♪ >> i'm emily chang in san francisco and this is "bloomberg technology." and the next hour, elon musk tells the new york times no one reviews the infamous tweet and he does not regret it. and chips stocks on track for the longest losing streak in months. is the semiconductor downturn coming? door dash raises 216 million

more dollars in its latest funding round a few months after the massive investment from softbank. what is next for the food delivery service as it takes on communications from the board at all and did not get calls from irate directors." he told the times he wrote the tweet as he drove himself to the airport. tesla's board said they have not received a former proposal -- formal proposal. our next guest has the sector perform rating on the company and matt check and has been with us covering all things to love. they say musk revealed one of the directors called him about the tweet indeed and asked him not to send any more tweets until they were reviewed.

talk to us about the emotion he shared in this interview. he teared up at times and talks about the sleepy is not getting and he feels the worst is yet to come from a personal standpoint. >> it is a really emotional and for me, stunning admission of all of the ways in which he has kind of misplayed this go private situation. it was a situation where, if you had fears of what had gone down as an investor, maybe he not think too hard about the tweet and maybe use not totally himself while he was thinking through this. they were all confirmed by this interview. on one hand, this is a good sign. i think there is something positive about trying to come out and saying there are things and getting wrong. on the other hand, it does

definitely confirm the worst suspicion which is that there is no funding for this take private transaction. at least, not yet. emily: joseph, if there is no funding, what does that imply? it seems the sec is moving quickly in terms of having conversations with tesla. he could be in some real legal trouble with the subpoena. joseph: thanks for having me. thinking about the stock and the funding secured commentary, there are a lot of deep pocketed investors out there. in terms of having an edge and figuring out whether they are willing to invest with elon and has luck, it remains fake to be frank. we thought the timing was peculiar because elon has clearly been obsessed with the short thesis. to be frank, one of the best ways to crowd out the shorts is to put up profits, which is

something he promised would be sustainable from here on out. if you are negative on the stock, it does embolden you to feel there could be something a little bit misplaced operationally. if the yield does not go through and eli is on some of the investigation issues you mentioned, you can see how the negative thesis can begin to become more self filled. emily: he talked about the short-sellers in the interview with the new york times. he also said there were times i do not leave the factory for three or four days or go outside. this has come at the expense of seeing my kids, seeing friends. i thought the worst of it was over, i thought it was from it has operational standpoint, but from a personal pain standpoint, the worst is yet to come. max, how much of this is you on putting too much pressure on

himself? could it be realistic for him to set less ambitious targets for production and reduce some of that pressure? max: i think he put too much pressure on himself, clearly. if you are the ceo, one of your jobs is to make sure the company is making enough cars and also making sure you are using your time effectively. clearly, there's a fine line with someone like musk where he is very good at hands-on activities, but he definitely drew the line in the wrong place. he is suffering for it and tesla is suffering for it. the whole point of taking tesla private and taking him at his word was to reduce distraction. i think right now, this is what everyone is talking about. i cannot imagine what it is like if you are working for tesla or in the factory or headquarters now and having to read this. it is a tough situation that the company finds itself in now.

emily: the article in the new york times includes a quote from musk "if you have anyone who can do a better job, let's me know." "they can do the job. if there is someone that can do the job better, they can have the range right now." is there someone better that could be doing this rather than elon musk or is he the right person to be running this company? joseph: i think it is important for elon to be in the company. he is a visionary and has grand ambitions. he is the reason a lot of people have gone along for the ride. we have long said that tesla is a company to use a little more operational focus. i view the article and some of the comments as maybe even a little of an opening for someone become involved and focus more on the next phase of tesla which is getting the operations right and becoming profitable. does that person exist? i'm sure they are out there. i don't know who it is offhand.

