>> where the heart -- from the hardware novation, money and power collide, in silicon valley and jan, this is bloomberg technology with emily chang. emily: i'm emily chang in san francisco and this is bloomberg technology. tesla shares falling after hours after the ev maker says supply constraints will continue through the rest of the year.

plus, from streaming wars to consolidation, we will talk about what to expect with former disney streaming head kevin meyer, who is racking up new projects with kindle media. and a firm is souped up with the launch of a super app. what does that mean for the future in crypto? i will speak with the ceo. first, stock gains fizzling after jerome powell signals the fed will steadily unwind its pandemic era stimulus as it fights elevated inflation. ed ludlow here with more. ed: the day starts and we are focused on earnings. it endw with the fed. -- ends with the fed. i put microsoft on the board because microsoft does close up after our strong earnings print on tuesday night. weakest points gainer on the index. we are pretty certain we will

have a rate left off in march. we come with that the shrinking of the balance sheet. fed chair powell getting questions on the inflation. he can adjust is on forecast by a few tenths of a percent. a strong rebound in semiconductor space paired philadelphia semiconductor index up on wednesday. a strong game. broadly speaking, cryptocurrency is higher. i went to get straight to bitcoin and look at the action over the last five days. we are down at 33,000 u.s. dollars per token. what is bitcoin? we have seen bitcoin making gains throughout the duration of fed chair powell's comments. then falling away back below 37,000 u.s. dollars. swinging between 39000 and 37,000. is it an inflation hedge? straight to the aftermarket earnings. this is the point that matters. intel. the chipmaker in the news a lot.

bottom line is it seems that data center customers are not spending on chips. we know that intel is in investment mode. investors seem to about the outlook for profit. we have to talk about tesla. this is the one we have been waiting for peered really strong performance. we know they have strong delivery. they'll outdo themselves with automotive gross margin. you read down the shareholder debt peered what is not there? a full year 2022 outlook. there hit by supply chain constraints. what happens when alstom and berlin come online? we did not have a number family cars will come out of those factories this year. now we are thinking, what is the profit picture for this company in 2022 this year? emily: let's bring in steve wesley of the wesley group. ask for joining us. it is good to have you back.

what is your take on these results? steve: tesla announced blockbuster results today. they have actually grown revenues 32 billion dollars in 202253 point $8 billion in 2021, 60% growth. no other automobile company in the world is doing any close -- doing anything close to that. more importantly, they produced 970,000 electric vehicles. the next-closest automaker is volkswagen, with half. if you look at ford and general motors by comparison, 27,000 and 5000 -- and 25,000 vehicles. tesla is still the king of the hill for now. tesla has opened two new factories. elon is tamping the market down saying there may be supply chain issues. i'll go out on a limb. the company said they will produce roughly 1.5 million vehicles this year. i think it is going to be closer to 1.8 million. no one is doing better in the ev market. emily: are you concerned by the

chip shortage and supply constraints? steve: everybody is. i served on the board of tesla. no one is more fanatical about bringing production in house than elon musk. he has his own battery production. i think they are going to benefit. if you are general motors, i give them credit for investing $7 billion. they should have done that five years ago. they are just going to work on plants in tennessee and michigan. those will not be open for years. they announced they will start building a battery facility. tesla has five facilities in china, europe and north america. they are ready to go. mark my words, by q3, q4, i think they will deliver 1.5 million if not 1.8 million vehicles. emily: if not gm, can ford catch up with tesla? and at what point? steve: ford produced 27 thousand

vehicles. tesla is producing one million. they will have a hard time catching up. the people to look at are not ford and gm. it is volkswagen. they sold have his many vehicles but they have in profits. they have massive electric vehicle presence. the other ones to look at are the chinese. they have three firms doing close to 100,000 vehicles a year with nio, xpeng and saic. don't forget. the chinese are well-known if not notorious for subsidizing both battery costs and the cost of their vehicles. the chinese are likely going to be landing chinese vehicles on our shores in 2023. they will be a tough competitor. it is all about getting the $25,000 vehicle market. that is the big story. emily: you were an early board member at tesla.

