Tempering expectations about the longawaited battery day. We will bring you the very latest. Any battery production will be difficult to scale. Drive tesla shares up over the last few months. Joining me now to break down the data is Abigail Doolittle in new york. Tesla was one of the ones you have been watching. Talk to us about the market rebound with tech overall. Had it earlier on, we higher, lower carmarthen higher, lower, fluctuating on high swings. What we saw at the end of yesterday, apple closed by 3 , it continued into today. The big tech names showed up once again after the selloff we saw this month. A lot of this seems to become a call selling seems to be technical selling. Correct by easily 20 , but it would be completely healthy. The chart supported that view. Correctiony had a on whether the pressure is to be seen. Lots of impressive stuff going on. That led the nasdaq 100 to the glenn 1. 9 on the day. It was not just apple. Declined 1. 9 on the day. It was not just apple. Amazon, the best a into months. Up more than 5 amid lots of headlines. Best in 2 months. Up more than 5 amid lots of headlines. Gamestop did pretty well, on the possibility that maybe the ship will be turned around. Take a look at peloton, down just a little bit. Not just announcing their prime day for october 13thoctober 14th, but they are also announcing a prime bike. Its about 500, available only for amazon prime users. Amazon takes on seems to work out well. Likely likedolders that a lot. That stock, bouncing beautifully. A fancy way of saying the nearterm buyers that like amazon and apple and microsoft couple of weeks ago, they like those stocks again. Taylor also gamestop is a big mover. Big news in the gaming industry over the last couple of days, microsoft buying their software maker. A number of popular games. Also watching tesla battery day. We saw a number of shareholders present remotely, a couple of Board Members also speaking remotely. Tesla shares, ending the day down almost 6 on the back of those elon musk tweets we touched on yesterday. Was his sort of tempering of the optimism really the main driver . Abigail probably so. The amazing thing about this, it almost doesnt register. The reason i say that, the stock is up more than 700 . That is the degree we have seen the frenzy to buy the shares of tesla. Day,. 6 decline on the yes, probably having to do with elon musk yesterday saying whatever great thing we announce during battery day tomorrow, it is probably not going to be in any of our cars until 2022. A big piece of the rally this year, or a piece of the rally, some excitement around his battery day, but overall that huge rally for tesla on the year that has much more to do with the elon musk factor. H affect their profitable they are profitable. Possibly going to be in the s p 500. Of course, that did not have more recently. That is the bigger story at tesla. The huge rally. The question is whether or not that needs to come to fast on the year right now. Tesla is headed to its best year ever this year. Cap those gains hold . We will see dashcam those gains hold can those gains hold . We will see. Taylor absolutely. Abigail doolittle, thanks so much. I want to stick with tesla. Im bringing Garrett Nelson of cfra. Some shareholders, presenting various resolutions on arbitration, voting rules. A big tesla shareholder joined us a couple of weeks ago to talk about a resolution. Reaction to elon ahead of this, saying it will take a long time to scale this battery production . We will see major production challenges, and 2022 is really the year. Thanks for having me. It is a reflection of elon musk tempering some of the height hypeng into the state heading into this day, happening five months before it was originally scheduled to be held. I think he is trying to temper some of the enthusiasm surrounding it. We do think it will be unveiling a million mile battery very shortly, which is a battery that is capable of exceeding the drivable life of a tesla vehicle by a wide margin, what you think will enhance the Value Proposition of owning a tesla and further solidify their dominant market share in electric vehicles. Tesla vehicles accounted for 58 electric vehicles sold in the u. S. Last year. That is up from a 14 market share five years earlier. We think we will hear more about innovations on the battery side, reducing battery cost, and some longerterm growth. Taylor now, all of what musk announces will impact the trucks, the roadster, all of these have been unveiled, but we are still waiting on production. Talk to us about what we see today impacts the line of cars that are available, the consumers in the nearterm future. Longerterm, the electric vehicle story, theres a big problem if you start looking out a decade or so, in terms of raw materials, to create these batteries. Teslas clearly done a lot of in tandem with and others. They have had breakthroughs on the Battery Technology side. We think the presentation will be highly technical. I think they are going to go through some of their developments, and also their plan to start ramping up battery which willinhouse make a difference in driving down there cost, and give them a further advantage their cost and give them a further advantage in the vehicle competition. Taylor at the moment, they are talking about human rights issues. Your outlookout for does let in the middle of a pandemic. On the one hand, youve got a lot of people whove lost their jobs, we are in an economic recession. On the other hand, you dont want to get on public transportation, you dont want to get in an uber. What is your outlook on how many cars tesla will sell over the next year . Sure. We have a 500 price target right now. We are hard pressed to find a better Earnings Growth story in the entire market, certainly in my universe. It is one of the most robust Earnings Growth stories we think that is out there over the next its really not dependent on the macro. It is a secular growth story. That is the growth of electric vehicles that we think will happen this decade. Last year, electric vehicles accounted for less than 2 of all the new vehicles sold in the u. S. We think by the year 2030, that percentage increases to about 20 of all vehicles sold. Teslas the market leader. Teslas the way to play that longterm secular trend. 