We will hear from her. Strong debut. Shares of alibaba the trading in hong kong, ending the first trading day above listing price. Our top story, uber and its uncertain future in london. The citys Transit Authority has refused to grant them a license, saying uber failed to adequately verify driver identities. The ceo swiftly responded, tweeting that the decision was quote wrong. He had said safety is the Company Priority and will appeal the ruling. Londons mayor says much more needs to be done with regards to safety. I am keen for london to be a hotbed of innovation but you have got to abide by the rules. What is clear is ubers policy and practices mean passenger safety is being compromised. Emily i caught up with a guest, asking him if uber or the technology itself allowed taylor i caught up with a guest, asking him if uber or the technology itself allowed drivers not to be verified. The issue here is whether drivers in london were able to get on the platform even though they were not the right driver or properly licensed. The city of london says we are talking about some 10,000 rides with a driver who should not be giving the ride. That is a big concern for them. Uber has said it corrected the mistake. But when you are already on the ropes in a city and under tight scrutiny, having these questions about whether the right drivers are giving rides is not a problem that uber wants to be having. Taylor you talk about them being on the ropes again. This is not the first time they have been in this situation. In your story, you point out it was september of 2017 when they temporarily had their license revoked as well. What changes have they made over that timeframe . Eric the company has undergone a cultural shift under dara khosrowshahi. To ubers benefit and detriment. It has kind of slowed down in terms of coming up with new ideas, new, exciting products. On the other hand, the company has tried to crack down. Working with regulators and having a discussion. This is exactly the kind of area where the Company Hopes under dara to be winning. It is unfortunate for the business to make that happen. Taylor to not be hostile, not be dogmatic, but try to create a more friendly working approach. Is that the approach they are taking and is it working . Eric i think dialogue, working with cities, countries of estates everything in between, but when they disagree, coming out and saying it. You do see, in the california fight over independent contractor rules, they did sort of say, the referendum, we will put money behind it. We are a company that will throw our weight around more than they might have had after Travis Kalanick left the job and their reputation was in tatters. I think they are still trying to play the cooperative nice guy to the extent they can. Taylor talking about ubers response, i want to bring in a soundbite from the head of the u. K. In uber. In the u. K. , one thing we are intending to launch soon is driver face matching. Essentially, a technology that has been in the u. S. Since 2016. That means that drivers can only log on to their account and start trips once we have validated either through automated means or human contact that they are who they say they are. Taylor does this appease any of the regulatory issues going on right now . Eric uber is stuck in this situation where you can have privacy or safety but you might not be able to have both. There is a sense that uber wants to look at videos, voices in the car. These are all areas, where uber says, ok, you are worried about safety we can take away privacy and give you more safety. On the policy side, that will be the big debate around uber going forward, just because they will take hits both ways. It is a question of how much people expect uber to oversee a given ride versus we are matching you with the driver and what happens is between you and the driver. Clearly, people think that uber needs to police those rides. That means rolling out some kind of surveillance. s to keep track of whats going on when youre in the car with that driver. Emily that was bloombergs eric newcomer. Health decisions have affected ubers competitors come up with rival orloff starting service in london within weeks. The indian Ride Hailing Company backed by softbank says it has already served millions of customers in other u. K. Cities since last year. To discuss the competition, i spoke to i spoke to two guests. There have been a number of issues over the years with transport for london. The most serious is the impersonation of drivers by about 15,000. So they dont have security in place to verify driver is who they say they are. They were asked to use facial recognition technology. They did not implement it in the timeframe they were supposed to and have once again have their licenses suspended. They are going to appeal that and i imagine it will go through the courts. The real question is how soon will this actually take affect on the streets. Taylor i want to pose the same question to you about how long it will take to impact the companys fundamentals. That all depends on what happens in the courts. In the nearterm, they should be kind of operating