>> i'm taylor riggs in san francisco. coming, record rollout. it was a new high for tesla deliveries, but they did not meet the lofty predictions. we break down the numbers. resist, theible to meatless burger craze looking like it is here to stay. we have a conversation with the ceo of impossible foods. microsoft stopped making phones

years ago, but they are now back with a new model that will run on the android system. global slowing smartphone market. but first, our top story. for its goal, tesla did not meet its predictions. shares are falling on late trading after the news broke. earlier this week may analysts mentioned that the 100,000 delivery goal may have been talk in order to divert attention away from the falling revenue. to discuss, i am joined over the phone with our guest. but david is here. not00 is a record, but 100,000, so is it good or bad? david: it is a record for them, but not by much. elon musk said they could get to

100,000 if they pushed. i wonder if he had not checked -- said anything if things would look better. the more alarming thing is the fact that most of the vehicles being sold are now the lower-priced model 3's, and you are starting to see a lot less ,ake on model s and model x which are the expensive vehicles. the question is where the prophets will come from if you are selling the lower margin vehicles. what is your take on the 97,000 number? -- gene, what is your take on the 97,000 number? gene: it is a good number. it wouldhat camp that be perceived better if not for that email. there is what is going on with the fundamentals, and what is going on with communications intesa. elon musk continues to say things that are not good for the stock. and separately, if we look at

the fundamentals, the most important is the fact that they got a record. the 97,000, to put that in context, it puts them on track to hit a range of 360,000-400,000 vehicles for the year. originally, investors said it was absurd today that. but they are tracking toward that. so i think it is, despite the mix of the greater model 3's, the 82%, that is consistent with the june quarter. my simple read is i think that this is a sign that the demand question, which is no longer about production, this is a demand question and continues to be answered. and it seems the u.s., and parts of europe, are ready for av's -- ev's. taylor: what is your take that they are sacrificing price for the sake of market share,

selling the lower-priced vehicles? gene: it is true, that is a fact. is my view is the sweet spot going to be in the lower cost, lower margin vehicles. and it is still 2% of vehicles in the u.s. so even though that is at a high level, that is not a good trade from higher-margin to lower margin, but the size of the irket is so massive that think this is the right thing for them to pursue, to pursue that part of the market. taylor: how is demand in china? david: there is strong demand relative to other markets. the government is helping that thata lot of programs makes themselves those first certain credit systems. and if there are incentives to purchase them. you cannot get a new registration for your vehicle

unless that is a plug in car. so there is good demand in china. gene's was a good point, to get scale they will have to sell more lower-priced vehicles, and there is an appetite for it in china and in europe. but the question going forward is still one of margins, because tesla will have to lower costs and to show a profit on the vehicles. they have a very big staff at their plant, they are not the most efficient manufacturer. they have been trying to lean things up in their new factories, but they need to show they can make a profit on these vehicles as they ramp up volume. that is going to be a matter of building up their systems and getting better scale. and proving that they can really operate this company. the shares are no longer trading on the hope that they will grow, they are trading on whether they can execute the business.

taylor: any path to profitability? gene: i think eventually, yes, the scalability that david was talking about -- they are taking an approach in china and in europe, so the markets more recently have not been favorable to them. that is not news to anyone. but what is important is when you have these massive opportunities, and at the that this falls in a group of undeniable truth, i think that investors will be, despite the trend in the market toward profitability, i think they will be more lenient toward it tesla. i think that they have been and they will continue to give the company room, as long as the demand is there i think they will give them room and a path to profitability. if i am wrong and they continue to burn cash, i think that if

they demand is there they will be successful at continuing to raise money. they do not need to raise money for a few years. i do nothing profitability is the critical question right now, with demand that they are doing a great job. taylor: we have been talking about founders becoming ceos, any pressure on elon musk to change things here? gene: no additional pressure, but he has been -- if you look at the number of people who have left, it is symbolic of an organization that runs fast and i think his leadership style burns people out. tesla would not be tesla without elon musk, i think it is a good thing that he continues to play a major role at the company. but the stock would go up if they brought in more seasoned types of a management team that would stay. taylor: gene and david, thank you both for joining me.