you don't own tesla shares now or anymore. why is that? steve: if you are a venture capital firm and have liquidity for investors, they like you to give shares back. i will tell you we did extremely well at tesla. we did not keep our shares an extra week. emily: always appreciate your joining us. found her and managing partner of the wesley group. thank you for stopping by. coming up, it was libra, then done ted what led to the downfall of mark zuckerberg's plan for crypto? that is next. this is bloomberg. ♪

emily: the controversial cryptocurrency project mark zuckerberg once defended before congress seems to have met its demise. bloomberg has learned that diem, the cryptocurrency once known as libra is trying to sell its assets. i am joined by kurt wagner. what was the final blow here? kurt: diem had been struggling with regulatory issues for the last year and a half. what happened was they had a bank lined up to try to issue a stable coin for them in the u.s.

and the federal reserve basically said we are not going to approve this or we can't guarantee we are going to approve this. there was this muddy future. the bank and partner decided we are not willing to stick our neck out for this project any longer. and here you are diem doesn't , have a coin, doesn't have a partner and are now trying to selloff the assets they have left. emily: jack dorsey, former ceo of twitter and ceo of block working on his own cryptocurrency project tweeted out your story and said carpe diem. what do you read into there? kurt: jack dorsey was not a big fan of crypto and i don't think he saw this as real crypto.

i think he saw this as a mark zuckerberg invention, a facebook controlled invention. that goes against a lot of what crypto is supposed to be. not a fan of the project from the beginning. not a fan of mark zuckerberg. here we are, the perfect cocktail for jack dorsey to enjoy hating on mark at that time. emily: what does the failure say about mark zuckerberg's ability to work with regulators? he said time and again i welcome regulation. i don't want to be making all these decisions myself. how does diem fit into this picture? kurt: facebook raised their hand early, went to d.c. early, we want to work with you, we're going to send mark zuckerberg to answer your questions, we don't want to launch this without your approval. they tried to play nice and it still failed. i think what they learned is

regulators are going to be tough on anything facebook builds even if they do try to help out. and two, financial regulation is so much different than what they had experienced with general regulation. there is not nearly the same red tape around the stuff they create with instagram or facebook so this is a totally new world for them. it clearly did not work despite their best efforts. it makes me wonder how much are they going to be willing to raise their hand in the future with things like the metaverse if this was the reception they got when they tried to do it with diem? emily: kurt wagner, great scoop, thank you for joining us. president biden met with more than half a dozen ceos of some of the biggest companies to promote his stalled till back at her economic agenda. among those in attendance, ford president and ceo jim farley. i sat down with him ahead of the meeting and asked what he would stress to the president today. dots the country needs to be competitive on all electric pin need to catch up with europe

and china. we need to help consumers but this transition to electric. we need incentives to help the industry convert over because we need to build batteries in this country, get raw materials. that will happen as customers go electric. emily: more of my sit down with ford ceo jim farley next. this is bloomberg. ♪

emily: ford, in the midst of launching its f-150 lightning pickup, made a stop in sonoma,

california, to announce a collaboration with the wine industry. it is a pilot program for a four program of the commercial division provides electric vans and pickups and services to manage those fleets. i sat down with ford ceo jim farley to talk about tesla, rivian and competition, but i started by asking whether we should expect the supply chain crunch to ease or get worse. take a listen. jim: i wish i could tell you there was relief in sight but fourth-quarter was very difficult. we started seeing a new kind of supply chain problems with omicron and absenteeism in our supply base or we started to get basic automotive shortages in the fourth quarter. that has eased a lot, but we still see the semi conductor impacting us now. we think it would last through this year, potentially into next year. the number of chips in our vehicles have gone from two or 3000 up with this kind of

