Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Live from New York. This is Bloomberg Technology coming up. The CEO of IBM joins the show has Big Blue promises to help simplify and scale enterprise ai plas Paneteeric tumbles despite raising its revenue forecast, My earnings fail to live up to its current valuation, and Tesla under pressure as monthly sales continue falling hard across Europe. The first
we check in on these markets on tenter hooks. We have the FED coming out tomorrow lightly holding rates, but could we get a more hawkish commentary coming out of the Fed chair. That's what Bloueberg Intelligence is expecting. Then, as that one hundred sevent tens percent, as we hear Treasury Secretary Scott Besson giving evidence on the hill as well, will get to analysis that in a moment, but we're
still down by seven tens percent. More broadly, as we have anxiety around trade, move on to the individual movers, one of the key stocks that tugs us lower by twelve percent palented. Look, it's still the best performer on then as that one hundred so far this year, but the forward looking guidance is not enough to substantiate a extraordinary valuation. We'll dig into that stock a little bit
later in the show. IBM currently trading flat, managing to outperform the rest of the market, as it has done so far this year, will get out to think their annual event where they unveil yet more software to basically align AI to make sense of all your AI agent offerings. Will have Arvin Krishner in but a moment. But first we go to US Treasury Secretary Scott Besson testifying in front of the House Appropriations Committee, speaking on efficiency, on
budget cuts and the state of the US economy. Please to welcome Tyler Kendall joining from outside the White House. And it does seem to be pushing on those what's really been touched here so far? Tyler?
Yeah, Hey, Caroline, Well, this is an oversight hearing, so it was widely expected that lawmakers were going to push him on dose. The Treasury Secretary said that it's the Department of Government Efficiency, not the Department of government extinction, and that he does intend to keep the treasury up and running to the best of his ability and with the most capabilities as possible, but did note that he has already cut two billion dollars from the IRS without
any disruption. Beyond that, though, he did get into some tariff policy. Grilled by these lawmakers who want more clarity when it comes to what the trade strategy looks like ahead, he did say that as of now, the US has not engaged in negotiations with China, but reiterated what we've often heard from this administration, which is that we could expect some of those preliminary framework agreements to come as soon as this week. He also sort of outlined somewhat
of a timeline here. He said that ultimate we could see eighty excuse me, eighty to ninety percent of our fifteen top trading partners clinch deals by the end of
this year. When asked about the impacts that these tariffs can have on the economy, considering that Scott Bessett really has been at the forefront of trying to defend this administration's economic policies, he said he's not concerned about a US recession and that he's looking forward to the Q one GDP numbers being revised, but as Bloomberg Economics cautions, that doesn't necessarily mean that they are going to be revised up. And then lastly, I will end on this
because this is very important here. We were wondering if we were going to get a firmer xitate a date when the US government could default on its debt, because that is seen as sort of that hardline number that lawmakers are up against to pass the reconciliation package that this administration is really banking on to get more cash
into consumers pockets quickly. When it comes to their tax cut agenda, he said it's forthcoming, but that he cannot give lawmakers that updated number as of now because they are still sorting through the tax receipts from April.
A macro perspective and Tyler Kendall, thanks so much. That's what's going on on the hill. Simultaneously, We've going to go to what's happening with IBM, and please to welcome the CEO of Vin Krishno, who is coming from the company's think conference and annual event. And Arvin, I'm just excited to hear really from you. The pace of change that's happening with agentic AI. I think you put out there that in three years time there's going to be one billion apps. It is so noisy, it is cluttered.
How are you may managing to streamline it for your customers?
Look first, I think that number is the really interesting number. A billion new applications using AI for a third of them using agentic AI. And the way that we are approaching it is, how do we make it easy for our customers leverage their own data, insert their own data into the models, and then leverage it to make the enterprise.
A lot more productive.
That's what we're after building, and that's what we've just announced with our watsonex orchestrate with agentic capabilities, including one hundred and fifty new agents, some from us and some from our partners.
One hundred and fifty agents sounds an extraordinary number of it. And look, you've got a big book of business already when it comes to Generative AI six billion dollars in growing. But how much are you seeing the CEOs you serve pushing back on overwhelm. How are you managing to help them navigate what feels like, in some ways a less than productive environment for the amount that they're investing in generat to AI.
