taylor: i am taylor riggs, and for emily chang, and this is the "best of bloomberg technology." where we bring you all of our top interviews from the week in tech. coming up, thpump the brakes. london's transit authority refuses to renew uber's license. they vow to appeal. plus,. my head, -- plus, full steam

act global push fails. we will hear from her. strong debut shares of alibaba begin trading in hong kong, ending its first trading day more than six percent above listing price. our top story this week, you were and it's uncertain future in london. the city transit authority refused to grant the ride-hailing service under license on monday. the top regulators said uber failed to adequately verify drivers identities but u-verse as it has taken care of the issue. swiftly responded tweeting that the decision was "wrong." uber will appeal the ruling. london mayor says much more needs to be done with regards to safety. be am keen for london to hotbed of innovation for new businesses. you got to abide by the rules and what's clear is uber's

policies passenger safety has been compromised. newcomer.p with eric i asked him if that you were at and or the technology itself allow the drivers not to be verified. >> the issue here is whether drivers in london were able to get on the platform, even though they were not the right driver or properly licensed. the city of london says we are talking about more than some 10,000 rides with a driver who should not be giving the rides. that's a big concern for them. i think hubert corrected the mist -- i think uber corrected the mistake. we are on the ropes in a city and under tight scrutiny, having questions about whether the right drivers are giving rides is not a problem huber wal

-- a problem uber wants to be having. >> this is not the first time they've been in the situation. you pointed out it was september of 2016 when they temporarily had their license revoked as well. what changes have they made over that timeframe? >> the company has undergone a cultural shift. executives have left. tubers benefit and detriment it has slowed down somewhat and coming up with new ideas and new exciting products. youth think about uber pool or uber eats, on the other hand the company has tried to crack down, work with regulators, and have a discussion so this is the sort of area where the company hopes to be winning. it is unfortunate for the business that they can make that happen. >> are they striking a similar

tone with regulators as they were a few years ago trying to work with them? not be hostile but trying to create more of a friendly working approach? is that the approach they are taking and is it working? >> i think dialogue, working with cities, countries, states, everything in between but then when they disagree, coming out and saying it. you do see in the california fight over independent , we will putles money behind it. .here has been some of that a company that can throw our weight around more than they have after travis kalanick left the job and their reputation was in tatters. i think they are still trying to play the cooperative nice guide to the extent that they can. >> in talking about hoover's response to all of this i want to bring a soundbite that we have at the head of the u.k..

take a listen. one thing we are intending to launch soon is driver face matching. a technology that has been in the u.s. since 2016. drivers can only log on to their account once we validate either through automated means or human contact. the driver is who say -- is who they say they are. ofdoes this help appease any the regulatory issues going on right now during the appeal process? stuck in a situation where you could have privacy or you can have safety but you might not be able to have both. that's a sense that you wer -- uber wants to look at -- listen to voices in a car now looking at the faces of drivers. these are areas where verse says -- where uber says you're

worried about if it is safe enough, we can take away privacy and give you more safety. i think on the policy side that's going to be the big debate that's going to range around hubert going forward --uber going forward. it's a question of how much two oversee aect uber to given ride versus we are matching you with the driver and what will happen is between you and the driver. clearly people think uber needs to police those rides. some sort of surveillance to keep track of what's going on in the car with the driver. >> that was eric newcomer. as for how the decision affected startedors, olah has signing up drivers in london and will start service in the city within weeks. the indian ride-hailing company backed by softbank says it

already served millions of customers and other u.k. cities since its rollout last year. to discuss the ramped up competition i talked to gabe klein, partner at city phi -- >> there been a number of issues over the years with transport for london. recently is the impersonation of drivers by i think about 15,000 people. they don't have security in place to verify that a driver is who they say they are. to use faciald recognition technology. they did not implement it in the timeframe that they were supposed to and at this point they have once again had their license suspended. they are going to appeal that and i imagine it will go through the court so the real question is how soon will this take effect on the streets.

