Transcripts For BLOOMBERG Best Of Bloomberg Technology 20170414

C. E. O. On the future of the genetic testing market. First to our lead, president trumps message to corporate america, job creation is at the top of the agenda. He made the announcement at a meeting with 20 c. E. O. s. The meeting was focused on the 1 trillion Infrastructure Program as well as tax policy going forward. In attendance, g. M. , pepsico, and walmart c. E. O. s. Text c. E. O. s were noticeably absent from the meeting. In december of last year, trump had a meeting with jeff bezos and tim cook just to name a few. How is Silicon Valleys relationship with the president involving . We post that question to the cofounder of Elevation Partners and silver lake partners. I think to staying alive is the only thing they care about. To me, the infrastructure thing is a headline. It is not actually a plan. Soative to Silicon Valley, far the actions they have taken are extremely destructive. The head of the fcc has made it incredibly clear he is going to be hostile to the needs of consumers, and by extension entrepreneurs trying to create new businesses in technology. I am not optimistic. I think the opportunities for any president of the United States to build great value through technology are there, but the Industry Needs help right now. They got a little out of joint over the last few years. There are great opportunities, but i think also challenges. The industry has been too focused on getting rid of jobs. We are in this weird situation where technically the economy is at full employment, but tens of millions of people feel they have been left behind in this cycle. I think they really have. I would like to see Silicon Valley have a new challenge, but the challenge would be create industries that employ people in good jobs. I think if you had that kind of a challenge, Silicon Valley would rise to it and a lot of great things would come out of it. Silicon valley created a lot of great jobs. There is no reason we cannot be doing this broadly. Caroline it is fascinating the administration has targeted immigration as the key threat, whereas automation is what many people feel has been eroding the jobs trying to be resuscitated in manufacturing. Should we not be looking for a paradigm shift in the way we all work . Somehoweel we need to have everyone fully employed . What sort of jobs will we be creating . That is the challenge. I look at this in a simple way. The economy requires consumers. Consumers spent two thirds of the money. It does not work if large a large percentage of the population do not participate in economic recovery. The goal has to be to make jobs more remunerative, more fulfilling some people have more money to spend. Henry fords Great Innovation was not really the production line. It was the notion he was going to pay his employs well enough they could of the afford to buy for cars. Caroline we saw a downfall. We saw an unbelievable unveiling unveiling of infrastructure. I would argue one of the challenges we face is we have been doing the same things for nearly 40 years which is cutting taxes and getting rid of regulations. There were huge benefits to doing those at the early part of that cycle. I think the benefits have been accruing to fewer people in recent years. It is time to try something different. Caroline a basic income . Would it be better to have a net . I dont know. I am not competent to make that call. I am competent to say it does not have to be the way it is right now. You sawessentially, this week united with that horrible situation. The last few weeks, we have had increasing news about wells fargo. Those are a direct result of deregulation going so far that companies literally have no regard to their employees for their customers, excuse me and no fear of repercussions if they treat them badly. In my mind, we have to make some changes because those things are not working. They are not healthy for the economy to have people treat their customers that badly. Caroline incentivize Silicon Valley, entrepreneurs wherever they might be based across the world to create longterm gainful employment. That was the model until 1980. Until 19 80, companies viewed themselves as not just having customers and shareholders. They also had the communities in which they operated. Caroline efficiency, does that he wrote that erode that . Why is efficiency the only thing we should focus on . I think it is taking us has taken us to where we are today. Too much of a good thing. Some efficiency is healthy. Caroline slow it down . Just reprioritize. Say right now we are going to have a time where we reward people for creating jobs, we reward people for industries in which caroline trump is. Up to takegning credit for jobs created by other people. The economy is basically at full employment. Theres nothing he can do about jobs. We have to qualitatively change the jobs out there. The sharing economy is not the answer. People have to have jobs where they can take care of things like health care. I dont know about universal employment universal income. I do know universal health care would take away one of the biggest fears people have and make it possible for the economy to do better than it is doing now. I think right now we have hollowed out the economy. We have eliminated the middle class in ways that are not healthy for public companies, for private companies. If you want to be a business person, i think you need to ask the