Look, I think that what CEOs are concerned about is that now that you have gone the era of experimentation, as I call.
It, is over. Now people are looking for business value on AI.
As they're doing that, they've discovered that about twenty five percent of the time these projects are paying off very well for them. So learn from that twenty five and then figure out what are they inhabitors and the other seventy five and take those out and those are invariably this fragmentation.
In the environment. So how do you have a more integrated environment.
You've got to make sure that there is value in the AI projects.
Don't just do an experiment and leave it on the shelf.
You've got to scale it and deploy it across the enterprise. So how do you integrate? How do you create the right hybrid environment. That's what we're helping them with. And then we believe that twenty five we'll go all the way up to fifty or seventy five, at which point that's a great return for the CEOs.
That software that you're unveiling, those consulting offerings that you continue to provide of in at the moment. How much is that bearing fruit in this current environment? How willing are these CEOs to experiment and move on from experimentation when we've got a really uncertain economy on our hands.
Look, I'm a more of an optimist on the uses of technology in the current environment than a pessimist. And why do I say that? So when you have supply chain issues, you have cost issues, you have productivity issues, technology becomes an answer to help you scale the business without having to add a lot of physical cost into
the business. So I find the appetite of the CEOs is quite high to spend on technology as long as they can see a return that is our college short to medium term meaning six months, twelve months, eighteen months. I find people leaning in very heavily, and I think that's why you see enterprise tech spending has remained robust despite all of these issues that could be talked about.
What about government in the moment? Scott Beson getting grilled on a hill at the moment around DOGE and that has had implications for your own business. I think it's about fifteen contracts we understand having canceled, are more to come? Are you seeing an end to that cancelation process.
I actually choose not to get worried about doors. I think that the areas where we have very robust contracts, when we're helping the VA process claims, we help the GSA on expense management, we help the DoD on payroll, those remained very robust, and I don't believe that those will come under any significant attack. Areas which do come under attack are much more what I call discretionary, or are much more time and material or labor augmentation based.
Those may come under attack. It actually does not worry in me.
I believe that even if those come under attack, there is more than enough offset from the areas that are more critical interesting.
So basically any cancelations will be outweighed by business that you potentially can win. Within the government as well.
I believe that from having talked to very senior members of the administration, there is a huge appetite to use technology to modernize government and to help make government itself more efficient. You can't achieve efficiency just based on cost cutting. You actually also will have to invest in technology, and I believe, and not just my belief from having spoken to them, they have an appetite to.
Do that, I'll tell you where there's appetite traffic controls and Trump himself talking about maybe raythean IBM coming in to help solve some of the real anxieties we've got just a loss of radar over happening in Newark? Is that progressing? Ovin? And you able to share on how any sort of contract might shape up.
Look, I don't want to talk about any specific contract or any specific agency, but I think what he just pointed out is a great example where technology will be part of the answer. Better integration, better computing capabilities, better communication capabilities, all of those will play a role because right now we are living on not exactly but essentially. I let's call it a slightly evolved system that was built in the nineteen seventies.
Ovin. What's crucial about air traffic control is accuracy, And I know that's almost where everyone's eyes are when it comes to a GENTKI when it comes to generative AI is the risk of the underlying data being inaccurate and how that compounds. How are you managing to tackle that sort of area of anxiety and reality.
I always break the problem down.
The core of air traffic control has to be built on very precise data from pretty accurate data. You're not going to go use agentic ai to estimate where a plane is. That's going to be based on much more physics and hard engineering. Now, could agentic ai come in trying to optimize routes in worrying about how do you increase the total flow and capacity at an airport? Perhaps, but I'm using the word perhaps because there's a lot of careful work to be done there.
But could agentic.
Ai be used to process claims faster at Social Security or the VA? Absolutely, and then you make citizens happier, you deliver them services faster at a lower cost. That's where I would go first with agent KI.
And in the private sector, they're looking for accuracy and that's something you're offering at the moment. How much is you're just seeing the adoption and the use and productive use of Agenda KI being limited by that underlying data right now? Or is that something that with streamlining already.