business as usual as it goes through the appeal process. If they actually lose a license, you will see a real impact to revenue. We estimate maybe 5 of total revenue. The larger question and the more longterm question would be what happens with competitors as they come in and try to take share and leverage off this opportunity. Taylor where do you see that Competitive Landscape . Gabe at the end of the day, uber has built an incredible product, a great marketplace. However, it is a commodity at this point. In the u. S. , most of the drivers that drive for uber or lyft, but for the consumer, they want a ride. I dont think they necessarily care who provides it. The issue for uber is they have been on the outs with municipal governments increasingly the last few years. We thought it would change with the new ceo, and instead they sort of doubled down on these disruptive tactics with local governments. I think we are seeing it play out and a real hit here in how government will deal with uber and Companies Like them. Taylor i want to show you a chart at gtv , showing the stock price is trading 30 a share. Most analysts on the street are bullish and have a 44 price target, which would be a gain from the current price. How much of london, other regulatory hostilities we see, are starting to impact yours views on the stock . It is deftly not making it easier. It is definitely not making it easier. It has been definitely impacting the stock price. Its not just london, it is happening in california. This could be a really serious security threat. Drivers impersonating other drivers, drivers driving without licenses to do so, so it could be a real risk. Other cities could start taking a look at this, too. When does the Regulatory Environment ease up on uber . It is up to uber to address those issues more seriously, address those security threats and put them behind them. It has been happening way too often for uber in the first six to nine months as a public company. Ultimately, we think they will be back in london. There will be a meaningful player. It is a big market. They can navigate these waters and end up in a better position. That will be a big test for them going forward. Taylor is regulatory issues the biggest headwind for the stock . Ygal it is one of them. Competition and regulatory issues are the two big challenges. Competition is driving down, pricing is one of the biggest issues in terms of profitability. That is a big factor over the longterm. Regulatory things keep popping up. The bigger they become, the more they will weigh on the shares. Taylor that was gabe and our guest. Coming up, the eu competition commissioner Margaret Vestager says the organization will continue to investigate amazon, apple, and facebook. That, plus her comments on a digital tax. And if you like bloomberg news, check us out on the radio. This is bloomberg. A taylor the eus antitrust chief Margaret Vestager has made a name for herself as a tough regulator unafraid to go after big tech. Wednesday, she told bloomberg the eu still pursue a digital tax even if a global push fails. Maria tadeo spoke to her in france where she was asked how europes regulatory posture on tech is different. In the business environment, you find a lot of impressive tech. You find engineers, research, and an impressive startup environment and the willingness to balance possibilities. You are talking about innovation, but we do here the reason we are focused on taxation is because we have not seen real innovation in europe. Is that fair . Absolutely not. What is fair is to say to the many businesses in europe that not just some of them should contribute but every company should contribute where they do excellent business. That is the bottom line in europe. You do very Good Business here. When would that be . Is that something where you think, if by the end of 2020, theres no International Agreement on digital taxation that it would be fair for the eu to go it alone . Yes, of course it would. We are strong believers in a global agreement i am happy to see the progress made by the oecd. Is a very strong push. And there is positive feedback on the first draft. Of course, that would be the better solution. But if that cannot be met, when you look at the businesses who pay their taxes, it would only be fair that we pick it up again if a Global Solution is not possible. Based on what you hear now from the oecd, this time there is momentum to get this done. We have been here many times at have not seen progress made. Normally, i would not be optimistic when it comes to taxation, but i think now there is a momentum, theres a deeper understanding that we have to update corporate taxation to digital times. And in that respect, the Global Dialogue is changing. We also heard today from the Eu Commission president that data is key for the commission, but it can be weaponized. What is the message to protect consumer data and europe and how you deal with that . First and foremost, we are going to make a comprehensive strategy. For ai, data is the main input. Data is more than a commodity. It is also what defines us as people and digital ages. We have taken a