i want to pose the same question about how long it will take to impact the company's fundamentals. >> that depends on what happens in the courts. i think in the near term they should be operating businesses as usual. as go through their appeals process. if they actually lose a license forwill see an impact revenue. we estimate maybe 5% of total revenue so he could be a meaningful impact. the larger question and the long-term question, we would expect this to be resolved at some point, would be what happens with competitors that they kind of come in and try to take some share and leverage off this opportunity. >> where you see that competitive landscape? >> at the end of the day, uber has built an incredible product. a great marketplace. it is really a commodity at this point. you see in the u.s., most of the

drivers who drive for uber thee for lyft but for consumers they want a ride and they don't necessarily care who provides it. the big issue is that they have been on the outs with municipal governments here in the u.s., in europe, increasingly over the last few years. we thought it would change with the new ceo and instead they sort of double down on these disruptive tactics with local government. i think we see it play out. we are seeing a real pivot here in how government is going to deal with uber and companies like them. > a chart showing the stock price is trading around $30 a share but most analysts on the street are bullish. i 34 price target or so which would be a gain from the current price. london of the regulatory hostilities we've

seen starting to impact your views on the stock? they are not making it easier. it's been impacting stock price. x happening california. you could expect to see other cities taking a look at this. this could be a serious security threat. drivers impersonating other drivers. licensesriving without . i would think other cities start taking a look at this. the question is when does the regulatory environment ease up around hubert and i think it is uber to address those issues and start to put those to bed and put them behind them. it's been happening way too often. the first six to nine months as a public company. they need to be better at addressing that. ultimately, we think they will be back in london. . it's a really big market and

they get kind of navigate these waters and end up in a better position. that's going to be a big test for them going forward. >>'s regulatory issues the biggest headwind. ? >> it's one of them. competition and regulatory issues are the two big challenges. competition is driving down and is one of the biggest issues in terms of profitability and that is a big factor over the long-term. regulatory things keep popping up and the bigger they become, the more they will be a on the shares of the stock. >> coming up the use competition commissioner says the organization will continue to investigate amazon, apple, and facebook. that, plus comments on a digital pack, that's next. if you like bloomberg news,

check us out on the radio. you can listen on the bloomberg gap on the bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪

taylor: the eu's antitrust chief margaret vestager has made a name for herself as a tough regulator unafraid to go after big tech. wednesday, she told bloomberg the eu still pursue a digital tax even if a global push fails. maria tadeo spoke to her in france where she was asked how europe's regulatory posture on tech is different. >> to promote what we have going for ourselves already. in the business environment, you find a lot of impressive tech. you find engineers, research, and an impressive startup environment and the willingness to balance possibilities.

>> you are talking about innovation, but we do here the -- but we do hear from u.s. companies that the reason you are so focused on taxation is because we have not seen real innovation in europe. is that fair? >> absolutely not. what is fair is to say to the many businesses who pay their taxes in europe, that not just some of them should contribute but every company should , contribute where they do excellent business. that is the bottom line in europe. you do very good business here. >> when would that be? is that something where you think, if by the end of 2020, there's no international agreement on digital taxation that it would be fair for the eu to go it alone? >> yes, of course it would. we are strong believers in a global agreement. i am happy to see the progress made by the oecd. is a very strong push. and there is positive feedback on the first draft. of course, that would be the better solution. but if that cannot be met, when you look at the businesses who pay their taxes, it would only

be fair that we pick it up again if a global solution is not possible. >> based on what you hear now from the oecd, this time there is momentum to get this done. we have been here many times at have not seen progress made. >> normally, i would not be optimistic when it comes to taxation, but i think now there is a momentum, there's a deeper understanding that we have to update corporate taxation to digital times. and in that respect, the global dialogue is changing. >> we also heard today from the eu commission president that data is key for the commission, but it can be weaponized. what is the message to protect consumer data and europe and how you deal with that? >> first and foremost, we are going to make a comprehensive strategy. for ai, data is the main input. data is more than a commodity. it is also what defines us as people and digital ages. we have taken a number of steps. with the digital citizen rights.

