emily: get ready for tesla autopilot. we have everything that you need to know for elon musk's next three months. ♪ emily: i'm emily chang, this is "bloomberg west." spotify lands a huge round of funding over and eight billion dollar valuation and 20 million new subscribers. is it enough to fight off apple? air b&b tells the sec to back off. i will be joined by robin chase. and i will introduce you to what

may be the mays -- the most tech savvy school on the planet. all of that, head on "bloomberg west." now to our lead, tesla shares took a hit today after elon musk announced that his cfo wants to retire. a tesla veteran, there from the early days. as he said on stage last night he has steered tesla through some tough times. there was also more promising news, the tesla suv is on track for delivery in three months to four months and construction for the giga factory, the giant that are he planned, is moving along. here to discuss it with me is robin chase, the author of open vote or think," cofounder of zip car, and our own matt miller. then, i want to start with you. the cfo retiring, how big a loss is that? then: he is an important figure that carried them through the

important stage of the company but the good part is how they announced it. not just a press release, but they announced it in front of the shareholders and he will stay on board until they find a replacement which is reassuring to investors. emily: it is news that the model ax has been on track, we will see it in a few months he says. , which is reassuring to investors. ben: one of the reasons that we raise the price target is we are in the verge of getting it out there and it will be an important step for tesla, their second car the road, increasing brand awareness. crossover vehicles are the biggest parts of the market out there right now. i find that there is still a lot of skepticism out there. people just don't believe that it will come out on time. emily: i was just find ask you, matt, do you believe them? matt: i chuckle a bit when you

say that it is on track. remember, it was supposed to be out at the end of 2013. recently they said august and then they pushed it back until the end of the third quarter and it will probably be october 31 of they want to really stick to the schedule but they have 20,000 orders for this car. it is an exciting product, i'm not knocking it at all. it looks awesome, i got a quick look at the interior, it looks sweet. it will have 700 horsepower and more like 800 or 900 pound feet of torque. it will be an absolute monster but i don't see how they will make them fast enough. they already have 20,000 orders that people want but they hit the streets i guess it's not a bad problem to have but i don't think they will meet the demand. emily: then, you think they will have 25,000 suvs next year. then: a lot of the hiccups are last year was then beefing up

reduction lines to get ahead of this and get the facility in order. i think that that is a pretty conservative estimate out there. there is a lot of skepticism. again, it has been pushed a couple of times. that's why this is an exciting time. emily: the other thing that musk said is that the model s -- the model ax will be a better suv than the model s is a sedan. what do you make of that? matt: i don't find a hard to believe. incredible torque, incredible power, with self driving features already available. for example you can get out of the car and watch it parallel park itself. maybe it can come over and pick you up when you walk out of a restaurant. there are some pretty amazing promises. elon musk is obviously famous were talking big and then not really delivering until a much later date but it is still a very exciting product and i

think it works at hell of a lot at her as an suv. emily: i love that he himself is test driving these. are we already in the era of the self driving car? emily: i think it is fun event we don't get much credit for what he has done. from the beginning we did not believe that he can deliver 20,000 cars, than 30,000 cars than 50,000 cars. starting a new car company is quite the big thing and i think that the car will have many features that are new to the market lace. if you look active what the model x was grossly different car it has just improved hermetically over the years and it has got that are of cars. emily: we also have news on the battery, tesla doubling its output. even though he said that interest was crazy off the hook there has been a lot of criticism out there. on a practical?

>> when i hear about these cars and the lifecycle on them i think we will be seeing a ton of these cars in the next 10 years and i wonder what will happen to the demand for things like suv's. all of the future cars will be having much better fuel with dependent batteries. emily: what about the battery ben? double the power, is that enough? ben: the criticism was correct. the generator does not work the same. haired with solar it makes sense. the big story here is that we focus a lot on the residential battery when really they will be selling sales to utilities with commercial customers like target and walmart for backup power. emily: [no audio]

making progress again. we believe in their targets? matt: it is true that yunnan must does not get enough credit for his achievements but the reason it is time and again every product he delivers he comes to market a little bit early with the beta version and problems that need to be fixed. the roadster certainly was not a product that was ready for market. i assume that the model ax and power wall will be similar. it was the same thing with the giga factory. it is not going to meet his projections and the time limit that he set but i'm sure that in the long run it will be totally awesome and it will be given commendations, but i think that he is too fired up and excited about this stuff, not a bad problem to have but he does not meet our -- meat market

