-- if you read between the lines, he said when he tweeted that funding was secured, but if you look at his statement and the reports that came out, it wasn't there. that aside, this deal didn't make a whole lot of sense to make -- to begin with. tesla has done well on the market and the fact that this would be less of a distraction for the company didn't make sense because this created kind of a circus for two weeks. have potentially multiple sec inquiries here, issues around potential sec, market manipulation is this something investors and analysts can easily forget former -- forget, or is tesla going to be plagued by uncertainty for the foreseeable future? --there will be futures issues surrounding musk and their tweets.

i believe he will be fined. i believe he will be able to keep his ceo role, but this was just an issue of bad governance and was motivated by elon's production issues and analysts and journalists and short-sellers. >> what our broader investors and analysts, what is the community saying? do they still want elon musk in this job? >> absolutely. even critics would be cautious about tossing him out because the fact is, the company over thedo so much next couple of years to justify its evaluation -- valuation and even in ways elon musk has failed to live up to expectation, it is not to -- easy to see how you bring in

regular car executive and do a whole lot better. the fact a lot of these investors see it as a bet on him, not on tesla or even on electric cars. it is this weird box they have in in for the last year. -- been in for the last year. >> has elon musk undermined the trust investors will have in him? multiple untruths here. not only the funding was not concerned, but he didn't spend two hours in spain, but five days from the factory floor. bute could've easily been, there is this pattern of lying, essentially. >> he has never met his production goals and the market and investors forgive him that. you have to look beyond some of these short-term issues and unfortunate issues, and look to the bigger picture of what the company must do over the next

few years to increase production. we are at the models in the pipeline to justify the valuationl >> -- valuation. >> talk about the potential penalties of these sec inquiries. we have talked about criminal , he could agree to certain controls on his communications. would that mean he can't use twitter? max: a lot of tesla investors would hope that. if you long wanted to squeeze the shorts, he would have been better on stopping tweeting. announcing a three-month hiatus from tweeting, which -- one thing that happened here is we saw basically a crack in the support for elon musk, both at the board level and on the investor level. it is not as if people want to dump him overboard or rein him in, but this combined with some other stuff could start to lead

to some significant changes and those could be disappointing results in the bottom line or production numbers, or something more dramatic from the sec than just a fine. ivan, meantime, bloomberg's model three track that tesla could actually have exceeded 6000 model threes a week this month. presumably, good news if they can keep it up but what are you actually monitoring on the fact there are -- factory floor. you don't want to increase production to month -- too much and have issues with the bigger cars. in terms of what is happening, there is an -- a need for increased governance and this whole event may make tesla a better company.

>> and the this found some pretty significant quality issues when looking under the hood of the model three. you know? gaps in the car that were quite unusual, does that concern you? >> well, any issues in production is always concerning. ut i will tell you that the quality of the car they produce is incredible. and they have not only created a ew production process but invented things like a new way they fuse minium and it. and a lot of are is heses tweeted are unique to the company. the fit and innish of the car i have seen and cars very seen and incredible.

i would be surprised to there issues but sh times there is. that and is are is hessing to move to one hup% quality control level by eliminating variables so there is always an p ongoing improvement process. i would be surprised there were significant issues. the amount of control musk has has tesla. >> i think he would have to forward or the a there would have to be, like i lagsadditional sort of red what could cause his friends, members are his try to reign him in. if he were able to have less involvement that is something he like.

i'm hot sure how they would make that work and given the way the board is structured it's hard to without his g it consent. >> mroomberg business week, we're going to continue to talk about this later in the show. and later in the week, i'm sure, thank you. well, warren buffett is is investment in t is set n start up, and of 197 re 4% communications valued at $10 million. bloomberg's ote, david westin will sit down with buffet on thursday at 8:30 a.m. pacific. you don't want to miss it. coming up, amazon take over of whole foods this year has been

slow and steady. now, how the partnership is mpacting other gro impacting other grocery stores nationwide. we'll discuss, next. and apple is trickling down ions hone 10 what next vers will look like. we've got the sc. we've got the scoop. this is bloomberg. we've got the. this is bloomberg.