question, is there a better way than the way we are doing it right now . I think the answer is likely to be yes. Caroline we will continue with Roger Mcnamee ahead. Company calleda Streetcar Communications in an all stock deal. Straight path is one of the largest holders of a certain type of spectrum u. S. Regulators have approved to power 5g wireless services. They are hoping to better compete with faster internet speeds. This is the second such acquisition for at t this year. Coming up, toshiba reports Earnings Results after delaying the report twice. We will dig into results and the companys warning about its future. Your phone addiction is not entirely your fault. We will talk to one former google employee who says the engineers in Silicon Valley are the ones creating the obsession. This is bloomberg. Caroline this week, toshiba reveal doubts about its future after months of dealing with fallout of the bankruptcy of the Westinghouse Nuclear unit. This Westinghouse Nuclear power business is so interesting. It has had many problems, many of their own making. A whistleblower suggesting the books were not right. Toshiba not really coming clean on this. Today, toshiba says we will publish our Financial Results even though our accountant will not sign off on it. By the way, we might go bankrupt. Caroline just to sledgehammer that in. Roger, we were talking earlier about japans history in chips. They used to rule the roost. They really did. I will never forget the lady meeting the vice chair of toshiba when it was basically just a chip company in the United States. They were so dominant that time. The only American Company that showed any liability at all was intel. Beaten out of memory and by Japanese Companies everywhere. He basically said you can get rid of your intel. You dont need to be a Semiconductor Analyst anymore because it is over. We have won. We are tempted to look at google and facebook in apple that way today. I think what is going on at toshiba gives you a sense that in technology at least nothing is forever. They made some dumb bets. Withng on Nuclear Power the westinghouse acquisition was a bad business decision. It is not a great business to be in. Big Companies Make bad decisions frequently. Absolutely. That is part of what comes with the territory of following your market. You outgrow your market and look for Something Else that looks like it will replace it. Inevitably, they are not domain experts in the thing that they buy so something is wrong. Ago,ine japan a long time the u. S. Now. Hold u. S. Olders who companies to account have seen a garnering a control of control. Some questioned oculus. Do you think that safeguards are there for shareholders to rein in bad behavior . Their stocks ago 20 every year. There is fraud in public we traded markets publicly traded markets. It is important when you look at what toshiba has done, this Nuclear Power business is one where the contracts are so long and the construction will take so many years. The financial guarantees they must provide to customers, utility companies, are so great that when the company has financial stumbles it does not have the wherewithal to recover because they do not have the financial backing and guarantees they can provide to the companys they do work for. Caroline cory johnson, bloomberg editor at large. Roger mcnamee stuck around for our next conversation on the growing global addiction to smartphones. Perhaps you are concerned about your own addiction levels and would be right to be. Tristan harris says engineers in Silicon Valley are creating phones and social networks to get people fixated in a phenomenon some are calling brain hacking. Harris is founder of the nonprofit Movement Time will spent. It is an interesting problem. All these Technology Companies are locked into the attention economy. , noever you are building matter what you are making, you are still competing for attention. Create is ato conversation about the costs of advertising in the attention economy and whether it is creating the kind of world we want to live in for democracy and in terms of how it affects children with these increasingly persuasive techniques that get ps like snapchat that go public on Networks Like this. Caroline who are you targeting at the moment with your notforprofit movement and the people listening . We just went on 60 minutes. There was a great piece with anderson cooper. People in the industry do agree it is hard to accept what is at stake and how to get off the train. At the end of the day, if you are a product manager at how you areur goal, measured is to maximize engagement. You leave the company saying i increased this metric by 15 . All of this increasing of usage does not add up to what we want our will to look like. It is a world of increasingly persuasive that sucks us in and show to us having to the most engaging things, not necessarily the best for us. Roger mcnamee here. Good to see you again. During the election, i became increasingly alarmed by my perception that facebook had basically inadvertently become a tool being used to distort democracy. First and brexit and then the election cycle here. One of the things i discovered in talking to the team was initially a reluctance to accept responsibility, to basically try to dismiss this kind of stuff as we are running experiments, some do not work out. I am curious if this is something you think can be addressed inside the industry or are we going to need some kind