500 tion to the us and the s p 500, it is an eventuality. Taylor so you think that is going to happen . It seems shares were also taking a hit because that didnt happen. We thought it was going to happen a couple of weeks ago, and the moment came and went. I think they will post another profitable quarter in q3. Again in q4. Seees little that we can that will derail that and cause them to post a loss. I think it is a matter of time. That is still a catalyst. We think that prompts a whole new wave of buying of etfs and index funds. We will be watching the headlines coming out of battery day. We will bring you updates as we have them and talk about this later in the show. Coming up, can tiktok meet the demands of both the u. S. And Chinese Governments . Increasingly seems to be no. We will take a look at the latest in washington and beijing. This is bloomberg. Taylor the resolution appears far from from. Bytedance said it would maintain a person control of the company 80 control of tiktok. To discuss how this does not add up is graham webster. No surprise, this does not add up, President Trump saying Something Different from bytedance. What do you think is actually going to happen here . Will there be a deal, or no deal . That is a big question. A think it is unclear. The stakes are enormous for tiktok. They could still be blocked completely in the u. S. I think it is pretty likely it will come to some sort of deal, in part because its clear that trump would like a deal to have been. He wants it in a way he can brag ,bout in terms of u. S. Control or even come other was a ripple this might thoughts a or even come other was a thought this might turn into. Taylor what is at stake here . Weve seen an increasingly costly relationship between the u. S. And china. This is all happening ahead of one of the most critical elections of our lifetime. What are the stakes . Well, at the starting point, this is really the u. S. Changing its opinion about the global internet, saying, we will try to claw control of companies that operate in the u. S. Away from their foreign owners. In u. S. China relations, that is a longstanding issue. If the u. S. Continues to go down of enforcing sovereignty over social media platforms and other businesses, its huge. It would lead to a continued separation of the broader Technology Market and ecosystems between the two countriesas markets and ecosubsidy to the two countries. Taylor you have a piece out and the m. I. T. Tech review talking about the Real National security concerns. You make a point that even if u. S. Citizens are using american apps, that i could still easily end up in china. Can you explain that . The u. S. Has very little regulation in terms of Data Security and personal data privacy. , that means all the major apps actually collect a huge amount of data from our phones, including this location and device id, and it is used for profiles in the ad economy, making it easier to target consumers and reach people. It also works for kamaruddin a letter to the target political inference. It is very murky and it is hard to tell who was buying the data from home. Shutting off tiktok and we chat aspect that was discussed, which shut down one avenue for potential surveillance. Wouldnt address the broader question in the data economy. We need Bigger Solutions for that. Do you think that the Chinese Government and a Massive Company like bytedance are going to give the u. S. Control of such a major asset . I dont think they are going to allow total control. Theres new regulations out of beijing that updated the export control regime in china. It specifically give the government power to block exports of important ai algorithms and related technology. Its clear they might want to use that provision to stop the u. S. From getting control of the tiktok algorithm. Is that a National Security thing for china . Not necessarily. But they do want to Keep Companies am ethically. Companies domestically. Taylor what are you going to be watching for in terms of what happens next . Im just riding the wave here. These are massive and careful companies, oracle has been around for a lifetime. Bytedance is new. They were card to run a profitable business. Isy are running a deal that inflicted by political winds that are out of their control. Theyt think even know where its going to end up. , that is what we should all remember, going forward, there are privacy and havingy problems to do with user data. Whatever happens here means it will have to address those. We will continue to follow the twists and turns as the saga continues to unfold. Artan editor in chief, thank you so much for joining us. Elon musk has taken the stage that the battery events, all happening remotely. We can see cars parked outside the fremont factory, cars honking in support of elon musk. Hes been talking up the factory in shanghai, saying it will get to producing one million vehicles a year. Huge cheers from the employees of the factory in shanghai, also talking right