♪ caroline: i am caroline hyde.

ed: this is bloomberg technology. tesla, ibm layoffs. ed: microsoft not hold us down. annabelle: we have to get to some earnings. caroline: tesla accelerating cost-reduction as profit tops analyst estimates. ed: the senate takes up a bill two tiktok nationwide after dozens of universities take action to block the app. caroline: a space rocket lab launch was. we managed to close flat on the s&p 500. on track towards first january since 2019 area with question

gains when we get to earnings across the board. nasdaq is off. we are on the slightly higher side, we are cautious. the bank of canada says it will end its rate hike like a. i'm looking at bitcoin. where back, the highest level since august 2022. ed: this is a global company with global vision. we bounced around the market was not sure what to make of it. $1.19 a share.

click the above expectations. the big takeaway was tesla committing to an annual growth rate of 50% saying they will do around 8.1 million units in production. let's get to austin, texas. give us the main takeaways. >> we realized there is a hit to the margins, not as much as people are expecting. it's not the marginal growth tesla has been working with. we have to remember, the biggest cuts they have made more margin story how much inventory those

troubles they had in china. caroline: thank you for the breakdown. meta is ending the suspension of trump's accounts. reinstating the facebook and instagram after two years. ending the suspension of his accounts across instagram and facebook. following what happened on january 6 back in 2021. we will have more on that later in the show, shares are falling 3% post-market. let's get back to the story of the day when it comes to tesla. the numbers we got from profits. you are bullish on tesla in the long term. production farkas, is their

demand to media? >> our focus is the five-year gas. tesla is the top position. in terms of the production goal, they mention, if you go back to 2020 there on track over a number of years to meet the 50% compound annual growth rate. the fears are margin and demand troubles, our research, the gross margins over time for , every cumulative doubling, you get a corresponded and reduction price. we also know they are unveiling a new vehicle platform which should be halfway across the model three. that could be a custom-built autonomous vehicle which will help margins. it will give a huge bump to margins. thomas platforms, the main story

is ev is growing. gas powered cars are down 7%. that is what tesla is. i would be worried about traditional autos if anything. caroline: are you worried about the impact of elon musk himself on-demand? is it anything showing up in the demand erosion? >> is always been a controversial figure. we have to go by results. tesla grew sales by 40% year-over-year while in the same quarter, global auto sales were down. but so we have to go off of. he's a colts figure, is the person to drive the company towards reaching the self-driving goal. we are happy he is committed to

tesla and sticking to that. ed: i want to bring some more information to the audience about what you were talking about. tesla is talking about his next generation nickel platform, additional details to be shared. you suspect it is some form of fully autonomous vehicle for the future. i want to bring it to the here and now. a lot of what tesla hinted at was the problems of 2024 were china related. talked about production issues being centered on the shanghai plans. look at margins and narrative, the average selling price. we went to the audience which you to make you by tesla. they changed over the course of the day with a good number of

ballots costs. attempted our audience to buy affordability. this tesla too expensive? >> first of all, i'm glad you showed the tribe. leadtimes have extended. we were getting additional indications. we don't model tax credits in our analysis. we think ev is the longer-term regardless of regulation. that's the picture, electric vehicles, tesla is the market leader. they invested in single digit percentage points.

there are still tesla as a percentage of total auto sales. there is room to grow. it highlights energy. we think tesla energy offers an interesting great proposition of renewable sources. in our opinion, these are the

two main stories. ed: if you track the annual growth rate, it does not make sense. >> still -- i'm sure people will harp on the figure. electric vehicles are here to stay and i would be really worried if i was ford or the other manufacturers where the majority of vehicles they sell our gas powered cars. it's not going away.

they don't have a great solution. he killed that product. that's where the concern should be. ed: the question for you is what does elon musk have to say convince us of that user? >> i'm excited to learn about the autonomous vehicle. they said they would mass-produce an autonomous are, we think this could change the business model, our price target is around 1500 dollars per share. over 60% of the value could be attributable to the right help platform. it will have attracted margins, a revenue stream.

it will change the game in their way ahead. they have nearly one billion miles driven. millions of cars on the road. ed: good to catch up. another big story, ibm announced job cuts. they will lay off 1.5% which amounts to roughly 4000 jobs. ibm released earnings to live bring an upbeat forecast and the weight of its restructuring plans. caroline: we will talk about restructuring of certain businesses. earnings will slim down. as bloomberg. ♪

caroline: we're going to talk earnings. at&t reaction is positive. i want to dig into what is a slimmer, leaner and meaner at&t with its ceo. we welcome them into the show. 6.5% higher. talk to us about what you think the investor base heard and liked.

