♪ emily: i am emily chang. this is "bloomberg technology." coming up, is that the new era for tesla? the company picks an insider to replaced elon musk as chair. is she right for the job? thele's employees demanding company clean up its act when it comes to sexual harassment. now, google is reshaping how it handles complaints. will it be enough to keep workers happy?

is beefing up its see ite.t -- c-su but first, our top story. tesla appointing a new chair. the move marks an end to elon musk's 14 years in the seat, although he will remain ceo. she will take over immediately, leaving telstra. joining us now is our senior analyst and max. tell us everything we need to know. >> she is an interesting choice. musk and knows the company well. she has a financial background, which some would argue would be

good for tesla. experience in the car industry, having worked in toyota. i think some good governance people will not love this choice , but it does make sense and a bunch of different ways. said she was helpful and helping tesla become a profitable company. there is concerned she will not push back. she has been on the board for several years. what he needs is someone who will challenge him. what is your take? elon'shink as far behavior goes, he's the only one that has control. on paper, she looks like a solid pick comes cfo. it sounds like a permanent role.

this is not a temporary chairmanship role. we will see corporate governance in peru. one area i would like to see them in prove is on their guidance practices. hopefully that happens with her in place. emily: max, is it a permanent she hold this position just for the three years that elon musk has agreed that he won't be in that job? >> we have no way of knowing. the bottom line is that it is still elon musk's company. it would be hard for the most independent of chairpersons to completely get him in line, because sort of what makes tesla successful and him successful is the fact he is willing to break with the norms. so we don't know. if you were worried about him putting a close friend

on the board for somebody who has no shot of calling him out at times, then this is probably a good choice. it definitely could have been somebody much closer to him than this. and that sense, it is good news for investors. emily: i want to take a look at this chart showing tesla short interest. a quarter of shares have been borrowed. this is a pain point for m usk. do you think the short interest against tesla will continue? down,hink it has to come especially after this print where they generated substantial profit in the quarter. credit,ehavior, to his has been noticeably better sense they finished the sec investigation and he paid his fine. robyn, who comes from telstra --

i think it is a permanent job. why would you give up a role as cfo to be the chairwoman for tesla? this goes beyond three years, i think. to me, it feels like the company is on the right track and hopefully it continues. emily: what else are we watching? will bek has said it cash flow positive. it will not be easy. he talked about the workload, the pressure. is the pace they are producing cars sustainable without those feelings of constant pressure and stress and strain on not just him, but the people who work at the company? >> it seems like things are improving. if you look at the numbers, they are not quite as high as tesla

had wanted them to be, but it does feel like they have reached some kind of sustainable pays for manufacturing cars. the cost-cutting measures seem to have worked. the thing we don't know is what does demand look like in the the run, and also what does cost picture really look like long-term? they seem to be pulling out all the stops to generate demand, but also in terms of cutting unnecessary expenses. the thing about a company like tesla is it is not just selling this model three, it wants to develop a pipeline of cars, including a small suv come a so at some point it needs to start spending money and borrowing money. the goal is to put it in the best cash position so that if it has to borrow money that it will get preferable terms. emily: what is your estimation of the longer-term demand and

longer-term cost picture? >> i think the sky is the limit for the company. atay, they are run rating 350,000 cars. the market opportunity is for one million units. small fraction of a 10 million-unit luxury car market. they have taken a tremendous amount of market share from car companies this year, model three. the share gains in model three so far are near what they have been able to do with their premium sedan, the model s. for a company that has done so well, they will just start selling their model three in europe and china. all that is in front. i think there is a tremendous amount of room for the company to grow.