I always advise our clients start with the use cases where you can live with some risk, where you do not need it to be one hundred percent accurate. So if you think about customer service, you think about end client experience.
I think about our internal IT help lists.
Those are all areas where when you were dealing with people, you actually had a ten or fifteen percent errorrate. So now that you deal with at AAI, you can actually have a lower errate than that, but maybe not perfect, but you can still live with it.
Think is all about innovation. I'm looking at this the car behind you. I'm thinking about the way in which you're also pushing the agenda, not only when it comes to hybrid, when it comes to on prem When you think about the innovations you're making on mainframes but quantum A You're getting a lot of questions on con right now. Scott Beson wants the US to lead in AI but also in quantum computing. How is that making a difference in your business right now?
So we are very very pleased with the innovation we brought out here. We talked about the AGENTAAI. We just mentioned the mainframe. We can do four hundred and fifty billion AI inferences per day on the latest mainframe we just announced this quarter, the Z seventeen. Think about using that in financial systems to help reduce fraud. So that's
an incredible area of innovation on quantum. Part of the reason we announced the huge investment last year and into quantum, and we just brought out the quantum system to this year is because we are very excited where that will go.
That's an area in which we believe.
The US must and can lead on quantum computing, both for national security, but also for competitive advantage and for growing a business.
And is that a competitive advantage continue to grow here in the United States. You've just unveiled a huge amount of investment into the US.
Yes, So we put one hundred and fifty billion dollars here into the US because we believe that if I look at AI, I look at hybrid cloud, and I look at quantum coming, the growth opportunities are here. So we want to invest to take advantage of these opportunities.
IBM Chairman, President CEO, Arvin Chrishna and live from Think We very much appreciate your time today. Now we're also watching shares of other providers. One of the partners that are insuffering right now is service Now and look it's flagship generative AI software product dubbed now Assists. Apparently he's going to hit one billion dollars an annual contracted business by the next year shares of by six ten percent, in line with the rest of the market. More Next,
this is bloom Meil Technology. Let's get back to the state of the market. It's currently under pressure. We're still trying to know what the tariff impact is. US Treasury Secretary Scott Besson testifying in front of the House Appropriations Committee on the Hills, saying there are no signs of a recession. I please to welcome Janet mui OBBC Bruin Dolphin, head of Market Analysis and look for a tech investor right now. The anxiety has been around valuations of big
tech in this current environment. Do you think that we are out of woods in a recessionary environment? Is that still too early to call?
Hi, Caroline, thanks for having me. I think it's too early to call. But I think the base piece is no recession. I think we saw from the latest labor market data that the job market is pretty resilient, and I think it will take a lot more pain for
us to go into recession. And I understand you know, tariff is creating a lot of anxiety and obviously a lot of paralyzers on trade flows and investment decisions, but they're also ob sets that are happening, for example of significantly law or crisis and potential tax package that is going to happen, and I think it's US things are looking okay as well. So I think it's premature to conclude that there would be a US recession, but obviously the stacks are high.
Much has been said about the US as a government and it's buying or indeed pulling back on expenditure around dose. We just had the IBM CEO joined the show saying, look, he's more than confident that any new business within the US government he wins were offset for any contracts cut.
You've got Palenteer today once ago, once again showing real resiliency in their US government offering how much are you seeing big tech being able to weather at the moment any dial back in government spending but also private sector spending.
I think what we learned from the latest early AS results regarding the big tech is that the capas on AI remains unchanged, and in fact, I think there is still some pickup in that spending. So I think despite the distractions on tariff and the near Trump cyclical outlook, I think the longer term, AIV remains undebatable, and I think that that's one area where it can really drive productivity. And I think this is an area that corporates are still very much intended and happy.
To spend on.
So I think that long term train is intact, and I think despite the recent polls in some investment decisions, I think there's some area to be excited still about.
And it's interesting that, of course that focus on spending had really benefited the hardware offering out there of Lane, or at least the chip design side, when it was twenty twenty four twenty twenty five, the outperformers have been software offerings such as IBM, which is up about thirty percent year to day, Palenteer that is still the best performer on the main benchmarks. Janet, Is it still about a software win right now or can you go back into the hardware.
