Record High Car Prices and C3 AI's New Air Force Partnership

Clus will speak to the CEO of semiconductor company weather Ring the chip slump as Tom Corfield. It's some global foundries, the CEO joining us with his outlook. All that and so much more coming up, but let's dig into these markets. It was a big macro picture kind of a day. The CPI print coming in Holler than anticipate to six point four year on year in terms of inflation should be the NASTAC pushes on, throw it up six tents

of a percent? Isn't the comments from certain FED members like Harkoh saying maybe we're nearer the end in terms of our inflation fighting tactics to yet yield, though it listens more to the inflation override. They're worried about inflation, still remaining hot, yields, boring costs rise almost tempera say ten basis points on the front end, looking at the

vix though dialing back. Maybe that's more about the geopolitics, the fact that maybe those new UFOs or indeed items are shut out of the sky by the United States, aren't Chinese. Maybe that dial backs some anxiety flicking on. Were actually seeing a bit of a bounce back in terms of the new music around crypto. Look at that sudden push higher in terms of bitcoin, some of the

regulatory risks. Maybe we're getting used to the men. Yeah, I'm also looking at inflation, but with I also on earnings, and that is a theme that continues to the technology sector AIRB and ME breaching temper st gain now and after hours a strong outlook for the fiscal first quarter that came in above expectation in terms of bookings and sales. Will continue to track that stock across the hour because the earning school, of course will happen, will bring you

some of the key numbers. Earning is also a key feature of the main session during Tuesday. Palanteer was one stock that we're tracking really closely, really big jump, taking it shares to the highest level since August. You can see that the one cent game and them saying they recorded their first coarsely profit on a gap basis in the final three months of last year, but forecasting profit for four year twenty three, which was kind of the

key headline global Foundaries. As you said, Carrol up eight percent, big jump, bucking the trend in the chip industry, forecasting strong sales and elevated demand in some pockets of end markets. And the video interesting seen video. It's shares at April highs right now. But this is largely about artificial intelligence, right There's a lot of momentum around it. The work that the video is doing in the field of AI, a feel good or read through, I suppose from what's

happening in the rest of the sector. But otherwise a lot of the move is the individual names on the Nazak one almost conversely to what you'd expect moving higher after that inflation print. And let's get back to the inflation story because in many ways said it's your favorite thing. E v s behind some of the push high US car prices in particular have had a record high the average monthly payment for a new car here in the US, it's now what a record seven dollars, nearly doubling from

the late uncles. Because electric vehicles cost about more than the average car, the shift of plugins is about to make that affordability crisis even worse. Let's get to it. Blue Meg's Keith Norton and Keith it was a fascinating piece. There's a big take on the Blueberg terminal on dot com that is so well read about this rising issue of costs of cars. But it's a global issue, isn't it.

It really is Caroline and what it's doing is it's putting the dream of car ownership out of reach for middle class buyers, which was always part of the you know, the contract with the middle croup class. You would you would have a new car in the driveway and on your own home. All of these things are coming out of reach. The average price of a new car is approaching fifty thousand dollars. That's up from nineteen It was

driven by the pandemic and the supply shortages. But you know what, the automakers have discovered they can make more money selling fewer cars at higher prices, so they don't want to give it up. Yeah. The mantrack, Heath is lean inventory, fat price tags on those vehicles. The tech angle here is is the electric vehicle effect, right, And some of the most interesting reporting in that piece was the price premium for e vs over combustion engine Cause

what did he find. Yeah, you know, at fifty dollars is a luxury car price, right, Well, the average price of electric vehicle is sixty one dollars and then actually just came down a bit because Tesla did some across the board price cuts. Before that, it was approaching seventy dollars. Well, that's really out of the reach of most people. And so you know, the e V push and we're expected to be you know, at least half e V by the beginning of the next decade is only going to

make car is less affordable. Okay, But Keith, a lot of the handwringing was about supply chain issues, chip shortages. We know that that sort of swung into reverse. Now to a certain degree, is there still a price input issue here? Yeah? You know. The interesting think Caroline is, Yes, we have the semiconductor shortage that left to dealer lots empty that drove up prices. It's the old law of supply and demand. But the automakers saw that and said, g I, I can, you know, have fewer people in

the factory. I can have less inventory that I have to pay for. I can have lower marketing costs because I don't have to discount the cars to move the metal. Let's keep this inventory low and these prices high. That's what they'd like to do forever more, whether there's a supply snag or not. Blue bes Keith Nort in terrific reporting for the Bloombell Big take. Thank you so much. I want to stick with the story and bringing Cox