the question has always been around management. their ability to do better than what they say and limit the volatility of the stock. it has been a tumultuous couple of quarters. , things haveonth improved on all fronts, so i am optimistic. emily: there is competition. automakers are making alternatives to what tesla is offering. he recently said he thinks tesla will always be ahead in self driving because it is a software problem and not a hardware problem. do you agree that tesla will always be ahead, or do they have to think about the competition? >> i think people take competition, they make a bigger deal of that than they should. look at apple. apple has had so much success

with the iphone. apple is not the market share leader in smartphones. samsung is, but apple has been able to generate tremendous value for shareholders by providing the best smart phone on the market. to 2 millionscale to 3 million electric vehicles per year, they probably won't be the market share leader in the long run, but i am pretty sure that the stock in the value of the company will be significantly higher if they can get to that. what is important is what kind of profit can they generate for every vehicle sold. what we saw this last quarter is the margin potential for the theany, the margins for company were a lot better than people realize. if they can scale further, it is likely the margins, profits, and cash flow will only get better. emily: the question is can they

scale. a lot of cars. nomura.or analyst at max, you are sticking with me. google makes a change after thousands of and poised demand the company fixed its sexual harassment policy. google responds. will it be enough. that is next. and ins out on the radio the u.s. on serious xm. this is bloomberg. ♪

emily: last week, google employees walked out on the job, protesting the handling of sexual misconduct, including massive payouts to executives

accused of harassment. reports that google paid one executive $90 million to walk away quietly after credible accusations he forced a subordinate to perform a sexual act. the ceo pledge to make changes, saying arbitration is optional. he fouled more clarity, writing "going forward we will provide more transparency on how we handle concerns, give more support and care to the people who raise them, and double down on our commitment to be a representative, equitable, and respective workplace." joining me now is our guests. issue of arbitration has been a big sticking point for the industry. has written to the supreme court to get these arbitration clauses removed. ist does it mean google giving employees the option to

have these cases essentially dealt with in public rather than forcing them into private? >> it will get a lot of these things out into the spotlight, which big corporations don't like. it will increase the risks for the company. arbitration clauses are about large companies reducing risks because they can control the outcome better. if you take the company to court and file a lawsuit, it gets out of control quickly. it is a big move by google. google is a leader in silicon valley when it comes to these things, so it is a big step. emily: it is something uber and lyft have done. the google employees have a long list of demands. is this going to be enough to quell the discontent and anger about how google has handled these cases over the years? >> this is a good start. having the ability to take a company to court gives employees

with grievances a huge amount of leverage. there are other types of cases that i think are still going to be covered by the arbitration. it is not like they are saying you can take google to court if you feel you have been discriminated against racially, for instance. so there is that. the other thing is the culture of the company. examples oflot of senior executives dating subordinates, people who still work at the company, and i think this overall cultural question still needs to be resolved, and probably won't be resolved soon. emily: right, google says it has rules around that. you are supposed to report any relationships to senior executives. it is really about a broader culture that has enabled this for so long. can that change? you are supposed>> one of the ts

google announced today seems quite small, but i think it is very important. they will have to discourage a lot of alcohol intake. google'sly goes to culture appeared there is no excuse for sexual harassment at all, but they are making this step because a lot of people work at google spend a lot of their time there, do a lot of their socializing their, and back when it was a freewheeling start up, the company turned a blind eye to a lot of this stuff. that to me was a good example of how google is trying to change some things culturally for sure. emily: the footage of this ,alked out really stunning happening around the world. i want to talk about google and real estate in new york, max. the company is nearing a deal to

lie or lease 1.3 million square feet of office space in new york to make room for an additional 8000 employees. they will expand their chelsea market location, which means google could have 20,000 employees in new york. amazon has gotten all this fanfare at of opening potentially a headquarters in long island city. that would have enough room for 25,000 employees in the but google would be almost as big essentially. >> there has been all this fanfare about subsidies for amazon and tax incentives. it doesn't appear google, which is employing a similar number of people as amazon in new york, is getting any huge break for this, although i guess it is possible. it shows the extent to which google is a media company.