it is going to be a difficult job, because on the one hand, you will be in the shadow of elon. on the other hand, it needs to be someone elon trusts immensely to carry forward with his mission. emily: in the same breath, he said he has no plans to leave. max, how genuine is he actually being in saying he will happily hand the reigns over? he has the coo of spacex khamenei have talked about how capable she is. he is still ceo there and has not given up that job. would he ever give up that java tesla? he said he talked to sheryl sandberg about being a number two of sorts. that did not happen. also, he went through a number of potential candidates for whatever reason who did not get the job or take the job. max: the gwen shotwell model is the model you love to see a tesla because he and the gwen have a lot of trust.

they've worked together for a long time and she is good at managing him and dealing with a person who is hands-on and opinionated. one challenge he will have recruiting someone like sheryl sandberg, yet someone so strong-willed and doing things like so erratically. it is a situation where -- in what world would sheryl sandberg saying yes to running tesla right now? maybe there is a way for someone to come in from the outside. you can imagine someone coming up, maybe the head of technologies working with elon for a long time. emily: joseph, the shares soared the day he wrote that tweet in a plummeted the day this interview happened. the shorts might get their way as a result of all of this. are you concerned of the

operational future of tesla and the company's ability to deliver? he is saying 6000 cars a month this month? is it possible? joseph: we believe production and execution at tesla will improve. this comes down to where expectations were set originally, and being able to meet some expectations that might have been a little ahead of schedule. that is what is driving the stock. the other thing i would say to the execution is to embark and deliver on the grand ambitions of tesla, they will need capital. part of that could be funded internally if they get the operations of the ground, but having a stronger balance sheet to execute these plans we think is clearly important it will drive the stock. emily: i should clarify, he said himself a target of 6000 cars a week by the end of this month.

do you think you can do that? joseph: our latest indication is that production is improving a little from the 5000 or so per week that they finished the quarter at. emily: joseph, and our very own max chafkin, thank you for weighing in. i'm sure there will be another twist on monday. elon musk may not be the only tech ceo to be subpoenaed in recent days. the house energy and commerce committee is considering twitter's ceo according to a congressional aide familiar with the matter. there is a september 5 hearing on foreign influence on their platforms from google, twitter, and others. china is beating the u.s. on 5g. we discussed how it fits into the u.s.-china trade dispute.

that is next. this is bloomberg. ♪

emily: a recent study shows the u.s. falling behind china when it comes to money spent on five you technology. no only are they spending billions more, but they are building more so sites. here's what a few ceos say about the 5g roll out in the united states. >> 5g is imperative. the nation's leadership is at stake and we have fallen behind to china. t-mobile and sprint are the only companies that can change that. >> we have driven the 5g

ecosystem by pushing the industry to adopt the next generation, several years ahead of original expectations. i believe the impact on 5g on consumers will be much bigger than any previous generation. >> i think the 5g standard or the shape up, we will see it in the not too distant future. we see a lot of interest from the interest in 5g. >> 5g is 100 times faster than 40 or lte. this will really help. >> the amount of scale and throughput you can have for content services on 5g versus non-5g is a really big opportunity. you're going to have a network out in the world in fixed wireless that will allow you to do services you have never seen before to consumers. emily: our next guest is the ceo of a chipmaker working to bring 5g to the masses. jeff, first of all, you are very

involved in helping bring this technology to the fore. how far ahead is china compared to the united states? jeff: first of all, thank you for allowing me on the program. our company allows smartphones to connect to the internet and we are on the nasdaq traded under several big etf's. regarding 5g and where the u.s. is positioned, we may be starting a little behind china, but if you look over the next five years, i believe you will see about 275 billion spent on infrastructure investments in

the u.s. equate to about 3 million jobs. in addition to that, it should come on strong with about 500 billion in contribution to the gdp in the u.s. emily: is it a little bit behind or a lot behind? a report shows they deployed over 300,000 new cell sites in the china -- china outspent the u.s. on billions of dollars compared to the u.s. couldn't that gap widen? jeff: they could certainly widen, but we are seeing activity both in asia for development and activity likely benefiting the u.s. it certainly could widen, but i think you also have to mention -- remember qualcomm is in the