electric vehicle like lightning. we are using more and more of these even if the capacity increases. it is not fast enough for the advancement in the vehicles. it is something we have to deal with and we are making our most profitable vehicles and protecting the production of them as our first priority. emily: you said 40% of 40 vehicles will be ev or sales will be ev by 2030. you have double production of lightning twice tripled mach-e , production in mexico, so i wonder if the 40% number is low? code more than half of ford sales becoming from ev's? jim: it is a good question. we are going to learn a lot on lightning. there is no more iconic shape than a pickup truck. ford has been the best-selling pickup truck for decades. i think if f-150 goes beyond 150,000, this could go faster than we think. emily: mary barra said she wants

all gm sales to be ev by 2035. why not make a similar pledge? jim: we don't know what the administration is going to do on consumer incentives. the u.s. market is only 3% all electric. europe is at 20% to the difference is support for consumer incentives. don't know how fast that will go. i think gm aspired to that but they did not say heavy-duty vehicles like super duties and big vans. i think they meant only light duty. i think it will be a while before a super duty customer goes all electric. emily: how do you think of lightning compares to the chevy silverado? jim: we have 200,000 orders and we are launching right now. what we have been on with bill ford tells and all the testing, all the knowledge we have in work customers should people use it for commuting and work. we bet on $40,000.

we bet on an xlt truck that is affordable. others are betting on very high end products. we are betting on production now. we are going to scale now. not waiting for a year or two or three. we made that bet several years ago and we are betting on affordability for people like customers here in sonoma. that is our bed. i think it is different than many of the other companies. emily: you congratulated elon musk on being "time" person of the year. what are you learning from elon musk? jim: a lot. the thing i learned the most is what it takes to succeed in this digital, connected, electric product our talents and know-how and a way of managing the business is different than what we have done for 118 years. it is like snowboarding and skiing. we both share the left but as soon as you get off the lift, the intuitions are wrong between both businesses.

you have to kind of relearn how to get down the slope. i really admire the difficulties they had and the way they managed those difficulties into his -- into the success. they're making more than $10 -- more than $10,000 per vehicle because of the scale. i like that kind of business. emily: test list on the per one by far but you told bloomberg ford could be number one in electric cars. how many years off could that be? jim: in 22 months, we get to a running rate of 600,000 production in the company. that will put us solidly at number two. we will see. and that is before tennessee comes online in three years. we have our biggest assembly plant ever come a brand-new facility in tennessee. we have three new battery plants coming online in three years. the 600,000 is the first step. we will see after that emily:

the revival of the bronco has been popular. will there be an electric bronco and when? jim: why not? [laughter] why not? what we have learned with electric is not all vehicles are going to be the bad version. mustang mach-e is totally different than a mustang v8 coupe. we have a lot of work to do to define our lineup should we are in the midst of that right now. the bronco success is a big signal for the market. people want authentic golf rotors. look what we did with the f-150. emily: your investment in rivian, for $1.2 billion, now worth $8 million. any plans to sell that now that you are not developing a car together? you could make some money on that investment. jim: it has been a great investment.

we like rj, like what he is doing, the fact is that we are both in almost the same segments. we will work through the. -- through that could we have always seen this as a strategic investment shared there are a lot of possibilities we could do beyond building a vehicle together. i won't go any further than that. emily: no plans to sell just now? jim: no. but we will look at everything. our lockout ends in the middle of may. our f-150 lightning isn't out yet. they are just scaling up. it is early days. i don't expect us to be in the same cross shopping in early days. . days. the f-150 lightning, rj and i talked about this, it is very different than their truck.

it is much smaller. there's is a lifestyle. ours is a working person's vehicle. in the early days, i don't see us being cross shopped initially but we are in the same segments. emily: you stopped taking orders for the maverick. what does that tell you about the demand for affordable cars now the average price of a car is $47,000? >> it is interesting what you said. your a lot of truck customers paying more than bmw customers and bear sadie's customers -- and were sadie's customers. cars are getting more expensive. electrification will accelerate that. we have seen resale values in used cards we have not seen in decades. there is such an appetite for an affordable vehicle. it is on us as an industry to make electric affordable. that is a huge opportunity.

