Tesla Earnings and Klarna's New Product

gonna have all the details. Plus Clarin Up is rolling out a new product to make it easier to shop on the platform. But the buy now, pay later giant facing headwinds with consumer confidence plummeting corner CEO with us later this hour, and how has the direct consumer trends survived potential recession? The co CEO of the eyewear Darling Warby Parker. We'll talk to us about the evolution of DTC. I don't continue with Tesla now, and for that we bring in Dan. I'ves of what but security. Dan is

so good to see. Thanks for coming down. All right, what's your takeaway from the results we just saw old I think clearly the three Q deivery miss you know there was an expectation that revenues could be light. I think margins will be a focus came in light there. The street was hoping ultimately for a better marginal performance, but I think really the head one sticking to the underlying fift growth for the year in terms of delibrious.

So the conference call is going to be key in terms of are they back and away from that, clearly they're not. It shows that China growth story still continues to be there, and that's really gonna be the bull bear to be coming out of this call. So let's talk about the demand story you see and what do you see as the difference between the US and China. I know there's been some concerns of about weight times in China shrinking, which you know, counterintuitively is maybe in

a not good sign. I think in China productions ram three acts. So if you look at weight times, what's happened there that's going to start to stabilize, but ultimately the production out of China continues to really increase. It. Look, that's the hearts and lungs of the Tesla bull story in terms of China. Now, if you look what's happening

from a macro perspective. You know, clearly we're seeing softness, but we believe what we're seeing in Tessa's much more logistics driven rather than demand driven, and that, in my opinion, is why you know, I think this is just more massive speed bumps they're navigating. But ultimately from Musk it's a moment of truth. I mean, this is the time to sort of navigate through the turbulence because investors seeing

white knuckles. Are you about the battery situation? Look, I'm concerned about it, but ultimately, as we go into first half of next year, I believe that does start to stabilize. I still believe demand is out strip and supply for Tesla, and that's why it's all about ken they fulfill two million units in terms of going two thousand and twenty three, if they can then testas the stock that they might

opinion could be from these levels. But in this backdrop, this report, in my opinion, it's most the most important conference call probably in the last two and a half three years. It might also be the last conference call before he buys Twitter. Right, a deal could be sealed in a matter of days, and we've seen test La shares very much intertwined with what's happening with Twitter. Are you expecting a potential negative impact from that deal? Me

and you've talked about. I mean that's where the albatross around the Tesla story, because ultimately the worry is the financing in this market starts to fall through a bit. Does he have to come up in more capital? Do you see form fours? Does he sell an incremental five ten billion dollars of Tesla stock to fund Twitter? And that's why the frustration now for the TESTSA investors is

it feels like Musk has jogging allowed to balls. You've got the Twitter situation and right now he's continuing to trade cave are for two hours slice of pizza in terms of Twitter style. Are you worried about the ball juggling? That's a lot of well, I think that's that's one of the biggest problems is that Musk is the key

to the Tesla story. He's ultimately really the reason that Tessa has been able to get in this position, and I think he really needs to ultimately give investors confidence that he's there pilot on the plane and you're not ultimately going to see shortfalls as we go into Q four, and especially as going two thousand and twenty three in such a pivotal year for evs, What do you want to see and what do Tesla investors want to see in terms of his management approach to Twitter, like not

managing Twitter at all? Well, I think part of it as a testa investor. You want to ultimately see him navigate this and ultimately give the reins to social media experts that could ultimately be the ones that could try to turn Twitter around. From Musk, the easiest thing was buying Twitter. The hardest part is going to be fixing it. That's gonna be an everse like uphill battle from Musk in terms of fixing Twitter. But is a testa investor

at such a crucial time, you need steady hands. And that's really why this conference call the next few quarters are just so crucial. What I believe is in the history of the test of story well, and it may be for honestly almost every company given the macroeconomic conditions that we're facing, and you know, Musk will potentially only now multiple companies that are facing these macro economic conditions.