I think in any term, the software side will likely still outperform and be investor's preference because from now, if you think about it, it's a trade uncertainty that is top of mind, and there is some scale back of tariffs, but a big question mark remain, and so on that side you can argue that the software side is less impacted, right, so it's just logical to make that near time conclusion.
But having said that, I think on the.
Hardware side, I think the valuations of some of those key infrastructure and the chip design stops have come down, and I think it's really quite fair in value, to be honest. A lot of the concerns of overvaluation has.
Come back down a lot.
So it also presents great opportunities for long term investors because those are really great companies.
I'm going to go global with you, Janet, because you're based over the pond right now, and I'm interested in how tech in Europe is performed because, ASML pin up for the industry, it's down a lot this year. Has there been buying off Europe and other regions.
Overall speaking, I think the trend is that we're shifting a bit of more vile exposure from US to Europe. I think that's fair enough given what's happening at the moment, And I think for European tech, you know, for example, ASML that you mentioned those are global leaders or in fact has a monopoly on the machine that produces all these chips. So I think you know there are some concerns near term cyclical difficulty, but over the long term we're still pretty confident on these cycle leaders.
And what's so interesting, Janet, with your perspective is you can go cross asset for us. This week's been a big week for corporate debt sales from big tech. When you think about Apple coming after its earnings, we had Google yes last week with first time in years. Have you seen more more appetite across the full breadth of assets when it comes to technology.
Yeah, if you talk about corporate debt right right now, we have a preference on government bond over corporates are just purely on the bonus side. Or of course it
really depends on specific sectors and adiosyncratic issues. But generally speaking, we don't think the corporate express reflect the potential recessionarist It's not based is for sure, but I think we just have to be prepared for either scenario, so we if we do go into recession or more economics sold out, I think upon bonds would be the place to be instead of corporate credit.
We're coming to the tail end of earnings. We still got AMD arm You've of course got the juggernaut that is in video, But what are the catalysts for here on out at the moment? Is it fundamentals or is it still the breakthrough when it comes to tariffs into trade.
I think for these individual stocks, the fundamentals will be absolutely important. I think so far as I mentioned, I think the AI capax remains intact, but I think there's concerns on post margins obviously, and also there are concerns from the Chinese competitors, etc. So I think we have to watch the fundamentals. But essentially, I think what if for macro investors will still be looking a lot at what the FED plans to do, for example, and watch out for really the need firm economic data.
From the US and let's just go there to the FED. I mean, know you're expecting any sort of hawkishness or a dose of dovishness.
Coming out of the FED tomorrow, Well, Jabona's I think they are likely to stay on hold, and I think we shouldn't be overly excited about the potential for shifting to more dervishness because I think given the inflation and particularly I think consumer inflation expectation is really high at the moment, and I think there is a high bar for the FED to switch to more dervishness, so I wouldn't bet on that.
Yet, Joanna mu I'll be see Bruin Dolphin. Great to have some time with you, thank you very much. Now coming up, one of open AI's major stakeholders is the biggest holdout because the chatchypt maker tries to restructure. We're talking Microsoft next. Meanwhile, keep an eye on what's happening with Tesla shares. We have seen yet further sales pressure over in Europe. Disastrous numbers coming out of not just Sweden and some of the Nordic's Denmark, but also in
the UK as it finally turns neggad as well. In April in a big way. We're off by almost two percent. This is technology time now for talking tech and first up Palenteer. While shares are really driven lower today, that's after its financial results failed to live up to investors loftiest expectations. Though the company bumped up it's twenty twenty five revenue forecast or about four billion dollars, representing growth of some thirty six percent from last year, valuations just
too high were off by twelve percent. Meanwhile, Google says it will appeal a federal ruling to break up it's ad manager tech tool that Google is arguing that the DOJ's remedies go far beyond the court's narrow ruling. An open Ai has agreed to buy Windsurf, an AI assisted coding tool formerly known as Codium, for about three billion dollars. According to sources, This marks the chatchipt makers a largest acquisition to date. That the deal has not yet closed.