Automotive executive analyst Michelle Crabs. Michelle, you just take such a deep view of the auto industry. But I go back to that question. I asked Keith, what is the impact of electrification here in sort of boosting up the average price of a new car across this nation and beyond. Well, Keith had it right. The the price of electric vehicles at one point it was the average price in our calculations was about sixty six thousand dollars um. That's more

than the household income for most Americans. So um, we are seeing that come down a bit, some of that because of Tesla's moves, but also because we are seeing automakers start to introduce less expensive ones, and we should see more of that. What is the permanency of this phenomenon? If we're moving towards electric vehicles and it's a slow transition, how long do prices stay elevated? I think for a while. I mean, we don't see them coming back down. And

I would quiverle with Keith a little bit. Uh. We started seeing this trend long before the chip shortage. We saw the domestic automakers get out of the car business, the traditional cars and those lower price cars, leaving that to the Asian automakers. And the Asian automakers have not been able to produce them best enough to to appeal to, you know, people who are on budgets. So that's not going to change, and we are moving more towards electric vehicles.

I don't know when the price parody gets there with ice vehicles, but I think we're in for some high prices for a while. I just want to bring up what we've been asking our own audience about, Michelle, because I like the fact that you put it into context that six six thousand, like it's more than most Americans bring in terms of their annual income. We asked, you know what is more worrying for you at the moment in terms of the inflationary pressures? Is it the price

of evs? Well, actually, generally it is only thinking that it's more about the groceries. It's more about the price of eggs. And I'm afraid we asked the cheeky one, it's the price of love of course today being Valentine's say, forty six, and worried about that. And I'm sure they're meaning the services, the idea of going out getting restaurant bookings and drinks. But to that end, is there a clever way that we can finance altos going forward that

it isn't quite so expensive on a monthly basis. Well, I think we are going to see some experimentation because this business model just doesn't work for many Americans. I think last week it was Hyundai announced a subscription service where you pay for your EV They're doing it on two models on a monthly basis. We may see that

kind of thing. Uh, something has to give if we're going to go towards more e V s. I would I would say that in your survey if you'd ask, are you more worried about the general price of vehicles? And that is what I hear from consumers in the e V part just layers onto that I see. So it's sort of about the moment evs have deemed by many a sort of luxury item. Oh, absolutely, well, competition change that. Oh, it already has. You know, Tesla has

done some discounting. They did some discounting at the end of this year. They cut prices. We are seeing lower priced models come under the market. So competition um will certainly impact pricing, But will it really bring it back down to the level that we're used to. Doubtful, Michelle. We've focused really on the consumer in this conversation. I want to focus on the automakers themselves, pure play like Tesla,

or the transition names like GM and Ford. How do you summarize three when it comes to this transition to electric vehicles. What is it that you hope to see happen in the next twelve months. Well, I don't know if i'd hope to see have it, but I think what we are going to see is a much more competitive environment. UM Tesla has dominated the EV market. It still does, it still will, but we are starting to see some automakers make some inroads making their Tesla's market

share go down. So I think what we're watching for is how much in roads do other automakers make with ev s. Always great to catch up with you, Thank you so much, great expertise from Michelle crabs Cock's automotive

executive analyst. Meanwhile, sticking with autos and in fact just name checked them forward, they're actually gonna be cutting three thousand, eight hundred jobs in Europe as the EV shift takes hold of Ford is shifting its modern line up in Europe to battery only by and has previously said that the reduced time and effort to develop and make electric cars was going to lead to smaller product development teams sufficiency.