>> ask for having me in. -- thank you for having me in. to your opening, we have been focusing the business to be more adept in the communications space. we started that work in earnest. we completed the transaction early part of last year and investors are stepping back and asking if this is the right place to go. what you have seen over the last couple of quarters was, we continue to pick up the customer base and we're seeing the profitability and cash back into the business as we have made those investments. we intend to stay focused and keep moving forward. caroline: what about consumers?

can you pass on costs? >> we have a broad scale of consumers. the low-end is stressed. taking a little bit more time to pay the bill and possibly be recharged. it's out they are not buying the service or paying, they're trying to manage it in an environment where there are making choices on discretionary items that they are moving out and trying to balance overall obligations. top end of the market is strong.

we're coming off a good volume year. it will temper, but it's going to be healthy and it's indicative of how ingrained the services we sell are. the sell side reaction or conclusion seems to be your prioritizing financial growth. in the fourth quarter you had a 656,000 new phones, strong growth in the fiber-optic business. are they right? >> it is both. i would not agree with that conclusion. both in the wireless and fixed broadband businesses. come from getting the right customers the right way and we have done a good job where we

are underpenetrated. we can do both at the same time. as a result, we could try profitability growth. ed: we are a technology show. we pride ourselves in being talking about technology. how much visibility have you got? is the consumer strong? >> visibility in general is a bit more challenged given the environment we are in. there is the visibility on the geopolitical side, i'm not going to tell you i'm not better than people who do it for a living.

every for-profit enterprise around the globe visibility on how the economy is performing, i think we reasonable visibility. we have conservative estimates in 2023. inflation people last year. -- pete last year. we were able to navigate. we were driving the right value i don't think we will see an environment that is more dynamic, we will have new challenges. this is a team that is shown itself to be pretty adaptable and agile and being able to adjust, and i feel the guidance

is consistent with what we can do. >> it feels like you're being creative. you're focused on the good things, dividends, debt payments. a lot of tilting debt, m&a, the unwinding of that. i'm interested in joint ventures. blackrock, your offering fiber. is this about spreading the risk? >> it's a combination of things, and sharing some risk, i'm trying to be responsive -- we can do that wisely. we've done a really good job of that. this is a new approach.

we can come back and show them we can do this right. to the extent we do that and when we do that, we will put our foot on the accelerator and go faster and this allows us to do this with a partner, so this keeps everyone comfortable on the capabilities while trying to find a new vector for growth. caroline: everyone said 5g is it. is it here and now? >> we were not estimate the meat and potatoes estimate. it allowed for more capacity on wireless networks.

more robust plans with higher values. that would not have taken place. the blm doll is things like autonomous vehicles. they need to have persistent vehicles. the networks are getting to the more ubiquitous types of things. ed: i'm glad you're watching the show. donald trump is back on facebook. this is bloomberg.

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caroline: bloomberg joins us to discuss. >> we expected what facebook was going to do. what they said with they needed a heightened risk, that's why he was suspended. they said they would bring him back and we knew this was

coming. the big question now is when will we hear from him. i imagine he will be out. i don't know how quickly. caroline: shares were falling on the back of this. ultimately, will we see meta criticized? >> of course, any direction. thank you so much. this is bloomberg.

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than they can sell. they are doing whatever they can to sell cars and customers have not responded that backnot responded that enthusiastically yet. tesla is running into kind of a buzz of issues. many of which have nothing to do with elon musk. you have interest rates going up which makes cars more expensive. you have competition from rival automakers. ford is bringing out these cars that were not around a few years ago that are really competitive. customers are taking a second look at other brands. really, there is this other problem. elon musk desperately wants to be considered funny. it is this desire that we see play out every day on his twitter account that may be starting to hurt his most important asset, his own

reputation. at the end of the last quarter in december, the company started frank with -- frantically cutting prices. you might think he might have an epic quarter. they did not meet expectations. that sent the stock down further creating the sense of failure. you are starting to see investors, analysts, even some people who are big fans of tesla and big fans of musk say something that would have almost been unthinkable a couple of years ago. that is that musk needs to step back. he needs to find a way to spend less time on twitter or if he is committed to twitter to spend less time on tesla. caroline: that was fascinating. just brutal analysis of how he is not that funny ultimately but his decision to try to get these laughs has almost eroded some value off of elon musk. at the moment, that is not an issue for tesla going forward. he thinks that the ceo is still a benefit rather than a hindrance. i thought there was a great quote on the story saying that

you will not boast about buying a tesla anymore and they are saying it is somewhere between cringe the other side of the argument is this is all part of elon musk poss master plan. we talk about the key man risk. the tesla and you unlock story. speaking of twitter, a new twitter whistleblower has told congress that the company continued to violate privacy and data security protections even after musk poss take over. -- musk's takeover. give us the details of what this whistleblower is claiming. quench this new twitter whistleblower, a lot of the allegations focus on god mode which allowed any twitter employee to access any twitter users account either to delete tweets or to access between

themselves. the whistleblowers as the ftc should look into us because the company is flagrantly violating its consent decree. ultimately, where does this get taken? cracked the ftc already integrated twitter's privacy practices last year. he was twitter's head of privacy. there are horrible security and privacy violations. they have just broadened it. this is probably going to be the nice thing investors are looking at.

ed: what are the consequences? what could the ftc do? cracked we are talking about some pretty steep fines. twitter can find companies found to be violating privacy, they can find them -- fine them tens of thousands of dollars. there is a lot of money on the line here. the bigger question is can the

ftc actually do it? cracked the question still goes on about regulation. let's turn our attention to the other key social media players. they will ban the popular app nationwide. we are already getting little tidbits. it is a specific action of how the texas governor statewide is trying to remove excess to tick-tock. -- access to tiktok. unsurprising that the banging of the drum keeps coming. twice it keeps coming. this was one of the loudest bankers of the drum.

