caroline: from bloomberg's word headquarters in new york in london, i am caroline hyde. >> i am joe weisenthal. romaine: i am romaine bostick. worst day in month until cathier wood and others starting buying the dip. joe: the question is "what'd you , miss?" caroline: wow. it felt like a pullback on risk.

nasdaq 100 tumbling as much as 3.5%. then came the by the dip mentality. the u.s. central bank nowhere close to pulling back on help for the economy. was talks did get a rebound leaving only slight losses, except a few. before we get the dip into the story, green energy names. talk to us about the wild swings and the recovery that we saw. joe: nothing happened today in the end, at least on some of the really big names who we check in the morning when we get up everyday. what you see, nasdaq i think was down 3.5%, around 9:45. came back basically to even and then hardly fell at all. just huge declines off the bat. the aforementioned ark and tesla and these other momentum names. pretty impressive recovery.

romaine: bring it back to the gamestop saga, news crossing the wire on gamestop, their cfo is announcing his resignation. jim bell will leave the company on march 26 and the company is looking for a new cfo. shares are down now. joe: all right, joining us with more insight is bloomberg news across asset reporter sarah ponczek. sarah: what a day it was. if you look at the size of the come back, just focusing on the nasdaq 100, like you said, down 3.5% at one time. yes, we did close lower but we didn't raise those losses and that is something we hadn't seen since february of last year. of course, not a very good time considering what came next area and but it shows you the rarity of moves this large. if you move into more speculative areas of the market,

tesla had done what than 13% yet closing higher. a record loss for the index which, i should point, is a relatively new index. ending the day down 5%. really an historic day all around considering the recoveries, the comeback that we did see. all told, we did see them was speculative pockets of the market still in the red. caroline: indeed. it was interesting, dan curtis putting together some great charts mis-show to see that we haven't seen an asset have that turnaround since 2018. on the twice have we seen it since. this ongoing reflation rotation, whatever you want to call it, is it still on? are we still going to see the movement into value stocks? sarah: today we did see a continuation of the rotation. for example if you were to look at the market-neutral value

portfolio, a value portfolio still closed up on the day, close to 0.7% up. momentum is still down 1.3%. growth closing broadly nowhere, too. you look at this month so far, february, if you look at nominal 10-year yields, we have seen a 28-basis point rise, the most for any month since early 2018. on the flipside, the rotation we have been discussing in the equity market, the s&p 500 value versus growth, we have seen in six-percentage point gap in february alone in favor of value. that is the largest gap in favor of value since december 2000. so we are still seeing this rotation take hold. if you break it down on a sector level today, you saw energy in the lead, you still see tech in the bottom of the pack, even with the recovery. romaine: i just like to point

out, you wrote a story this morning that stock pain was building. that did not age well, sara. [laughter] sarah: it didn't. joe: wow, on the air! [laughter] sarah: i love you calling me out. romaine: i was born in skeptic, 's i am not really sure that i buy into the turnaround today. a lot of people are saying it is because of what powell said. but with the rise we see in yields prior to today, that didn't have anything to do with the fed, did it? sarah: know, the fed has been clear that they are looking for further progress. maybe i will be able to update it three days from now, we will see but, yeah, the fed has been clear they will continue their bond buying. we have seen this reaction over the past, not just couple of weeks, but really the past couple of months. what it does come down to when you think about the benchmark level, tech has a hefty

waiting in the benchmark. at the same time, cathie wood, sheet was buying the dip into has let today. many clearly were -- buying the dip into tesla today. on the other side of the story, you also have not so much tesla, but when you think of the big-tech companies, big faang companies, they are strong companies with strong balance sheets. on the speculative side, you look at tesla and companies that belong to ark, for example, how many people believe in those long-term growth story narratives but these companies will really grow, and it is a secular growth trend going down the road? it makes me wonder if the? two can rise in tandem. joe: you mentioned cathie wood comments to bloomberg radio just now. how much will you be watching some of those other ark names to see if there is any sort of ripple pressure building through

this family of funds? sarah: very closely. it seems like every day now cathie wood is talking about ark and talking about tesla. you also think about some of the other names within the ark fund that have large weightings, the likes of roku, square and tele-dock, companies that have performed well over the last year. if you are going to see the rising yields play into the market and filter through, it will be in the highflying stocks anyway. romaine: a lot of focus on tesla but a lot of others like shopify, paypal, zoom, basically a who's who of companies that have been rallying. sarah ponczek them that we will catch up with you shortly. back to the news on gamestop, the cfo, jim bell will resign from the company in march.