number of steps. With the Digital Citizen rights. We have a lot of public data that has been made available we need a comprehensive strategy for data to be the driving force for a prosperous european economy and a green commission. And what timeline are you looking at . This has to be thoughtful. It ties in with what we are planning to do with Artificial Intelligence and the two things will have to come together. For people to see the full scope of what data can do, we have to make a specific strategy when it comes to data. Taylor that was the eus competition commissioner Margaret Vestager. And the Third Quarter approved a strong one for the Communication Services sector came to topline performance. But the top line was telling us a different story with earningspershare growth relatively muted. On tuesday, i wrote down those earnings and talked with an rbc analyst. A couple of the companies that were getting deeper into investment mode, the one at the top of the list would be amazon. They may have surprised because they are doubling down on this one day investment. That is an expensive investment. I think there is a more interesting story at the other side of the curve. We saw a couple of companies that brought forward their profitability timelines. Uber and lyft. Snapchat is just about print its first positive ebitda quarter. Pinterest, too. I was struck by the positive inflection points rather than the negative ones. Taylor lets get into those. You brought up lyft and uber. Are you fully confident that 2021 targets are intact . Mark no. I think they have a high probability of getting by insurance costs. It is a big expense for those companies. I think they also have pricing power. I think these companies, as private companies, were run really inefficiently, really aggressively, more growth, which means a lot of wasteful spending. Bring them public, public investors step in and say, we need profits. The management teams are responding to that. Theres a lot of room to take out excess cost without sacrificing growth. We have seen that the last two or three quarters. My guess is we will continue to see that and then become more confident in 2021 profitability. Taylor how much of a hit for uber was the london news this week where they temporarily did not get their license renewed . That is a big issue. Tbd. I want to be careful here. I dont think they have been kicked out of london. This has happened to them before when have had the license threatened. They will appeal the decision, be able to continue to operate for a couple of months. I assume there will be able to work it out with the london powers that be, the taxi commissions. There is no question that uber and lyft have taken on big taxi in a number of markets. Consumers have shown they like ridesharing services. I assume consumers in london will speak up on this too. It is not over yet. They have not been kicked out yet. My guess is that, as happened about a year ago, they will stay in the market, they will just have to work on more concessions. Taylor ebay is selling to a european rival for more than 4 billion in cash. We have details. Plus, alibabas big day. We head to hong kong for the debut. Taylor we got more details of ebays stubhub sale as they unload the ticket marketplace to rival via gogo for 4 billion in cash. I got the details from leanna baker and jitendra waral. Via gogo is not a household name in the u. S. They are in 70 Countries Worldwide and they want an entry into the u. S. Market. It is one of the fastestgrowing ticket markets out there. They really are paying up about 4 billion but they brought in some investors. It is a homecoming. Eric baker, the founder of viagogo, was one of the founders of stubhub. But he left before it sold, originally, to ebay. Taylor eric baker has talked a lot about making this a global company. He was excited about reuniting these two. Bringing together his global ambitions. Is that really the play here as viagogo gets the u. S. Market and stubhub can have a global reach as well . Liana that is the strategy because viagogo is not really present in the market here. It is a fragmented industry. There are many competitors, some even trying to bid on the business. The stubhub founders have really gone out and founded a lot of Companies Going after that market. It is going to be competitive. Viagogo coming in with stubhub has a good chance with having a good brand with consumers. Ebay was under pressure to sell this so, clearly, it was not fitting in and it was looking for other avenues. Taylor you cover ebay for us, so i want to get your take. A lot of analysts came out and said this deal would be unlocking a lot of value for ebay. What is your analysis . Jitendra it buys them time to fix the core marketplace, which was going to take time. They have to come up with a sustainable strategy. It can help fuel Profit Growth. It also increases the imperative on other other asset sales scenarios. Other restructuring avenues. Looking at cost structure for ebay, there is more room for operating expenses to go down. At least that is in their control. Their fight with the likes of amazon and coming next year