so much of what they do now is around ad sales and content moderation. i think it is a sign of that as much as anything. emily: what do we know about what kind of employees these new spaces will house. ? is it media efforts, advertising? >> back in the day they hired a lot of talented software engineers. they had a famous recruiting program. they put up code on a whiteboard and you would have to decipher it. horizonshave broadened and are looking for different talent. a lot of it will be people coming out of his the school, mbas, who might go to goldman sachs or another big bank. looking toe hire those people in new york for sure. emily: amazon will not have all these engineers and college

graduates to itself. they are competing with google and all companies in new york. who is likely to win out? who has the brand cachet in that competition? >> the story around sexual harassment -- we haven't talked about china, the controversies over google's work for the defense department, but this is a company that for the first time, i think, in it's not super long life facing serious brand issues. that includes those scandals. ach of this has taken on political component where you have conservatives complaining that there is implicit bias. there has been backlash over its tactics in terms of getting subsidies, but this company's brand cachet is pretty good now. people trust amazon. it has avoided so far many of google, facebook,

and other big tech companies have run into lately. emily: we will be watching. thank you both for weighing in. rang up someuare impressive revenue in its third quarter, so why did wall street react unfavorably? bloomberg tech's livestreaming on twitter. check us out. follow twitter and tictoc. this is bloomberg. ♪

emily: square released third-quarter numbers. it looks pretty good from a revenue standpoint with a 60% jump to $431 million. the payment processor is expecting profits falling short of estimates. as a result, the stock took a

beating early thursday, dropping by 9% at one point. to tell us what is behind this numbers is selina wang. what happened? >> they beat expectations except for this fourth-quarter guidance for earnings. that shows earnings were good, but not good enough. the stock does have a premium valuation. it has increased more than 100% despite the tech selloff this year. the growth this quarter does not live up to expectations. there is concern the core business may be slowing and operating expenses are rising too much as they expand into other product lines. emily: how much does this have to do with sarah frier's departure. she was very well respected. >> absolutely. there has been a negative response to her departure. we saw the stock declined more than 10%. wall street credited her as

being more than a normal cfo. they saw her taking a lot of leadership responsibilities and a source of growth, while the ceo is running twitter and square. , the she has joined company has expanded into several business lines. have beat expectations almost every quarter. she has done a good job of guiding expectations and serving as a marketing tool as well. emily: jack dorsey is running twitter and square. there are questions about whether he can continue to do that. i have this chart here in my library that shows both the stocks have been up and to the right. twitter has fallen. there are concerns about social media and this information. they have been doing that account purge. would have ago, who thought that squares market cap would be bigger than twitter. jack is interesting to see dorsey come into himself and be

respected as a ceo. overall am a twitter is a more volatile business. it is social media that relies on an ad business. stability had more because they've been able to hire this executive bench that has done a good job of being autonomous. when i speak to sources inside the company, they say it is a huge loss in the but they do have someone running square capital, square cash, the core business, caviar, the food delivery business. even without a cdo in the interim they are able to run at a rapid clip. emily: you don't see the executive turnover at square that we have seen forever at twitter. what is the progress on finding a new cfo? >> the search is on. they are optimistic about who they can find. they have high profile people leading the search. ar thinks it is the

best cfo job in the world. square is a high profile company. it may not be the hardest cfo job given that it is executing on all cylinders and so it won't be difficult to find a lot of eager candidates. emily: thank you so much. lime taps its first coo. we will catch up, next. plus, technology is constantly changing the nature of jobs and creating new ones. those who don't understand that will be left behind. an educational toy company wants to help. this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

♪ emily: this is "bloombert technology." i am emily chang in san francisco the riyadh elon musk is moving over as chairman of the company and appointing a new one there we had elon musk is no stranger to controversy or making bold request of his companies or his staff. , seekingatest gambit flexible terms on a loan for spacex was too much for his closest ally on wall street, goldman sachs. joining us to discuss what happened is our reporter, recently.

theur reporter, lisa and lee. what happened? lisa: absolutely a surprise, given the long relationship elon musk has had with goldman, and one bank was leading a deal and then he switched over to another bank. emily: what does this mean? lisa: what happened was there was a term that mosque was seeking for the $500 million loan, they wanted a lot of flexibility, what they could add on to the future without lender concerns. and goldman eventually balked and gave that opening from that for america to snatch the deal away. emily: how well has elon musk raised money, is is his only option for spacex? >> there could be bonds they could do, but it is definitely a market that is more privately

held and if you want to keep your financials closer to you, the loan market is a gateway to do it. emily: is their excitement about it? >> it is not the kind of loan out,investors use to look there is definitely investment about spacex. they show that there are actually earnings. at theyou look contracts, it appears that there is negative cash flow. but the pricing is pretty rich, so there's a lot of interest. emily: thank you, lisa. i know you will continue to follow and tell us what happened. earlier this week. , this company announced it would name its first chief operating officer. thes was pivotal to funding round this year. he will technically continue to be a partner at gv.