>> in just a year, amazon

was ets whole food shopper deals traditional grocers are impact. feel an and what did this study find? studies.are two first by a company called tab er lytics says the numb this year up 1% interest last year. they said whole foods gained 3.5% of shoppers also going to rader joe's when trader joe's and whole foods were in a mile of each other. tell us a lot. and the stores are full and picked over. maybe more challenges inventory management but amazon seems to be having success. >> let me tell you trader joe's stores are very full. what has amazon added to whole foods? we talk about devices.

>> the visible stuff is important, right? they've added lockers and i've never seen anyone open those lockers. it's sort of device. so when you go check out the is arehing they ask you, you a prime member? there is some discounts to get 5% back had you use a credit card and 25% on items but they've turned it into an amazon advertisement. of mind and top 20 years of , history they increase their fines. >> they're adding in store pick up in locations and you know, delivery. >> yes.20 years of whole foodsactful

deliveries have been part of prime now. the a convenience but upermarket is reacting after another. amazon islity is that a small, little player with walmart is big. kroeger is huge. you know? what they're trying to think. >> how do you expect? when they made this, you had years to ing to take play out. are the chances. >> they have to open many stores thanked is a busy process.

these amazon go stores there is ing to open go another one. one day i see that being a of whole foods. are the things amazon will do. they're working on integrating into the point of sale and etting people excited about discounts. i mean, certain businesses like awf have become successes. and look it gives them these

ts and physical footprints to do pharmacy which hey're interested in doing to expanding possibilities of the devices. showrooms for a and physical stores is important for that. and and is amazon changing. >> this is -- do you think it can evolve? >> amazon used to be books right? now, it's a million different things.

so. >> coming up, does social media play a part in ethnic cleansing of a muslim minority? and be sure to follow our global breaking news network this, is bloomberg. bloomberg.

face book is taking action in nst military leaders myanmar. at the same time, television for 10,000 acting with againo sidal intent. and this has opinion going on for years. why now? >> the fact the un has come out folks gives se

find of math so . s how facebook was used to incite violence in this case. this muslim about minority has been spreading giving people the sense they're shouldn't ng and facebook those regions like without considering that

nd. d need to understa preplan add of tacks. > without thinking about the largeuence of having this scale social media platform there. created a policy and this all trial and error process are creating a policy on pad things that

happened in the past. this sbt just happening in myanmar. talk about what's happening in well. ilippines as harder. is almost you know there have been livenlgings and a lot of pals information spread that has to be violent. we don't know what face book could do. there is no content reporting mechanism the way there is on r rvices they can see on thei end. >> what has facebook said about

india?n working with their local people who are subject matter experts on the ground and trying out what they can do. ing to be difficult to . still confidence government ee the hich facebook has trained that is spreading the lies causing to have complicated

ries they and the count have a team that speaks the to deal and culture with it. if you look at content policies a lot of, if you read rules a lot of them to are centric rules. nd you know, $2 billion people use this product and new things all the to come out time. >> thank you and i know that is something we'll continue to follow. new ming up, apple's familiar e likely a

design. this is bloomberg.

is oining us now to discuss ing all things er apple. mark? what can you tell us? connect 1200 have that somethin

attention to as well. colors. to us about told that they've and on having trouble cheaper models we're likely to see three main colors of gray, a blue color as well. >> what kind of growth are you for?ng

>> empa sis is on stability and visibility. shifts it's been there one easyto ay to see to investors are comfortable. stock has opinion moving up this anticipation here and is it usually selling off, i think that is a sign investors are low kind of 5% s

