS BEEN THREE MONTHS SINCE MICRO SOFT TOOK OVER. A LOT OF PEOPLE WERE OPTIMISTIC. MICROSOFT HAS NOT COMMUNICATED PUBLICLY WITH THEIR VISION IS FOR ACTIVISION BLIZZARD, FOR THE CALL OF DUTY FRANCHISE, DIABLO.
I KNOW THERE ARE STILL NEW PROJECTS IN DEVELOPMENT WITHIN BLIZZARD. MICROSOFT MAY JUST DOUBLE DOWN ON FRANCHISES THAT ARE SUCCESSFUL. WE ARE HEARING THAT A LOT OF THE LAYOFFS ARE IN REDUNDANT DEPARTMENTS LIKE MARKETING AND OTHER DEPARTMENTS YOU WOULD EXPECT TO BE HIT BY INTEGRATION WITH THE COMPANY THAT DOES SIMILAR SORTS OF BUSINESS. CAROLINE: 1900 PEOPLE, BUT IN COMPARISON ONLY A PERCENT OF GAMING PERSONNEL. ANOTHER EXTRAORDINARY SCOOP COMING TO BLOOMBERG, A GROUP CALLED CHINA TECH THREAT SOUNDS THE ALARM ON COMPANIES VULNERABLE TO CHINESE INFILTRATION. DELL IS ONE OF THE MAIN
SPONSORS OF THE GROUP. THIS TURN OF EVENTS SHOWS US NOT JUST DELL, BUT A BIGGER GROUP. >> LENOVO, WE ARE USED TO HEARING ABOUT CHINESE TECH ANXIETY BUT THIS GROUP IS SAYING YOU NEED TO GET RID OF THESE. PASS THE STATE LEVEL BANDS AND IT TURNS OUT, DELL WAS FUNDING IT. THEY DID NOT DISCLOSE THAT. AS INCREASING TENSIONS HAPPEN, COMPANIES ARE WILLING TO SAY COULD THIS BE AN OPPORTUNITY FOR US? THIS IS A CASE STUDY AND HOW THE TRADE WAR HAS BEEN ADVANCING. ED: THIS BLOOMBERG BUSINESSWEEK STORY, AMAZING WRITING.
LENOVO IS THE BIGGEST MAKER OF PERSONAL COMPUTERS IN THE WORLD. WHAT DO THEY HAVE TO SAY THAT THIS REPORTING? WHAT IS IT THAT DELL AND MICRON WANTED TO ACHIEVE IN THE END DOWN THE ROAD? >> LENOVO IS THE BIGGEST MANUFACTURER OF PC'S AND ANY LOSS WILL BE GOOD FOR DELL AND HP. THEY HAD THRIVING, GROWING BUSINESSES IN CHINA BUT THE CHINESE GOVERNMENT HAS SENT MANDATES YOU WILL HAVE TO USE LESS OF THESE AND THAT IS WHEN DELL AND HP SAID WE SHOULD APPLY A SIMILAR PRESSURE.
THE SEMICONDUCTOR INDUSTRY IS BETTER KNOWN BUT THIS TECH THREAT ARE THESE ASCENDANT PLAYERS WHO WOULD LIKE TO COMPETE WITH MICRON ON SOME LEVEL. CAROLINE: THE MONEY BEING FUELED BY THESE COMPANIES, BRILLIANT REPORTING. ED: WE ARE GOING TO THE WORLD OF CARS AND PORSCHE GOING ELECTRIC. THEY JUST UNVEILED AN ELECTRIC MCCANN.
WE ARE PRETTY SURE THAT THE LAUNCH OF THE MCCANN ELECTRIC WILL KEEP UP WITH DEMAND. THERE IS A LOT OF DEMANDED A LOT OF PEOPLE WAITING FOR A PRODUCT LIKE THIS. AS WE HAVE IT IN THE MARKET RIGHT NOW WITH THE COMBUSTIBLE ENGINE HAS HAD ITS MOST SUCCESSFUL YEAR AND ITS HISTORY.