cfo the us now, new reality will not continue to make investments at the company, though? >> absolutely not. enough to be 100% committed. emily: you say that the lime is not just about scooters but about changes the broader transportation landscape to react what do you mean? >> i think what we are witnessing as a society is the great unbundling of the car. for 100 years, the model for all cities has been -- you own a car and you do everything with it. short trips come along trips, trips to the grocery store, the mountain, everything. but the rise of mobile phones and ridesharing company's really demonstrated that you can get a vehicle at the click of a button in a momentsdemonstrated that ya notice. what i would think we are witnessing is the unbundling of the car. you will be a little get the

right vehicle at the right time at the click of a button. these trips of roughly three miles or less are a key component. emily: what does it mean for lime? what is the vision for how they fit in, given the competition? joe: what is very clear right now is that there is a huge interest in this micro ability segment with these scooters being a big part of that the in its short history, the company has done 20. million trips, operating at 125 markets globally. we are adding five markets a week. people are riding scooters until they are in the ground. the reason is that basically, it gets you where you want to go much faster in a short parent of time, in a short range -- a short period of time. and they combine it with other components. they will ride the scooter into the train station, take the train to the city, then reversed that when heading home.

emily: do you see lime expanding beyond scooters? joe: i think there is definitely big division which is ultimately getting the right electric vehicle for the right trip at the right time. we are starting with this three miles or less with the bikes and e scooters, primarily, the vehicle types. that is a whol in the market todayhole -- there is a hole in the market today. emily: what about for residents who don't like the clutter, people who say they don't look good? definitely see people doing things on instagram that they should not be doing on an e scooter or e-bike. it in just nine months, going to 20 million rides, there is incredible appetite for this vehicle type. we will figure out how to roll it out effectively, with consumers, how to have habits of where you ride it on the street,

how you separate traffic from scooters to increase safety. there is a huge amount we are figuring it out, but the thing that is exceptionally clear is that people love these devices. i have never come in 25 years of being in the technology business seen anything grow faster than this company. emily: you hear people who are very skeptical, saying that this will not be the next uber? joe: i started my first company in the internet in a 1993, a engine. and remember the stories when amazon started and people were using credit cards online for the first time. there were complaints about -- your credit cards will get stolen, you will have to menace amount of fraud. that, bute is some of not everybody assumes you can use your credit card online. the same mistral right now. a lot of concern about how -- there is -- the same is true

right now. a lot of concern, but i think people adore this type of transit. we will figure out how to keep traffic separated and to keep them successful. emily: one criticism is that they are not great for women. there is number to hang your purse. our women driving these things as well? joe: i don't know what the demographics are, but we are in whatmeframe of finding out the fun factor is. you can criticize them all you want, but people come off riding with a smile to react we are in a period of discovery. should there be a handle for a purse? how do you make sure it should have a suspension or not? i think in this period of discovery, we are working rapidly to figure out these things. emily: the focus is good, it is not too big. how do you respond to that? adage ofoogle has this

70-20-10. 70 percent of time goes to their work, 20% to their businesses and 10% goes to my shots. that is basically how lime is allocating its time and treasure. breathtakingous, ambition of what we can do as a company in terms of providing the right electric vehicle, but there are really following that 70-20-10 allocation. 70% to the core business, 20% to the next edgy since he of other factors and 10% into the moonshot. emily: >> was doing self-driving, uber started doing it, google started doing a carpal service, there were other ways that this happened. there was even the lawsuit with the waymo are weird how can we be sure it will not get awkward like that given the relationship?