There are yeah, a common story, and sticking with evis Tesla It's workers in New York Carrow are launching a unionization campaign. The employees who labeled data for Tessa's also pilot technology at the plant in Buffalo, New York, send an email to Musque today outlining their intents. Unionized employees say they're seeking better pay and job security, alongside a reduction in production pressures that they say has been harmful

to their health. Welcome back to Bloomberg Technology. I'm Karen Hide in New York, and we cannot let this day go by without digging into artificial intelligence in some way, shape or form. Yeah, and it's a familiar name that I'm tracking right C three AI. Another jump of ten percent on the shares this Tuesday, no obvious reason, no

headlines on the Bloomberg terminal. And then you go to the year to date performance, we're up more than a hundred percent and under an eight percent including Tuesday session. But let's let's sort of zoom out for a moment and give some context of what's going on here. This is a company that I poded around forty two dollars a share in December, all the way on the far

right hand side of that screen. We're at twenty three dollars a share right now ish nowhere near its peak immediately following the I p O. So what's driving this company and its valuation? There's all well and good saying we're up a hundred percent year to date, but we're nowhere near that historic high. We're luckily carry as you know, we've got a conversation coming with exactly the right person and C three AI Chaman and CEO Tom cbol. So, Tom,

you've had the preamble. You know, of course of your stocks performance, does what C three AI actually does as a business justify the trading we've seen so far in three Well, we are C three AI. I think it's the world's leading provider of enterprise m AI enterprise applications software. Any of you think that that artificial intelligence is going to interprise is going to influence the enterprise in a big way, then I think this represents a just a staggering,

large addressible market opportunity. Tom. It's interesting to bring that up because we've been speaking to some vcs who will say, actually, enterprise search is where they see real business model fit. At the moment for the likes to chat GBT, just talk us through C three's generative AI for enterprise search. You're going to unveil it in March. I believe what

will it disrupt? Well, what the C three I have planned for our represents about a billion and a half dollars of software engineering that we apply to manufacturing aerospace utilities, oil and gas. What have you? Now, with the combination of enterprise search, natural anguage processing, generative AI, reinforcement learning okay, and the C three AI platform allows us to fundamentally change the nature of the human computer interaction model for

these important enterprise applications. So this is a this is a huge development, and it's brought you a lot of attention to AI Okay in the last couple of months, as we've seen a boy, hasn't it just and a lot of that attention has fallen upon initially Open AI. Then it moved to Microsoft that did the deal with them, and then it was of course it's what Google or a parent alphabet has us a bit up at sleeve. But also interesting with C three AI is you're kind

of integrating all of those AI capabilities you're using. If I'm right, Open AI, Google Academia, what are those sorts of deals look like? How do you combine all of

the best learnings. We have close technology and market partnerships with Google, with Microsoft, and with AWS, so as they advanced these technologies as they will Okay in the coming years, we're going to be immediately take advantage of all the innovations that they provide in our underlying core architecture and make those innovations available to our customers in our applications, make our applications much more efficacious, much easier to use.

And so this is this is a is a big development and this could fundamentally change the nature of the human computer interaction model for enterprise applications. This is a this is genuinely a big deal. Toll my author audience on Twitter, on LinkedIn before we came on the show, what they would ask you, And actually, to be fair, they just wanted to know what artificial intelligence competence to see three have And to be fair, I think you've

answered that. But it raises a good question right when you think about you today performance your thoughts is AI, and I just wonder what your take is on how much of the trading is just retail investors trying to buy in to find the next big thing in AI without missing the opportunity. Well, honestly, and I don't really track the market that closely. UM I think that you know, we've seen a market correction since that this huge technology bubble we had that that peaked. I think about the

first quarter of UM. I think with C three A. I've had a dramatically undervalued security. I think when this whole thing recovers C three A, I will be, if not the one of the world's leaving providers of enterprise AI applications. And UM, you know, I think that presents a I think we still have an undervalued security and this is going to be a very promising opportunity. Tom.

Noting that you've got more than eight hundred million dollars on your balance sheet in terms of cash, will you take advantage in the run up of the share of the share price and so anymore shows um, I think we're you know, we're so. Our focus is on growing the top line rapidly. Our focus is on uh and running a cash positive, profitable business, which we expect to be doing next year. I don't expect our cash balances at this time to go below seven million dollars in cash.