What's your outlook over the next six months as we potentially head into a recession and a downturn that could last. Some people are telling me to to three years. Yeah, well, I think in terms of disruptive technology, who are going to be the winners over the next two three years, Tesla's front and center, along with Apple and banful names like Microsoft. When you look at Tesla as we went back three years ago, look how they navigated through what

I view is almost historic challenges. Musk the challenges, not demand, its logistics, and if you go China, I believe this will ultimately be a period of time that Tesla is able to navigate. And I do believe the multiple starts to re rate, you start to ultimately see margins start to come back. And I think we look at this is just a blip on the radar over and over and overall called five six years. Cybertruck, What do you

want to hear? Ok, I think you want to hear that's coming in two thousand and three because you got all the Detroit stalwarts that are ready to get those trucks out there. Also you have Rivy and others. This is gonna be an arms race in terms of pickup trucks. For e V need to make sure it doesn't keep continue to get delayed. But it goes back to your navigating SpaceX Tessa now Twitter, and there's you know, ultimately

which kid you love the most? And that's gonna be the issue from Musk because the Golden Child continues to be Tesla. We hear so much about one shot well at SpaceX. How deep is the bench at Tesla? If his attentions are divided. It's so different if if Judge and Stanton we're not playing for the Yankees, you got you got a bench there. But ultimately Musk is continue to key to the test of story. They have navigated a bit of a bench. But let's just be clear.

I mean that is the biggest worry right now in the story. And of course Tom's taken next Friday, that's when the Twitter deal is supposed to close. Otherwise Wen into a game of Thrones in Delaware. All right, I'm gonna let you get away with that Yankees comparison. Just because we're in New York, Dan Ives Bush, so good to see you here in person. Thank you looking at me, Welcome back. I'm Emily Changing of the National Association of Broadcasters conference in New York, and I want to look

more broadly now at Investment Sentiment consumer facing investments. In particular, Ben Lair is Lara Hippo managing partner, which manages twelve billion dollars and has invested in companies from All Birds to Warby Parker, which will be on the show later. Casper and more Than also had some interesting job transitions recently. So you came back to Lara Hippo full time? Or how how should how should we we talk about your kind? So I was doing two jobs for a long time.

I was operating and investing, and uh, we sold the operating company in March and so now on full time and Lyric Group Media to Box. Yes, let's talk about the media space first and and and then we'll move on because there's just so much disruption there. There's contraction there. You know, what is the future of the media business? Really cool? I think it's a tough market. Um, you know,

my perspective has changed a lot. We were very active at Lara Hippo investing in media and we're the first investors in BuzzFeed and Business Insider and wonder Ee and Axios and a lot of stuff that that did well. We do almost no media investing anymore. I don't really think it's a venture category, so I think there's not growth to be had. I think that social media has massively screwed up the industry. I think TikTok more than

even Facebook before. It is sucking away attention in ways that we never could even imagine would be the case, and the advertising industry is really challenging. I think that there are going to be winners in the digital media space. I think Fox, which acquired our company, is one of them. Um, But uh, I don't think there's a lot of venture money to fund new businesses, and I think there's going

to be more and more consolidation. You've seen it at you know in traditional media, You're going to see it continue to happen in digital. Okay, so let's walk that out a little bit. How does that play out? Where do you see the condult solidation and do you see media product path to being destroyed? I don't know that

I would say seeing a path to being destroyed. I think people want content, and I think that, you know, news media is in a really particularly dark place with what's happened to trust of media in the country, and the business model of news I think is very challenged. There's a few organizations that are doing a good job, but one of the big problems is advertiser is don't

support news media. Um, it's the most important area to put your dollars, but they don't want to be around Donald Trump, they don't want to be around the war in Russia, they don't want to be around horrible stories, and so you see, uh, the the industry really suffering.

And then I think entertainment media is uh generally moving in the direction of the creator, and so YouTube and TikTok and platforms that empower lots of people to create reams of sort of generally lower quality and less expensive content are eating up advertising dollars that used to go to premium content creators. And it's challenging at stake here, I mean really, I think I think on one level that by the way, I don't think the truth is

at stake. I think the truth is. I think that's already gone for the moment, I mean, there is it. We're in a really, really, really bad situation. I have little kids, and I am terrified for the way that they're going to get truthful information. And the problem is that it's right now not good business to invest in the news category and that has to change, and I

think it will. The pendulum always shifts. Uh, there's a lot of people who want to fix this problem, and so, um, we continue to be interested in meeting companies that are doing that. So where do you think responsibility live? Is it advertisers? Is it with social media companies? At the end of the day, we live in a you know, capitalist society. I think it's hard to make this about responsibility. I think we have to find business models that make

it that work for everyone. Uh, No one is going to do what's you know, some people will do it's right for the world, but most people are gonna do what's right for their wallet. And so uh, I think at the end of the day, the the social media companies, a huge opportunity was missed twenty years ago to regulate these companies. Uh this all started. I've been sort of

learning more about this, how this started around in September eleven. Actually, where I think there's a great opportunity to regulate some of these companies that didn't happen, and we're now, uh in a world where they've been allowed to run amuck and they're their you know their monopolies and they've made a really challenging so by the way, it's not too late at all, and there are amazing brands that do