of regulatory thing from the outside in order to get the proper attention brought to it. I think youre absolutely right. We need to have much more attention brought to it. The question is where it will come from. Is it going to be from regulation or because of consumer pressure when people realize these companies are not building their products just to serve us . They have to serve advertisers. I think youre right to be concerned about how this is affecting the elections. That is one of my deepest concerns as well. Think of it this way. Facebook has a team of engineers working on the fake news problem. No matter what they do, how will we know they are doing enough . How will we know what they are doing . It is not going to be transparent. How do we know theyre putting sufficient resources, especially if what they are doing flex with their own business interests . The attention economy is a city of one billion people. Our mind lives inside of it. We do not have public representation in the city. Three private companies basically run the city. We have been inside of it for a long time. We need more representation. What is that new relationship where we have representation in the city . One of the challenges we face is the consumer has no way to become aware of what the problem is. I look at the issue, the socalled filter bubbles that apply around google and facebook where you basically only see things they believe you like already. That are these walls essentially impervious to all outside influences. Against that, they have created tools that allow advertisers to discriminate. That Business Model has been so successful that the economic mustent for the status quo be compelling to this companies. It is really hard to admit that you have caused brexit or contributed to trumps getting elected if your entire Business Model depends on your having done the very things that enabled those outcomes. I completely agree. I think we you look through history, there are often times in history when we discover something is morally repugnant but our economy is based on it. In slavery, there used to be slavery. It took 60 years. Get off of slavery they had to give up 2 of gdp every year for 60 years. Now our whole tech economy is propped up by advertising. It has served us well and created a lot of wealth and great things have come from it. But when the costs are too high, if im on facebook and have one newsfeed that has builder bubbles that confirms your existing beliefs. I have another i can show you that does not confirm your beliefs. If that one loses engagement or does not look you, everyone else will get the attention. I have to show you the one that confirms your beliefs and in facebook, i am locked into doing what is bad for democracy. Caroline which stakeholder is it best to target . The consumer . Shareholders, investors . Is it for them to hold the executives to account . Employees you target the most efficacy . This is the thing we are working out. I love the idea of having more shareholder control and influence. We realize the cost on democracy and children. I think that is a fantastic way in other industries in the past. The threat of regulation is another one. It is hard in the current environment. There is option malady in california there is an option in california with the legislature there. That is the kind of option im trying to create. Caroline that was Tristan Harris and Roger Mcnamee. Coming up, an exclusive conversation with one of the wellknown genetic startups. The 23andme c. E. O. On the companys big win from the fda. That is next. All episodes of Bloomberg Technology are Live Streaming on twitter at 5 00 in new york and 2 00 in san francisco. This is bloomberg. D. N. A. Testing company 23andme has cleared a major hurdle with u. S. Regulators. The fda has given the company the green light to sell genetic testing kits directly to consumers. It is the first and only company in the u. S. To be cleared to provide such reports without prescription. It is a turnaround for the fda which previously imposed a moratorium on these types of home testing kits, while the u. K. And canada embraced it. We spoke with the 23andme c. E. O. An exclusive anin interview and started by asking about requirements the company had to meet. The fda want us to prove two points. One, to make sure the data is accurate. If i tell you a certain result, we know the quality of the result is reproducible, that is in fact the result. The second thing we had to prove is the comprehension and go around the country improve all different education levels could understand this data. I think that is one of the things that is core to 23andme. We have this believe anyone can be a scientist. Anyone can learn about themselves and sciences within the reach of anyone. We designed the product and experience specifically so anyone of any education level can understand this information. Caroline 10 conditions have been granted including alzheimers and parkinsons. How did you select these conditions and will you be adding to them . We will definitely be adding to them. That is part of the process. We want to keep consumers uptodate as more genetic discoveries are happening. We focused originally on parkinsons and alzheimers because those are two of the most commonly requested reports our customers want. One thing people dont fully realize is the medical system does not have those. You can talk about whether or not you can do anything with