5%. does growth come perfect? we here is another piece so should see higher than we've just talked about so you can 0% to 5% and to another s-factor and we think they're at g to be returning cash twice the pace. factor and her x ought nom me.bout

there reason for optimism. >> what else are you expecting n september? ipads coming in graphics card and last year.perfect >> i want to you stick around. i do have to ask you about tesla musk's u-turn moment. e know there are multiple on.eries going

tesla n't believe in stores. nd understand this is a very there will be relief and 5,000 the end of krun quarter. and i think to we're iffing to percentage on it and that

itself esn't just fix with a if september report. investors tome for and measured as ceo. >> this situation show's musk's humanity? r flaws? and media or and had in fact a lot told a lot of untruths and sec may find he's engaged in market manipulation channelling. and t's talk about the talking to people working we've been him and

reassured they never hope it can person to work with. day that isf the and we're focused on something ique person. and and will be with the company in the future. >> all very easy reporting shows

that he. >> that is untruth. >> yes. untruth. that is an that were referred rd and referenced by boa members and talks about that that is unique. re that he e he doesn't tell the truth kind of me.a longer period of ti i don't think that that is true. we'll see how that plays out recent turn of events. >> do you think there knees to be additional governorernance that ares pilt in here

realistic? >> he needs help. t felt like yet another before and i think there is a place for highly is probably unlikely. they need a stronger board willing to say you be the visionary and stay off of twitter.

will advance his reign. ou.thank y and self driving technology. and battle to stop a red tide known as very stubborn al fee killing wildlife along florida's southwest coast nearly a year. wer.echs could be the ans we'll discuss. this is bloomberg.

>> is found to making big bets

is a a $6 e there million market. and boy is that a big market to after? turn a when will they profit? well, affording to a new theory, the profit could come with help technology.riving the hopes it will be the missing link to riding that the black. work?ill it brings capital to one and a half

dollars. ask continuing to pour money into this the right call? is a they did $12 drawing almost 50% year ust like we've seen that trade of off between growth tability is the right

pointto do so human drive there is a long all opportunity an we're confident about hum drived whoel being sustainable to stand alone. so he believes self driving cars aren't going to be realistic for two, maybe three decades. what do you think? are would million drivers

so i think today and take a long time. where do you see putting sth. to work >> so thank you for hengsing our new fund. from looking hat e more inesses to b

successful. hat china consumer opportunity is going to be xtraordinary over the next 10 iffing to a team is dominate so in erms of missed focus with we continue to on clouds and have had rots of category.into that and vertical market andth care id, too. you think what happens is

have lot value would ufed this unlick market investors and are the ace book to today it's like money.imes your heens this is a a.o.l. f opportunity rashlger today been.it has buyo tech up could combat al dpee invading there mra's gulf coast? this, is is er next mroomberg. mroomberg.

green al fee is forcing people out of their homes so his is often referred to as al fee but that is not the precise name. ou to it get so bad? >> aawe have 500 places where there are dead zones that al fee local and kills off

wildlife. something what is harl or hundreds of years. and you have questions on s a seasonange this, i that never had a lot of rhyme or reason to it. it seems to be intensifying more pekt.what you'd ur solution?o >> i have to the a vision we can sustainable we've

created a pro biotic. so how ground breaking could be this? >> there are production problem you'll culture and what like greater s productivity p you're the water it's not about whether or not you use 20% more fertilizer. the fact is that you're using 20% more fertilizer. es ed to deal with he's issu of just accumulated industrial agriculture use, you do need to i'ms hi out of the box as ways of fining solutions. people are looking for product activity feign that's can happen

and what you see m terms of uses or nie traits i had think anyone yogurt lot of understands that principle there. presumely your impact beyond florida. > it actually can begin to get us into a case where deal with climate change. fertilizer about 1% .urns into nitrus oxide that is more potent. able has imact of being to hak a hillin cars off the road. on know people in florida very upset about

this. that st it for this edition of bloomberg technology. tune in tomorrow. this is bloomberg. xfinity mobile is a new wireless network

designed to save you money. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you get xfinity mobile included with your xfinity internet. so you just pay for data -- by the gig or unlimited. saving you hundreds of dollars a year. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today.

greg this is bloomberg daybreak middle east. our top stories this morning. now is not the time to talk, a china, from trump to suggesting further slowdown in the economy this month. arabia insists it's still open to an ipo. manus: apple going all out, three new iphones on the way.