So we're very well capitalized. We're in a position to grow the business, advanced the technology okay okay, and deliver a cash positive, profitable business growing at a at a very rapid rate. So I think about the time the FED takes its foot off the brake, I think this company is going to be blowing and going and we're wait now and then we're just gonna run the business.

Will you look to inorganic, quoth Tom, because you're a man who knows M and A. In fact, your last business, which you've found a Chiman CEO, was bolted by Oracle back in the day. You understand, I'm name more than most when you buy all this and it's see and when we were in our CEO of CBOL Systems, I think we bought twenty or twenty three companies. I think it. We're focused. So Caroline, it's a great question. We're focused

on growing the business organically. And I think you know, we invested over a billion and a half dollars in the technology foundation over a decade. Okay, We've done a lot of hard work here, and I think this is not going to be you know, one of these sales Force type stories or Oracle type stories. We're going to try to grow through acquisition were we we believe we have the technology foundation in place, We're going to grow the or the applicate of the technology of footprint organically.

We have forty two turnkey enterprise applications today for utilities, oil and cast, defense, airspace, manufacturing. You're gonna expect that to grow to hundreds of enterprise applications in the years to come. But you know, I'm not saying, you know, never saying ever to an acquisition, but that that that's not that's just not in the in the in you know,

that's not a focus right now. So in terms of how you make money from artificial intelligence, you've kind of shifted right from subscription to consumption and I'm curious about how that's worked out, the timing of it amid a boom of interest in artificial intelligence. I think the timing was perfect. Okay, And uh, you know, we've seen a transition from first perpetual licensing to subscription licensing. Now it's clear that the licensing standard for the cloud of a

cloud computing is consumption based pricing. This is the way that Google does it, Microsoft does it, Amazon does it, Snowflake does it. Pretty much, this is the standard. This is the way the companies want to buy. They don't need to make big up brunch investments. They can pay as they go. And so it's, uh, we're finding it's being very very very well received by the marketplace, by our partners at Google and Microsoft, at Amazon bio customers

and bio prospects. Come back, keep telling us about the deals and about what you're doing to grow the business. C three AI Chairman CEO Tom c Bull. Then we thank him now before we had to break C three AI. It's actually we understanding binning for a contract to revamp the I T systems of the UK's at National Health Service, challenging and offer from Peter Teal's Palenteer, according to reporting

from The Telegraph. Now Palenteer shares we've got to get to it because they're jumping today after projecting its first annual profit. So quite the move that we've seen. We saw them after hours of course yesterday, Ed and you recently spoke to the CEO of that business too. Yeah, they've really shifted from this kind of reliance and governments to commercial customers and clearly the market over a basis believing in that story. So will continue to track that one.

Now coming up, we're going to bring you the latest news in the world a VC back startups, with some still managing to raise new funds in spite of this global downturn. That's all next. This is Bloomberg time now for the VC roundup, starting with Indian fintech startup Insurance Deco, which is just raised a hundred and fifty million dollars from a group of investors led by Goldman Sachs Asset Management. It's the largest ever Series A for an Indian insurance

tech company. Will use the new capital to scale up, expand to new markets, and grow the company's business with small and medium enterprises. Here's another fintech startup that's defying the market downturn, Singapore's Aspire, which has just raised a hundred million in a round that more than doubled its valuation in a deal led by light Speed and Sequoia

Capital Southeast Asia. Inspires used by businesses for a range of financial services, including making international payments and automating invoices. And finally, Capsule, the online prescription delivery service backed by five Capital, is in talks to raise one hundred million dollars in a new funding round led by Cox Enterprises. That's according to the Information, citing sources who say the firm's looking to raise five million dollar valuation, down from

its previous valuation of one point to billion dollars. Carrot, Yeah, we're going to see a few down rounds in this environment, I feel them welcome back to being big technology. I'm Caroline had in New York and I med love Low

in San Francisco. Let's get to it. Let's get too chips right now, one that's actually based right here in New York, the state Global foundryes aid surging after earnings today, Now let's not at one point in fact, seeing as big as Move says all the way back to November, taking shares to their highest level, as we've seen of