with facebook entering the ecommerce market, we still dont have an answer yet. We are still waiting for the ceo. And a strategy on that. At least it buys them time to drive that Profit Growth. Taylor in your years of covering this company, why havent they been able to keep up with amazon . What has been the biggest headwind . Jitendra the biggest headwind really has been the muscle memory developed with its consumers through prime. It has helped them drive forward and increase loyalty and things like that. Ebay has missed out on that opportunity for a while now. Once you sort of lose share over there, it is harder to get mind share more than market share. Mind share shifts and market share shifts along with it. The opportunity in front of ebay now is to focus on things in front of them like advertising, payments. I think this restructuring, it is certainly buying them time. If you look at the valuation for the company, it is reflecting that topline slowdown. We are beginning to see ebay more as a Profit Growth story than a Revenue Growth story. Longerterm, the strategy if they focus on verticals, the partnership with the upcoming ecommerce players and become the backend of the engine. They wait and see but, at least for now, there is the opportunity for Profit Growth. Taylor i was hearing about 25 times ebit. Are there any calls that this may have been an expensive purchase . Liana ebay has been working with Goldman Sachs for many months to find the highest bidder. From what we understand, it was pretty competitive at the end. I mentioned, they were competing with other private equity firms so different firms really wanted this asset. That really drove the price above 4 billion, which was higher than what we expected. We thought it would sell for between 3 billion and 4 billion. Viagogo had to bring on other investors to fund this because viagogo is a private company and not wellknown so they had to get funding from jp morgan and others to make this happen. Taylor that was bloombergs leanna baker. Coming up, tuesday was a banner day for alibaba. Shares began trading in hong kong, ending the day more than 6 above the listing price. And Bloomberg Technology is a livestreaming on twitter. Check us out and be sure to follow our global breaking news network on twitter. This is bloomberg. Taylor welcome back to the best of Bloomberg Technology, i am taylor riggs. Alibaba made its trading debut on the Hong Kong Exchange this week. The chinese ecommerce giant pulled off the biggest share sale in nearly a decade, raising 11 billion. Alibaba plans to use the funds to drive user engagement, improve operational efficiency, and pay for continued innovation. Bloomberg paul allen from sydney and i got digitals from bloomberg got details from Bloomberg Sophie Kamaruddin in hong kong. Sophie plenty of cheers not only filed above about also hong kong which is now home to two of asias most valuable companies. We had the daniel zhang, the ceo of alibaba, joined onstage by hong kongs chief secretary, a former chief executive, and dancing mascots. Alibaba shares opened at 187 hong kong dollars, above the 186 issuance price. Shares rose as much as 8 before closing at 187. 80. It was the most actively traded stock in hong kong far outpacing tencent, which has been bumped down to second place as hong kongs most vulnerable market cap. We have abrs in new york rising for a fourth straight day, claiming the narrow premium to the Hong Konglisted shares, which could reflect traders looking for arbitrage opportunities. Analysts are bullish, 58 buyholds, to 1 hold. Taylor we spoke to an analyst at the stop of the hour, and they are saying they now have 44 billion of cash on the balance sheet. Where are they spending . Sophie alibaba did not necessarily need to raise the cash. They could be boosted to 12. 9 billion if the green shoot option is utilized. We could see more acquisitions, perhaps funds could also be piled into fending off competition on the mainland as rivals like tencent, baidu and others to contend with. We have bloomberg columnist tim culpan also claiming you could see perhaps some buybacks, or perhaps they could sit on the growing cash pile. Paul in terms of the buybacks, is there sign that alibaba may want to move closer to home and perhaps refrigerate some of the money to hong kong . After failing to list here in 2014, given the rules about share structures, there are many chomping at the bit to get in. When you take a look at the valuations for alibaba, there certainly is room to narrow the gap that we are seeing with players like amazon as well as a tencent. But they will have to wait until alibaba is included. It could be initiated by next year, and that is expected to boost valuations for alibaba. Taylor it is a very crowded market. Amazon, there is a lot of chinese local players nipping at their heels. What is their strategy for differentiating themselves . Sophie we have seen that ecosystem expand, getting into various segments, also looking to move into segments like logistics. This this strategy of saying that they are going to try to hit the consumer across various touch points. We have seen that with