what we found with electric is the brand can get reinvented when you go electric and digital. you can enter segments you have not been in in a long time. i am interested in the team's thoughts on this affordable section. we had a huge hit with maverick. we got a lot of negative press on getting out of sedans. we invested that in bronco and the lightning and no one is talking about getting out of sedans nowadays. i have a lot of youth in our team on this affordable segment. the maverick has been a big hit beyond our expectations. it is a big signal for the market. emily: you can catch the full interview on bloomberg.com. rivian on ramping up its outlook on 200 delivery ready units a week after the ev maker had to work through production snags after missing goals in 2021. news of the production sent rivian shares up almost 14%, the biggest intraday gain since november.

another story we are watching, a temporary restraining order issued against a virginia woman accused of stalking and harassing tim cook. they reportedly has been going on for more than a year. the 45-year-old woman reportedly contacting cook and showing up at his home on two occasions. court documents show the woman sent cook pictures of guns and ammunition. coming up, the future of entertainment in 2022. will the streaming wars give way to consolidation? we will speak to former disney exec and candle media co-ceo kevin meyer next. this is bloomberg. ♪

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emily: let's get back to earnings. a disappointing forecast for profit. fueling concerns about the turnaround plan will weigh heavily on the chipmaker financial performance. bloomberg intelligence joining us now. what are your big takeaways here? >> the top line print was better than consensus but i think with intel, investors are looking at the long-term plan and looking at the industry dynamics.

when you look at the semi conductor demand, we are in probably the best amid environment for semiconductors he see tsmc till he about 20 to 25% growth. that makes you wonder with intel talking about 1% growth in one q and they did not give a full year guidance. a lot of question marks around the turn and how long it will take intel to drive the topline growth even though done -- this is the best set up for a semi conductor company. emily: is it going to payoff? >> one aspect of that is intel specializes in architecture. the trend is moving toward arm. even the hyper scale cloud vendors are pivoting to arm. that is the key question for investors, to figure out if this

as capacity on this side. will they have enough demand from customers because the customers already standardizing. i think that is one of the key questions intel has to address in terms of the new apps they are adding and what it means for demand. emily: we will continue to watch these results role in. i went to move on to streaming and the world of entertainment. ever since reporting following subscriber growth last week, netflix shares have fallen to their lowest since march of 202020. will we go from streaming wars to major consolidation and what are the next big trends in entertainment? let's talk about all that and more with kevin mayor. always great to have you bag with us. i have to ask your thoughts on what is happening with netflix. it is almost like the pandemic never happened and will that demand for content has evaporated.

what is your take? >> netflix is a very profitable company and they are as healthy as they have ever been. i think the market got ahead of itself. i think this was built into their stock price. growth will be a little bit more moderate. that pops the balloon a little bit. that does not mean netflix is not a healthy company. the content they make is not only prolific in high-volume. a lot of it is very good. i see that as a valuation move. emily: you told me you always look at this as there will be a handful of global players. there will remain some smaller niche players. now that you see what has happened especially over the last year, and you expect consolidation? what core services stand out and

survive? >> i do expect consolidation. i think the netflix news and stock price movement confirms that thesis more than anything else. i think when you're spending that kind of money that netflix and disney and amazon in hbo max, there's lot of money spent on content. when there -- there is a ceiling to how many subscribers are going to join the club. i think that does mean it does cause consolidation. it is a small universe of truly global platforms that can spend 10 plus billion dollars a year on content. i think that is probably four or five services. my thesis, i maintain my thesis of smaller niche programming services by continuing to do very well and becoming profitable but smaller. the expenses they are willing to

maker can make will be commenced smaller as well. i don't know. 45 global services. that is probably about it. emily: kind of asking where you would put your money. is it netflix? is it disney? is hbo and why? >> netflix has a huge lead and there is a bit of a text the more subscribers you have come the more revenue you get from subscribers, the more money you have to invest in your content. you can attract more customers. there is definitely a flywheel effect and a positive feedback loop. netflix is at the top of that. there is no way to dislodge them. i think they are in a great position notwithstanding the recent decline in stock prices. disney has too many brands.