THERE IS HIGH DEMAND FOR THE EXISTING PLATFORM AND THEY ARE LOOKING FOR THIS LATEST EDGE TECHNOLOGY. FOR THAT REASON, I FEEL POSITIVE ABOUT IT AND YOU CAN SEE IN THE YEAR 2025 THE REAL RELATIONSHIP THE DIFFERENCES BETWEEN THE VERSIONS. I THINK IT WILL BE WHAT WE CAN SUPPLY FROM OUR FACTORY IN GERMANY. ED:
IS YOUR SUPPLY RESTRAINT BECAUSE YOU KNOW THE DEMAND WILL OUTWEIGH YOUR ABILITY TO SUPPLY. WHEN YOU PHONE YOUR COUNTERPARTS IN GERMANY, HOW MUCH SUPPLIER THEY ABLE TO GUARANTEE YOU THAT FIRST YEAR? >> I CAN'T GO INTO THE DETAILS BUT WERE USED IN PRODUCING ONE LESS CAR THAN THE MARKET IS ASKING FOR. THEY COME OUT OF OUR FACTORY IN LIFE GERMANY.
WE WILL HIT THE RIGHT SPOT FOR DEMAND AND WE EXPECT THAT THERE WILL BE MORE DEMAND THAN WE CAN SUPPLY FOUR. ED: WHO WERE YOU WORRIED ABOUT OUT THERE? IS IT THE ELECTRIC TRUCK? OR ARE YOU WORRIED ABOUT THE ELECTRIFIED OFFERINGS OF YOUR GERMAN PEERS LIKE MERCEDES? >> THE DESIGN AND APPEAL IN TECHNOLOGY, WE AS PORSCHE HAVE A LOT OF PEOPLE WHO ARE EXCITED ABOUT THE PORSCHE BRAND. WE SEE A LOT OF OPPORTUNITIES TO GET THE FAMILY GROWING BUT ALSO GET EXISTING PORSCHE OWNERS EXCITED. THERE IS A LOT OF OPPORTUNITY, WE ARE SO GROWING THAT MARKET WHERE PEOPLE JOIN THE PORSCHE FAMILY AND EXPERIENCING THE FEELING OF A PORSCHE PRODUCT. ED: AMERICA WAS CRITICALLY IMPORTANT TO PORSCHE IN 2023 IN PART BECAUSE CHINA'S GROWTH WAS DECELERATING AND PORSCHE HAS SAID 2024 WILL BE DIFFICULT IN CHINA AS WELL. WHAT KIND OF PRESSURE ARE YOU UNDER TO KEEP GROWTH GOING HERE IN THE UNITED STATES AND NORTH AMERICA WHEN A KEY MARKET LIKE CHINA IS SLOWING DOWN? >> I WOULD LIKE TO FOCUS ON THESE TOPICS BECAUSE THE BALANCE OF DISTRIBUTION OF SALES, IT IS PERFECTLY BALANCED IN TERMS OF INTERNATIONAL DISTRIBUTION OF SALES.
THIS IS A GREAT TIME TO SEE THERE IS NOT SUCH A HUGE DEPENDENCY ON THE CHINESE MARKET AS MIGHT BE FOR OTHER BRANDS. FOR THAT REASON I SEEK GOOD POSSIBILITIES TO CONTINUE ON THIS GROWTH PATTERN, CONTINUED GROWTH IN THE NORTH AMERICAN MARKET. DRIVEN BY CUSTOMER DEMAND AND CONTINUE WITH THE SUCCESS STORY. ED: A CAR THAT HAS BEEN LONG DELAYED AND EVERYBODY IS QUITE EXCITED ABOUT IT. CAROLINE: COMING UP WE WILL SIT DOWN WITH THE CEO OF FEARLESS.
AS SHE GOES BACK TO FIGHT AGAINST CAROLINE: ATLANTA-BASED VENTURE CAPITAL FIRM INVEST IN BUSINESSES BY WOMEN OF COLOR AND IT IS BEING SUED BY THE AMERICAN ALLIANCE OF EQUAL RIGHTS. A CONSERVATIVE ACTIVIST WHO CHALLENGED AFFIRMATIVE ACTION. IT'S HEADED BACK TO THE 11TH COURT OF APPEALS.