how alipay has operated and financial as well come by Company Looking to start a fund of 1 billion to move into the start of space. It looks like daniel zhang is trying to build on the Foundation Jack ma established. They are also looking to move beyond asia when it comes to its ambitions. Where they go from here with their cash pile, with their warchest, there is certainly a lot that could be done along the horizon. Taylor that was bloombergs sophie kamaruddin. Alibabas hong kong listing is being seen as a triumph for Stock Exchange but over the years lost many of chinas brightest Technology Stars to u. S. Rivals. It comes as prodemocracy protests have gripped the city for weeks. With analysis, i got inside from john freeman, Vice President of Equity Research at cfra. It will be very interesting to see what they do with the extra cash, because i think it brings them to i want to say, 43 billion total, and about 21 in net cash, if you subtract the debt. What i would like to see them do, i would like to see them invest more heavily into the Cloud Business, which is it is 8 of revenue now, it was growing 64 yearoveryear growth in the last quarter. We have seen how the Cloud Business scales with amazon. With amazon, it is 12 of revenue, but 70 of profit. As it crosses the breakeven point soon, they could offer additional services. I think that would be a good way to spend the money. I am sure they are probably going to invest some of it, as well as Artificial Intelligence and cognitive computing. Those are other things i would like to see them focus on, with the use of cash. Taylor john, i want to take a lk at cha am showing here, showing basically alibaba continuing to gain ahead of other big rivals in china that we know like tencent, for example extending that lead extending that outperformance. Having not done enough in the Cloud Computing and other sectors you mentioned . It seems from the stock price, they are well ahead of rivals. John they certainly are. But i think just like amazon, when amazon was valued previously, no one really saw the Cloud Business coming. With alibaba, it is a little more anticipated. The cloud, to a large degree, with what is being reflected in the stock price now, reflects some of the optimism about Cloud Business. I think people dont realize what kind of Earnings Growth that can propel. In the past, Revenue Growth has been 50 , well above 40 last couple of years, but Earnings Growth has actually lagged behind Revenue Growth. With the cloud and a lot of these, primarily the cloud and the efficiency of their retail business, that could reverse such that Earnings Growth would probably exceed Revenue Growth in the low 30s for the next 30 years. That is pretty compelling for a stock that is trading at you know, 24x earnings. Usually dont see that in the states, certainly for tech company like about. Like that. Taylor you have mentioned amazon a few times. I think over the years as we try to define the company, we would offthecuff say that it is amazon of china. I think that is maybe not accurate. How do you categorize alibaba . John i think it absolutely is the amazon of china, if you want to the revolving door pitch, it is a good description of what the company is, that is. How you would describe it there are significant differences. They are dominant in ecommerce in china just like amazon is dominant in ecommerce in the united states, they do direct sales as well as support a platform for thirdparty sellers, they have a Cloud Business, they are getting into the media and entertainment side, as an addon, and also involved in payments and that kind of area relative to amazon. But i do think the companies are similar. One of the things that is propelling alibaba to faster topline growth is the fact that ecommerce is a larger percentage of chinese commerce, which is, of course, growing faster. Retail is growing faster than it is here in the states. Then, cloud is at a lower level on an absolute basis, therefore, it has the chance to really shine, their Cloud Business growing by 40 , alibabas is 64 . That is what you want to focus on, is those fundamentals. That is how i view the company. Taylor that was john freeman, Vice President of Equity Research at cfra. Coming up, getting ready to see a whole lot of spacex. There are 4 falcon Nine Missions slated for december. We look at the space economy industry, and opportunities for investment, next. And elon musk other company, tesla, reports hundreds of thousands of reservations for its new cybertruck, this despite is rather rocky ev unveiling last week. Details coming next. This is bloomberg. Taylor the fall has been a rather quiet period for space endeavors, but that is about to change when we will see spacex lead up to 4 falcon 9 missions in december. The overall space economy is estimated to reach 1 trillion globally by 2040, obviously capturing the attention of investors worldwide. I caught up with one such investor and a former spacex employee, tess hatch now with bessemer ventures. We discussed the historic market for the opportunity. Sally ride, the first female american astronaut went to my school, and when she came