programming is great. creativity is second to none should they have a similar flywheel. they have other businesses to make money from as well, which can feed into the ecosystem to afford more content. i see disney as a big winner. hbo max. they have a huge library. they have a lot of creative executives that do great work. they are going to be a big winner. you have apple tv plus. all the world. they are building a good team. i think they are in it for the long haul. i see that -- i see them as being a survivor. and amazon also. we get to some of the other services. maybe one or two of them could survive. either they will have to combine or consolidate or reduce their aspirations to be something more of the niche.

emily: speaking of changing aspirations, do you think disney ever might spin off espn at this point. -- at this point? >> you have -- you think about disney. they have theme parks. they have channels around the world which are collapsing into the streaming service. they have consumer products based on the properties. that forms an ecosystem that is definable and robust and i think has a great future. espn is different. espn was strategic to disney for a long time because it helped them sell their channel bundle in the u.s. in more robust and profitable way. it is still a good business. the question, is there a strategic coupling between all the other brands disney has an espn?

espn was used to carry abc and disney channel and fx. it is valuable in that realm. when channels become less important to disney, that could be seen from a different way. the bundle i put in place and still is in place between espn and disney plus and hulu is quite valuable. in terms of a re-bundling approach, having espn as a sports over service provides aid advantage. i think it could go either way. emily: you have been making a lot of deals buying reese witherspoon's hello sunshine. you are adding fairway production. how are all of the companies you have bought going to work together and where is this going? >> we are a big believer in the future of media configured for the greater economy. we like traditional film and tv businesses.

they sell to streamers. demand for content from the global and territorial local streaming players is growing strong double digits. i don't see that stopping anytime soon. there is a strong demand for film and television product. you think about reese witherspoon's company, their center of cavity is film and television. they also have social media. and social commerce opportunities associated with it. our company, we want to be in the film and tv business but we also want to be in the social storytelling business. one thing i noticed when i was at tiktok is if you can have an authentic connection with a brand, creator and social media audience, there are substantial commerce opportunities. we like to be in all those portions of that. content, community, and the associated e-commerce potential and if you think about moving book and another company we

bought, that is an intellectual property owner. the cocoa melon. they are some of the more industrial properties for kids and all that comes from youtube should they start off as social media storytellers and they have sold to netflix. cocoa melon with the number two stream show for netflix in 2021. just a smidgen behind criminal minds. this stuff works. that company was based on social media storytelling. all of that wound up having social commerce opportunities. we like that confederate -- configuration of our company. more and more moving to the social media platforms. emily: lots of cocoa melon happening in my house. youtube ceo susan wojcicki. we talked about her outlook. take a listen to what she had to

say. >> so i 35% increase in the number of craters generating six-figure income out of youtube. that is just an example of how the creator economy is continuing to grow. emily: how do you see the creator economy unfolding? they're big established craters and there are these smaller players across youtube should there's so much competition and demand for their time. it is also a different kind of content. dark it is very much a different kind of content. you look at film and television. 22 minutes is the minimum kid a couple hours for a film. youtube is in the middle. they are usually around four to 10 minute length storytelling. that is where we are with moon bug and cocoa melon. that is a different form of storytelling. you can take those four to six to 10 minutes and make a traditional media length, a

full-length tv show and we did that with cocoa melon and that is what you see with netflix. then you get down to the very short videos. less than 60 seconds on tiktok. that takes an extremely different muscle. you do have to have a storytelling capability that reaches across all those lengths. then there are podcasts, which is just audio. that takes a different form of storytelling. we are going to have a coexistence of all these different lengths of video from traditional down to very short videos. marketing messages are also getting shorter. some of these five to six seconds adds that in front of youtube videos are pretty effective. that takes a different type of creative approach also. it is about telling stories in different ways. the difference between a landscape or horizontal video and a vertical video, even that makes a big difference. you do have to understand how to

tell stories in these ways. that is why candle media is -- we are building it with that in mind. we have a pretty modern approach to how we are going to get entertainment content in front of people. emily: we will keep watching the moves you make. thank you for joining us. one of the biggest by now, pay later firms is going super. my exclusive interview with their super app. plus, when the company may let you start buying crypto. this is bloomberg. ♪