now about the y, saying it is the smooth this launch they have ever had. We will continue to listen in. Also talking about the texas plans, saying it will make it easier for dental to ship cars to different parts of the u. S. We will be listening in and bringing you more headlines as we have them. How a household name is approaching on pelotons turf. The new sensation and new arrival. We have details, next. This is bloomberg. Launched new apple watches and ipads last week. We are expecting new iphones to be unveiled next month. In a monday interview at the atlantic festival, tim cook bility tomployees a work remotely over the last six months. we have six months under our belt now. We are still learning. I would say i am incredibly impressed with our teams and their resiliency. For more, lets bring in our correspondent who covers apple for us. For a company as secretive as apple has been about its production, about the way it works, it is pretty incredible what theyve been able to a compass with employees working from home and how positive tim cook is about the experience part. From your conversations with sources inside the company, how is it actually going . My take is that a lot of the products that have been launched this year, all the products, have been pretty much been finalized well before the pandemic struck. The design of the iphone launching in october was likely complete by october, november of 2019. Likewise with the software and the watches, other products probablythis year, into q1 of 2021. What we see the employees doing from home is basically the final touches, final testing of those products. The employees actually working on nextgeneration devices for the most part are already back in the office on a very limited scale, wearing masks, still operating machinery, but with less people around, people coming in designated times are hours of the day or the week. The interesting thing is going will doubler this back three years on the line, if things were going to be are going to be slower in terms of releasing new devices because of the slow down of products at this point. Taylor interesting. There seems to be there seem to be two schools of thought emerging, youve got folks like tim cook saying this is great, we support this, on the other hand, the microsoft ceo saying we are burning of social capital. Imagine starting a new company at a time like this. I also spoke to the netflix ceo, saying he wants people to get back into the office. Take a listen to what he told me. The technology of superman google areoom and good, but its not the same as being in person. Im sure like most companies, we will have more people spending more days from home. For me, the human contact and the insurrection you can do in trying to understand some challenging topic, is great to be in person. Taylor you wonder if we are going to start to see some ceos dramatically change their tunes as the Health Environment changes. I want to turn to another story about peloton, a challenger from perhaps an unlikely source that is amazon. Talk to us about this new potential bike from a competitor. It is 500. This is one of the lowercost bikes from a Major Technology maker. This is 1 4 the price, even cheaper than what peloton is a selling. Echelona bike made by with the amazon branding, it was not developed by amazon. They are exaggerating a little bit. That is my honest opinion. August the, peloton has such a loyal fan base obviously, peloton has such a loyal fan base, i dont think it will have an impact in its current form despite the pretty low price. Mark g. , thank, you so much for joining us. We do have some breaking news now. E are now reporting that volunteer chairs palenteer shares will begin trading. We expected it to happen sometime. They are pursuing a direct listing, different than a traditional ipo. We will be all over it. Elon musk is still speaking at tesla battery day. Shares have been moving up after he tempered expectations going into this. We are listening to all the headlines. We will give you a deep dive after this quick break. We will be right back. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Emily we have a whole team of reporters covering this. You can check the minute by minute analysis. Our reporter is saying that elon musks claim that tesla will one day produce one million cars per goal giventretch that they have only reached accumulative affection of a million cars as of march. He is anything if not ambitious. What is your take on what we have heard . So far. Heard i would not take anything major and the one thing i would refer to is the tweeting he sent out earlier today or last night where he basically said that wet of what we need to learn will be looking at several years it you look at the setback and where it stands today, the company is at the top of its game. With batteries, lower cost, better performance. Today, we want to hear how does the company maintain the competitive and to advantage. Traditional manufacturers are way behind tesla. The seem to be pulling Technology Together very early but they are getting into the market. What we have learned from Battery Technology over the year is that its not where things change overnight. It is an increment of years over years. Why just a neutral rating . We have seen shares soar in the runup to this. Musk tempering expectations. We saw a decline in the last 24 hours and now shares are going up again. What is the skepticism . When you have a stock, you can look at different perspectives instead of a single situation. When we [indiscernible] with tesla a couple of years tesla was going to be the scale of bmw. That it was going to be