expectations quickly enough or the way that we are used to. go ahead, robin. robin: it feels to me that what he's doing is very entrepreneurial, get in front of customers as fast as possible that could mean going out to early. emily: robin chase, you are sticking with us. matt miller, our very own, thanks a lot. today is streaming wars. spotify valuation is more than eight ilion dollars. the company raising 526 million dollars from investors including goldman sachs and baillie gifford pitching in $150 million for a 1.4% stake in the streaming service, spotify announcing they have 75 million users, doubling the pay subscriber base in just one year. can apple music keep up with

this soaring growth and other internet radio services? >> there is a lot of novelty in this space that feature things that seem interesting and compelling but don't become habitual products for folks. we tend to shed those things in a hurry and focus on things that people use a lot of. it is ultimately about simplicity. people want to hear something that they love without a lot of us. -- foss. -- fuss. emily: the attorney generals in new york and connecticut are investigating whether music labels were pressured into favoring the apple music service. setting the rules may be a huge headache. investors cheer for a stock split, everything you need to know about the proposal ahead. ♪

♪ emily: a story that we are following, glass door releasing its annual employee choice awards for the highest-ratedemily: technology ceo. the data seemed to imply that the ceo likability is not influenced by stock performance. the ceo of dell has a 91% approval rating though the stock has tumbled over the last year. washington sets its sights on the sharing economy. the federal trade commission spent an entire day considering the government's role in overseeing the likes of over and

air b&b and the response for the most part was -- back off. this problem of sharing economy companies is something that robin chase for saw in her book. she is with us here to explain. robin is also the cofounder of it car. first of all, what is this fight headed towards? what is the role of the sharing economy of the future? robin: if you think about regulation there are three things that we are talking about. one, protecting consumers, absolutely. another is protecting labor, which is good too. there is a fourth beast, which is a bunch of regulation that is protecting the industry and do we really want to be doing that? the other piece is we have a lot of regulation that is entirely outdated but we are just so slow to have regulation move. i feel like when we talk about uber or air b&b it is -- do you hate it or love it? i think that some of that

regulation is ridiculous. emily: you founded zip car, you dealt with many of these challenges. what could uber or lyft learn from some of your lessons? robin: breaking rules that are not great to break when they had individuals drive their cars they were grotesquely underinsured, which i thought was egregious, but they were letting drivers driver totally inadequate insurance that protected the passengers but the car and car owner were not protected. those are risks i wouldn't take. but i do think that there are some rules that you want to get around that are dumb rules. in new york city here, where uber was prevented from coming to the market in 2012 -- why? because the licensing commission determined that there is only one way to measure different -- distance, their own device, gps was not allowed to be used for distance, which is clearly ridiculous.

the founders do need to pick and choose, but for me there are some areas where regulation makes absolute sense and they should be cognizant of that. emily: let's talk about all of these workers in the middle and are not necessarily protected, yet at the same time expectations about jobs, jobs sharing, how many jobs we have it's all rapidly changing. what happens there? robin: that is something that we need to pay attention to and not just around the sharing economy. walmart and fedex have long been trying to not pay benefits and what we are seeing in the u.s. today is that fully 30% of the workforce is not doing a full-time job they are doing lots of little jobs. we will definitely be seeing much more of that as the society as a whole and government we need to decide if we are going to move from regulations that were established with rules and the idea that you had one full-time job for your entire

life to accommodate his new way of working which we are seeing increasingly more of. this model of building businesses is so much more profitable, faster, quicker, resource efficient. that is why so many companies are moving to this. we absolutely have to sit up and say that the future is this temporary workforce, all of us doing many jobs at the same time . what do we as a society want to do for those people? emily: almost everything now exists, uber for x. what are we missing in the sharing economy? robin: i think we are going to be seeing it in everything. i would like much more in terms of distributing power local solar and wind on different rooftops for big gas power fire plant. i think that what we sell was it car first and with uber and lyft

what we saw as big infrastructure things that could only be provided in a gigantic way, they can be well served by looking at behaviors and atomizing that supply. that is an area where i would like to see is more. when we think of air b&b, zip car, bloomberg.com uber -- zip car, uber we think of two of the most expensive things. they rob us of a place where we spend a fortune. i think that communications services and the media are fracturing how we work. emily: interesting. robin chase, very thoughtful. thank you for sharing that with us on "bloomberg west." investors like what they are hearing from netflix as shareholders pave the way for a possible stocks that boosting authorized shares outstanding from $170 million to $5 billion.