u.s. and they were a leader in the 4g lte and we see them having a stronghold in big contribution in the u.s. with their chip size as well. emily: this administration is very concerned with china outpacing the u.s. in technology, in particular. how does the trade dispute -- do you think, how will that impact the u.s. versus china 5g race? jeff: if you look specifically for 5g in our business, which is again these high-performance filter chips that operates very high in the spectrum, there are only two competitors in the space. those two competitors reside in the u.s.. whether it is trade tariffs, the world will acquire the filter technology from the u.s. and akoustis technologies was founded in the u.s., manufacturing and upset you new york -- upstate new york and to there will be no other choice

where these chips come from. we are uniquely positioned to participate in this market in that regard. emily: we understand how 5g will make our phones faster, and remind us why 5g is so important to the broader tech sector. the coming of 5g could be revolutionary for everything from self driving car technology to a method reality. jeff: that is correct. as your introduction noted, things like autonomous vehicles and artificial intelligence, there is high-definition streaming, there is low latency-based gaming applications. the latency problem in 4g lte will be improved by roughly a factor of 30 times which makes these applications more real-time by removing such delays.

i don't even think that touches -- we have been reading over the last few years of 50 billion connected devices on the network. you have to have the capacity and high-speed network to make that a reality. it is pronounced and we see tremendous opportunity. a lot of additional bandwidth is opening up, and that is capacity creating challenges and filters which we are uniquely qualified to address. we are highly focused on that new spectrum that is opening up for 5g. we see ourselves becoming a dominant player in that market. emily: jeff shealy ceo of akoustis, thank you for stopping by. coming up, semiconductors stumble. is the gold rush over for the chipmaker? if you like bloomberg news, listen on the bloomberg radio app, bloomberg.com, and in the u.s., sirius xm.

this is bloomberg. ♪

emily: are cracks appearing in the u.s. to makers? the industry has been known for its boom and bust cycle. semiconductor stocks are on track for their longest losing streak since april after disappointing results from nvidia. a list are sticking behind nvidia pinning hopes on new high-end chips scheduled to hit the market next week. investors are wondering whether we are on the verge of a new downturn for chipmakers as a goldrush spurred by sales to crypto miners ends. in san francisco, we have our semiconductor reporter and, in new york, we have our senior editor, michael egan. how much has this crazed fueled the rise in nvidia? >> you had something that was $280 billion quarter markets.

now it is nothing. how do you like that? that has gone away in the space of three quarters. that is taking tension away from their other businesses which are growing like weeds. emily: is there still potential for potential for cryptocurrency there? >> we've seen many companies come and go. you can mine these things, it becomes good enough so it is investing money to make custom chips, and he will do the same job. therefore, your standard chips become less efficient. for them, it is a technology cycle. we see a new currency coming in and maybe it will be a new boom for them.

emily: my chart showing the comparison of the chip sector to the broader tech sector. you see a big diversion's there. what has been fueling this? >> chip stocks are prone to this boom and bust cycle. if you look at the philadelphia semiconductor index, it was up more than 35% over the last -- each year in the past two years. this crypto revenue was sort of the bonus surprise revenue that companies like nvidia and others were enjoying, somewhat out of the blue out of the last year. i hate to say the exuberance of the crypto market last year seeped into these stocks, that there is a few other things going on that i would point out. the big story this week was that china was suspending the approval of some video games, which leads many to believe gamers will have less incentive to update their hardware. all that is not necessarily representative of the trade war, it makes you wonder about the

stocks in their exposure to trade tensions. much of tech is immune, but chip stocks have a lot of exposure to the trade tensions. emily: there has also been a lot of failed mergers. are we on the verge of a downturn? ian: one of the companies that reported yesterday was applied materials. they make the equipment that same and companies like that uses to make chips. because of how long it takes to build and set up a factory, they are a canary in the coal mine type stocks. they said we are not going to grow for the first time in 10 quarters which caused a lot of people a lot of concern. they also can back shouting, no, no. ai, all of these technologies will continue their boom and demand. emily: any rethinking coming in terms of earnings expectations

for the year? michael: for the full year, semiconductor stocks are looking great. a lot of that is priced in. they are looking at 52% earnings growth this year. that gets to the as good as it gets notion. for 2020, only 5.2%. it is peak growth for this year, for now at least. emily: all right, mike in new york and ian in san francisco here. thieves stole millions from an indian bank, but it was not an old-school heist. how atm's where their way in. that is next. this is bloomberg. ♪

