♪ ♪ i am taylor riggs in san francisco. this is "bloomberg technology." in the next hour, a new high for tesla deliveries but not meeting elon musk's lofty predictions. we break down the numbers. and the meatless burger craze looks here to stay. we have a exclusive conversation with the ceo of impossible foods. and microsoft stopped making

phones years ago, and they are back with a new model running on google's android. is now the time to be getting back? with the slowing global smartphone market? but first, our top story. elon musk's 100,000 deliveries goal wasn't met. the company had 97,000 deliveries in the third quarter. shares fell in late trading on wednesday after the news broke. earlier this week,, analysts mentioned the 100,000 delivery goal may have been talked to divert attention from the potential for a less flattering trend, falling revenue. to discuss, i am joined by gene munster, and david welch. david, let's start with you. 97,000, a record, but not 100,000. good or bad? >> it is a record for them, but not a record by much. hey could probably get to

100,000 if they pushed. i wonder if he hadn't said anything, if shares were reacting better, because it really was a solid quarter. more alarming for investors, most of the vehicles now settled are -- sold are lower margin s,el 3's, and less model model x, the really expensive vehicles, so where are the profits coming from if you are selling these lower margin vehicles? >> gene, what is your take on the 97,000 number? >> i think it is a great number. also, it would be perceived as much better if not for the friday email. here,k there's two topics what's going on with the fundamentals of tesla, and the communication around the story. and elon musk continues to say things that aren't good for the stock, in this case. if we look at fundamentals, whic

at should be most important, the fact they got a record. incontext puts them loosely on track to hit below end of the range of three -- and wheno 400,000, they said that range investors at first said that was absurdities, and they are tracking toward below end. i think it is, despite the mix of the greater model 3's, 82% model 3, it is generally consistent with the june quarter. my simple read, i think this is a sign the demand question, no longer about the production question, but the demand question continues to be answered. it seems the u.s. at least in parts of europe are ready for ev's. >> what is your take on what david welch mentioned? sacrificing price in those

margins for the sake of market, selling the lower price vehicles? >> that is true. but my view is that the sweet spot of electrification will be lower cost, lower margin vehicles, and it's still 2% of vehicles in the u.s. even though that is a high-level, not a good trade from higher-margin to lower margin. but the size of the market is so massive, i think it is right for the company to continue to aggressively pursue that part of the market. >> david, how is demand in china? >> very strong demand, relative to other markets, for electric vehicles. the government helps that, with manufacturere that and sell the vehicles, credit systems, incentives for consumers to buy them. cities, youhe new

can't get a registration for a new vehicle unless it is a plug-in car, so there is good demand there. good one.of gene is a to get scale, they have to sell a lot of model 3's, lower-priced vehicles. that will build this market. there's an appetite for it in china, and probably europe as well. the question moving forward is one of margins. tesla will have to lower costs. they have a very big staff at the plant. they aren't the most efficient manufacturer. they have been trying to lead things up in fremont, and in the new factory as well, but they have to show they can make a profit on the vehicles as a ramp of volume, and that will be a matter of building up their systems, getting better scale, and proving they can really operate this company. shares are no longer really trading on the hope they will grow, but on whether or not they can execute the business. >> gene, any path to

profitability? >> you know, i think eventually to, the if i am wrong, i think if the

demand continues to be there, they will continue to be successful and raise money. they don't need to raise money for a few years, but i don't think profitability is the critical question. i think that demand is, and they are doing a great job. >> we talked all week about founders becoming ceo's, corporate governance issues like at wework. any pressure on elon musk and corporate governance to change? >> no additional pressure, but i think if you just look at the number of people who have left, it's symbolic of an organization that runs fast, and his leadership style burns people out. tesla would not be tesla without musk, and ultimately i think it's a good thing that he plays butjor role in the company, the stock would go up if they brought in some more seasoned type of management teams that would stay. welch, munster, david

thank you both for joining me. coming up, sears selloff. more indicators the u.s. economy could be hitting the brakes. his is bloomberg. ♪

>> easy comparison to make, but i don't think it is completely legitimate. it should be said that windows looked extremely dominant back in the late 1990's to early to thousands and made it impossible for users to replace internet explorer with competing browsers. of course, apple is only 30% of the market. be working could again. anything that could benefit from this change? >> any phone or messaging apps, iphonese more usage on from this, but i feel the diehard iphone and what'sapp

users were already using siri by saying, message through whats app. >> mark gurman, thank you for joining me. coming up, no longer impossible to find because impossible foods is in supermarkets. where else can you buy the meatless burgers? i ask ceo patrick brown next. and bloomberg is streaming on twitter. check us out @technology and check out our global breaking news network at tictoc on twitter. this is bloomberg. ♪

meats are here to stay according to a new survey. nearly 65% of the 94 peop --

9400 people surveyed in the u.s. believe that products from companies like impossible foods are worth 80 premium price. that's good news for impossible foods, which made its debut at 27 gelson's markets. they will expand their retail presence in the fourth quarter and early 2020. joining me from the tech c runch disrupt conference in san francisco is impossible foods founder patrick brown. as we mentioned, you most recently mentioned -- launched in grocery stores. expand nextu both regionally and product-wise? >> sorry, i didn't hear the question, exactly. say it again? >> patrick, you just launched into grocery stores. where can we see you next, in the grocery store space, regionally? >> ok. great question.