Will have more on open Ai in a moment, But now let's check in on these markets because we are under pressure sixty ten percent off by the NAST at one hundred. We wait with baited breath. What will happen with the US Canada meeting in terms of tariffs and trade talks? But what will happen with the Federal Reserve in terms of the direction of travel for rates? Where we get an inflationary sentiment, will get hawkish tone from
Fed chair Pal tomorrow. We are currently on ten to hoaks with bitcoin currently up a quarter of a percent ninety four thousand, fourth, one hundred and sixty one. Let's talk about door Dash. It's on a bit of a buying spree following its earnings beat. It announced two multi billion dollar acquisitions, London based delivery company Delivery for about four billion dollars and hospitality tech company seven Rooms for one point two billion, and the acquisitions will expand door
dashes reached over forty countries. It's go the inside track Blueggs Natalie Lung, and we start on the m and A before we go to the fundamentals. Why are they suddenly expanding outside the US? Natalie?
And so it really comes at a time where a strong financial position and it thinks it can go into the UK and sort of the more urban European markets and replicate their playbook that has took them to a dominant position in the US where they cover two thirds of the market.
Okay, so they expand globally now in forty countries. That adding on the ability to be well booking your restaurant. They with seven Rooms that actually already been working alongside in partnership and now they made the acquisition. Delivery has been bought. The shows are down on the day, though, can you just talk about what the fundamentals are telling us right now?
Yeah, So they reported earnings today.
The two Q order's outlook was a beat the adjusted editor outlook was a bit conservative, with the midpoint missing analyst estimates due to the ongoing investment into these new international markets and businesses, and so analysts would be looking at, you know, how.
They're going to you know, invest and spread across these markets as they grow in the coming years.
And just dig in a little bit as to why I want to be booking my restaurant via the app as well as getting the food sent to me via DoorDash. How is that the right sort of allocation of one point two billion.
Yeah.
For DoorDash, this is really expanding their enterprise offerings for restaurants. This is not only a consumer facing reservation platform like Rezi or open table, but it's also for restaurants to build up loyalty or reach customers more easily, like whether they're in restaurants or they're ordering on the DoorDash platform. So there's two sides of this here, both consumer facing and a B to B side of it.
Natalie Lung breaking it all down for us, We thank you. Let's turn our attentions to another set of earnings that seem to underwhelm investors. Shares a palenteer plunging after the company presented an earnings outlook that fell short of some pretty lofty expectations. I might add palent is one of the most popular trades among retail investors too. Let's just think about how Smarmer investors reacting to the news. I met Cook readers with US retail investor CEO of AK Media.
About quarter of a million followers you've got across YouTube, across x you are very popular for your thoughts on the stock among what well Dr carp himself is called a retail army. What do you make of the numbers today?
Hey, Carolyn, thanks for having me on the show. I've been covering the company for the better part of five years now, and I've been joined with a very passionate retail investor base. And there is something that retail saw in this stock when it was trading in the single digits that Wall Street did not see. Obviously, we've seen what has happened since then, and now Wall Street is buying it at a higher premium. But maybe that's because
it deserves a higher premium. I mean, you're talking about a company that just did thirty nine percent year of year revenue growth, seventy one percent US commercial growth. The remaining deal value is up one hundred and twenty seven percent. Their US government business is now accelerating to forty five percent year of year growth. It's a company doing nine hundred million dollar revenue, nearly nine hundred million with less
than eight hundred customers. I know the valuation is aggressive here, but I think the growth is starting to warrant it.
Just a double click on the market capitalization of two hundred and fifty five billion dollars. The stock could run what excessively this year? Many would say more than sixty percent high, and no wonder we pull back a little bit. But I'm interested in your take, perhaps with some of the analysts out there. Jeffrey's saying, look, this is really a retail trade. I'm not hearing people talking about Palanteer
and the institutional market in any way. The same amount that we're hearing in the retail community is that retail resilience there.
