First, to the lead. It has already remaining tesla is raising money, they have expanded and offering to raise 140 million more than they already have. What will they spend it on . Why are investors excited . Am joined by panelists start with why are people so excited . The reason they are spending this money, they are sending it for growth on a model three, investment in the model, the other factors, people are looking at this and they say that this demand for the sends agnals strong signal to the market that growth is coming down the road and people are excited. Emily the same time, eric, they made it clear that they will not be able to make as many cars as they thought they were going to make this year, isnt that cause for concern . The development of a vehicle andcost a billion dollars takes many years. It is not just for the current environment that they are worried about this. It is the development of the model three and other future projects. You need capital well ahead of time to finance development. Eric is right. When we first talked about this, we asked why they were raising more, but it is more like they should raise all they can. They needed to issue equity quickly. They burn 2 million in losses. And they have a Million Dollars on the Balance Sheet. Car whenbuy a 70,000 it the only have a Million Dollars, i dont think that he would. I am glad they got this done. It seemswhat like there are suspicions that tesla does not have enough money, that they may not be looking get to the end of the year, is there anything to that . Know, when you look at the cash flow and items in the cash flow, some of it is not counted as operating cash flow to they are saying that they should turn positive by the end of the year, i believe it is true, because they have ramped up the model x. They will get more money as they deliver these models. Inel x is ramping up quickly the fourth quarter. That should take care of cash flow issues. In 2016, obviously they will be xs,ng thousands of model that will be a very good thing. Eric, how much enthusiasm is writing on writing on the model x . What if it does not come out september . Deposits have put down them a there is a lot of excitement. And there is anticipation and expectation that this should come in september. We have heard that production has darted, by all accounts we should see the model x rolling out in mass by the end of the year. Rotaryyou have an answer do you have a tesla rory . I do not, but what they are attempting is so hard. A new batterying type, they are rolling out new cars. I want to be clear, the running of this company, i would want to have a Balance Sheet that would last five years. Out that is what they are doing. At this price they should. Emily is this looking like a Balance Sheet at this point . I agree. This is all about the fiveyear play. They have done Preparatory Survey work that shows demand for their cars. There is not a demand issue and as all they do not have that, they will not have a Balance Sheet issue, because they will have more cash flow as they sell. From todays perspective, there may be doubt, but if you believe the end of the story and demand, and there is a lot of demand for both models and the model three, that should allow for a much stronger Balance Sheet as time goes by. This is a fiveyear game. This is not a shortterm gain. Emily what do they spend this money on . Spend it on future developmental costs. It needs to become the true massmarket brand, gain a niche in luxury automaking, something that will pay the bills. You need of that mass market, maybe that model three, maybe lowered vehicles as well. There was a report earlier this week that the future of electric vehicles could come from small, low speed vehicles, such as golf carts, rather than a topdown approach like tesla. Eric, rory, thank you everyone. Comcast is preparing a major new video platform that could rival a spoke and youtube in online video. The platform is called, watchable. Partners are locks, buzz feed, and awesomeness tv. Content going to upload on demand. It will be ready for bundling for talks owners at some point. Toing up, wall street reacts rumors on the search for twitters new ceo. And apple hits pause on the live tv service. It may not roll out until next year, we will tell you why. Emily twitter shares of getting a push from the news that a ceo could be named as early as next week during an analyst asked asked the company to announce a triparty leadership. From tech make that announcement. Lets for some cold water on this. Sarah and i have talked to a lot of people and there is no indication that this would happen next week. Nine thiske is the situation where you have a lot of people with strong everyonet with thinks they know. We are hearing from opposite side of the term, they are saying that they are interviewing outside candidates and they will take a few months to do this. Inl happen a month months, not weeks. There is what we know. Jack is running both of them right now. Making changes internally in twitter and making them push forward on project direction. He cares about both companies. Whether that sets him up to the to be the ceo, it probably looks verbally. You talked about a lot of people having opinions. Have been on a lot of boards and i have done ceo searches, it would make sense to wait. It is going to be an interesting decision. If you play back to when the past ceo stepped down, when you put in an interim, there is a reason to do it. Get out. Ants to or maybe he is doing an awful job. Plus you want to try someone out. I have got to believe, this is not the first, this isnt the second. This is a profitable company. Interesting and probably controversial choice, what you like to be able to say, itried up driveby before buy. Emily jack already has a fulltime ceo job. Who knows if they needed square to go public, it turns out that is the case. The board has said we cannot have a person who has two fulltime jobs. You could also look at that strategically, yes if they picked jack they would have to walk back on what they said. But it is something maybe that the board was trying to do ight jack two nodes nudge jack. Emily the only example that we can think of is that steve jobs ran to companies. There is not another similar comparison. Jobs, biography of steve they talk about how rough this was. It was the worst time in his life, he had a young family, he would work at pixar and apple. He said that he was so exhausted. He could not speak to his wife, he could just watch a half hour of tv and investigate. He got close to killing me, he said. Do you think that he should be allowed to do both jobs . Him . At law will stop you could look one way and say that there are so many ceos and only two of them have done it. But with jack dorsey, he could say he would like to play that game. It is an option for him. He will be drawn into wanting to do it. The board will want to have a clear ceo. There could be a