we deliberately launched in two chains that are relatively small, for a couple reasons. one, it is our first retail launch, and we figured that would be valuable for us, to sort of do a test launch and see how it is received, and how to most effectively communicate to consumers and so forth. we just, we are still, recently came out of what i would say is a supply crunch, where the demand for our products got ahead of our ability to produce it, so we didn't want to launch into retail, too aggressively, until we knew what demand would be, so we knew we would have capacity to supply it. now that we have data from the launch -- sorry? >> go ahead, please. continue. >> well, so now we have some data from the launch, and a

clear plan. we're definitely going to be doing broader launches next year, nationwide launches over the course of the year, and stay tuned, we aren't announcing anything yet, but that's definitely going to happen. >> do you see more growth in grocery stores, or restaurants and fast food chains? >> oh, that's a very interesting question. we don't have enough actual data from retail, but i would say that what we do have suggests it's going to be humongous. our sales in fast food have been growing as fast as we can supply them, and we have tons of inbound demand. there has been huge growth, five-fold gsales growth this yer all in food service, so that is thriving. in retail, it vastly exceeded

our expectations with the two l aunches so far. our products have been by a substantial margin in all these stores outselling ground beef from a cow. all the ground beef from a cow fairway, where we have data, cells less than impossible foods. we have been outselling every other plant-based product b, combined, by more than a factor of nine. so, it's looking super promising, and it is really exciting. sorry? justu know, beyond meat got a trial with mcdonald's. are you still trying to push into mcdonald's, your partnerships? >> we love the partnerships that

we have so far. you know, our partnership with burger king has been absently great. they are wonderful partners. is no problem there. us, as ithe issue for said, we are scaling production as fast as we can, and we have more latent demand that we see ahead of us than we can take on, we're being i would very say measured, judicial -- judicious in taking on customers. when we take on a customer, we want to be certain we can keep them supplied. so -- a couple of years. >> talk to me more about this production issue, then. you have a partnership with osi

group. are you confident they will help you work out supply chain issues? >> oh, yeah. we're already mostly through the issues we had earlier in the year, where growth in demand vastly exceeded expectations. while. took a now we have gone from one shift in our oakland facility to three shifts, more or less 24/7, a big increase in capacity, more than threefold increase in production capacity. with osi as a partner, one of the largest food manufacturing companies in the world, they have huge expansion capacity, and we're going to be able to increase capacity another fourfold the next several months, and beyond that there's

further room for expansion. i think we have gotten through we'rehortage period, but just being careful now, not to get into another one. that's why we had to do the small-scale rertail launch. it is a good thing we did, because demand has been through the roof, and if we had been going nationwide at this point we would right away be a shortage. >> impossible foods ceo patrick brown. thank you for joining me. the u.s. announced a final list of retaliatory tariffs on european goods after the wto ruling on aircraft subsidies to airbus, including coffee, all of oil, fruit and cheese. an extra 25% tariff on scotch and irish whiskey and french wine. tariffs go into effect october 18. coming up, waze carpooling hits its one-year anniversary. how users are sharing cars, not

just traffic tips. this is bloomberg. ♪

♪ this is "bloomberg technology." and i am taylor riggs in san francisco. last week, an analyst called waze and google maps buried treasures for google and alphabet, and talked about ways solutions offer more to advertisers with all the data collected on users, which comes as waze reaches one year of its carpal feature, completing 100,000 shared rides last week. joining us is the waze ceo and founder.

congratulations on the one-year anniversary of the -- carpool. how many people are using it? >> over one million users have opted into the service. they use it in different parts of the world. we are known for taking time out of your route, but we feel traffic keeps getting worse, and the only way we can really impact everyday traffic challenges is to get more people car, and that is what carpooling is about, very different from ridesharing or for-profit businesses. this is about trying to work together to lower the number of cars on the road and improve our daily life. >> talk about how much revenue it contributes to waze? >> we haven't released revenue numbers. the rider pays a portion of the costs of driving the car, and the driver gets a portion of the cost back to them. there is money changing hands, but all below what we consider profit.

you aren't paying taxes. you are not a commercial driver or a ridesharing business. we limit you to two rides a day. it is, the rides are happening anyway. if you are driving to work anyway, take someone with you. >> do you consider uber pool a competitor? >> not at all. we are focused on the long haul, suburbs to the city. in the city it makes sense to use all the ridesharing services and transportation services, but if you live in the suburbs at are sitting 1.5 hours in traffic, you don't have many options. no one is building public transit or investing in roads. the government won't save us. so we have to take our future into our own hands. look at the cars around you. we have extra seats. we take care of the friction of finding someone, dealing with payments, 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. we are sharing data with a lot