looking for a new and permanent cfo to help the company. we will be back in a minute. this is bloomberg. ♪

♪ romaine: all right, joe. probably one of the biggest news events was churchill capital. the big spac finally in green. sthe stock intro to has rallied above 470% the past few months. joe: it is kind of wild. people got so used to buying some of these spacs, then they announced a deal with a car company you may have or may not have heard of, then they had a

rally. it didn't work out at least for some motors of george hill capital which will merge -- churchill capital, which will merge with lucid motors. look at that, ugly. a messy looking chart there. caroline: and to tie it in a bowl, we were talking about gamestop and their cfo moving. these new spacs are bringing in retail investors. and they are the ones left carrying the bag when the shares fall. romaine: we should tie it up with joe tie, a very colorful ties. [laughter] joe: from you, that is a high compliment. from san francisco, bloomberg ed ludlow spoke earlier with the lucid ceo. a weird and wild story. all kinds of moving parts. for our audience, what you think is the key thing to understand about this repricing of the deal for investors this week? ed: we first reported back in

january that talks between these two were ongoing and we saw lots of retail investors pile into the george hill capital spac basically on speculation. there were benefits for listing with a spac. you get to advertise using financial forecasts to potential investors. but there are downsides because those buying in don't get to see what is under the hood until the deal is done. that is what happened with lucid. the announcement that production would be pushed back, there was a deeper look at the sums of money that lucid plans to burn through in the next four years and that raises more questions about the path forward for this company than it answers. romaine: i am curious. the financials of this certainly need to be looked at closer, but when we talk about these spac

deals, the selling point is the idea that you are getting some management experience to come along for the ride, no pun intended here. and the idea that they are basically telling them to slow things down a bit, let's get this right, let's not make the same mistake tesla made, the you get the sense here that he is buying into that? ed: what is kind of astonishing is i have spoken to peter rawlings several times in the last few months, particularly when we saw the big run-up in tesla shares. he actually urged caution. he said there is a lot of speculating in that market. the risk for spacs is that no one took the time to fully appreciate the technology. this is what peter had to say about why lucid decided to go public through a spac. >> that process is enabling us to accelerate our growth. we have got a fantastic injection of cash. we have long-term security.

we have been able to attract the bluest of blue chip companies to make a long-term investment in us, and i just see the spac as sort of a useful tool now to achieve that. ed: you know, long story short, building cars, regardless of whether they are electric or not is a capital intensive process, and going public via a spac, gives you quicker access to capital as well as a short window for your business, in the traditional way that an ipo does. caroline: have we heard any of the executives try to placate the market and say, stick with us. it is interesting that we're seeing more analysis that perhaps spacs are not something you should hold longer-term. people talking about the inequality when it comes to information for the investors ahead of choosing the asset. ipo investors do get to see a

lot more. are they speaking to the investor base to say, stick with us, the shares dropped but this will be longer-term investment that will pay off? ed: it is certainly the message. when these spac deals get done, you look at the names of institutional investors that dissipate in the pipe, and it is fair to say that lucid managed to bring in a stellar list of investors, not just the public investment fund from saudi arabia, but the likes of blackrock, fidelity, wellington management. he called them the bluest of blue chip investors. part of it as well is you have to be patient. you look at the financials, there is revenue coming in from 2022, but with modest deliveries. $10 billion of cash burn through 2024 is pretty eye watering. the first company that comes to mind that is already public is over. we waited for years for uber to become profitable, and investors

in that company had a threshold to how patient they would be. it is a very similar story with automakers. buildingevs is very capital intensive, the prototype is easy but getting to production is hard. so it will take several years and patience for lucid to have something to show for it. going with today's stock move, it was compounded by this idea that we went into monday expecting them to say, oh, we will start delivering cars next month. but they are not even going to start production until the second half of the year. the psychology around the company has definitely shifted over the last 24 hours. romaine: ed, great interview there, a lot of people will be focused on the future of lucid and whether we get that car anytime soon. i am told it will be quite expensive. bloomberg's ed ludlow. coming up, highlighting the fragility of the u.s. power grid. we speak next with the ceo of an alternative energy company,

about what can be done to prevent a similar crisis from happening in the future. this is bloomberg. ♪

caroline: today we have been focusing on the few names in terms of new technology, new focus as well on energy. we have had tesla in the red, lucid motors in the red as well. now we turn our attention to bloom energy, a company that has been on a spectacular rise in share prices after the u.s. election, after we turned towards a democratic-controlled senate. the focus on clean energy and climate change. but in the last few sessions, we have seen weakness. perhaps there is thinking about competition. and in texas we saw the blame being ushered upon clean energy. joe: if you look at shares of bloom, they have been on an incredible run. and honestly, they do look a lot