♪ emily: this is "bloomberg technology," i am emily chang in san francisco. last week the fbi warned banks that their systems were possible targets of the wave of attacks from cyber criminals. the warning may have come to pass. the cooperative bank saw $13.5 million looted from its atm's in simultaneous withdrawals across countries. how did the criminals do it? to answer that, i want to bring in the senior vice president of cyber security strategy. and we have a guest who covers the banking sector and wrote a piece on this particular situation. it sounds like there was a lot of coordination here.

what can you tell us about the techniques used? >> the fbi warned banks of an imminent cyber threat. what happened is the criminals breached the bank systems as to take the limit off from the debit removal and then they removed unlimited amounts from the atm's. emily: ryan, there are techniques called jack potting, techniques called thrashing out. what are the techniques used here? >> they start with a simple fishing email. what they are looking to do is get the same access a bank employee has to remove limits and then enable themselves to set up an interconnected gang of people around the world that actually go physically to atm's and withdraw as much as they can. emily: so they have a web of people and 28 countries doing this simultaneously? >> you would have to to collect

funds. they also use a switch system that did not require physical presence at the atm. emily: talk about the fbi's warning to banks in particular. >> the fbi told banks to be on alert for the kind of attack where the cyber criminals were going to be breaching their system. for banks, this is always a concern. bank executives have said that cybersecurity keeps them up at night. beefing up cybersecurity is important to them day to day. further than that, the fbi warning prepares them further for any kind of imminent attack. emily: ryan, what about this attack in particular strikes you? it's a relatively new kind of attack and different from where we have seen hackers targeting more recently. ryan: it goes to show they have a spectacular level of access to the bank system and a good understanding of the process.

they were able to not only remove credit and debit cards, but transferred the swift and use that to get more money. we have only seen that from a narrow group of actors. emily: who have been doing what? >> it has been attributed to the lazarus group, which is presumably state-sponsored by north korea. there are private groups. cybersecurity has lots of those. they have been doing this for years and are reputed to have stolen over a billion dollars. emily: do you think the people behind this could be behind some of the crypto hacks we have seen? >> lazarus has been extremely interested in stealing crypto from individuals and exchanges. there is a tremendous amount of innovation happening on the cybercrime side. it comes back to how do i get

the most money in the shortest time. emily: what is the effect on consumers? >> there is no impact. there is zero liability for consumers in this kind of attack. they get the money back in their accounts if it's taken. on the bankside, they have insurance policies against cyber attacks. in their reserves, they have the money to account for loss from fraud. emily: how does the coming ubiquity of chip cards change the game? chip cards have been ubiquitous elsewhere for a long time, but here in the united states, it's only just becoming a reality. ryan: it really does change what the cyber criminals are going to target. you see breaches at target, most famously, and other retailers. it has become difficult to compromise people in that kind of way. they have pivoted to other kinds

of systems that would allow them to take money physically out of atm's, cryptocurrency, and the related wave of ransomware i think was inextricably linked up with it. you can use the same set of techniques for all three types of attacks. emily: what are the legal ramifications? i understand the trump administration has made it easier for the united states to launch cyber attacks on enemies be they in north korea or elsewhere. ryan: there is a debate around the notion of hacking back. if you identify a hacker, why can't you go out and his repair operations? that sounds good in theory but is tricky and practice. what the trump administration did in revising obama rules is take the lawyerly controls to organizations like the nsa which