we have a lot of public data that has been made available we need a comprehensive strategy for data to be the driving force for a prosperous european economy and a green commission. >> and what timeline are you looking at? >> this has to be thoughtful. it ties in with what we are planning to do with artificial intelligence and the two things will have to come together. for people to see the full scope of what data can do, we have to make a specific strategy when it comes to data. taylor: that was the eu's competition commissioner margaret vestager. and the third quarter approved a strong one for the communication services sector came to topline performance. but the top line was telling us a different story with earnings-per-share growth relatively muted. on tuesday, i wrote down those

earnings and talked with an rbc analyst. >> a couple of the companies that were getting deeper into investment mode, the one at the top of the list would be amazon. they may have surprised because they are doubling down on this one day investment. that is an expensive investment. i think there is a more interesting story at the other side of the curve. we saw a couple of companies that brought forward their profitability timelines. uber and lyft. snapchat is just about print its first positive ebitda quarter. pinterest, too. i was struck by the positive inflection points rather than the negative ones. taylor: let's get into those. you brought up lyft and uber. are you fully confident that

2021 targets are intact? mark: no. i think they have a high probability of getting by insurance costs. it is a big expense for those companies. i think they also have pricing power. i think these companies, as private companies, were run really inefficiently, really aggressively, more growth, which means a lot of wasteful spending. bring them public, public investors step in and say, we need profits. the management teams are responding to that. there's a lot of room to take out excess cost without sacrificing growth. we have seen that the last two or three quarters. my guess is we will continue to see that and then become more confident in 2021 profitability. taylor: how much of a hit for uber was the london news this week where they temporarily did not get their license renewed? >> that is a big issue. tbd. i want to be careful here. i don't think they have been kicked out of london. this has happened to them before when have had the license threatened. they will appeal the decision, be able to continue to operate for a couple of months. i assume there will be able to

work it out with the london powers that be, the taxi commissions. there is no question that uber and lyft have taken on big taxi in a number of markets. consumers have shown they like ridesharing services. i assume consumers in london will speak up on this too. we don't know how this is going to play out. it is not over yet. they have not been kicked out yet. my guess is that, as happened about a year ago, they will stay in the market, they will just have to work on more concessions. taylor: ebay is selling to a european rival for more than $4 billion in cash. we have details. plus, alibaba's big day. we head to hong kong for the company's listing debut. ♪

taylor: we got more details of ebay's stubhub sale as they

unload the ticket marketplace to rival via gogo for $4 billion in cash. i got the details from leanna baker and jitendra waral. >> via gogo is not a household name in the u.s.. they are in 70 countries worldwide and they want an entry into the u.s. market. it is one of the fastest-growing ticket markets out there. they really are paying up about $4 billion but they brought in some investors. it is a homecoming. eric baker, the founder of viagogo, was one of the founders of stubhub. but he left before it sold, originally, to ebay. taylor: eric baker has talked a lot about making this a global company. he was excited about reuniting these two. bringing together his global ambitions. is that really the play here as

viagogo gets the u.s. market and stubhub can have a global reach as well? liana: that is the strategy because viagogo is not really present in the market here. it is a fragmented industry. there are many competitors, some even trying to bid on the business. the stubhub founders have really gone out and founded a lot of companies going after that market. it is going to be competitive. viagogo coming in with stubhub has a good chance with having a good brand with consumers. ebay was under pressure to sell this so, clearly, it was not fitting in and it was looking for other avenues. taylor: you cover ebay for us, so i want to get your take. a lot of analysts came out and said this deal would be unlocking a lot of value for ebay. what is your analysis? jitendra: it buys them time to fix the core marketplace, which was going to take time.