March two, once again earnings beating expectations. He did it in November, he delivered and actually said he's going to pose some sort of growth, looking positive for this year. And as they wrap up the year, it looks as though they're still feeling positive, still able to book in those orders. How when the rest of the industry seems to be going from boom to bust were Foundry CEO Tom cool Field is here to ask the questions. So, Tom,

we ask you that question. When we're seeing a lot of the other chip makers, although with different model business models to yours, seeing the over supply, the ricochet coming back from the lack of supply, why are you able to take on these headwinds. Well, I think the first of all, let me thank our team, Tom Carfild's atility these results. Fourteen thousand people world will hide delivering these results.

I think we position ourselves because we play in so many diverse end markets that where there's strength, we can flex some of our capacity to that strength. Where there's weakness, we don't play in some of those markets, like personal compute is probably the smallest market for us, or smallest portion of our revenue, and that's been disproportionately heard in this particular downturn that we're going through. Okay, so perhaps

less of an exposure to a consumer. What about customers their ability to commit right now in advance to use your factories. That's kind of the interesting business model that you have, and many times you're getting them to help put money down into the investment in future fabs as well. I'm interested Thomas to how they're able to tackle these

sorts of macro headwinds too. Look, when when our customers talk about adding capacity, these are these are four or five year long projections they're making, and it's not the temporal things that we're doing right now. And so when customers look through this cycle and look for what their growth potential is that their business. I don't think there's a single executive seal in the semiconduct industry that doesn't believe that in the next decade this industry is going

to double. They start to look through this macro economic environment we're in to think about longer term and the kinds of contracts that we're signing with our customers in the last quarter, a much longer range than the near term the term Oh sorry, carry on. Yeah, These these I call them long term agreements that now the same long term agreements that we signed two years ago, are also creating a framework for us to work in partnership with our customers. It's single source business. How do we

both make the best of the situation. How do we work together to get through the this downturn at the same time honoring the economics of these contracts. Let's talk about non cancelation type of agreements that you've wanted. You want of guaranteeing your revenue streams. How willing enable all your customers to do that at the moment. It's not

a question of willing or not willing. We sit and work with them and there's a lot of different levels we can use to find a common ground, but we can We could trade in duration for these contracts, so add extra years, we could remix their business. There may be segments where there's more demand and than than the segment they first signed up to. They could pay some

modest underutilization fees for the temporal moment. The key is how do we as partners position ourselves to get through this inventory correction, but more importantly positioned our relationship for growth when this industry does come back. Tom, I appreciate that response. Is it difficult right now, right now to get customers to sign new agreements, those that are coming to an end, those that you want to onboard as

new customers that you haven't done business with previously. How much nervousness is there in that fresh field of business? So one we reported we've signed some in the fourth quarter, and very recently we signed when with general motives, So it shows that this thing hasn't stopped. I think the only hesitation for customers right now for longer range agreements is what the near term looks like and what what they want to get now over the next year versus

longer term. And so for putting a little bit of a pause in signing up for long term believen. They have a little bit more time to really get a better sense of the growth of capacity they'd like to put on. For us, is really with the period we're going through right now. There's so much emphasis and interest on the on shoring of supply chains in this country, on what the Biden administration has done in terms of dollar figures to support your industry, But do you actually

feel any of that right now? It's your top whole bottom line right now. No. But let me put this in perspective. The Chips and Science Bill solved one half of the equation, which was putting capacity on shore. The other half is making sure there's demand to use that capacity. And I think that's the story that still needs to be written now. Having said that, there is an appetite in the will and the desire to bring more of

semiconductor manufacturing to gf's global footprint, including the US. Typically, with that, entails is not taking an existing design and requalifying it. It's thinking about your next generation designs, your next products, designing those into the supply chain of your future. And we're beginning to see something that come our way. So let's talk about designing into the future with some

of your partners. I think, in particular the GM arrangement that I think you announced just earlier this week with new In terms of that, Tom, what fools like can you give us as to the way in which GM is thinking about its own supply chain. At the highest level, it's giving GM the capacity they need on the technology platform that's durable for them where they want it at the best economics. And essentially what this means to all audo the entire auto industry is the type of technology