has both the capability and the control to execute hacking back. we have talked about doing it in the private sector and so far cooler heads have prevailed. attacks that are financially motivated, you don't really achieve a lot when you hack back. there are other things the hackers have attacked that they used to stage the real targets. emily: do you think the united states is hacking back now? >> it depends on how you define it. there are definitely people who go to the dark web, see their credentials for sale, and try to disrupt operations. that's a little bit on the offensive end of the spectrum. what we are not seeing is somebody launching a denial of service attack against hackers or things along those lines. there is way too much potential for collateral damage. emily: how easy is it to

actually track these folks down and bring them to justice? isn't it pretty impossible? >> when it comes to the particular type of attack we have seen lately, the fbi and interpol have arrested at least three members of a gang in the last three months. they arrested the leader of a gang because he bought a luxury car and forgot to pay for it. he was living in spain. emily: what are banks doing right now to up their own security and try to prevent more of this from happening? >> they have been pretty tightlipped about what they do to beef up their own security, but they are taking action, they are monitoring for these types of things. they are aware of the threat and working with authorities to deal with it. emily: will we see more of this?

>> we absolutely will, but i think we will see it in smaller banks. banks are insured against these sorts of losses. there is a bank in the southeastern united states fighting against its insurer right now because they got attacked in a fairly simple way, email phishing twice in a row, and they had to pay out. they don't have the budget big banks have to spend on cybersecurity, and more importantly, don't have the teams are networks of individuals to fight those systems. we are going to see more of them. emily: thank you both. the washington post has settle disputes with its own newsroom over its social media policy. they came to a resolution over the disciplining of a reporter who criticized jeff bezos, according to sources familiar with the situation. reporters may now face discipline over social media posts that are judged as

defamatory of the paper. a reporter claimed the jeff bezos took a laissez-faire attitude toward the financial health of his employees and that income inequality was someone else's problem. coming up, fighting off competition from uber, instacart, and amazon. we will talk to the ceo of doordash. this is bloomberg. ♪ emily: food delivery company doordash has announced

emily: food delivery company doordash has announced investment from heavy hitters on the heels of a huge financing round in march led by softbank. can doordash keep up in what is becoming a very competitive industry? for more, we are joined by ceo tony hsu. i feel like you were just here talking about the financing round from softbank. you just got more dollars. what does this capital allow you to do? >> the capital was opportunistic

financing for us. we were not out on the fund-raising trail. we received multiple inbounds. the fundraising allows us to excel a rate our growth. we are the fastest growing player in the u.s., fastest west of the mississippi, and we want to keep capitalizing on that. we announced new products last week, a subscription program as well as pickup. we are extending our drive program as well. we announced a partnership with you about walmart in which we launched a pilot in one state. that pilot has now scaled to 300 stores in over 20 states. emily: it's a lot of responsibility. >> a lot of activity has been achieved even since march. we are ahead of all of the goals we outlined during the release.

we are ahead on geographies. we announced we would and the year in 1600 cities. we are actually going to be in 2000, 400 ahead of our target. we are adding more restaurants than ever before. we already partner with more of the top restaurants ban anybody else. we have announced partnerships with chipotle and the cheesecake factory. emily: uber just gave us a look at their financials. they are burning through cash. a lot of that is going to do burritos. how equipped do you feel to take on the competition? >> we have always focused on customers and merchants and dashers. we want to add more ways in which merchants can connect to

the consumers in their cities and more services to grow beyond four walls. it is very early days still in the industry. i know today we take for granted that there are all of these delivery companies, but today, outside of pizza, only 6% of non-pizza sales in the u.s. are delivered. there is a long runway ahead for the industry. emily: what do you think you have on uber? >> first and foremost, our

approach separates us. our approach on making sure operations are perfect so that customers get the highest quality experience, the lowest delivery cost and the fastest feet. emily: do you think there is going to be consolidation in the industry among smaller players? it's a really difficult business logistically and financially to justify. >> it is a difficult business. it is also a massive opportunity. i think that is why you see a lot of big players. at the same time, capital and initiatives are accruing to the winners in the space. that follow such object tree many other industries. emily: amazon is obviously another company with unbounded ambition. does that concern you? >> we invite anyone who wants to come into the space. i think this industry has never been delivery and the off-line world has largely been ignored by the tech industry. if you think about the biggest companies serving consumers, they are largely online even though off-line is 10 times bigger. it is not surprising to me to see so many different interests come in. for doordash, that has been our mission from day one and we are