alzheimers. We found consumers really want this information because they might be making a lifestyle change. They want to be empowered with this information. Caroline they have been seeking information for other things prior to this. Since 2013, they have been able to find out ancestry history, how they might react to beverages in a different way, and also what their children might be inheriting. If you have already done a 23andme test, can you find out what your reliability is in terms of the 10 conditions you are adding . Theor customers who are on existing fda cleared platform will get the reports. For customers on a preexisting platform, they might have had the old experience. We will enable some way for them to upgrade to it. For people who bought a year ago, they will get these reports. Caroline you are giving education. You are making everyone a scientist, as you say. How empowered are they to use that information . Are we expecting people to run to their doctors because they have more exposure to these genetic conditions . Can they embrace it and go to their insurers and show they are safer than they anticipated . One thing people dont fully understand is there is a lot of aspects of health care in the prevention world that do not necessarily cap into what we see as the Traditional Health care system. We find people find out they are risk for something and want to make lifestyle changes. They might want to start exercising more or change their diet. They want to have a coach of sorts. We did the studies and the u. K. Where we found people are not running to their physicians to ask more questions. Some of them do bring it up on the next scheduled appointment. But it is not necessarily generating more visits for physicians. People do want to make lifestyle changes. I think that is where there is a real opportunity. When i think big about 23andme, we want to embrace a Consumer Health Care Movement where consumers are thinking about her health care, not episodically when they go to the doctor. But they are thinking about it every day, what am i eating . What are the choices i am making . I think that is where more and more as we think about the retail world and other Online Consumer focused companies, those groups are going to help people make behavior changes we know customers want to make. Caroline on the coaching, is 23andme going to be providing coaching as well . We are not providing it. We provide links to individuals. We see our expertise as to not and making it really clear for individuals, the information and risks they have. We want to partner and enable other companies to help customers take it to the next level and execute in that way. Caroline what about the reach of your own business and where you take it next . You have been using the data. The key question is the privacy angle of 23andme. That springs to mind for many users. Can you confirm how the data is used and what the data might do to help push Forward Research into certain diseases . Data privacy has always been first to us. We have always defined privacy race on customer choice. If you want to share your data with no one, you share with no one. 23andme will never share individual data without consent. Privacy is a huge priority for us. We found people with a specific disease often want us to do research and partner to do research with other companies. It is a matter of choice. Caroline that was 23andme c. E. O. Anne wojcicki. Coming up, fortify may have an answer for a Public Market answer that sidesteps a snaplike ipo. We will hear from an investor next. Comcast is looking to take on netflix and amazon. The companys plan for an Online Video Service. That is up next. This is bloomberg. So youre having a party . How nice. Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Lets go. Im ready. Are you my uber . [ horn honks ] hold on. Dont wait for watchathon week to return. [ doorbell rings ] whos that . Show me netflix. Sign up for netflix on x1 today and keep watching all year long. Caroline welcome back to the best of Bloomberg Technology. I am caroline hyde. Now to a bloomberg scoop. Comcast is taking on netflix and cbs. The Company Plans to introduce Online Video Service offering it shows from the Nbc Universal tv networks next 12 to 18 months. Comcast is still determining many details including whether it will have a live feed of the broadcast network and it will include sports. The story and joins us from los angeles. If you are a traditional media company, comcast or cbs, time warner, fox, disney, on down the line, you have watched as netflix and amazon have attracted huge audiences with their ondemand services. At the same time, youre seeing viewership for life tv down. What can i do about this . We are still making billions from our tv networks. We clearly need to do something for the future and come up with some new service. Now warner has one with hbo and smaller bets. Comcast has done a couple of small ones. They have a web service for comedy fans. This would be a much bigger endeavor pulling together some of the strong programming from across the comcast universe, weather on the nbc broadcast network has football and reality programming, or Cable Networks and maybe sports as well. Caroline the advertisers could love this because they do have a certain demographic which perhaps are younger than the rest of them. Yeah. Cbs has a product in the marketplace right now called all access which is likely cbs broadcast network