netflix investors also electing three new members to the lord richard art and, brad smith, and former abc president and sweeney , plus teaming up with marriott. the hotel chain will allow guests to sign in in 100 of the u.s. properties by the end of the year and all 300 by the end of next year. all of this pushed netflix shares to an all-time high today , the stock doubling this year giving the company a market al u of over $40 billion. up next some of the biggest names in silicon valley are investing in a new school system. i will be joined by the founder of all school -- alt school. and what could microsoft mean for your office? next. ♪

emily: we turn now to the daily bike. today's number is 20,000, the cost of microsoft's 84 inch surface tablet. you can order the device starting this july. it will be available for delivery in september. they are hoping that the massive tablet will replace conference room whiteboards and projectors. it cost half the price of a similar teleconference system according to an executive. they are also offering a 55 inch version for $7,000. some of the biggest names in

technology are backing up a new education system. mark zuckerberg, john doerr, all investors in alt school. what is it? a full profit elementary school with a strong influence from the latest technology. here with me is one of the founders and our bloomberg news reporter who wrote a big feature today about the program. you walked into this saying -- look, if we started school over from scratch it would be completely different. not just because of new technology. what does this look like to you? where are you? what is alt school today? emily: -- >> it is a growing network of actual, physical schools, smaller than a traditional school, 100 kids plus or minus, entirely run by teachers, very personalized and flexible to the needs of individual families and

educators. we believe that technology has a fundamental role to play in not replacing that human to human relationship-based learning that should be driving the education of an elementary and middle school -- middle school student but rather to fundamentally enable people in regular classrooms to be more flexible to allow students to all follow their own trajectories of learning and be able to understand where they are what's working, what's not working, without wiring them to be constantly taking test, which are a departure from how they should be learning. emily: adam you actually visited. what struck you? adam: i spent a lot of time with these guys over a few days and what jumped out at me was how a lot of these companies are building education type technology but what they are doing is building schools from his -- from essentially the ground up. i thought about it in terms of having to hire the teachers and build that school, the logistics

involved in that. that was something that jumped out at me. max, maybe you can talk a bit about what made you want to do that instead of taking your background in software and just building new education technology -- what made you want to build a whole school? max: some of it is self-serving. i have two kids myself. to be able to create an actual school that we can go to and find a way to make that amazing experience for ourselves is something that not only works at scale where private school, public school kids at all ages could be part of a better school experience and it gets better the more things are actually part of it -- the markets are part of it. that is a notion that is very much coming out of the technology background. the idea that we can have experiences that can scale incredibly large and improve the more and more people are part of

that experience. whether you are talking about something like a search engine social network, smartphone or car for that matter. until my daughter is four years nine months, she will not go but as soon as she can of course that is a huge motivator for me in creating that only an experience for my own kids that i would most want for them, but an experience form me is apparent that i would most want. emily: it is expensive. some of this technology that you're talking about, mac teachers state-of-the-art technology, 3-d printers, pretty cool but it will cost a lot. can this reach middle america middle income communities? max: the technology itself is not particularly expensive. if you are talking about a one to one device school. these are $300 books for kids. that does not represent a prohibitive barrier.

the technology that exist to allow teachers to better document on demand, you are talking about hundreds of dollars per classroom. the idea here is that we can create an approach and an ecosystem where you will see many different types of school. obviously we will continue to start and operate our own schools but we are already trying to work on a 2018 timeframe with other groups of educators and other models of school, like montessori or something that is more of a common core kind of experience exist within the ecosystem we have created. ultimately, that is where scale comes from. it is almost the notion that the internet lets publishers start things and have a lower barrier. emily: montessori graduates

jeff bezos and emily chang, so i believe it. thank you so much. thank you all for watching this edition of "bloomberg west." that's it for today. ♪

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mark: i'm mark halperin. john: i'm john heilemann. and with all due respect to bill clinton he can speak to me whenever he wants. mark: happy national ice-t day. jeb is jousting with the press. president obama is sending 450 more american troops to train the iraqi military.