just waiting that he believes tick-tock is a backdoor into americans lives. he is putting this bill through. this was the national security review going on for years. there were a lot of republicans being very loud about tick-tock. maybe the democrats are being a little quieter because biden's administration is the one who is doing this in-depth national security review. it seems that tiktok are different to that process

before they pile on or speak really publicly about what they think should happen with tiktok at large. quacks there response was to say we reached a deal with oracle. >> this conversation shifted. we started talking about it. everybody's feed is different. that could actually be the idea coming front and center. the very first time, it was kind of in 2016. i am sure they are thinking

about how a bad actor or if they see china as a bad actor, how they might be able to influence the feet of an app that is becoming stickier and stickier with americans. quacks it is an interesting global story. india took its first steps to bennett. considering the amount of european regulation, they have not been this focused on tick-tock as the united states has. from this perspective, what we do have his division among

democrats and republicans. will they come together over this? >> whether they come together formally, it seems like these voices are come together. if these new apps came in place today, the company might be in a little bit of hot water when it comes to eu data security laws. whether or not they formally come together and follow india's lead and banning it, -- the voices are getting louder.

these are all the right people for consumer protection and some of the wrong people. quacks tomorrow, fcc commissioner brandon carr will join us here. to talk all things tick-tock in an exclusive interview. meanwhile, let's turn to crypto genesis is working to get some money back from the man known as bickel and jesus. genesis says that roger behr owes them $20 million alleging that he failed to settle options that expired in december. they say this is a breach of their agreement. coming up, to space. a major rocket launch in the united states. it was not space x. this is bloomberg. ♪

caroline: salesforce, you might

have seen a sprinkling of celebrity around this company. maybe it is matthew mcconaughey in an advertisement. what about giving actual corporate advice? the ceo of the software company said depending on celebrities for some high-level corporate discussions. the question is, is the ceo distracted? is he focused on profit where you should be? this is reporting in the financial times. it's interesting that at least one or two people has been caught off guard. ed: we're talking about two known celebrities having major influence.

at the time, bear with me. there were stories in the media about a vietnamese buddhist monk. took under advisement, building the ultimate space. i'm saying he has a track record of seeking guidance not normally associated. well said. caroline: there was a lot of coverage about talent sinking rather than staying stable. what is so interesting is ultimately, i thought it was interesting, the philanthropy.

i can understand worried about bringing in the wrong celebrity. will.i.am, i don't know how much he has -- knows about sales. ed: the expensive dream force. crm. this brand everyone knows, clearly there is a benefit for that. investors trying to get this under control. caroline: we're keeping an eye on >> happening in space. we had a rapid to discuss. this is bloomberg. ♪

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ahhh caroline: unionization intact is

a global discussion. amazon workers are looking to pardon a historic strike. amazon workers are striking for the first time in >> we are here where amazon strikers for the first time in u.k.. the union behind me has set up in front of the entrance to the warehouse, stopping workers on their way in, join the union. so far, 300 workers are expected to join, and it's all about pay.

they are asking about a 50% raise to 15 pounds an hour. >> this does not impact how amazon does business. >> amazon has its own problems, dealing with people adjusting back to the pre-pandemic spending habits, already said it will cost 18,000 jobs. about 1% of total workforce. here in the u.k., it's adding to the discontent. >> this is a company that does not take health and safety seriously. >> it shows the discontent

beyond the public sector. now, the private sector gives new meaning to the morning. in response to this big wage bill, those problems of the u.k. is facing. ed: rocket lab had his first u.s. launch, you can see it, the ceo on the move. how many launches will come from the united states this year? >> somewhere between four and six between global launches. ed: there was a moment where, we

see on our screens, we are waiting. it's tense, scary. petra maddock the moment? >> we have ground stations. there was a snake called around, we had contact so we are all happy. for those watching, probably wondering what was going on. caroline: quite an emotional ride for investors. it seemed to crash back down to earth.

>> in general, there has been correlation. we went to the moon last year. a historic mission. , little influence on the stock price. we continue to execute and ultimately the market will catch up. ed: cap tightness capacity right now? would you be able to fill the payload quota? >> where the dominant force globally.

it's roundabout in the 2027 timeframe. that's why we're developing the get the larger to meet margins. ed: i had questions on twitter. >> it does not. does not make it obsolete. ed: an astonishing achievement, bearing in mind a dominant space is in the industry. they did it.

they're going to catch the helicopter in mid air, we will get them back to talk about it. caroline: that does it for this edition of bloomberg technology. stay tuned for tomorrow. thursday, brandon carr. weston forget, a lot to recap. wherever you get your podcast. iheart radio, spotify. apple, it's been a busy week. layouts continue, earnings continue, we will be across every thing. this is bloomberg. ♪ (♪♪) this electric feels different... because it's powered by the most potent source of energy there is ... you. this is the lexus variety of electrification ... inspired by, created for and powered by you.

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