of cities, and cities have been very supportive of our carpooling efforts because they see the same problem. if you think about d.o.t., or any disability, they are challenged -- a municipality, they are challenged to get less cars on the road. so we have cities that are actually sponsoring our service, even subsidizing rides for their citizens. san diego and miami are great examples. 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 share. and 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. but 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. here is a way to make a little 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 rbc analyst said maps and waze had the potential to be monetized. and could contribute to google and apple. do you see that monetization of maps helpful, or does that hurt waze? >> as any business, we have to be rational. we have to have income, have to be profitable. if not, we can never achieve our 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 is tremendous 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. that said, how and who is 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. four payments companies have joined facebook as founding members of the libra association , but are rethinking signing onto the currency project. visa, mastercard, paypal, and stripe are undecided about formally signing onto libra's organizing charter. the reason 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. and so 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 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 partners 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? originally, they gave kind of a 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. they wanted to be involved from 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. taylor: is this 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 credit, they said we won't 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 themselves 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. -- hybrid tablet laptop. but the star of the new lineup, the dual screen foldable phone that will run on google's android operating system, jumping back into the market it exited years ago. to discuss, i am joined by microsoft's corporate vice president of modern life, search

and devices. why back in the smartphone market? >> you have the ability of getting that solved. we want to help that with surface,, and have one you can fit in your pocket with dual screens that really let you be productive and creative. >> and why the android software? >> we had dual screen devices, the surface dual and surface noeo. the one in your pocket should run on android because 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 my device with you, i could flip and see 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 launches from facebook, amazon, apple, you name it. where does your hardware strategy fit into that competitive world? >> for us, the device business

is super important in three ways. first and foremost, it has become an amazing business onto itself. it is a multibillion 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. office 365, they shine on our new devices. that is really how we see the opportunity. taylor: quickly, what are you doing to make sure my privacy is protected? >> microsoft 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. we maximize transparency and

control of your data and let you choose what you choose to share or not share. taylor: thank you for joining me. coming up, the race to 5g continues. we speak to the verizon ceo on 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 three-way race to be able to capitalize on the new 5g service. verizon's ceo joins me from the disrupt 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, and we are at 13 right now and adding them every week. also now 13 nfl stadiums. and the nba season hasn't even started. we believe that our 5g from the consumer point of view should be in the most populated areas. where you have a lot of data. where wehere 5g is,

are focusing right now. where are in 13 now. in the fourth quarter we will launch an enterprise service with all new capabilities of 5g. taylor: at&t has been leading in the charge a little bit in nationwide rollout. when can we expect verizon's nationwide rollout of 5g? >> i think that what we are paring -- preparing now, we have the best 4g network in the market. we will continue seeing our customers get the best technology. we were first with the 5g home, 5g smartphone and at the same time we keep our 4g network. when we see the market is ready, we will have that as well. but usually we speak less and we execute and then we talk. that is our strategy.

taylor: do you need more spectrum for 5g? have you talked about a auction for the mid band that could potentially happen from the fcc? >> first off, there is an ongoing auction, so it is a little sensitive what i can say about spectrum, buit i said before that we have all the assets to launch a very competitive 5g experience. the coverage, millimeter waves, computing,s, mobile we have all those assets. taylor: we talked about 5g, that arguably holds a little more advantage for the business customers than the consumer. how can you capitalize on the business customer? >> i think all will benefit from it. but the goal from the beginning was 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.

a factory, 5g wireless for robots for example or putting up a 5g campus network, all with speed and latency that's unparalleled to what you have today, and you can innovate around that. many of thei met fortune 100 enterprises in this country, talking to them and showing the platform we will create and how they can innovate, because this is a partnership with us, with the customer and in some case some software developers. taylor: it is interesting. i have been speaking with some southts who tried 5g in korea and other places, and some say it doesn't 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. 3g to 4g was of course an

improvement. but the move from 4g to 5g is even greater. the speed is so much faster. the throughput is so much more, and the latency. we talk a lot about consumers. right now, we have four smartphones on the market that enabled. but we also have the enterprise business and a 5g home basis instead of fiber, which is a total different way of thinking about the business model. bringing broadband to your home. you can have separate business cases on the same infrastructure, because it is the same network, same infrastructure, not a separate network, for all this i'm talking about. 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? >> we have been very clear. market daysapital 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 clear 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 4g customers for a long time so you have to continue to have the best 4g network as well. taylor: have you modeled any subscription or subscriber losses if the t-mobile sprint merger goes through? >> we all need to work on our own assets. a lot is happening in the marketplace, which of course you are thinking about. whatever is happening, we want

to execute on our strategy. we believe in our network and 5g platform and use cases that we have, and that is what we will execute on. as we see more competition, discussion around 5g, that just the case how important 5g will be for the company, for the enterprises, and for the telecom industry. taylor: you have done a 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 year ago. that is finished right now. 10,400 employees leaving us, over six months. i think we have done some process changes in the company and also sought outsourcing more i.t. that we have never done before. we continue of course to be efficient, but that is part of what we do every day. not only that. we are also looking for new growth opportunities. it is how you run a company.

taylor: thank you for joining me. and that does it for this edition of "bloomberg technology." hnologys out, @tec livestreaming on twitter. ♪ sometimes your small screen is your big screen.

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