they use in semiconductor. As they think ahead of their semiconductor content and that growth rate in cars, they don't see enough capacity on the on the platforms of technology and semiconductor that they're going to need, and they need to today begin to engage with semi industry manufactor is

to create that capacity. By working directly with the manufacturers like GF, they get to secure that supply again on the technology platforms they want and get it the best economics because they'll share in that investment to create that capacity, and then that investment doesn't get marked up through the rest of the supply chain when it comes back to them in a finished component or electronic piece of equipment. TOM respectfully Global Foundaries is a much smaller operation than

say TSMC or Samsung. That's just the reality, right, But what are your advantages? What is it you can offer the chip makers and those direct customers like a GM that those giants cannot. Well. I think there's a couple of things. First, we start with our our geographic footprint where in Singapore, US and Germany and in many cases we can qualify a single product continents away to give

that supply chain flexibility. The second thing is some of those competitors you mentioned, the vast majority there are d and kept and kept incapacity investments is on what I call single digit animeter, where it's truly for high speed digital compute compute intensive applications. We service a different part of the markets what we call feature rich semics conductors, where we had you know, embedded memory features for secure

the security and credit cards and secure transactions. We had high voltage for display drivers, and so where we probably we play in adding features to existing platforms that create differentiation that our customers need for their products. TOM have Tesla or any of the tect giants working on their own designs engage with you about future opportunities. I don't speak about customer engagements on a one to one unless

we've done something together in the press. But given how important semiconductors are to the world economy and how semi connective manufacturing in itself is so important, you can imagine that we speak to a lot of direct and you there's about our capacity expansion point I can't imagine, And I'll ask you again next time. Global Foundry CEO Tom Caulfield, thank you so much for giving Kara and I some time on the show. Very welcome, Thanks for having me.

Now coming out, we look at the stocks hedge funds loved and hated last quarter as the thirteen F filings roll out. Why many are feeling the burn more than that next character. Yeah, and meanwhile, let's get to some of the stocks that are being loved after hours, Airbnb being one of them. Earnings they beat, They're seeing strength in terms of resilience of people still wanting to travel

into this new quarter versus previous quarter. Last year was a record, and they obviously delivered a first full year of profit. Notable that Branchski the CEO is talking about price transparency had a neutral impact on workings, he says, and Stevenson, so I'm saying there's seeing slightly longer lead times for bookings currently up a spring bag. Shopify was among the first technology giants to slash its workforce during

last year's market route. Now some investors say it's stock is poised to outperformed peers over the course of three as those layoffs translate to lower costs, narrow losses, and of course better cash flow. Investors will see the results when Shopify reports earnings tomorrow. Carot meanwhile, well, we're gonna sick with stocks being rewarded unpunished. In equal tune, We're going to turn to thirteen F filings basically funds. What

they're doing with them? Are they buying or selling technology, consumer, discussitionary and communication sectors? They're actually selling all of them. Seems like anything else that happened in the fourth quarter. We've got just the person to speaked about it, just before big tech, of course had to rebound. Some people are being a bit of a pain trade Nali Ba, so I gus here to walk us through what the big hedge funds were doing what the big buys were.

So they're selling out of tech and communications were they buying. Yeah, it's interesting. Remember, even though they're selling out of Tech, there are still certain traders that are actively buying into or Shorty. We'll talk about that in a second. Big tech names, and the reason they're selling so much is if you look an aggregate, they still hold more Tech than anything else. So the way they're positioned into this year, there is room to sell and they're still benefiting from

that game in the NAZAC we've seen. Now listen, let's talk about the names themselves, because you see big divergences between the big hedge funds and the rest of the investment industry. Because remember with these filings, although they're on a lag, you hear from family offices and pension funds as well. Tesla is one of the biggest position changes

in the positive direction. And that's even as you see some big names like Glenn Catt's Light Street get out of Tesla in the same time frame, you see the likes of black Rock, another bigger index funds, get into Tesla in that same time frame. So one of the biggest bias is Tesla. But you also see a one