I AM HERE TO WELCOME ARIAN SIMONE. IT IS A STRIVERS GRANT WHICH FOCUSES ON $25,000 GRANTS. >> WE ARE BEING SUED FOR ALLEGED DISCRIMINATION.
ACCORDING TO THE 1981 SECTION OF THE CIVIL RIGHTS ACT WHICH WAS A LAW PUT IN PLACE FOR NONWHITES TO ENTER INTO CONTRACTS. THEY ARE SAYING WE ARE DISCRIMINATING BASED ON THAT LAW. CAROLINE: YOUR ARGUMENT THAT THESE ARE NOT CONTRACTS, BUT GRANTS. WHAT KIND OF COOLING EFFECT IS THIS HOT ON ALLOCATION OF MONEY TO DIVERSE FOUNDERS WHEN ONLY 1% OF MONEY WAS ALLOCATED TO WOMEN OF COLOR. ARIAN: IT WAS A FRACTION OF THAT.
THE COOLING EFFECT IS THE SPIRIT OF FEAR. PEOPLE HAVE BEEN SCARED TO DEPLOY AND UPHOLD THEIR DIVERSITY INITIATIVES. THE GOVERNMENT HAS SNOWBOUND ON GRANTS AND THE COOLING EFFECT HAS BEEN VERY BROAD AND LONG REACHING, THE IMPACTING THIS COURT CASES HAVING. ED: THANK YOU FOR JOINING US ON BLOOMBERG TECHNOLOGY. THERE IS A PATHWAY FOR THE
LITIGATION TO GO TO THE SUPREME COURT AND I UNDERSTAND THAT THERE ARE LEGAL AND COST CONSIDERATIONS FOR YOU AND THE FIRM. GIVEN THE ULTIMATE GOALS OF FEARLESS FUND, TRYING TO SUPPORT AND GIVE ACCESS TO CAPITAL TO WOMEN OF COLOR, HOW DO YOU VIEW THE OPPORTUNITY TO GO TO THE SUPREME COURT ON THE FUNDAMENTAL ISSUE BEING DISCUSSED HERE? ARIAN: I AM GLAD THAT YOU STATE THAT AS AN OPPORTUNITY. IT'S AN OPPORTUNITY TO BRING AWARENESS BUT IS UNFORTUNATE THAT ANYONE WOULD HAVE TO GO TO THE SUPREME COURT TO DEFEND THEMSELVES FOR THE RIGHT TO TARGET A DISPARITY WE ARE TARGETING. I'M GLAD YOU STATED IT AS AN OPPORTUNITY BECAUSE I THINK IT'S AN OPPORTUNITY THAT WE NEED MORE LEGISLATION TO PROTECT OUR ACCESS TO CAPITAL.
CAROLINE: HAVE YOU BEEN ASKED TO PLAY THE DEVILS SIDE OF THE EQUATION THAT YOU ARE ALLOCATING N FUNDING TO ONLY WOMEN OF COLOR AS OPPOSED TO ANYONE ELSE WANTING THAT MONEY? ARIAN: I DESIRE A WORLD WHERE PRICE DOES NOT MATTER BUT WE ARE YET TO GET IT THERE. CAROLINE: I'M INTERESTED IN THE YET TO GET THERE AND HOW MUCH IS NEEDED. WHAT ABOUT CORPORATE AMERICA MORE BROADLY? YOUR FUND GOT FUNDING FROM BANK OF AMERICA, COSTCO, MASTERCARD. ARE THEY SPEAKING OUT FOR YOU IS MUCH AS YOU WOULD LIKE TO SEE? ARIAN: I WOULD LIKE TO SEE A LOT MORE CORPORATE SUPPORT. CLEARLY, IF YOU BELIEVE IN THIS VISION AND INVESTED YOUR CAPITAL YOUR DOLLARS OF SPOKEN BUT WE NEED YOUR VOICE. WE WOULD LOVE FOR THE CEOS TO TAKE A STAND PUBLICLY. CAROLINE:
HAVE THEY SIGNALED THAT THEY WOULD NOT BE WILLING TO GIVE CAPITAL IN THE FUTURE? ARIAN: THEY HAVE STATED THEY WOULD NOT BE WILLING TO COMMIT CAPITAL BUT WE ARE IN THE HOTSPOT, AND WE NEED THEIR VOICE IN ADDITION TO THE CAPITAL. CAROLINE: GO BACK TO WHAT YOU ARE FUNDING HERE. THE PEOPLE WHO ARE BUILDING BUSINESSES.