Well, if you look at the institutional and retail ownership split, it's fifty to fifty. So this is not Tesla in twenty nineteen, where it was seventy thirty. I think there's a fifty fifty split. So there's obviously institutional vestures that are excited about the name. But in terms of the valuation, let's let's take a second and set and step back open. AI is worth three hundred billion on the private markets
and they're not even profitable. AIG said this a month ago at their in Best Day, and pound Your quoted this in their slide deck in their earnings yesterday. AIG expects the adoption of an AI powered underwriting solution leveraging AIP Pound's core software offering to double its five year revenue cagre from ten percent to twenty percent. Alex Karp, the CEO of the company, has been saying that large language models largely are becoming commoditized. The implementation of them
is what matters. I'm not saying the stock is cheap. I'm saying the aggressive obviously is the multiples aggressive, but it might be warranted because the implementation of AI is what really matters, and Pounder is delivering those results.
I say some area of concern is Europe and indeed international expansion. That's going to be the catalyst that maybe does start to have people going, oh yeah, it should be worth fifty six times is twenty twenty six revenue. When are we going to get that international edge in the same way that they dominate to the US.
Well, Alex Karp has said this many times, and he said this on the earnings called yesterday. Europe isn't a crisis. They are not going to survive, at least their biggest companies in the world are not going to survive unless they embrace the AI revolution. We are seeing US commercial care or at seventy one percent for pound here. That is because the United States is embracing the AI revolution.
Alexcarp also said yesterday that governments across the world outside of Europe are starting to increase their at least inquisition of Poundter software offerings as well. Pouncer recently just signed a massive NATO contract for their Maven platform. I think that we are going to start to see a growth spurt an s curb in Europe. It might take some time because there are still cultural differences, but eventually I
think that's going to come through. And when that does come through, I think that's going to be another catalyst for Pounder.
Ultimately, we've already seen resilience shown with US government contracts in the face of DOGE. But is there anything that gives you any skepticism about perhaps a pullback and spending from.
That side, not really.
I mean, look, it was funny in February when there was a Pentagon headline that said the Pentagon's going to be cutting defense spending, and as a result, Pounter was down ten percent. I think more realistically, if the government is going to become more efficient with their spend, you need to efficiently allocate that spend. I mean, this is one of the most logical things that Karp and schamsankor
the CTO have been talking about for a while. So if we need a better allocation of capital to get more transformative results, I would imagine dose would be a massive tailwind for Powder versus the headwind, And as a result, I think that's why it's commanding its premium. In terms of the stock being down fifteen percent right now, this is a stock that was up seventy percent from the lows in April.
It's a stock that is up well above.
Ten x from the lows of twenty twenty two, when majority of people like myself actually took a chance on Alex Karp, when Wall Street decided that he was crazy. So from that perspective, stocks go up and down. I think this is a reaction to numbers that maybe weren't as good as what the street wanted. But the quarter itself was phenomenal in terms of the actual business growth.
They be They raised for the full year as well, and you're right, the stock is still up more than forty two percent over the course of the year. It's still basically the best performing tech stock throughout what has been a pretty should we say volatile state of trade. Is from your perspective, going more broadly, this the name that retail community still wants to be number one. Where else has retail been starting to put their bets when it comes to a tech ecosystem?
Yeah, I think it's palenteer. I think Alex Karp when he speaks, people listen. I did philosophy and debate when I was in high school and I was a national lea competitive debater. I was one of the top three speakers in Europe, top seven debaters in the United States when I discovered Punter back in twenty twenty one, and I saw on their website that they refer to their data infrastructure as an ontology and ontology is a philosophical word. Doctor Karp has a PhD in philosophy. Doctor Carp wrote
a book called The Technological Republic. It was a number one times New York bestseller. When you talk about a retail and what captures their interests, what captured my interest was this guy who did not care what anyone said. He was going to be himself. He was going to say his political beliefs regardless of what happened to the company. He had a backbone, is what I'm trying to say.
And I think because Palund is a backbone. I think because Alex Karp is ruthless about explaining what that mission is. That's why retail is attracted. The name and the growth is there to justify why retail wants to bet on a techtok that is actually accelerating in the age of aos.
Does retail want to bet on anything right now in this economic environment? What's the sentiment like more broadly onm.