joe: my view is that uber was a set of national circumstances. investments google has come at a has only been one conflict, and that happen to be in the highest profile investment would have made. so i think the data would indicate that this is extremely unlikely. emily: we have been covering the google walkout, and google is now making changes to its sexual harassment policy. i know your company is different but it is still in the mothership. what is your message to your employees? joe: the message is consistent, which is essentially become universal respect and basic human decency, and a zero tolerance policy, that has been gv and continuously enforced. emily: do you think the changes will be enough to quell discontent and possibly anger out there? joe: i don't know, but i know

you cannot stop trying to improve things even if -- i don't know that anyone thing is fulfillment but in of time with consistent effort, that is the way changes are made. emily: so you are leaving a cushy job at -- a stable job at gv, to go and be an operator at an exploding unicorn. why? joe: in 25 years of being in the tech business, i have never seen anything grow like this, in terms of revenue, immediate global scale and impact. it is incredibly exciting. the old venture was that when he went into venture after being an operator -- i was an operator for 15 years, you hang up your cleats and you never get back in the field. but if i look at reid hoffman at as i look at key for a boy at open-door -- the model

is to be more fluid between those two things, i think it makes you better. truthfully, it is also back to the future. this is what adventure did in the 70's and 80's. emily: do you worry about fake winter slowdown? as things like the scooters could be seasonal? joe: the business is so new, so they have more history on the bikes side. but of course, in the northern hemisphere, there will be some inclement weather. product the reason he want to offer multiple vehicle times is to make up for some of that. and that everything is so that you can have offsetting revenue in trips per day in the southern hemisphere. remember, the vehicle is removable. we can take fleets from the northeast and move them to the latin america. -- is

doly: it sounds intensive to a love that transport the there was just a recall on some of the comes toand when it safety, how do you make sure you keep all this up and be profitable, when a ride is only a couple of dollars? joe: there is no denying that it anin the -- it is operationally complicated business, but that is both a challenge and an opportunity. when you have an operationally complicated business, how to operate it effectively becomes a long-term area to entry. they are not easy businesses to run on a global scale. we design and manufacture all of our own vehicles. in addition, we transport them, then we operate those fleets inside of an individual market. there is no denying that it is complicated, but when you can do that effectively, it can give you a real edge, in terms of making it profitable.

,mily: thank you, joe kraus incoming coo at line. coming up, studies show that girls start losing interest in the s.t.e.m. as early as eight years old. how an education startup is using toys to change that are ofrd and come at the bribery ridesharing heats up in asia. we talked of one company. this is bloomberg. ♪

♪ emily: thursday is national is to inspireit kids to pursue their interests in the field. relatedn 2 million stem jobs remain unfilled and

millions more are expected to open up in the coming years. companies like this one are hoping to do that by making toys. of magnetica series bits that can snap together to make robots or even instruments. the have developed nine different kids, partnered with disney, and now works with 20,000 schools across the country. here to tell us more is the founder and ceo. thank you so much for joining us. what turnss as to you see in how girls and boys respond to these kits. very see kids being interested in s.t.e.m. when they are younger, in early in elementary school. then slowly the start losing interest between the ages of 8-12. at a time they reach high school, more than 70% of them are not interested in stem fields. what we're trying to do is capture them at that moment when the interest hi as high.

emily: you say that girls start to lose interest after the age of eight or so, why is that? ayah: combination of social factors, the media showing girls as more interested in being beautiful, social, girly, as they call it, and we see a lot of parents and teachers sometimes not supporting girls wanting to go into s.t.e.m. fields, it is a combination of all those things. as well as not having enough role models, enough women in leadership positions, women who are engineers or programmers, women leading fields in science, it makes it less attractive for young girls to follow these careers. emily: what can parents and teachers do at the early age to thesencourage interest in

kits and in s.t.e.m. in general? ayah: we have to make s.t.e.m. fans funds. what we try to do is that we inject s.t.e.m. in invention, in creation, in them expressing their interests. without them, would you look to make a alarm, or the largest doorbell? when they do that, they start to learn more about technology. we also have an online community .org, where kids are creating projects and a big comment on each other's projects, so we is where kids to inspire each other and support their interests. so it is a combination of making it more fun, social and community activities, and also empowering parents and teachers to join as well. emily: you partnered with disney