WHAT PROBLEMS ARE THEY SOLVING AND WHAT INNOVATIONS ARE THEY MAKING? ARIAN: OUR ENTREPRENEURS ARE AMAZING. THEY ARE ON THE INK LIST, FORBES LIST. WE INVEST IN TECHNOLOGY AS WELL AS CPG. THE PROBLEMS THEY ARE SOLVING, DISPARITIES THEY ARE MEETING OUR LONG REACHING. YOU ARE TALKING ABOUT WOMEN OF COLOR, THEIR SOCIAL IMPACT IS IN THE THREAD OF WHO THEY ARE. FROM INTACT, AD TECH, THE LIST
GOES ON AND ON. FINNTECH AND AG TECH. THEY ARE GROWING BY LEAPS AND BOUNDS. CAROLINE: THANK YOU FOR COMING ON AND SPENDING TIME WITH THOSE. FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TELEVISION.
ED: THE ONLINE FASHION COMPANY AS LOW AS 45 BILLION AS SHEIN HAS A MUCH AWAITED DEBUT IN THE UNITED STATES. THIS IS INTERESTING, BACK TO MAY WHERE THEY ARE VALUED AT 66 BILLION. I HAD OF AN IPO YOU ARE TRYING TO GET IN BUT WHAT WE ARE HEARING IS THAT PRIVATE MARKET DEALS ARE VALUING IT LOWER. >> THE PRIVATE VALUATION, HAVE VALUED IT AS LOW AS 45 BILLION WHEN IT ONE POINT THEY WERE VALUED AT 100 BILLION. PART OF IT IS DUE TO THE IPO
PROSPECT IS LOOKING MORE DIM THAN IT USED TO. WE HAVE SEEN REPORTS OF THE COMPANY IS SUBJECT TO REGULATORY SCRUTINY NOT ONLY IN CHINA BUT THE U.S.. THAT COULD MAKE THE INVESTOR A LITTLE MORE JITTERY ABOUT THE PROSPECT OF ITS PUBLIC LIFE. CAROLINE: WE WERE UP TO 90 BILLION SO NOW THAT THEY ARE SEEING HALF OF THAT IN THE SECONDARY MARKET, A COMPANY TRYING TO DISTANCE ITSELF FROM CHINA BUT MANUFACTURERS IN CHINA WITH HEADQUARTERS IN SINGAPORE BUT WERE WORRIED ABOUT THE CHINESE ECONOMY DOES THAT INFILTRATE THROUGH? >> THEY DO NOT SELL IN CHINA, THEY DON'T GENERATE REVENUE BUT THEY DO MANUFACTURE THEIR AND THAT IS WHY CHINESE REGULATORS ARE LOOKING AT THIS COMPANY. WHEN LOOKING AT THE ECONOMY GLOBALLY YOU DO SEE SOFTNESS.
THE MAJORITY OF THE REVENUE IS ON THE U.S. MARKET SELLING FIVE DOLLAR CROP TOPS TO TEENAGERS. THUS A KIND OF SPENDING THAT WILL SOFTEN IN THE MARKET WHERE INFLATION COULD GO UP AND ECONOMIC PROSPECTS ARE NOT SO BRIGHT. CAROLINE: THANK YOU FOR BREAKING IT DOWN FOR US. IT IS A VERY POPULAR STORY ACROSS THE INTERNET. THAT'S IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
2024-01-27 09:43