great journalism. Um, and again I will say I continue to be, as a Vox board member, biased but also incredibly impressed with the quality of journalism, the quality of these communities, the diversification of revenue that these companies are generating. But um, it's hard when you see the you know, Discovery and Warner needing to consolidate and CBS and biocomp

needing to consolidate. Well, what is that due to smaller independent brands who want to continue to be independent when when the top of the food chain is joining forces because they're feeling that the pressure from social media. Okay, so let's talk about capitalism. You are continuing to invest absolutely, how bad is this downturn, how bad is it going to get? How long is it gonna last? And are you finding places to put your money or is it? Yeah,

so are you just waiting on the sideline? So we're not absolutely not waiting on the sidelines. Our model is to be first money in and we're backing founders who want to change the world. And there's still plenty of great founders that want to change the world, and so most of the companies that we back today are going to be raising money in the future in different markets. The you know, markets go up, markets go down. I do think that this downturn is going to be significantly prolonged.

I think the public markets have experienced a lot of the pain, certainly not all of the pain. I think the private markets talk about experiencing the pain. But the reality is, I think we're probably a year or two years away from really seeing what this looks like once a bunch of companies that have raised capital start to run out of money. Last year, everyone got capitalized. You know, let's see what the back half of next year, even the next year looks like. And uh, I think it's

gonna be rough. So they are gonna be some casualties. There's gonna be a lot of casualties. Good companies are still going to be just fine. And in fact, I think all the money that's on the sidelines is going to start consolidating around the better companies. And you're actually gonna see You're not gonna see the valuations go down much. You're gonna see fewer companies get funded. So where do you think we're going to see the wreckage and where are you placing your best I think you're going to

see the wreckage pretty much everywhere. But but it's healthy. This is healthy wreckage. And when you build companies in an environment where money feels free or cheap, you build companies that are not necessarily as strong with some of the wrong disciplines. And right now we're going to build a new generation of companies that are gonna get built the right way. And I'm incredibly optimistic about early stage investing. Right now. I feel frankly more excited than I ever have.

And there's tons of data why well, there there's just you know, there's so much data that supports the idea that investing when times are tough produces great companies. I know Neil from Warby's coming on. Neil is a founder who we back as a seed investment ten years ago, coming right out of the financial crisis, and is a perfect example of a company that was built in a

tough time, that built an extraordinary business. And I think you're going to see a new generation of great companies get built, just like you do in every downtain if it's going to be worse than the financial crisis, though I don't know, and honestly I wasn't enough of a fully formed human during a crisis to really have perfect context for it. But I think this is gonna be hard. But knowledge is still enabling unbelievable things. Just look at the way that we were able to weather the last

two years survive. If that says anything, it says that technology, even while it's being used in a bunch of weird ways, is ultimately uh an incredible thing in a place where we can continue to feel good about. All Right, Well, that was a reality check. I say thank you for having La, thank you for giving it to us. Strange and sugarcoat anything. Lara have Boe, managing partner of Been

lare going to see you again. All right? Coming up, the risks of speaking of social media, TikTok user data leaking to China still likely even if the Biden administration forges that security agreement with the video platform. We're gonna have details on that a new Bloomberg analysis next. This is Bloomberg. Personal data for millions of US TikTok users would still be at risk even if the Biden administration reaches a security deal with the platform's parent Bye Dance.

That's the findings of a new Bloomberg News analysis. Joining us now with the details Bloomberg's and bloodlow Ed explained. Yeah, I mean this is based on interviews with dozens of experts across the fields of data security, those that have negotiated these types of deals before. When it comes to lawyers, and as you say, the top line is this that in every scenario, even if it deals reached, there's runner ability. A big part of it is that there's always going

to be a human component. Right, this is a business that was built in China, and even if you separate off the US assets so to speak, it's largely going to be somebody in China and Chinese personnel that potentially could fix any issue. You know, TikTok has been transparent or relatively so that there are personnel in China to have access to public information from the platform, and even if not private, but basically the range of concerns are worrying.