they have to come up with a sustainable strategy. it can help fuel profit growth. it also increases the imperative on other other asset sales scenarios. other restructuring avenues. looking at cost structure for ebay, there is more room for operating expenses to go down. at least that is in their control. their fight with the likes of amazon and coming next year with facebook entering the e-commerce market, we still don't have an answer yet. we are still waiting for the ceo. and a strategy on that. at least it buys them time to drive that profit growth. taylor: in your years of covering this company, why haven't they been able to keep up with amazon? what has been the biggest headwind? jitendra: the biggest headwind really has been the muscle memory developed with its

consumers through prime. it has helped them drive forward it has helped them drive forward and increase loyalty and things like that. ebay has missed out on that opportunity for a while now. if you look at the valuation for the company, we continue to see a profit growth story than the revenue growth story. longer-term, the strategy if they focus on verticals, the key regions or the partnerships with the upcoming e-commerce players and become the backend of the engine.

that is a wait and see but at least for now, there is the opportunity for profit growth. taylor: i was hearing about 25 times ebit. are there any calls that this may have been an expensive purchase? liana: ebay has been working with goldman sachs for many months to find the highest bidder. from what we understand, it was pretty competitive at the end. i mentioned, they were competing with other private equity firms so different firms really wanted this asset. that really drove the price above $4 billion, which was higher than what we expected. we thought it would sell for between $3 billion and $4 billion. viagogo had to bring on other investors to fund this because viagogo is a private company and not well-known so they had to get funding from jp morgan and others to make this happen. taylor: that was bloomberg's leanna baker. coming up, tuesday was a banner day for alibaba. shares began trading in hong kong, ending the day more than

6% above the listing price. we will have a report. and bloomberg technology is a livestreaming on twitter. check us out and be sure to follow our global breaking news network on twitter. this is bloomberg. ♪

taylor: welcome back to the "best of bloomberg technology," i am taylor riggs. alibaba made its trading debut on the hong kong exchange this week. the chinese e-commerce giant pulled off the biggest share sale in nearly a decade, raising $11 billion. alibaba plans to use the funds to drive user engagement, improve operational efficiency, and pay for continued innovation. bloomberg paul allen from sydney

and i got details from bloomberg sophie kamaruddin in hong kong. sophie: plenty of cheers not only filed above about also hong kong which is now home to two of asia's most valuable companies. we had the daniel zhang, the ceo of alibaba, joined onstage by hong kong's chief secretary, a former chief executive, and dancing mascots. alibaba shares opened at 187 hong kong dollars, above the 186 issuance price. shares rose as much as 8% before closing at 187.80. it was the most actively traded stock in hong kong far outpacing tencent, which has been bumped down to second place as hong kong's most vulnerable market cap. we have abr's in new york rising for a fourth straight day, claiming the narrow premium to the hong kong-listed shares,

which could reflect traders looking for arbitrage opportunities. analysts are bullish, 58 buy-holds, to 1 hold. taylor: we spoke to an analyst at the stop of the hour, and they are saying they now have $44 billion of cash on the balance sheet. where are they spending? sophie: alibaba did not necessarily need to raise the cash. they could be boosted to $12.9 billion if the green shoot option is utilized. we could see more acquisitions, perhaps funds could also be piled into fending off competition on the mainland as rivals like tencent, baidu and others to contend with. we have bloomberg columnist tim culpan also claiming you could see perhaps some buybacks, or perhaps they could sit on the growing cash pile. paul: in terms of the buybacks, is there sign that alibaba may

want to move closer to home and perhaps refrigerate some of the money to hong kong? >> after failing to list here in 2014, given the rules about share structures, there are many chomping at the bit to get in. when you take a look at the valuations for alibaba, there certainly is room to narrow the gap that we are seeing with players like amazon as well as a tencent. but they will have to wait until alibaba is included. it could be initiated by next year, and that is expected to boost valuations for alibaba. taylor: it is a very crowded market. amazon, there is a lot of chinese local players nipping at their heels.