and spoke, i wanted to be her for ever since. So i applied to be in astronaut and i saw, and backgrounds Like Aerospace engineering degrees and work experience. Taylor so you got into this field. Where do you see interesting opportunities . How big do you think the market has potential to be . Tess before making predictions, i think it is important to look back on the technological catalysts, the momentum drivers that have gotten us to where we are today, specifically, the private space industry. There are two of those. The first is the invention of the cube sat. Decades of moores law, exponentially decreasing the size and increasing the power of offtheshelf components, the size of a tissue box. That is in you type of factor that can be launched and put interest is, which really lowered the bar. The before that, the only way to get an asset into space was a massive, school bussize satellite which would take years if not decades, and aliens dollars to make. So people and billions of dollars to make. People flocked to the cube sat. That was the first. The second was how to get it there. Being a Mission Manager at spacex, i would see satellites bumped from mission to mission. So i would focus on the school bus satellite rather than the tiny cube sat. So the invention of the tiny rocket. What is next, to get to your question . I think communication is a massive market that will help the space industry grow into the projected trillion dollars. Ubiquitous Internet Connectivity from space. Taylor so where are you actually making investments . Do investors come to you when they want to get a piece of the market it is more than drones, more than commercial spaceflight. What investment are you making to achieve this goal . Tess within the deep frontier tech umbrella, drones and autonomous vehicles. Within space, it is people coming up with unique ways to put sensors in space that will help life back on earth. In drones, it is open to ones imagination. Emergency medical supplies. Imagine someone is having a heart attack or allergic reaction. An ambulance takes on average 40 minutes to get to that person. You can dispatch a drone that could deliver an epipen or lifesaving device. Autonomous vehicles is another massive trillion dollar potential market. Taylor you piqued my interest when he talked about autonomous vehicles. How close are we to fully autonomous driving . Tess in the hype curve, i think you are entering the area of disillusionment. I think it will take longer. When true level five will be achieved is further out, but i think there is supplemental technology that can be apid in or integrated in, for example, helping the vehicle navigate. I invested in a company, phantom auto, that is solving the problem, and i think it will help us get into level five faster. Taylor where are you investing . Tess my investments are in two companies. Rocket lab, and the second is spire global. They have three sensors, ais sensor, adsb, and also gps tracking. Taylor that was tess hatch. Over the past few decades, the space station has a lot estimates to conduct research on microgravity. Was the space stations planned retirement, companies are creating the next generation of space habitats. And Architectural Firm in boston proposes an idea to send a 3d robot to mars which can then harvest the materials found on site to Health Create the next generation of habitats on mars. We will return american astronauts to the moon, not only to leave behind footprints and flags, but to build the foundation that we need to send americans to mars and beyond. This proposed mission, along with spacexs own ambition to reach the planet has spurred companies to build habitats on the planet. I was working on a firm designing skyscrapers and as saw elon when he landed his falcon 9 rocket on the ocean. But to me, it was the trigger. I thought, wow, a connection happen. It has always been my dream. If he is going at the space he is going, it could happen in my lifetime, and i wanted to be the want to build it. Narrator in this warehouse alongside started from across the u. S. , this Architecture Firm building a fourstory structure they created for a competition for nasa to create the next generation of space habitats on mars. When we started designing, we looked at everything that had been done and tossed that aside. What we were given was a set of guidelines from nasa. They think the best way to build habitat on the moon or mars is to use the materials that are there. If you have seems scifi movies, you may have seen things like glass and steel domes on distant planets, but the reality is, to ship that can a material would be so exorbitant and expensive, you would never be what to build in the first place. The idea is to send it 3d printing robot which can then harvest the materials onsite and build with that. Narrator the reusable material is a polymer made from recycled plastic or plants like corn and sugar can. And a rock found on mars and earth. It is the rock that gives us incredible strength. We tested this material, it is three times as strong as concrete in compression and has a capacity which prevents itself from being pulled