♪ emily: i am emily chang. this is "bloomberg technology." coming up, is it a new era for tesla? the company picks an insider to replace elon musk as chair. is she right for the job? google's employees demanding the 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?

and, lime is beefing up its c-suite. 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. she has a relationship with elon musk and knows the company well. she has a financial background, which some would argue would be good for tesla.

and, she has 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 in a bunch of different ways. emily: elon said she was helpful in helping tesla become a profitable company. there is concern 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? >> i think as far as elon's behavior goes, he's the only one that has control. on paper, she looks like a solid pick as a cfo. it sounds like a permanent role. this is not a temporary chairmanship role.

i think we will see corporate governance improve. one area i would like to see them improve is on their guidance practices. hopefully that happens with her in place. emily: max, is it a permanent role, or will 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.

in terms of 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 musk. do you think the short interest against tesla will continue? >> i think it has to come down, especially after this print where they generated substantial profit in the quarter. elon's behavior, to his credit, 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? elon musk has said it will be 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 long run, and also what does the 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. today, they are run rating at 350,000 cars. the market opportunity is for one million units. tesla is just a 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. in the last month, things have 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. if tesla can scale to 2 million 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 company, the margins for the 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. max, you are sticking with me. coming up, google makes a change after thousands demand the company fix its sexual harassment policy. google responds. will it be enough? that is next. check us out on the radio and in the u.s. on sirius 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 pledged to make changes, saying arbitration is optional. he offered 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. this issue of arbitration has been a big sticking point for the industry. susan fowler has written to the supreme court to get these arbitration clauses removed. what does it mean google is 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. there are a lot of examples 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? >> one of the telling changes google announced today seems quite small, but i think it is

very important. they will have to discourage a lot of alcohol intake. that really goes to google's 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 walked 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 buy 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. now they have broadened horizons 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. they will be looking to 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. much of this has taken on a political component where you have conservatives complaining that there is implicit bias. at amazon, 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 the potholes google, facebook, and other big tech companies

have run into lately. emily: we will be watching. thank you both for weighing in. coming up, square rang up some impressive revenue in its third quarter, so why did wall street react unfavorably? bloomberg tech is livestreaming on twitter. check us out. follow tictoc on twitter 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 expects 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 these 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. this is showing 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 friar'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. since she has joined, the company has expanded into several business lines. they 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 disinformation. they have been doing that account purge. a few years ago, who would have thought that squares market cap would be bigger than twitter. >> it is interesting to see jack dorsey come into himself and be respected as a ceo. overall twitter is a more volatile business.

it is social media that relies on an ad business. square has had more stability 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 ceo 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.

sarah friar 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. coming up, 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. one educational toy company wants to help. this is bloomberg. ♪ ♪

emily: this is "bloomberg technology." i am emily chang in san francisco -- 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. but his latest gambit, seeking flexible terms on a loan for spacex was too much for his closest ally on wall street, goldman sachs. joining us to discuss is our reporter, lisa 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. 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 musk 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 . 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 that investors use to look out, there is definitely investment about spacex. they show that there are actually earnings. but if you look at the 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. pivotal to the company's funding round this year. he will technically continue to be a partner at gv. the new coo, joe kraus, joins us

now. you will not really continue to make investments at the company, though? >> absolutely not. you need 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, long 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 moments 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 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 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. 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? joe: you definitely see people doing things on instagram that they should not be doing on an e scooter or e-bike. but 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 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 search engine. and remember the stories when amazon started and people were using credit cards online for the first time. your credit cards will get stolen, you will have to menace amount of fraud. yeah, there is some of that, but not everybody assumes you can use your credit card online.

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 no where to hang your purse. are women driving these things as well? joe: i don't know what the demographics are, but we are in it timeframe of finding out what the fun factor is. you can criticize them all you want, but people come off riding with a smile -- 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? joe: so google has this adage of

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. i see tremendous, breathtaking 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 exigency factors and 10% into the moonshot. emily: google was doing self-driving, uber started doing it, google started doing a carpool service, there were other ways that this happened. there was even the lawsuit with the waymo -- 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 special circumstances. in all the investments google has, there 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 the norm at 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 any one thing is ever enough, but in fulfillment of time with consistent effort, that is the way changes are made. emily: so you are leaving 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 -- you went into venture after being an operator, you hang up your cleats and never get back on the field. but if i look at reid hoffman at

linkedin -- 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 venture did in the 70's and 80's. emily: do you worry about fake -- a winter slowdown with schooters? -- scooters? 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 level of inclement weather. part of the reason he want to -- you want to offer multiple vehicle types 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. emily: it sounds intensive to do

a love that transport the there was just a recall on some of the scooters and when it comes to 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 is an 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.

emily: 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. and, the battlefield of ridesharing heats up in asia. this is bloomberg. ♪ emily: thursday is national

s.t.e.m. day, it is to inspire kids to pursue their interests in the field. more than 2 million stem related jobs remain unfilled and millions more are expected to open up in the coming years. companies like this littlebits are hoping to do that by making

toys. they create a series of magnetic 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, ayah bdeir. thank you so much for joining us. i am curious as to what turns you see in how girls and boys respond to these kits. >> we see kids being very 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 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 help encourage interest in these

kits and in s.t.e.m. in general? ayah: we have to make s.t.e.m. 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 called diy.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. how 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 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 excited to be in the space.

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 ride-hailing dominance. go-jek has now built a portal for singapore drivers to register. this coming amid reports that the company is in talks to raise $2 billion of funding to grow expansion overseas. the ceo, nadeim makarim, was at the bloomberg's economic forum in singapore to discuss. >> fundraising is a continuous project.

i can assure you that on that front, i believe we are in a very favorable position in many ways, not just the quantity of 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 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. there is still so much more to grow across transport, food, praise -- payments, logistics, digital goods, so i think we're just scraping the surface. the mission is really to serve the middle class part of southeast asia and funding will facilitate that. >> might 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. emily: that was the go-jek ceo there with our haslinda amin. salesforce co-ceo, marc benioff was the number one backer of the controversial homeless tax, that just passed in san francisco, that 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. in today's world, when you have the crisis we have, and whether it is homelessness or the issues with our public schools and public hospitals, business can be a huge place. emily: other tech companies like square and stripe of those attacks, saying that it will tax them unfairly. that is it for this edition of ""bloomberg technology." tune in tomorrow for our interview with symantec ceo after those quarterly reports. check us out @technology. this is bloomberg. ♪ show me movies a grinch would love.

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