what is their strategy for differentiating themselves? sophie: we have seen that ecosystem expand, getting into various segments, also looking to move into segments like logistics. this this strategy of saying that they are going to try to hit the consumer across various touch points. we have seen that with how alipay has operated and financial as well come by company looking to start a fund of $1 billion to move into the start of space. it looks like daniel zhang is trying to build on the foundation jack ma established. they are also looking to move beyond asia when it comes to its ambitions. where they go from here with their cash pile, with their warchest, there is certainly a lot that could be done along the horizon. taylor: that was bloomberg's sophie kamaruddin. alibaba's hong kong listing is being seen as a triumph for stock exchange but over the years lost many of china's

brightest technology stars to u.s. rivals. it comes as pro-democracy protests have gripped the city for weeks. with analysis, i got inside from john freeman, vice president of equity research at cfra. >> it will be very interesting to see what they do with the extra cash, because i think it brings them to i want to say, $43 billion total, and about 21 in net cash, if you subtract the debt. what i would like to see them do, i would like to see them invest more heavily into the cloud business, which is -- it is 8% of revenue now, it was growing 64% year-over-year growth in the last quarter. we have seen how the cloud business scales with amazon. with amazon, it is 12% of revenue, but 70% of profit. as it crosses the breakeven

point soon, they could offer additional services. i think that would be a good way to spend the money. i am sure they are probably going to invest some of it, as well as artificial intelligence and cognitive computing. those are other things i would like to see them focus on, with the use of cash. taylor: john, i want to take a look at a chart i am showing here, showing basically alibaba continuing to gain ahead of other big rivals in china that we know like tencent, for example extending that lead extending that outperformance. having not done enough in the cloud computing and other sectors you mentioned? it seems from the stock price, they are well ahead of rivals. john: they certainly are.

but i think just like amazon, when amazon was valued previously, no one really saw the cloud business coming. with alibaba, it is a little more anticipated. the cloud, to a large degree, with what is being reflected in the stock price now, reflects some of the optimism about cloud business. i think people don't realize what kind of earnings growth that can propel. in the past, revenue growth has been 50%, well above 40% last couple of years, but earnings growth has actually lagged behind revenue growth. with the cloud and a lot of these, primarily the cloud and the efficiency of their retail business, that could reverse such that earnings growth would probably exceed revenue growth in the low 30's for the next 30 years. that is pretty compelling for a stock that is trading at you know, 24x earnings. usually don't see that in the states, certainly for tech company like about. taylor: you have mentioned amazon a few times. i think over the years as we try to define the company, we would

off-the-cuff say that it is amazon of china. i think that is maybe not accurate. how do you categorize alibaba? john: i think it absolutely is the amazon of china, if you want to the revolving door pitch, it is a good description of what the company is, that is. how you would describe it there are significant differences. they are dominant in e-commerce in china just like amazon is dominant in e-commerce in the united states, they do direct sales as well as support a platform for third-party sellers, they have a cloud business, they are getting into the media and entertainment side, as an add-on, and also involved in payments and that kind of area relative to amazon. but i do think the companies are similar. one of the things that is propelling alibaba to faster topline growth is the fact that

e-commerce is a larger percentage of chinese commerce, which is, of course, growing faster. retail is growing faster than it is here in the states. then, cloud is at a lower level on an absolute basis, therefore, it has the chance to really shine, their cloud business growing by 40%, alibaba's is 64%. that is what you want to focus on, is those fundamentals. that is how i view the company. taylor: that was john freeman, vice president of equity research at cfra. coming up, getting ready to see a whole lot of spacex. there are 4 falcon nine missions slated for december. we look at the space economy

industry, and opportunities for investment, next. and elon musk's other company, tesla, reports hundreds of thousands of reservations for its new cyber-truck, this despite is rather rocky ev unveiling last week. details coming next. this is bloomberg. ♪

taylor: the fall has been a rather quiet period for space endeavors, but that is about to change when we will see spacex lead up to 4 falcon 9 missions in december. the overall space economy is estimated to reach $1 trillion globally by 2040, obviously capturing the attention of investors worldwide. i caught up with one such investor and a former spacex employee, tess hatch now with bessemer ventures. discussed the historic market for the opportunity. >> sally ride, the first female

american astronaut went to my school, and when she came and spoke, i wanted to be her for ever since. so i applied to be in astronaut and i saw, and backgrounds like aerospace engineering degrees and work experience. taylor: so you got into this field. where do you see interesting opportunities? how do you think -- how big do you think the market has potential to be? tess: before making predictions, i think it is important to look back on the technological catalysts, the momentum drivers that have gotten us to where we are today, specifically, the private space industry. there are two of those. the first is the invention of the cube sat.