more profitable than bmw and it will be a growing company with a lot cars. Ortunity beyond when we laid out the fiveyear this picturel have in mind. For ak at the fair price that coulde that, still sustain 500 600 per share. If you buy it at 400 today hoping that it gets to 600, that is what we have a neutral perspective on the name. Shot are looking at a live of all of the teslas parked outside of the factory in california where the meeting is happening mostly about late. You are seeing drivers getting out and stretching their legs because they are on a brick. Some other headlines coming out fullis, a beta version of selfdriving autopilot feature will be released in about one month. There has been ongoing controversy about a full selfdriving version of it. What is your take on that . Is that onon that average, it too quick. Maybe three months until we get it. Be you have to softwareoing to be gives your car the ability to drive through on paper any situation. Its just going to be on paper. Be a feature in your car. Key question is not thats not going to work. Andle really enjoy using it find it makes their driving more enjoyable and safer, then it is probably going to work and that is the situation to me is when seeing a pricee that is being too much. That is going to be an enticing bit of tesla. Moving away from then how people enjoy it and talking about it around the. Successful it is a significant game changer. It can boost by 50 that car if we we can always come to you for indepth analysis. Thank you so much for joining us. We will continue to listen in. Thank you so much. Once again, elon musk said about this event and they are about to doubt announced today, it will blow your mind. It blows my mind and i know it. We are waiting for more announcements. We will bring you headlines as we have them. Coming up, what antitrust regulation might look like under a Joe Biden Administration and why things could potentially be very different for big tech if there is a blue wave. This is bloomberg. What if joe biden wins the election . The would that mean for for big tech . Tiny big tech is facing scrutiny from both sides. Biden wins the election, will it have that big an impact on the antitrust scrutiny that big tech is facing now . Think it could have some impact. Interesta bipartisan in curbing the power of big tech and doing some things around the antitrust laws. The biggest hurdle to do anything right now to tame the conduct of any big dominant company are the courts. Our precedents are set up in such a way that they are defendant friendly and occult for a judge to suss out and figure out and the tendency is to err on the side of caution and not rule that a company is a big monopolist or needs some sort of drastic remedy to fix the problem. Antitrust legislation is something that is likely needed if there is any real reform to be done and a real ability to go after these companies. There are quite a few antitrust bills right now but have been put out there mostly by democrats that are still in committee and have a long way to go. If we have joe biden as a sweepent and a democratic of the house and senate, these bills have a much better prospect for moving through the process and becoming law. Some of them will change the way andonduct anticompetitive the court today. It could be tougher for big tech under joe biden. Just talking about this legislation, one of these bills would really change the current precedent that is used in court right now for monopolization cases. It would make it a lot easier to win a case against an alleged monopolist in court. It would shift burdens of proof. It would make it easier to prove that the company has market power. It wouldnt require as high of a standard of harm to competition as needs to be shown now. There is also a bill that would probably make it harder to get merger clearance. Shifts the burdens rather than having to show a merger is into competitive, it would shift the burden of proof to the companies themselves to show that the merger wont harm competition. Both in the challenge side if you might go to court or for companies that might be try to merge in the future, if these bills become law, it will become more difficult. For the companies. Emily meantime, we have been looking at the issues facing these companies in europe where regulators have been tougher. One emphasized that facebook has no desire to leave europe but challenged a draft ruling by irish regulators. Take a listing listen. Desire, noly no wish, no plans to withdraw. Why would we . We are delighted that something finde take joy and facebook useful. Forceful patting down a question about whether facebook has a desire to leave the eu. Make of the challenges of these companies have faced in europe making it even more difficult than what we have faced here in the United States . They will continue to face challenges in europe. The european approach has been just to find these companies and that has not had a large impact on the. While they continue to find them for wrongdoing, im not so sure that is going to have the biggest deterrent effect. Looking forward to more analysis from you on this issue. Antitrust, u. S. Talkedntative matt gets about his stance on big tech regulation. I think there are areas of broad agreement that trace the president s executive orders whether that is really for renters or a way to bridge the gap for businesses. The problem is, the democrats dont want to give the president a win 10 days before the election. Its as if we are frozen in place right now. Paralyzed by our own politics when i do think we could get agreement on Business Assistance and paycheck protection. We