excited to be doing that. emily: so, even if there is a lot of competition, what keeps you up at night? >> the people and whether or not we are providing the right opportunities for the people to do the best work. if we have the right people in the right positions, we are going to be just fine. there are so many opportunities that we want to build on in order to accelerate the transformation of every business in america and really make sure that the 60% of jobs produced on the streets every year stay in america. emily: do you have plans to go global? >> we are always looking at the broader market. right now, the focus is on the u.s. and canada. emily: coming up, google once

back into china. does that include censoring speech? that's next. this is bloomberg. ♪

emily: a little over two weeks ago news broke that google was working with the chinese government on a censored version of its platform. bloomberg has learned that employees were told plans are exploratory and in the early stages according to two people familiar with the meeting and according to a transcript of the meeting attained by bloomberg. he said our mission is to organize the world's information. china is 1/5 of the world's population. to do our mission well, we have to think about how to be in china.

sergei was one of two people who really made the decision in 2010 to pull out of china. they are not backing down. they are saying these explorations will continue. >> i thought it was telling that sergei was there. if he had not been, i think there would have been more backlash. there were complaints about censorship. he compared china to the totalitarian regime in russia. the fact that he is now standing up and supporting this is a really big change. emily: why the about-face? china is as big as it was in 2010. >> if not bigger. emily: it's always going to be big. >> i think a lot of people with hindsight would say it is a

strategic mistake to leave. china would have gone on doing what it wanted to do anyway. it has done that. maybe it would have been better to stay in the country and try to influence things from inside. certainly, from a financial perspective, they have a more pragmatic leader than the leaders before. from a financial perspective, it has been terrible. emily: obviously. a petition was signed by many employees saying they urgently need a seat at the table and more transparency. google needs to know what we are building. talk a little bit about the reaction to this meeting so far. someone at the meeting had to change the topic because of the response.

but that's no surprise. >> google is very open and google's relationship with its employers is special. they spend a lot of time trying to recruit the best people and give them a lot of power. now, it is in a situation where employees want more of a say. in an american corporation generally employees don't have a say. it gets very complicated in a company with 85,000 people. 1400 people get to say what the company wants to do. it's a difficult balancing act for google. to me, it's another example of a larry and sergei deuel. sundar is pretty pragmatic. i think he is going to push

ahead. emily: it certainly sounds like he is in charge. thank you very much. finally, amazon is developing a new device that records live tv, working around cable providers and encroaching on tivo's market. the living room hubs through the online video effort. amazon has not made a final decision on rolling out the streaming feature, noting the plan could be canceled or delayed. for more, i want to bring in the reporter who helped to break this story. mark, what can you tell us? >> tivo stock is down in reaction to this. this is pretty old-school technology but amazon is hoping to liven it up a bit. this would join a growing ecosystem of living room devices.

emily: how does this broad in amazon's larger strategy and fit into the bigger engine? >> amazon is looking for every way forward to taking over cable companies, competitors in the technology space. dish network, roku, swing box. this has just been a part of it. this is a step toward doing more of what the cable companies do. if you sign up for whoever, they are going to give you a dvr. now they are trying to push fired tv instead. if you want to stream to your fire tv box through other channels or apps, this will be the way to do it. emily: so far, how has fire tv added to the bottom line? >> that's a good question. they don't really discuss how many units they sell of particular devices. they do say fire tv is the most popular device they sell.

do with that what you will because they don't give much context or many numbers there. they are selling prime subscriptions and those include content you can stream on the fire tv box. from that perspective, it is essential to the company. emily: thank you so much, mark. that does it for this edition of bloomberg technology. from san francisco, i am emily chang. this is bloomberg. thank god it's friday. ♪ xfinity mobile is a new wireless network

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