of the biggest bias, Caroline, it's kind of boring. You're seeing people get into tax exempt bond ETFs run by Van Guard but he developed You know, it is a lot of ets that show you how funds are trying to position. We were talking not just about the hedge funds, but the family offices. I want to point out, for example, you have Stanley drucon Miller's Duquine getting out of Amazon as quickly as it did. You have Sorrows Fund Management

betting against silver Gate. Begin there because silver Gates obviously had a terrible turn of it, and the yes was that short working at that point? When did he put it on? It's hard to know exactly when. The value, Yeah, exactly Don Fitzpatrick's CEO to CEO to what you're alluding to. The market value the position is one point seven four million. The one thing that was not disclosed about that wager was, you know, what does it really do on the downside?

You know how low to silver Gate really go? Is he still in the position now? A lot of the news about silver Gate, including Bloomberg's own reporting, about the inquiries it's getting from the Department of Justice came after the quarter. So the question is, you know, what did these options, these are put options really look like in terms of what Soros has been buying. And again one

point seven four million that's chump change for him. But again what the payoff will be is what we're interested in. Can we talk about some of the Tiger clubs here as well? It's worth noting that the Tiger you know, the reason it matters is because it's a positioning question, right, And we look at what's happening over at Tiger Global and really what you're seeing is still a lot of

um selling rather than buying. And I think that's an important dynamic to keep a hold of after some of these funds were so heavily burned after the whip sawing of last year. These are big tech heavy funds. We know their private investments have held up better for them. Do their private marks start to take bigger markdowns now? Especially as a lot of those companies don't make it

into public markets. The markets haven't opened yet for I p O S. I know you like thirty Night F season I like thirty n F Season two because I see a lot of names that I cover, right. Rivan is a great example the big names reducing or exiting their positions in Rivian, which was the worst or second worst Foreman. Then that's that one last year. That's one example. What are the big tech names that we kind of waiting for that we had some clues that there might

be some movement in ownership. Yeah, I think what's interesting if you take a look at it, you're seeing a big divergence on let's say fintech because you saw some buying in a master Card, but you saw on the other end of things, you saw selling of PayPal. PayPal was a big seller when it came to the hedge fund industry in particular, and of course when you look at it this year, there's a lot of changes at

the top. They have an activist investor as well, and so what is it going to take to bring kind of the fast money back into a stock like that. You see master Card, I said, being bought in the same time frame, there are were some tech buys. You saw Alphabet being largely bought in the time frame that we're talking about here, You're still seeing buying of more

financed names and tech than anything else. But I think if you think about tech and you're watching people get into the card companies despite some of the issues we've seen in the broader economic environment, more than they're buying for example. You know, let's just take the note from stan drugon Miller, the selling of Amazon so quickly, Bloombogctionnali, Bassic, Triffic, just dozens of headlines each hour hitting when the thirteen f hit. So keeping track is quiet skill. I appreciate it.

Thank you very much. Speaking of headlines on the Bloomberg terminal, some news crossing and breaking. Ross Gerber, the Tesla shareholder, has notified Tesla in a letter to its general council that he is seeking a board seat. I'm just going to reiterate the Ross Gerber has notified Tesla formally in a letter to its general council that he's seeking a

board seat. You'll remember, Caroline, of course, you remember he joined us on Twitter spaces Friday, where he made public his intention to be a friendly activist and pursue that board seat. Well, this is it. Concretely, he's taken that step. Yeah, left us rather shell shocked with at a moment silence as we took it in On his birthday, came on to announce that's the sort of step he's gonna be taking.

And he's not your usual activist investing. He has them built up an enormous stake in this company, but he's got the backing of some really significant shareholders, hasn't he. Yeah, So, look, he's got four d and forty thousand shares at Gerber Kawasaki, his wealth manager. That is zero point zero point zero point zero one percent of the company. But he says that he's got the backing of the biggest individual shareholder holder, who has one percent. He also name drops some big

institutionals that he's friendly with and cooperative with. So we'll see if it has any traction. As always, we've reached out to Tesla, We've reached out to elon Mask, we've reached out to the I R team. No responses yet, And notably, that's actually what he wants to stop happening. He wants them to reach out more. He wants more public relations, more media friendly discussion coming from Tesla to