coming up, slow down selloff, the stock market has hit a low and more indicators that the u.s. economy could be hitting the brakes. we take a look at being in the red. this is bloomberg. ♪

taylor: u.s. stocks hitting their lowest level in a month and economic slow down fears continue to mount. all three indexes down about 1.5%, this as private payrolls fell short of expectations. the tech sector was not immune to the pain, as the s&p tech index and faang both were in the red. the chip sector outperformed the s&p during the selloff,

interestingly enough. we now go to sarah ponczek. the s&pks outperformed 500, which was surprising. how detective? sarah -- did tech do? sarah: you look at it on a sector level, technology was the third worst performing sector in the s&p 500, but it is interesting to acknowledge the fact that this was not a tech- n entric selloff. the philadelphia semiconductor index outperformed the s&p, but when you look at the major benchmarks, if you look at the order declining the least and at the most, you had the nasdaq composite and nasdaq 100 falling less than the s&p 500 and less than the dow. typically, when you see a tech centric selloff, you would see these benchmarks falling more than the average, but that was not the case. interestingly enough, because this was about growth fears, you

saw a lot of selling in transports and you saw a lot of selling in auto stocks as well. but interestingly enough, when you the about tech, you break it down between hardware, software and a semiconductors, typically semiconductors are the area in the sector that you tie into the economy. but they did not just outperformed the s&p, they performed -- outperformed hardware and software, which was an interesting twist. taylor: we have seen elizabeth warren rise in the polls recently. does she have any role in this as a she has been making calls the breakup big tex? sarah -- big tech? odds: if you look at the of her clinching the 2020 democratic nomination, it has now risen to 45% and we saw a lot of these gains come last week. we saw many of the sectors, not just tech, that are very intertwined with her platform,

we saw them decline. we have seen facebook moving outside of the tech space, but very much considered a big part of social media and big tech. they have been down seven of the last nine days. they were leaked tapes where mark zuckerberg did mention elizabeth warren. she attacked facebook yesterday. that is something to watch and more and more strategists are saying, you cannot put election risk aside, this is something that you need to be thinking about. taylor: sarah ponczek, thank you. and there is a big change in store for iphone users. apple is planning to release a software update that will let siri default a messages outside of their proprietary --. you will not have to explicitly tell siri which app to use, it will figure it out on its own. this comes as apple faces scrutiny over the power of its app story. we will now go to los angeles,

where we are joined by mark. why they change? -- why the change? mark: this is something they have been working on, opening up siri. they have a new shortcut that will let people write their own commands. toy have opened up siri things like pandora and iheart radio. now this is another change to allow the apps, as you extremely and eloquently explained, defaults to what the user uses for messaging and phone. not a major shift, but it is indicative of what the scrutiny is that they are under. taylor: does it open up the door for more competing third-party developer apps? mark: i do not think it will have a significant change on developers. the big thing in our story comes down to showing the apple now preinstalled's about 40 apps on the iphone. i do not see an issue with that.

the problem is even though you likeelete the default apps safari, calendar and music, i could go on all week, it is not able to replace them with third-party options like gmail and microsoft outlook. that is where the problem is, that is why apple is at seeing some scrutiny on their apps strategy. taylor: does it help ease regulatory pressure over their app store? mark: the change does not. this is another bullet point you can add it to the list of anticompetitive behavior on developers from apple, but at the same time they have created an ecosystem that has enabled over $120 billion in revenue for developers, so there are pros and cons. it should be said that apple has not been fined or a big antitrust -- there has not been a big investigation into apple because of this issue, but it is something that people should be

aware about. taylor: you quoted analysts in your story that talk about comparing apple to microsoft in the 1990's, what is that comparison and is it legit? mark: it is an easy comparison to make, but i do not think it is completely legitimate. i think it should be said that windows was extremely dominant in the 1990's and early 2000, and they made it impossible for users to replace internet explorer with other web browsers. apple is allowing you to add additional web browsers, you just cannot replace them on a default level. apple is not strong-arming anyone, they are only 35% of the iphone software market. taylor: whatsapp could be gaining on this. any other ones that you hear about the could benefit from the change? mark: any phone or messaging apps. any of them could see more usage on iphones from this, but i feel like the diehard whats

.pp users were using siri taylor: ok, thank you for joining me. and coming up, no longer impossible to find, because impossible foods is now in supermarkets. where else will you be able to purchase their meatless burgers? i will ask the ceo. and we are livestreaming on twitter. check us out and follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪

taylor: plant-based meats are here to stay, according to a new survey.