could get agreement on individual assistance. We might have different ways of calculating state and local assistance, but that is only stopping us because of the upcoming election. You wrote about this in your book. You have to be frustrated even within members of your own party. Outside of washington, we talk about wall street. On main street, Small Businesses are thinking this wouldnt fly on main street if we didnt do our jobs. Why is congress able to get away with it . Congress is fundamentally corrupt. What happens here is the exchange of money for favors. Sometimes thats campaign donations. Sometimes spouses and relatives get hired to noshow jobs. Book how toin my pay for committee assignments. Described, like you individual assistance helped bridge the gap for coronavirus. Its the perfect example of how the needs of regular americans arent being met because the system is so fundamentally broken. You have emerged as a key credit of big tech. Where do you stand right now as antitrust andk where the oversight is going . Congress is never going to take on big tech because congress is bought and paid for big tech. They might disagree with me, but they would have three lobbyists deployed to every office to pursue that disagreement. Howite in my book about relatives of members of congress get noshow jobs with Technology Companies then suddenly, those engageians are eager to in review and oversight. We have the opportunity to reshape the federal Communications Commission and the federal elections commission. When twitter, facebook, and other platforms are no longer acting as an unbiased plat on i believe the sec could take regulatory action against them and i believe the Election Commission could find them lt of alexion meddling. Ofcould find them guilty alexion meddling. Election meddling. Thats american big tech companies. We also have to talk about china big tech companies. U. S. , does only have to come from the executive branch or does congress have to surea role in making interests are protected as a result of China Tech Companies . Republicans and democrats tried to sell us on this dream and it has become a nightmare. I write in my book a chapter titled china is not our friend. China does not have an innovation economy because they dont have a free market. They steal stuff and they have developed this Technology Like tiktok, drones, general mix companies that get steaks in a collection of american genetic material. They are using all of that for dual use to facilitate strategic advantage. I dont believe we are going to make china more like us by drawing them closer. I think we become vulnerable when we draw china to close to us and thats why this president s tough approach is the right one and i hope it is enduring within the republican party. Emily that was representative matt gets. Coming up, linkedin has curated a list of the top 50 startups that have thrived during the covid19 storm. We are going to hear from them about this new ranking next. This is bloomberg. Pandemic hasthe better the u. S. Economy with any jobs lost, startups have weathered the storm and thrived. Linkedin has come out with a list of the top 50 startups. Me is a senior editoratlarge from linkedin. Might surprise people. How did you curate this list and who stands out to you . Thank you so much for having us. This is a list of companies that members are most interested in. Things, every startup on this list is hiring. They are thriving. Emily what are some of the names that surprise you . Doordash is not surprising. I will give you a few trends. Is we have put this list out for four years and we dont usually see a lot of health care startups. Health care is difficult for startups. It is highly regulated. This year, all of that changed. What you see is not one but two startups who are Online Pharmacy delivery. You see Companies Like modern health that are focused on Mental Health benefits. You also see a Company Called mine strong. If you had told me a year ago that a hospital was a virtual thing, i would have raised an eyebrow. We are increasingly comfortable in telehealth. Emily the big question is how companies are going to attract talent in a remote world. Apple andlike facebook are being generous with their benefits. I wonder if startups can compete with that . In some ways, this is where startups are starting ahead. Big companies and had big salaries to offer. Startups have needed to compete for the very best talent by offering things that employees want other than money and safety. Remote work and flexibility has been number one on that list for so long. One company, everybody showed up to work every day. Nearly every company on this list has rushed to redevelop itself as a remote workplace. Many of them are going back. Emily its an interesting list. New names and you can check that out. Thanks so much. Following the tesla battery date event. Shares are still up. The Company Pushing sustainability. Proclaiming that the shanghai factory will make one million cars per year. Thats an ambitious stretch goal for elon musk. Right now, they are talking about battery design. We are waiting for the biggest announcement. You can stay tuned to Bloomberg Television for the latest. Thank you so much for joining us. That does it for this edition of bloomberg technology. Ive emily chang in san francisco. Tomorrow, huge names and notable guests like Hillary Clinton and dr. Fauci. Do not miss. This is bloomberg. Welcome to daybreak australia. Asiascounting down to major market open. Wall street rallies from monday selloff. The fed is warning of a long and uncertain recovery. Test was battery date event is kicking off right now