but online, you get a live feed and ondemand. They made a point of saying the average viewer is significantly lower than for cbs. Trend in tvat the viewership, it is only getting older for live tv. Most young people are not watching as much live tv. If you want to reach them and dont want to sacrifice that democratic demographic, you have to come up with something of your own. Caroline something of their own. Talking as a man who has come up with something of his own, it breaks my heart because i am a massive fan of jc jayz. He decided to pull his music from spotify. Is that the reason why . He pulled his whole catalog from spotify with the exception of two records with r. Kelly a long time ago. About half of his catalog is off apple music. If you want to listen to some of his classic albums you cannot or it anywhere but tidal some by song on youtube or pandora. The timing confuses me because they just made a bigger with spotify last week. Over the weekend, his music disappears. He is clearly trying to send some kind of message. It would be helpful if someone from his camp would give me a call back. Is his unrivaled streaming Music Company he bought. It was a europeanbased company. Do we know how well tidal has been doing . It was not a huge success of the businessman might have liked to have seen. The big attention getter for them has been exclusive, getting an early chance to release new music from several of jayzs friends, proteges, partners, and so on. Has 3nalysts think it million or 4 million subscribers which would make it the third or fourth biggest paid streaming service in the market but behind spotify and apple music. Jayz did manage to sell the owners did manage to sell a stake in tidal earlier this year. Spotify, speaking of the company made waves last week on reports it is considering an unusual way to satisfy invection spurs investors. Spotify is said to be weighing a direct listing. It would not involve underwriters and sidestep much of theprice speculation debut of a tech unicorn like we saw with snap. We spoke with spotify backers along with bob odonnell. Take a listen. Our view on direct listing is quite positive. We think it signals confidence by management. First and foremost, it reflects this idea the business is financially sound. They have enough cash on their Balance Sheet to fund their growth and support the business. They do not need to raise billions in an ipo to be sustainable and successful. That is the first thing. The second thing is it does challenge the notion the Business Needs to go through the traditional ipo roadshow and process to market the story. Our view is great companies, great businesses do not need the ipo or roadshow necessarily to have a following from the investment immunity. We very much believe in managements capacity to do the right thing for the business and shareholders. And are not convinced the ipo roadshow is the de facto route for companies to go public. Caroline there has been debt taken on by spotify. It confuses me as to perhaps why they would not want to take on more money to pay down the debt. The terms of the debt is pushing them to go for an ipo or a direct sales share listing sooner rather than later. Toan investor, and you like see this in 2017 rather than 2018 . We would love to the business to go public. Management needs to determine the right time for an offering. Ipoview is the trigger for is not the debt terms. They are not driving the decision to go public. Rather, the appropriate Market Conditions and timing for the company. This past week, they did solidify negotiations with universal. We feel that was a huge milestone in going public. Those are the big milestone drivers for the business rather than Financial Instruments we believe the company can more than support. My question is, does this reflect a changing atmosphere around tech ipos in general . You could argue what we saw with snap and now with spotify, is there this sense that Tech Companies are trying to take more control to themselves away from wall street . What does that mean for wall street and investors . Surprise as innovative as spotify is they are taking a different approach as they think about this ipo and a potential direct listing. Historically the ipo roadshows by the Investment Banking community, stocks can be underpriced. In the snapchat example, the stock went up 40 the day after it was listed. In this case, we let the market determine what the price of the stock should be. It may come at the expense of some Investment Banking fees, but it is better for all shareholders. It is better for the company. It could be we believe it is a viable route for companies in general. Our view is if spotify can successfully execute a transaction like this, they can generate investor following on the Equity Research side and have liquidity in their stock. This could become a template for companies in the future to go public and do a direct listing versus the traditional ipo route. Caroline coming up, chinas farmers are looking to the sky. How the Chinese Government is planning to replace manual labor with automated farming. That is next. And ecommerce battle brewing in india with billions of dollars at stake. Will talk this is bloomberg. Caroline on the latest tech funding board, a real estatebased firm is gearing up to be canadas first tech ipo in two years. The Company Issued Regulatory Filings tuesday. Real matters is seeking to raise about 94 million for a valuation of