65% of the people surveyed believe that products from companies like impossible foods are up what worth a premium price compared to hamburgers. that is good news for impossible foods, which just made its grocery store debuted. the company said it will expand its retail presence in the fourth quarter and in early 2020. joining me now from the disrupt conference in san francisco is the impossible foods ceo and founder, patrick brown. thank you for joining me. you most recently launched into some grocery stores. where can we see you next expand regionally and product wise? sorry, i did not hear you. i did not hear that question. taylor: you just launched into grocery stores, where can we see you next in that space regionally?

patrick: great question. we deliberately launched in two regional chains that are relatively small in size, because of a couple reasons. one, it is our first retail launch and we figured it would be valuable for us to sort of do a test launch to really see how it is received, how to communicate to consumers and so forth. wecondly, we are still -- just recently came out of what i would call a supply crunch, where they demand for our products got ahead of our ability to produce, so we did not want to launch into retail to aggressively until we knew what the demand would be to make sure that we had the capacity to supply it. now that we have data from the launch -- sorry. taylor: go ahead, please continue. now we havel, so

data from the launch and i think we have a clear sight as to what our plan should be. we will definitely be doing broader launches next year, nationwide launches over the course of the year. and stay tuned, we are not announcing them yet but it will definitely happen. taylor: do you see more growth in grocery stores or restaurants and fast food chains? patrick: that is a very interesting question. we do not have enough actual data from retail, but what we have suggests it will be humongous. foodnow, our sales in fast have been growing as fast as we can supply them and we have tons of demand and if so forth, so there has been huge growth there. we have had huge growth in sales this year, all in food service,

so that is rising. in retail, it has exceeded our expectations for the launches we have done so far. our product has been by a substantial margin in all these stores outselling ground beef from a cow. all the ground beef from a cow in the grocery stores where we beenthe data, it has outselling every other plant-based product by -- combined -- by more than a factor of nine. so it is looking super promising. and it is really exciting. beyond meat just got a trial with mcdonald's. that is seen as the holy grail. are you trying to push into mcdonald's or are you happy with

your current partnerships? patrick: we love the partnerships we have so far. our partnership with burger king has been great, they are wonderful partners. problems there. is wet, the issue for us are scaling up production as fast as we can. we have more demand that we are seeing ahead of us than we can take on. and so, you know, we are being very measured and judicious in taking on customers. when we take on a customer, we want to be certain that we can keep them supplied. maybe sometime in a mcdonald's will be a customer. taylor: talk to me about the

production issues. you have partnered with osi group, are you confident they will help you work out those supply chain issues? patrick: yeah, we are already mostly through the issues we had earlier in the year when basically the growth and demand vastly exceeded our expectations, and we had to scramble to scale up production. it took us a while. now we have gone from one shipment in our open -- shift in our open facility, now to three shifts, basically 24/7. as ahen with osi gotner, the largest food manufacturing company in the world, they have huge expansion capacity and we are going to be able to increase capacity another fourfold over the next several months, and then beyond

that there is further room for expansion. i would say that we have gotten through this shortage period, but we are just being careful now not to get into another one. that is why we did a small scale retail launch. good thing we did, because demand has been through the roof. if we had gone nationwide, we would be right away in another shortage. taylor: the impossible foods ceo, patrick brown. speaking of food, the u.s. announced its final list of rotella terry tariffs -- rotella terry tariffs on eu goods. coffee,clude airplanes, fruit and cheese. an extra 25% will be put on irish whiskey and french wine. tariffs will go into effect on october 18. e celebratesaz

their one year anniversary. how people are sharing their traffic tips. this is bloomberg. ♪ everyone uses their phone differently.