emily a firm is out with a new : super app. it will give customers a one-stop shop to help them manage their finances. the upgraded app is in anticipation of the upcoming crypto offering. joining me now is the ceo and founder of a firm. talk to us about this super app. what does it mean, how does it set you apart from the other options and what more services could see? >> it is now a really beautiful way of accessing all of our offerings for consumers. unlike our friends in the industry, we're the only one who have a shopping and saving component. you can under one on berlin roof get access to all the retailers we work with. you can use a firm at the retailers. don't have direct integration

and save money. you will find crypto offering inside the savings as well. emily: talk to us about the crypto offering and what it means. obviously given that we are in the middle of winter and some people are getting worried. >> even in the current volatility, it is one of the best-performing asset classes of the last decade. and we wanted to offer our consumers a chance to access that appreciation in a safe, responsible way. we are not launching a crazy speculate here. but there are ways of saving money. it made sense to add a way to put some of the yield into crypto. emily everyone is watching : inflation, especially with what is happening with the fed this week.

what is your view on that? how will it fight consumers and how much they use this option? >> inflation robs consumers of purchasing power and affirm helps get it back. we know this is our time to shine. we are going to help everyone afford the things they need responsibly without late fees, without all the garbage you have to resort to when the cash -- when the prices are going up. we are excited to help folks survive the inflation and the volatility. emily: got to ask for an update on your conversations with regulators. how are those conversations going and how optimistic are you? >> i'm very optimistic. i think it is important for regulators to credit will book around things like credit

reporting and engagement on npl are long overdue. it is nice to have the clean sheet. transparency and honesty. emily: we will keep our eye on that. thanks for stopping by. coming up, elon musk, do gecoin and mcdonald's p the crypto showdown that is going down. this is bloomberg. ♪

amylin: -- emily elon musk has a : new social media target, mcdonald's.

he tweeted he would eat a happy meal on tv if the restaurant chain accepted dogecoin. it did not take long for me, to respond. saying they would except the deal. this exchange is launching an avalanche of memes from michael seiler and mark. ed ludlow joins us to discuss. in other day, another elon musk twitter during the pot. ed: just on the earnings call, talking about austin and the plant, he kept referencing the internet and pictures he has seen on the internet. the question is, is elon musk directly responding to the original mcdonald's to eat? my guess, of course he is. emily: mcdonald's was kind of needling crypto twitter users earlier in the week asking them

how they were doing. burger king also getting into the fray. ed: on dogecoin, we had those two identical tweets. everyone had been acting like it was a no idea. he was so active in the space but people seem to have short memories are they don't take him seriously. emily: you have been listening in to the tesla call. having some choice words as always. what is the latest? ed: his commentary around. driving. we got a promise that in his opinion, this year, 2022, tesla will achieve full self driving.

we had heard that one before. emily: what is moving the stock is the concern about the supply constraints. we just heard from steve wesley earlier. he is not concerned at all. tesla still far and away from all the other competitors. perhaps what we should be watching as china. ed: the volumes of shanghai and china have been depressed for several quarters because of supply chain issues. on the call, they gave a lot more detail on austin and berlin. they are building a new generation of cells. those deliveries will start this quarter. elon musk says the supply chain picture should improve this year but it is still going to be an impact. how that impacts margins, profit, that is uncertain. ed: what are you looking at as these results continue to roll in especially given the outlook

for the year and the fact that the supply crunch, we heard it from the ceo of ford, there is not relief in sight. ed: i love this question because going into earnings, morgan stanley has published a note saying tesla is no longer a concept stock. if you don't on tesla, you run the risk of not owning a stock that could make the likes of ford and gm obsolete. elon musk saying the big thing this year is the human robot. that sounds like a concept company. it is hard to track. emily: ed ludlow tracking tesla earnings for us. thank you for that round up. that does it for this edition of bloomberg technology. you can tune in tomorrow. our big tech earnings coverage continues with a big one. apple. bringing down their first quarter results. and robinhood fourth-quarter results. you don't want to visit. this is bloomberg -- you don't want to mess it. this is bloomberg. ♪

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