apart, which is Something Congress is not very good at. You need to think at all times, how do you optimize the materials you use . That is why this thing is shaped like an egg. If you think of an egg, it is a structurally optimized form, it is thin but it provides the needs. That is what it is shaped like this. Narrator the egg shape and structure also accommodates for differences of temperature on mars. But more research is to be done to find how print materials could be gathered, and how 3d printing would work in a unique environment all space. You are dealing with a completely different component of environment which is very harsh. The cold, the low gravity, the vacuum of space. There is no such thing as force when it comes to space. You need to think about the problem, find a very elegant, lightweight, costeffective solution. The next challenge is going to places on earth, really taking the dirt we are finding on the site, and beginning to print with the dirt. We have to perfect this technology on earth, then we go and prove it out on the moon, then finally, on to mars. Narrator the first customers could include nasa and spacex, who would lease out the structures for special missions. But before that, asp factory hopes their technology can be monetized and also here on earth. It force this jump in Construction Technology which we can now apply on earth to build better. To go to a site, have a solar powered array, that would allow our 3d printer to print in the most Sustainable Way possible. We never would have found this ways if it was not for the challenge of building in space. 3, 2, 1, ignition and lift off of the falcon 9 to the space station. The first commercial launch from Kennedy Space centers historic n39a. Taylor tesla boasts its new cyber truck already has thousands of reservations. We have details, next. This is bloomberg. Taylor elon musk is at it again, and buy again, we mean tweeting teslas reservation counts. This time it was for the cyber truck, despite the nowinfamous launch that saw the suppose it shatterproof glass well, it shuttered. We got more from our correspondent who covers the evmaker. The truck does have appeal particularly to younger people, people in l. A. , gamers. A lot of people said they hated it then over the weekend, they came to love it. It looks like nothing else on the road. Even though the vehicle is far from production, i believe 200,000 people have put in a reservations. Taylor i cannot stop watching the video we are showing. It is shattering the glass. What was the reasoning that they have been coming up with the last few days about why the glass shattered . You are not alone, i think i have watched it like 20 times. First, elon tweeted out a video of them testing the glass, then it showed that when they hammered the car with a sledgehammer, it doesnt hurt the glass. But it does not explain why the second window also shattered, so there are still a lot of theories floating around about why it happened. Taylor producers and i were talking about this, and we thought, wouldnt you want your window to want to shatter the case of an emergency situation, wouldnt you want to be able to get out . Dana that is a legitimate question, in an emergency, how do First Responders break the glass . Taylor very interesting. We will have to continue to monitor. I want to talk about your story, which seems to be good news for the company, where you have the base price of about 40,000, but of those orders, it looks like more work upgrades, will engine models. Dana this will all change, but elon said, like 42 of reservations had ordered the highest end, which is about 70,000. But these are deposits. You cannot really the car is you cannot really configure the car when it is two years away. But it shows people are willing to pay and there is not as much appetite for the lowend version. Taylor we were speaking to gene munster, and if you look at the chart im showing in my terminal, he said the pressure is off tesla are now, they have a really good leeway, good legroom to run given their Free Cash Flow has turned positive, they are more profitable. So this really gives them some time to go back and look at that production target. Do you agree that they are in a fairly decent position to be looking at the cyber truck and its production . Dana i think the goal of the company has been to disrupt market segments. The ford f150 is the bestselling vehicle in america. They need to take on trucks. This had a positive run. Taylor that does it for this edition of the best of Bloomberg Technology. Well bring you all the latest in tech throughout the week. Tune in each day at 5 00 p. M. In new york, 2 00 p. M. In san francisco. And check us out technology, and be sure to follow our Global News Network tictoc on twitter. This is bloomberg. Carol welcome to bloomberg businessweek. Im carol massar. Jason and im jason kelly. We are here inside bloombergs headquarters in new york. Carol it was a huge week for deals. Charles schwab to buy td ameritrade. And still looming out there, walgreens may get scooped up in the largest private equity deal, at least according to those in the know. And weak