-- like a lot of these momentum clean energy and so forth having tumbled a bit since the middle of february. but this company, evolving fuel cells, renewables, very impressive performance. romaine: it is the reason why they call it alternative energy. alternatives are starting to become the norm. joe: we want to bring in k r sridhar, founder chairman and ceo of bloom energy group manufactures combining hydra gas and hydrogen into electricity. thank you for joining us. we really appreciate it. so much thought being put into our energy infrastructure in the wake of the disaster that we saw with the texas grid. in your view technologies, such as yours -- hydrogen and fuel cells, how does this fit into making a.i., and what is the basic case for how it can make a

grid more robust? kr: thank you so much for having me. what we saw in texas is just an indication of what every other state and city in this country should expect. that is not an abnormality, that is the new reality we are facing in this world where natural disasters are increasing -- have increased exponentially, from 6 a year in 2000-2010, to $22 billion plus natural disasters in 2020 alone, right? so the grid, you have to focus on resiliency. the reality is we have not invested in resiliency because lawmakers don't demand it, and market does not reward it. and if we don't fix that, unfortunately at a time when

always on electricity is not just a luxury but a privilege, it is a necessity for everyday life. at that time, there is no market mechanism and there is no regulatory mechanism to ask for resiliency. we have to fix that. that is the problem. caroline: yeah. is it coming? in particular, in the aftermath of the dire situation we saw in texas, are you getting more phone calls of corporate want to come to you, states and legislatures 12 to come and say, how do we make our power grid more resilient? kr: yes. we are speaking to both texas officials as well as corporate customers asking the question. let me break that down into three different ways to think about this. the first, we need to improve

the resiliency of the grid over all. the american society of civil engineers david a failing d- grade, our grid. fixing that is going to take time. in the meantime, what do we need to do? we need to make sure that critical infrastructure such as hospitals, nursing homes, water treatment facilities, water pumping facilities, essential services are all protected better than the average should be, because they are essential to everyday life and safety. we can do that with new technologies. thank god we have those new technologies today that are not only proven and capable of building grid ands offering resiliency for the critical infrastructure, that they are economically viable.

the problem is there is not a construct in the marketplace and there is not regulation that allows this to happen. romaine: this is not something you can really do without regulation or the involvement of government. i mean come the idea of any changes or massive changes to the grid, it will be a government, or to some degree, a societal project. do you think you will have the buy-in from policymakers? kr: i think we will. here is why. people's lives are at stake, right? it is not just texas. take the california wildfires. the problem in california is, if an essential service decides to say, let me take my power into my your hands because i am not getting it from a utility, i don't want to go through days of our outages in california, i

want to put in my own micro-grid , the current monopoly makes that company, makes that essential service pay a punitive price for departing the grid. not only is it not encouraged, not only is it not incentivized, it is penalized for doing that. so we are in discussions with lawmakers and regulators to say, you absolutely have to change that. we are having those discussions right now. the same thing will happen across the country, and i think federally, the biden administration needs to say there needs to be a minimum standard for safety of the electric grid stock in this day of iot, and everything being connected electrically. not having electricity is not a luxury. it is just not acceptable. caroline: we want to thank you so much, bloom energy ceo k r

sridhar. fascinating time for everyone to be thinking over what lessons can be learned from texas and even california. you put it so well. meanwhile, just to reflect again on what has been happening in the market. i don't think i will ever recover from january-february timeframe. but today. to see that reversal, it is bottom pickers right now. cathie wood is one of them, she picked a bottom and started buying the dip on it comes to tesla. joe: and tomorrow will be super interesting. we will see if there is sustained upward pressure. bitcoin got clobbered today. all of these momentum areas in the market getting hit." two days in a row, a bounceback. but tomorrow will be a guide perhaps. romaine: and does a narrative really change? what led to this pullback in consolidation the past couple of weeks? did that somehow changed today?

did i miss it? caroline: you missed the entire bear market. [laughter] romaine: we discovered life on mars. [laughter] caroline: nothing gets passed us. joe: bloomberg technology is up next in the u.s.. romaine: and daybreak australia is coming up next in asia. have a great evening. this is bloomberg. ♪

♪ >> emily chang in san francisco, and this is bloomberg technology. tesla shares trading below their entry-level in the s&p 500. the declines following elon musk's comments that bitcoins valuation seems high, we begin with our guest.