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taylor: this is "bloomberg technology." i'm taylor riggs in san francisco. last week, and rbc analyst mapsd waze and google "buried treasure." toalso offered solutions maps advertisers thanks to the data collected on users. joining me to discuss in new york is the ceo and founder of waze. thank you for joining me.

congrats on the one-year anniversary. how many people are using it? >> we have over 5 million who have opted into the service. obviously, they are in different parts of the world. started, our mission was about fighting traffic, but we are running out of options. we all feel this, right? traffic keeps getting worse. the only what impact our every day traffic challenges is by getting more people into every car. this is what carpool is about. it is different from ridesharing or other for-profit businesses. taylor: talk to me about how much revenue carpool contributes to waze. >> we have not released revenue numbers, but carpool in general is about sharing a car, so the writer pays a portion of the cost of driving the car, and the driver gets the portion of that cost that to them. there is money changing hands, but it's all below what would be

considered profit. this means you are not paying taxes. you are not a commercial driver. we are not a ridesharing business. it's really about rides happening anyway. if you are driving to work anyway, take someone with you. it's not about you finding a new job. taylor: do you consider uber pool a competitor? >> not at all. we are focused on the long haul from suburbs to the city. it makes a lot of sense to use the front ridesharing services and different transportation services, but if you live in the suburbs at you are driving in and sitting in our to happen traffic, you don't have many options. no one is investing in roads. the government is not going to save us, so we have to take our future into our own hands. when you look in your car, your cars and do. we have extra seats. we need to find someone dealing with pavements, handling everything around that so you can leave your car home and ride with someone else. taylor: are you still doing data

sharing with cities? >> correct. cities have been very supportive of our carpooling efforts because they see the same problem. get lessenge is how to cars on the road, so we have cities that are actually sponsoring our service, even subsidizing rides for their citizens. san diego, miami are great exams of cities who started as partners but have gone much deeper to help promote our service together to their citizens. taylor: are there any concerns about privacy and the data sharing? >> obviously, you opt into the service. you only share the data you wish to. our goal is to allow users to make their own choice. we will show you who the users who could ride in the car for you, but you have to decide who you feel comfortable with. we have a feature that allows you to ride only with people of your own gender. we have a feature that only allows you to ride with people from your own company. it depends how you feel in terms of trust. when you think about it, at the end of the money, you're leaving

money on the table by driving alone. it is extremely expensive, and at the same time, you are creating traffic. little a way to make a money, save time getting into the hov lane, and doing better for the world because 30% of global emissions are coming from transportation. taylor: at the top of the show, we talked about how an already analyst said maps and waze had the potential to be monetized. do you see that monetization of maps helpful, or does that hurt waze? >> as any business, we have to be rational. ourot, we can never achieve mission. there is a thin line between being mission driven and being rational in terms of financials, and we are very focused on that and this is why we have to have a rational business model, and there's trim it is potential in maps in general. transportation is a multitrillion dollar business being reinvented in the current years, so there's a lot to go around. ist said, how and who

something we are all working on together as an industry to try to figure out. taylor: elizabeth warren has been gaining in polls recently, and she talked a lot about breaking up big tech and breaking off waze from alphabet and google. how you respond? >> i raise my hands and say i'm not going to get into it. taylor: thank you for joining me. companies joint founders of the libra association are rethinking signing onto the currency project. visa, mastercard, paypal, and striped are undecided about formally signing onto libra's organizing charter. the concern? concerns about maintaining positive relationships with regulators who have reservations about the project. to discuss, i'm joined by kurt wegner. why are they backing out? kurt: anyone who associates with

facebook these days has to think twice about it. this is a company that is being investigated by 4 different people for antitrust, constantly being called into congress to answer questions about privacy. anyone who writes their name on the same piece of paper that facebook does really needs to think -- is this the kind of company i want to be in bed with? taylor: is it really about maintaining relationships with regulators, or are there fundamental concerns about the project? >> any time you talk about something this bold, the vision is this will literally be a new global currency, there is a good chance this is not going to work and that this vision is great, but what actually comes to this is something a lot less than that. i think it is probably easy to say we are uncomfortable because we have relationships we need to maintain. i think there has probably also got to be some fear or realization, that do we want to line up for a project that may or may not work? taylor: how concerned should facebook be that some of the

original 20 members are now thinking of not signing up permanently? kurt: it's not a good look. especially when you look at the four you mentioned, these are payments companies, the companies that are supposed to understand this industry and this opportunity better than anybody, so for facebook, it is not that they cannot be replaced. we're told there are hundreds of companies waiting to join this association. everyone cannot wait to get in. it's not as though they will not be able to find more companies to replace them, but it does not look great to have somebody who was in at the beginning even on the fence about if they want to move forward. taylor: what does facebook do from here? they have this nonbinding agreement. some of the founders do not sign on fully officially. kurt: the next step is just getting the charter official. coming out and saying, these are the people who have now signed, right? gave kind of ay verbal confirmation they wanted to be in.