about 750 million. The last Canadian Tech Company was to go to go public. Shares have nearly tripled since then. The european cable giant is planning an ipo for its u. S. Business. The billionaire founder is looking to exploit potential stock market gains to fuel further expansion. A preliminary filing did not offer details on how much he is selling or valuation for the unit. It was formed from two u. S. Acquisitions worth more than 26 billion. Investing 500is million in the indian ecommerce giant, flipkart, in a targeted move against amazon after jeff bezos vowed to spend 5 billion. The localnding over business to flipkart in exchange for a stake in the company an agreement to offer flipkarts products on ebay and vice versa. The downside, it was a down round. That valued the company at 10 billion, down from more than 15 billion in 2015. What does this mean for global ecommerce competition . We spoke with bgc Partners Research director who covers both amazon and ebay and the Bloomberg Technology reporter on the phone. Of internet market there is overheated. You are seeing consolidation. That is why you are seeing some companies rush in. It is an opportune time to get in on the ecommerce leader while the industry consolidates is not goingapital to be pouring into other startups competing in the space. Caroline great timing for us. We spent all of last week talking about the opportunities for investment in india. It seems as though apple is going in. Have many of the tech giants understanding india might be hot while china cools down. Is it all about indian ecommerce now . India is the world number two largest population. Roughly 1. 2 billion people behind china with 1. 4 billion. United states around 320 million. To give you an idea of the size these companies are chasing after. Many are realizing amazon is positioning to take this marketplace. Your seeing consolidation happening around the remaining companies so they can fend off amazon. In particular with ebay handing off their assets in india and the infusion of 1 billion in cash, these are all companies positioned to compete against amazon. They are consolidating around flipkart to have a viable competitor to amazon. Caroline spencer, update us. This could be a stepping stone in the saga that is consolidation involving for cart flipkart. Snapdeal could be teeming with flipkart in the next couple of weeks. That is what a lot of the speculation is. There are some sources saying that deal is in the works. Down its has wound snapdeal ownership but still has about 5 ownership of snapdeal. Basically, you are seeing this Global Coalition building around amazon in thisht critical market. Your other guest mentioned the population. It is not just the population. It is also the internet access. Internet access in india is growing quickly along with wealth. I think it is about 450 million them. Youcountry has, even if limit it to the number of connected people, it is still far larger than the u. S. Caroline the Global Coalition. I like that turn of phrase. The Global Coalition forming, do you think it is enough to stop the 5 billiondollar bet jeff bezos is making with amazon . That is the question. We want to see softbanks involvement in the combination of flipkart and snapdeal that would consolidate two of the players. You would have the formidable rival to amazon. The thing to remember about the marketplace in india is it is still relatively nascent. The Distribution Channels are fine into your one cities. In tier one and three were growth is going to be, there will be a massive need for investment. Amazon can Fund Investment from its own cash flow is. Companies like flipkart will have to require rely on money from external sources. This is an industry burning a lot of cash. Negativeeing growth margins, billions invested every year. Is going to be a battle. Amazon is well positioned given its capital base to succeed. Plus, they lost in china. They lost to alibaba. They want to prove to investors they can win in foreign markets like india. Caroline the winner being alibaba, who at the time was backed by [indiscernible] taking a page out of the playbook. He seems to be willing to sacrifice some valuation in snapdeal which could merge with flipkart. Anre are rumors we might see 85 cut in evaluation of snapdeal if we does the accommodation of these two. It looks as if he is willing to take a hit to win longerterm. Correct. That will be a very interesting transaction to watch to see how it is structured. He may be willing to take that loss on snapdeal if he can get a larger stake in flipkart. He likes to have stakes in that more meaningful category 2035 . We saw him do that with alibaba. That was a tremendous investment for them. We will see if they can do that again in india. The future of farming is heading to the sky. In china, agricultural drones are being used to spray pesticides over crops. The Chinese Government is encouraging farmers to move from manual labor to automated farming. We have a story from china. He farms about 44 acres. This year, he is trying new technology. He has hired a team of Drone Operators to spray pesticides over his crops. The team of six arrived at dawn with a flying fleet and got to work. Agricultural drones are taking off in china. In recent years, the government has encouraged farmers to move away from manual labor to automated farming. Right now, drones are only used on about 2 of chinas farms. The market could be worth 4 billion