dynamic going on. Maybe they get an outside candidate. Emily the other factor is that chris is a big outside investor and he says this is what should happen, which we saw from suntrust, we see him repeating what was wanted. He has been vocal about his opinions. He thinks jack can run both. He is showing that he can now. According to chris. There is in or around twitter with jack in charge. The aura. Emily founder ceos, they have a moral authority that yes. And it jack has been high level with his manager style. And these companies are only one block away from each other. Can make this happen if you want to do anything. I have no idea. You have no idea unless you sit on their on the Search Committee and a look at all candidates, there are pros and cons for everybody. Jack is a founder, he has you look atbut candidates and you make a choice. When you secondguess, you can i could andhe best i interviewed, i went to the process, i picked a candidate. If steve jobs number two comes up, theyll probably take them. Who do you think that they are looking at in terms of outside candidates . They are probably going through that thing that you go through every time. A dream portfolio, somebody that has been a founder, done it before, a product guide. And has product guide. And then it will make compromises. The graveyards are full of indispensable men. That is what napoleon said. Emily we should all take that advice. Sarah and i will continue to talk. We all once you know what is happening in that Search Committee. Thank you guys very much. We will talk about apple now. The stock was trading slightly, closed higher today. Tvwent on to later life plans and some next year. They were ready to and feel the service as early as next month, but sources say that apple does not have enough content or Computer Network to capacity yet to do this right. Appleice of the content, wants to convince music labels to sell songs for less expensive all thethey want popular channels for just 40 a month. Rory, what do you think that apple is doing . Can it happen . Apple wouldnt like to persuade large corporations like comcast to sell content cheap, so they can compete with netflix. Emily what applico by everything on the cheap . Yes, it is always hard though to license this content from large media companies, especially when you just want to take your company and that brand and go compete. Emily is it going to be that revolutionary with all the other things out there . I dont take it is. I think you are right. This is not going to be revolutionary, the iphone was a new thing. What we are now talking about is a dogfight between comcast, netflix, amazon, google all of the Cable Companies, now you have at t playing as well. The home motive is to decrease the spend. We are fighting over a private could be shrinking. It is not compelling. Apple can do it. But i do not think that it moves apple stock. Emily what about the self driving car . It is said that apple is further down the path ran earlier thought, that they are looking for places to test drive in San Francisco . That would be revolutionary. And every negative comment i made about the Cable Companies and the tv provider, you would be the first person to buy the socgen car. 40,000 people in the u. S. , many millions people get killed, every year from driving cars. We need the self driving car. If google can drive me to work, im in. If apple can do it, im in. The survey recently figured out self driving car has not been an accident. Card of time, the google gods so safely, that the normal driver never expect it to do emily right, right. I talked about this very thing that carator and five years ago was a little bumpy. They might be close to it, but the amount of complex legal issues you will have to thread through the four it happens will be huge. Before it happens will be huge. A lot of different ways that technology can affect the car today. Emily ok, stick with me. Ofing up, the social network lenders, we talked to a paypal employee that is turning your friends into your financial backers. Emily it is time for the daily bite, a number that tells a lot. Htc , that is how many shares rebounded after the company said they would cut workforce. And they plan to reduce operating expenses. This after their loss was five times more than expected in a quarterly earnings. They were once a top brand in the u. S. , but now they are competing with other companies. They are not the only Company Feeling the pain. Also cutting. Now, the rise of alternative lending startups. There is a marketplace of picard alternatives for online shoppers. And new startups using data science to cut credit risks. Paypal by a team of its employees, bouts vouch ways risk of default. Incredible that someone could gauge my credit worthiness i looking at my facebook or twitter, what is on their . I feel likess i address this all the time. People think, you are going to look at my tweets, really . Vouch is a creating a new network, one based on credit. , you aretweight way connecting online, so you will be able to be able to get access to credit and a different way. Emily what is behind this explosion of alternative lending . We are still in recovery mode, legislation passed by Congress Really paved the landscape for how lending happens in the u. S. , a lot of banks were pressed out of the subprimesector lending sector, and now we are in this vacuum where people are in dire need of credit, but unable to access it traditional mechanisms. So that is where the startups are coming up. Worrisomek is always in lending. It has been a massive vacuum some ofby doddfrank, it is justifiable and some is not. In any lending business, you dont know how you are doing for years out of five because when people pay, and loans back, you think that you are a genius. But then unemployment rises and go up,se unsecured loans and get all that bad news. , but onelike this idea of the challenges for alternative lending right now is simply do not know how good these businesses are until you see downturn. Emily i agree with that. This is why we founded the company the way that we did. The alternative lending industry is absolutely right, with all these new data players taking se approaches, but couch vouch is based on microfinance geting, as soon as you people together in a financial product, you get amazing performance of the loan. Think there is no longer debate to be had here, but we will leave it there. We will keep our eyes on this. Thank you so much. Thank you for sharing your opinions. Thank you all for watching. It is friday, have a great weekend. Mark im mark calpine. Respect toall Democratic Unity good evening, sports fans. Front of aowa out in historic surf ballroom. Where they played their last performances before they died, tragically, in 1959. We are not here for music. We are here for the democratic wing ding dinner. More than 1000 chicken wings will be eaten
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