decades of moore's law, especially decreasing the size and increasing the power of off-the-shelf components, the size of a tissue box. that is in you type of factor that can be launched and put interest is, which really lowered the bar. the before that, the only way to get an asset into space was a massive, school bus-size satellite which would take years if not decades, and aliens dollars to make. so people -- and billions of dollars to make. people flocked to the cube sat. that was the first. the second was how to get it there. being a mission manager at spacex, i would see satellites bumped from mission to mission. so i would focus on the school bus satellite rather than the tiny cube sat. so the invention of the tiny rocket. what is next, to get to your question? i think communication is a massive market that will help the space industry grow into the projected trillion dollars. ubiquitous internet connectivity

from space. taylor: so where are you actually making investments? do investors come to you when they want to get a piece of the market -- it is more than drones, more than commercial spaceflight. what investment are you making to achieve this goal? tess: within the deep frontier tech umbrella, drones and autonomous vehicles. within space, it is people coming up with unique ways to put sensors in space that will help life back on earth. i drones, it is open to one's imagination. emergency medical supplies. imagine someone is having a heart attack or allergic reaction. and ambulance takes on average 40 minutes to get to that person. you can dispatch a drone that could deliver an epipen or life-saving device. autonomous vehicles is another

massive trillion dollar potential market. taylor: you piqued my interest when he talked about autonomous vehicles. how close are we to fully autonomous driving? tess: in the hype curve, i think you are entering the area of disillusionment. i think it will take longer. when true level five will be achieved is further out, but i think there is supplemental technology that can be api'd in or integrated in, for example, helping the vehicle navigate. i invested in a company, phantom auto, that is solving the problem, and i think it will help us get into level five faster. taylor: where are you investing? tess: my investments are in two companies. rocket lab, and the second is spire global. they have three sensors, ais

sensor, adsb, and also gps tracking. taylor: that was tess hatch. over the past few decades, the space station has a lot estimates to conduct research on microgravity. was the space station's planned retirement, companies are creating the next generation of space habitats. and architectural firm in boston proposes an idea to send a 3-d robot to mars which can then harvest the materials found on site to health create the next generation of habitats on mars. >> we will return american astronauts to the moon, not only to leave behind footprints and flags, but to build the foundation that we need to send americans to mars and beyond. >> this proposed mission, along with spacex's own ambition to

reach the planet has spurred companies to build habitats on the planet. >> i was working on a firm designing skyscrapers and as saw elon when he landed his falcon 9 rocket on the ocean. but to me, it was the trigger. i thought, wow, a connection happen. it has always been my dream. if he is going at the space he is going, it could happen in my lifetime, and i wanted to be the one to build it. narrator: in this warehouse alongside started from across the u.s., this architecture firm building a four-story structure they created for a competition for nasa to create the next generation of space habitats on mars. >> when we started designing, we looked at everything that had been done and tossed that aside. what we were given was a set of guidelines from nasa. they think the best way to build habitat on the moon or mars is

to use the materials that are there. if you have seems sci-fi movies, you may have seen things like glass and steel domes on distant planets, but the reality is, to ship that can a material would be so exorbitant and expensive, you would never be what to build in the first place. the idea is to send it 3-d printing robot which can then harvest the materials on-site and build with that. narrator: the reusable material is a polymer made from recycled plastic or plants like corn and sugar can. and a rock found on mars and earth. >> it is the rock that gives us incredible strength. we tested this material, it is three times as strong as concrete in compression and has a capacity which prevents itself from being pulled apart, which is something congress is not very good at. you need to think at all times, how do you optimize the