only talk about what they're doing. Fascinating and great that you've got those headlines in the middle of the show. So look, I ride a bike around New York City. I'm always trying to dodge the traffic. But perhaps there's a slightly more glamorous way of doing it, the meal a city bike, because you may soon have another option to reach a destination in style with a in the sky, in fact, electric air taxi. Let's bring in Bloomberg's skylar Woodhouse for more. So talk to us about what this

was breaking new uncharted territory on here in New York. Yes, so Blade is already chartering flights. You can get on a helicopter, you can charter a whole plane. You cannot. They're they're also in the health organ transportation business. But today there one step closer to launching their electric aircraft. So basically we all know about the push behind e VS. So this will just soon be an electric aircraft that someone can ride in. Okay, so the Blades take off

very near where I commute up and down. Why would this be different? Why is this so much better? You can see beautiful pictures of this. It looks kind of like a helicopter. What's different? Yeah? So what about this is like we hear the helicopters and they're quite noisy, just the regular ones that are flying around New York city are really anywhere, but this one in particular, it's very quiet. And today when I was at the Westchester Airport when it flew right by, you really couldn't hear much.

So the way that they're designing this plane is all about also reducing the noise, so that way as these become more normalized, you know, just kind of within this space, they won't be as noisy. To try and bring those noise complaints down, Scarlet Woodhouse, your next dispatch for Bloomberg Technology is to report to us live from the air inside one of these are okay, you know, challenge accepted. For me. What's interesting here is the reality of this.

You know, so many players trying to literally pum the punk get these off the ground. How real is this business? When do we see it kind of widespread above Manhattan skylines? Yeah, so it's going to take some time. And you know, when you look at Beta, like you know they're in the process right now with the f A trying to get all all of these approvals. It's not just gonna appear tomorrow. So it's going to take a couple of years.

I think. Right now Beta saying they're hoping to get some sort of f A a a approval by four and Blade has been a little has been saying that their customers could perhaps start to um start writing on these types of aircrafts. And on that note, customer, how much is this going to cost me? If I'm visiting carol over in New York, I'm just looking at the screen. Am I going to be able to afford this? You know? I think you my dad, I mean it's going to be a little bit cheaper um, you know, price point

you know, taking one of these private helicopters. This is not necessarily an easy expense, but given the electric factor, it will reduce costs a little bit. So we'll have to see what the price point um becomes when they roll out fascinating Blade Beta getting together. We'll see if that regulatory approval comes too great to have. You have

enjoyed Westchester skylo Woodhouse there. I mean, well, I mean let's get back to something that I think was the first maybe for a Bloomberg in general, was some breaking news on one of our spaces. After the spaces that we do, and we are now getting the reality the fact that Rosco but a relatively small shareholder in Tesla, but a very discursive one and very out there talking about Tesla. Big Bull is looking for a board team. Yeah, it's it's hard to know whether this is going to

work or not. Him being a friendly activist, he has a tiny position. He's sort of canvassing support of the bigger retail investors. But we had him on to talk about the activism behind Disney, right, and that the penny kind of dropped in the moment and he was like, you know what, I'm just going to tell you guys, I'm pursuing a board seat. But he's basically making some pretty practical recommendations, like what is the succession plan? Is Elon must spending enough time on Tesla or too much

time at other companies. I've been speaking at other investors. They have very mixed opinions about this, Caroline. Interesting. I wonder what some of the reticence might be in terms of just his point being corporate governance. Many would say when you're at a founder led business is sometimes a little bit more lacking than most, and when we know that on the board of Tesla are an umber of

family members and the like. Yeah, it ranges from those that say there's nothing wrong with Elon Marsk to those that say Ross is inconsistent in his views, We'll will track the story. I'm sure this is just the start a great bit of breaking while you're also doing the day job of presenting a television show, is also sending headlines. That does it. From this edition of Bloomberg Technology Tomorrow,

how Come I see you? Tom Latin is going to be joining us or again it's about earning said yeah, and don't forget recap the whole show on the podcast I Heeart, Apple, Spotify, wherever you get your podcast. This is Bloomberg