u. S. A year. To talk john maker is betting the top drone maker is betting more farmers will start automaking. Automating. Our drunk helps mitigate using toos mitigate much has decided by following a planned route. You can ensure more precise spraying. The drone has a small payload. The operators have to refill the canister every five minutes and change the battery every 10 minutes which means it can only be used on smaller farms about 50 acres. It is tedious but cheaper and faster than hiring laborers. He paid about 20 u. S. Per acre to the spring company. That is almost numeral seven dollars cheaper per acre than hiring men with backpack sprayers. Ahead, teslall tops General Motors. This week, the electric upstart eclipse the American Auto institution in market cap. What this means for the u. S. Auto industry. If you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com, and on sirius xm in the u. S. This is bloomberg. Caroline the ridehailing company lyft is now worth 7. 5 billion. That is after a 600 billion round of financing. Perhaps more important is who is investing in lyft. Assetvestors include kkr, managers, and a canadian consent pension firm. They typically provide funding ahead of an ipo. Investors have long speculated lyft would be smart to go public before its much larger competitor, uber. Tesla hit a new milestone this week after surpassed General Motors to become americas most valuable auto company. Take a look inside my bloomberg. You can see when tesla pushed past the competition. The white line being the creeping asset of tesla now worth 49 billion. It just went past g. M. And ford. For more, we spoke with david welch. Has more debt that as to the value. This is more of a symbolic moment where tesla has crossed the line of being more valuable than g. M. And ford. You really have to look at why. Investors are seeing tesla is this possible future dominator of electric cars, may be a leader in Autonomous Vehicles and electric storage. They have a lot of businesses with potential. It is a longterm play. With General Motors and ford, the problem may have his sales are starting to trail down. Not by a lot. Both companies will still make a lot of money. Gma set another record this year. Investors are seeing this as the best is behind us over the last 12 months. Maybe we will put our money someplace else. Tesla, there is still hope they can grow and give more of a bump in the stock. Caroline the jaffrey analyst put it as optimism, freedom, defiance. These are things the car company symbolize where tesla is. Remind us of the disparity and the number of cars these companies are pumping out. G. M. Will sell 10 million cars this year. Tesla got a big bump in their stock when they sold 25,000 in a month. 10, way less than General Motors. Look, it is not about car sales right now with tesla. 3 is about the model coming out and being a success. If they get a lot of those out, they prove tesla is a phenomenon. Caroline what is interesting is g. M. Has its chevy volt. Already, it is showing a similar range to the model 3 tesla will be tempting. It is showing a similar price point. On the road, the optimism is much higher about the model 3 which has yet to start coming off the production line. Tesla has a couple of things going for it. The big Car Companies had always seen electric cars is something they made to meet regulations. They make compact cars, things americans typically have not liked. Tesla made electric cars cool. The model s is cool and externally fast. The sportutility vehicle not as cool in terms of design but still a neat vehicle. People and latch onto it, particularly luxury buyers. You take it down scale was Something Like the model 3, it still has a design that looks like it is in the same family as the model s but is accessible to people with prior to drive a tesla or just have a piece of the elon musk allure. Fans, a lota lot of of enthusiasm behind him. It is a connection. The brand has become powerful because of those initial vehicles. People can afford a 40,000 car can get a piece of that. There is a lot of enthusiasm. A chevy with a hatchback that looks like a compact minivan, not so much. Caroline lets remind ourselves it is now number six in the world looking at auto companies. It could quickly get to the fifthplace if honda does not look out. That is right. They could pass honda soon. Getting up to the value of toyota is another matter. That is quite a bit more. This shows the directory trajectory they are on. The real story is the tesla stock has a ton of momentum. There not close yet to model 3 launch later in the year. When that hits, that will be a test for how much demand there really is, how quickly they can manufacture them, and can they manufacture them without defects and problems early on. If any of those three things becomes a problem, you can see the stop take a hit. It has always been a volatile issue as well. We will be in for an interesting ride over the rest of the year. Caroline my thanks to david welch. That does it for this edition of best of Bloomberg Technology. We will bring you all the latest in tech throughout the week with big tech earnings starting to roll out. Tune in monday as we kick things off with netflix. Remember all episodes of Bloomberg Technology are now Live Streaming on twitter. Check us out weekdays. That is all for now. This is bloomberg. Attention homeowners age sixtytwo and older. 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