materials you use? that is why this thing is shaped like an egg. if you think of an egg, it is a structurally optimized form, it is thin but it provides the needs. that is what it is shaped like this. narrator: the egg shape and structure also accommodates for differences of temperature on mars. but more research is to be done to find how print materials could be gathered, and how 3-d printing would work in a unique environment all space. >> you are dealing with a completely different component of environment which is very harsh. the cold, the low gravity, the vacuum of space. there is no such thing as force when it comes to space. you need to think about the problem, find a very elegant, lightweight, cost-effective solution. the next challenge is going to

places on earth, really taking the dirt we are finding on the site, and beginning to print with the dirt. we have to perfect this technology on earth, then we go and prove it out on the moon, then finally, on to mars. narrator: the first customers could include nasa and spacex, who would lease out the structures for special missions. but before that, asp factory hopes their technology can be monetized as well as transformational on earth. >> the challenges of building on mars force this jump in construction technology which we can now apply on earth to build better. rather than building with steel a site,rete, to go to have a solar powered array that would allow our 3-d printer to print in the most sustainable way possible. we never would have found this ways if it was not for the challenge of building in space. >> 3, 2, 1, ignition and lift off of the falcon 9 to the space

station. the first commercial launch from kennedy space center's historic n39a. taylor: tesla boasts its new cyber truck already has thousands of reservations. we have details, next. this is bloomberg. ♪

taylor: elon musk is at it again, and buy again, we mean tweeting tesla's reservation counts. this time it was for the cyber truck, despite the now-infamous launch that saw the suppose it shatter-proof glass -- well, it shuttered. we got more from our correspondent who covers the ev-maker. >> the truck does have appeal particularly to younger people, people in l.a., gamers.

a lot of people said they hated it then over the weekend, they came to love it. it looks like nothing else on the road. even though the vehicle is far from production, i believe 200,000 people have put in a reservations. taylor: i cannot stop watching the video we are showing. it is shattering the glass. what was the reasoning that they have been coming up with the last few days about why the glass shattered? >> you are not alone, i think i have watched it like 20 times. first, elon tweeted out a video of them testing the glass, then it showed that when they hammered the car with a sledgehammer, it doesn't hurt the glass. but it does not explain why the second window also shattered, so there are still a lot of theories floating around about why it happened. taylor: producers and i were talking about this, and we thought, wouldn't you want your

window to be able to shatter case of an emergency situation wouldn't you want to be able to , get out? dana: that is a legitimate question, in an emergency, how do first responders break the glass? taylor: very interesting. we will have to continue to monitor. i want to talk about your story, which seems to be good news for the company, where you have the base price of about $40,000, but of those orders, it looks like more work upgrades, will engine models. walk me through the composition of what we know. dana: this will all change, but elon said, like 42% of reservations had ordered the highest end which is about , $70,000. but these are deposits. you can't really configure your car until it is closer to production which is another two years away. but it shows people are willing to pay and there is not as much appetite for the low-end

version. taylor: we were speaking to gene munster, and if you look at the chart i'm showing in my terminal, he said the pressure is off tesla are now, they have a really good leeway, good legroom to run given their free cash flow has turned positive, they are more profitable. so this really gives them some time to go back and look at that production target. do you agree that they are in a fairly decent position to be looking at the cyber truck and its production? dana: i think the goal of the company has been to disrupt market segments. the ford f-150 is the number one selling vehicle in america. they need to take on trucks. this had a positive run. they had surprise third-quarter profit. taylor: that does it for this edition of the "best of bloomberg technology." we'll bring you all the latest in tech throughout the week. tune in each day at 5:00 p.m. in new york, 2:00 p.m. in san francisco.

and check us out @technology, and be sure to follow our global news network @tic-toc on twitter. this is bloomberg. ♪ here, it all starts with a simple...

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