and raised a lot of money. big do you think the business can be and where do you plan to expand? ayah: we are a technology company but we're also in education and we also dip into the educational toys, so we have a comfortable combination into a three very large fields. we are seeing stem -- we're seeing interest in s.t.e.m. educational products expand. there is a lot of focus in schools integrating s.t.e.m. -- programming, coding into classrooms. there is legislation that has been approved to support that in the last couple of years and we are starting to see it in formal settings and also in informal settings such as afterschool programs, maker spaces, libraries. that is why our investors are in this, where there are very aggressive about it and we are as well, and we are really space. to be in the

emily: good to hear more about the work you are doing. littlebits founder and ceo, thank you so much for stopping by. still ahead, and indonesian ridesharing company is hoping to raise more capital this year. where it is looking to expand next. this is bloomberg. ♪

♪ emily: southeast asia is gearing up to be the next battlefield for the ride-hailing dominance. this company has now built a portal for singapore drivers to register. thatcoming anbang reports the company is in talks to raise $2 billion of funding to grow expansion overseas. the ceo was of the bloomberg's economic forum in singapore to discuss. >> fundraising is a continuous project. that on thatyou

front, i believe we are in a very favorable position in many ofs, not just the quantity the fundraising, but even more informally, the quality of fundraising. as you can see from our shareholders, you have google, tencent, gv and a variety of other heavy hitter financial institutions, you really see the world's best at all the key vertical steps we are to execute on to create the first in the world super app that encompasses all of your daily transactional needs. so the quality of the fundraising, i think it will really set us apart from anything else. our friends -- our friends will be used for international expansion, we are already 35% of the two wheeler market in vietnam already, which was a

shock, to see it happen so quickly. a lot of it will also need to be used for expanding in vertical and further increasing the penetration of our services in indonesia, which is the largest market where we are the market leader. i think that despite the very intense competition, the saturation point of the consumers versus say china, is still very small. tore is still so much more grow across transport, food, payments, logistics, digital payments, logistics, digital goods, so i think we're just raping the surface. the mission is really -- we are just scraping the surface. to serveon is really the middle class part of southeast asia and funding will facilitate that. >> met you need to billion dollars? close, more, less? >> i cannot comment on that.

>> when do you expect the funding round to be completed? >> i also cannot comment on that , all i can say is that it will be a sufficient amount in order for us to achieve our short-term and medium-term objectives. go-jek ceo was the there with our haslinda amin. salesforce co-ceo, marc benioff was the number one backer of the tax tax, thathomeless taxed some of the city's biggest corporations to provide funding for housing. he says a complete an important role in making change. >> there are two ways to make a difference. one is that business is business is business. the second way to look at it is that it is improving the state of the world. you haves world, when

the crisis we have come and whether it is homelessness or the issues with our public schools and public hospitals, business can be a huge place. companies likech square and a stripe of those attacks, saying that it will tax them unfairly. that is it for this edition of ""bloomberg technology." ttune in tomorrow for our interview with symantec ceo after those quarterly reports. this is bloomberg. ♪

i'm all about my bed. this mattress is dangerously comfortable. when i get in i literally say, ahh. meet the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online. we'll build it, box it and ship it to your door for you to enjoy. sleep on it to up to 100 nights and love it or you get a full refund. returns are free and easy. i love my leesa. today is gonna be great. read our reviews, then try the leesa mattress in your own home. order during our fall mattress sale and save. for a limited time get

150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need ♪ good morning, i am paul allen in sydney, where australian markets just open for trade. >> from bloomberg's headquarters in new york, i am shery and. sophie: and i am sophie kamaruddin in hong kong. or come to "daybreak asia." ♪ -- welcome to daybreak asia. paul: here's a look at our top stories this friday, a mixed start for the asia-pacific after declines on wall street. tech and energy lead in the s&p 500 do