a lot of these people did press interviews. getting them to actually commit and sign the charter is another thing, so once facebook gets the charter going, that kind of solidifies this association, which allows them to create rules around what libra might look like and start talking to regulators with more concrete plans. the next step is figuring out who is in and who is out, and basically moving forward with the people who want to do this. taylor: they had a sense that because it was nonbinding, people may not want to come back. wasn't that sort of a given? kurt: i thing so. any time you have someone just raise their hand and say, "sure, i'm in," you leave open the possibility that that is not going to happen. i think there has been a lot of talk about the original partners who have kind of been rethinking this. at the same time, i do not feel bad for these partners. fromwanted to be involved

the beginning because everyone wants to be involved in something that is revolutionary. i think that, you know, we will see who ultimately follows through with this, but i think facebook is optimistic a lot of them will stick around. just a sign that the regulatory threats are real? kurt: any time you're trying to do something at this scale and ambition, there will be questions. to facebook's reddit, they have said they will not launch this until they appease regulators. we will see if they stand by that. i'm sure i will be back to talk to you if they decide to go against that promise, but for now, i think the regulatory concerns are real, but these are the types of companies that have been through this already. they know what they are getting the cells into, which is probably why some of them are a little on the fence. taylor: thank you for joining me. coming up, microsoft is getting back into the mobile phone business. its first product -- a foldable phone. we discuss the move next. this is bloomberg. ♪

taylor: microsoft has unveiled a number of new products including a new laptop with a 360-degree hinge and a redesigned version of its surface pro hybrid laptop. to discuss, i'm joined by microsoft's corporate vice president of modern life, search, and devices. into theng back smartphone market? >> the way we think about it is we are in the surface business, and we wanted to solve this problem for customers for years, which is how you can be productive while mobile.

we want to help that with surface and have one you can fit in your pocket with dual screens that lets you really be productive and creative. taylor: why the android software? twoe had announced actually dual screen devices. we felt surface neo should run android because when you want to be mobile, you want to run the millions of android apps. it made sense to do that. on the surface neo, which is more of a pc-like formfactor when you want to use a pc, we installed a new expression of windows that lets you run windows apps that lets you be super productive and mobile. taylor: the smartphone market is very crowded. is your foldable phone, if i can call it that, your way of differentiating yourself? >> that's exactly right. we think there is an opportunity for a new category.

we feel like we are at the beginning of a new set of devices we think of as dual screen. people are actually 44% more productive with two screens when you have the ability for your brain to work with right and left. we want to unlock this new category of computing that allows you to be much more creative, bring new types of apps into play, new types of postures for the device, things you have not seen before from read mode to tablet mode to laptop to compose, a lot of new capabilities. we think this is just beginning. we want to see the whole industry moving on this opportunity. taylor: am i able to use both microsoft and android apps on one phone? >> on surface duo, what will be great as we will have a superset, the best of android and the best of microsoft together. we have been working with google to make that happen for today's announcement and we are delighted about the collaboration with that. we think we will have something special for customers. taylor: talking a little bit about the phone, for lack of a

better word for me, talk to me about some of the improvements on the laptop. >> some of the best things on surface neo are a couple of things. the ability to do things you cannot do today. if you're on a team call or conference call, you can watch the video and on the right take notes and be able to interact between the two. you can add a keyboard when you want to and get really productive and write notes, but if you want, you can take it off. you can flip it over. if i was, for example, during this interview with you and had by -- had my device with you, i could flip my notes. this ability to run full windows capability and be really productive while being mobile, that is a unique capability. taylor: this is a very crowded market. in just the last few weeks, we have had hardware and product amazon, from facebook, apple, you name it. where does your hardware strategy fit into that

competitive world? the device business is super important in three ways. first and foremost, it has become an amazing business onto itself. it is a multimillion dollar business growing rapidly. secondly, we are inspiring the ecosystem of windows pc's with windows devices. we kick started the two in one category that most people did not think existed. lastly, our devices open the opportunity for a broader cloud and business productivity market . is really how we see the opportunity. taylor: quickly, what are you doing to make sure my privacy is protected? privacy we believe is a fundamental human right. we bake it in from the get-go. we are fortunate our business model is not predicated on having to make money off other people's data.