It Well, if you look at some of the JP Morgan data we got in April and May, May or April and March. March had forty billion dollars of net inflows from retail. April had about forty two billion dollars of net inflows from retail hedge funds actually took down their positioning to the MAX seven, the lowest since twenty twenty three, and hedge funds a global date of three thousand hedge funds showed that they're short positioning on the
broader smp is at twenty twenty two levels. So this is anag game of if retail is right on buying the dip and the tear folatility is going to die down, which will allow valuations to become more mature, or if the hedge funds are going to be right. So far, we've recovered everything from the April lows. I mean, I could imagine hedge funds saying, oh we missed it, we got to get back in, and that creates even more
fomal and momentum. But retail has been buying the dip and I think they will continue to buy the dip, especially on pound.
Here see if they do today and the end of trade. Amic kuk Grajo, we thank you for your time. CEO of AK Media now shares a Teza lower today as sales continuing to slide across Europe for the month of April. That this is despite the company rolling out an updated version of its popular Model YSUV. Let's get out Craigterdell for more, because many blamed basically the lack of a fresh item to be able to buying into the fact
that they had to put on ice and production. But now we get the tell that actually, even with a new, updated Model Y, people are still not buying.
Yeah, that's right. I think that was you know, kind of the big excuse that you could throw out in the first quarter was that we had this changeover for the Model HY that was going to inevitably lead to some boss production. And you know, that sort of changeover
is you know, fairly common in the industry. It's maybe what was unique for Tesla's that the Model Y is just so important to the company, accounts for such a huge portion of their volume, and for them to have to take their production lines down at each of the factories that they where they make the Model Hy, which is in all of their assembly plants around the globe,
that is a big deal for them. But you know, by the time you know, March rolls around, you have the Model Y starting to spool back up, and you know, deliveries of that refreshed model Why starting in early March and so getting into April for sales to be this dramatically down is a troubling sign if you're a Tesla investor, and.
Dramatic to say the least, Sweden of by eighty one percent, UK off by sixty two percent. What are real numbers? Are we talking here? How few cars are being purchased?
So in the UK it was just over five hundred units that they moved, So this is a really dramatic drop for the company. I think you know this.
This is a case here.
In Europe where you still see very patchy take up of electric vehicles right where you know, some smaller markets you have a huge takeup. I would point to to Norway being this sort of bright example, you know, to the positive, but in other markets, evs are taking quite a while to accelerate. And you know, Germany and the UK, you know, have have sort of traded places in terms of being far and away the biggest within within Europe.
And for for those countries to be included among you know, some of these countries where we're seeing really dramatic declines is troubling because that's where all the volume is in this region.
And the elephant in the room is masks political reputation. Thus far in Europe, that's what's crimping demand.
I think that's something that's you know, very much. What is sort of top of mind for for people following these developments is how much is he hurting the brand's standing, because I think another important bit of context is the European market is just a heck of a lot more competitive than the US is. Where you know, a lot of European companies were bracing for this year being a
much tougher compliance year. CO two regulations were you know, scheduled to take this another sort of step up where you had to meet lower CO two standard for your fleet. It looks like the manufacturers are going to get some relief that on that front. But you know, it's sort of already the case that we're seeing the fruits of all the efforts of trying to meet those numbers. So you know, a lot of product has come to market.
You have Chinese companies coming to market even in spite of tariffs, so Tesla has a lot more competition than they.
Have interested in the world. We thank you so much, and all things Tesla now breaking news. We do see President Trump welcoming to the White House, of course, the new leader of Canada, Mark Carney. It was but a week after he won the national election, promising voters he is the man to guide Canada through the economic termil of the trade war, protect the company against aggression from the White House as they see it, Exports in Canada
plummeting as it would seem from the tariffs. Thus far so currently have seeing that continuation of dialogue between Mark Carney and President Trump. But now let's return to the markets that are on ten to hooks because of trade, because of tariffs, because of what this very meeting wants to be delving into between the two leaders. And we have some earnings after the break as well. To keep your eyes on AMD of by one and a half percent, key chip maker. What will they say about AI demand?
Can they too manage to shake off some of the anxiety as we saw with Microsoft and Meta last week. ARM also chip designer of by four tenths percent. Watch it after the bell from New York. This is Blueberg Technology