transparency and control of your data and let you choose what you choose to share or not share. taylor: thank you for joining me. race to 5gthe continues. onspeak to the verizon ceo what the company is doing to stay ahead of the competition. that is next. this is bloomberg. ♪

taylor: the race to 5g continues. verizon is focused almost solely on the technology to drive its next leg of growth, but the competition to the end line is becoming more tense. verizon faces a potentially different wireless market in the near future if t-mobile is able

to complete its 26.5-billion-dollar takeover of sprint. the combination would make for a to be able to capitalize on the new 5g service. verizon's ceo joins me from the tech conference in san francisco. thank you for joining me. i want to start with 5g. our analysts were expecting you to roll out 5g in about 30 cities by year-end. are you on track to make that? >> yes, for the mobility case, we have a plan to have 30 by year-end 250. we are adding 13 a week. we believe that our 5g from the consumer point of view should be areas.most populated

that is where we are focusing right now on our mobility. quarter, we will launch an enterprise service with the capabilities of 5g. leading int has been nationwide rollout. what -- when can we expect verizon's rollout? >> what we are preparing right now as we have the best 4g network in the market. we will continue seeing our get the best technology. that, andntinue to do when we see that the market is ready, we will have national coverage as well, but usually, we speak less and we execute and then we talk. that is our strategy.

about anave you talked option that could potentially ?appen from the fcc >> first off, there is an ongoing option, but i've said it before, we have all the assets to launch a competitive five-g .xperience we have all those assets. thatr: we talked about 5g, arguably holds a little more advantage for the business customers than the consumer. how can you capitalized on the business customer? >> i think all will benefit from it. beginning washe to make the world cordless, so the 5g mobile edge compute that we want to launch at the end of this year, that is really where you can as an enterprise start

innovating. five-g campusa all with speed and latency unparalleled to what you have today. i have met many of the .nterprises in the country we have shown than the platform we are going to create. this is important for us, with the customer, and probably in some cases, some software developers as well. taylor: it is interesting. i have been speaking with some andysts and south korea other places, and some say it does not quite live up to the hype. how was the transition from 3g to 4g compared to 4g to 5g? does 5g live up to the hype? >> i think there's a huge difference.

the move from 4g to 5g is even greater. the speed is so much faster. it is all about and ecosystem that you get devices out and sometimes we talk a lot about consumers. we see that whole ecosystem coming from consumers, but then you have an enterprise basis and a 5g home basis instead of fiber, which is a total different way of thinking about the business model. it is very different to 5g because you can have several business cases on the same infrastructure because it is the same network. taylor: i want to talk about the

fundamentals of your business. when can we expect 5g revenue to offset the decline in the wireline business? >> i think we had our capital market days in february, when it comes to mobility, we will have an impact of 5g in 2021. when it comes to 5g home, the same. when it comes to mobile edge compute, 2022. we have been very lit with that. remember, we are a large company. 4g will not go away. it is an extremely important sort of technology, and remember, that is not strange that you will have 40 customers for a long, long time so you need to continue to have the best 4g network as well. locked oute you subscriptions after

>> whatever is happening, we have our strategy and want to execute on it. we believe in our network and 5g platform and that is what we will execute on. more discussion around 5g just proves the case, how important 5g will be for the company, for the enterprises, and for the telecom industry. done a you have restructuring recently. do you feel like you are right sized? >> i'm not sure if you are referring to our voluntary program we had in november a .ear ago that is finished right now. i think we have done some process changes in the company and also sought outsourcing more have never done before. we continue of course to be efficient, but that is part of what we do every day. we are also looking for new

growth opportunities. it is how you run a company. joiningthank you for me. that does it for this edition of "bloomberg technology." we are live streaming on twitter and be sure to follow our global breaking news network at tictoc on twitter. ♪

paul: welcome to "daybreak australia." i'm shery ahn a bloomberg world headquarters in new york. we are counting down to asia's major market opens. paul: here are the top stories we are covering in the next hour -- stocks tumbled to their lowest since august as more disappointing data fueled fears the u.s. economy is hitting the brakes. disappointing data, too, in hong kong. months of protests crippling tourism. retail sales falling through the floor.