And even if they do reach a deal such as the control of Siphius and the administration that you know, even if they cannot hold TikTok's act and responsible responsibly, they just pull the plug on any deal. Ticktok currently handle US user data. Yes, so this is a really key point. Currently all user data is effectively siphoned through the United States through servers that are owned by Oracle and hosted in the United States. The data is housed

here and process the United States for US users. But again, the vulnerability that the concern is here is well, what if something goes wrong, who is the actual human being in in charging, in control and able to make a fix. And the answer is that person is probably in China. What is TikTok's position on this. The position is that while they won't comment in talk about talks to the US government, in a statement to Bloomberg, they think they

can reach a deal. You know, they've tried a number of mechanisms over the years, including selling a stake of the company to reflect the US user ship to the likes of Oracle and Walmart. That did not go well. But what you see in your screen is the company's position. They're trying to get this done and they're hoping that the data management process through Oracle and ideas like supervision from various US government bodies can get it done. Thanks

for breaking that one down. This is Little Brook Technology and Emily Chang at the National Association of Broadcasters conference in New York City. By Now Pay Later, Giant Clara has unveiled client Clara Spotlight, a new search tool that will compare prices across thousands of retailers and even enable shoppers to filter by color, size ratings. Clarna CEO Sebastian Schemiakovsky is with me now in person. So good to

see you in person, maybe for the first time. You say this will usher in a new era of shopping. How so good questions, Well, I think it's really exciting to see. One fun aspect of this is just that, you know, due to the dominance of one of the biggest retailers in the world in the US, it's almost like put a little bit stop to development of great services on the shopping side because they were so dominant,

and in Europe that wasn't really a case. So what we've taken here is a service that has been highly appreciated by consumers in Europe, which is about comparison, finding products, finding prices and all this and then basically you know, taking into the US markets. I'm super excited. Can you give us any details, not just how successful for a Spotlight has been in Europe and what makes you think you can challenge us big US tech giants. Yeah, well you have to try to start. We'll see if we can.

But you know, I think the it's huge in the sense that in a lot of the countries where the service has existed, it is the starting point for people shopping experience. So they go there, they start there, they find the products, you know, they get, they learn about it, and then they go further to the retailers. So it is really the starting points is really really big. And you're also integrating shoppable video now gen z Loves. What

do you think the impact of that can be? I think I mean to us to be honest right now, is the marketing side of our services has grown tremendously. We actually do now business with half from the top one US retailers for marketing services. And the problem we have is our demand is much hiris four or five

times higher to supply. So one of the ideas here is just to see how can we get the audience that we already have in the thirty million Americans are using the app, How can we provide it with more interesting content so that we can also grow, you know, offer more supply for everyone who wants to market in that environment. So let's take matters specifically. Obviously, they've got Facebook and Instagram and they have some of these features built into their apps. What makes you think you can

compete with them specifically? Well, I think there will be multiple places to entertain yourself. But I think to some degree, you know, if you look at an Instagram experience, you're doing a lot of things there, You're maybe you know, watching kitten videos, You're maybe doing like following different type of things. Here, it's very much more around shopping, right, it's very concentrated aroound that. So it's different experiences, But I think there would be multiple channels where people to

have explore content. Inflation is that record has interest rates are changing. How is Karna navigating a rising rate environment? How is it impacting your business model? Well, what's interesting about it is that we are a bank fully licensed in Europe, so we have deposits um that are funded in the European interesting rate environment where interest racing on Marx is so fairly low, so it actually gives us a fairly nice competitive advantage of some of the US

players from a cost perspective. But in addition to that, also what we are seeing and is integrade, is it actually increasing the amount of our product because if you think about it, our consumers in the US have saved over a hundred million dollars in interest feest, late feast and so forth by using our products because their interestry

and so forth. Right, So we talked about the paying for the short term installment trying to products and so there's more themand for that in an you know, in an in an interest rate environment that's racing, so we see higher demand and then we have a very efficient cost structure. Exident, are you taking any action to mitigate

potential losses from the mp L? For sure? And we've already done that, right, So we did tighten our underwriting both already back in jan and a little bit more additionally in April and May, because there's obviously a different environment that we're going into, so you have to be

cautious about it. Now. At the same time, people are complaining that they're purchasing power is decreasing, Can you explain how you set purchasing power and how if you're reconsidering how you set back given these changing conditions, Well, I think the big thing to remember is that when people use our product, the average out stending balance is seventy five dollars. On the credit cards, maybe like one five

minutes dollars, right, so, and the different things. Also, a credit card gives you a limit and then they push and push that limit into your face for you to spend more than you should. Watch you know, watch Netflix Money explains creit cards to explain you see exactly what they're doing. So the difference with us, we don't do that. We're very mindful. Yes, you can find out about your purchase power, but we're fun mindful of showing it to

you so you don't overspend. And then in addition to that, we take a new decision every time you make a transaction. Right so, on a credit card, you just can spend as much as you can. They just want you to max out on your credit card because that how they make money. For us, we're taking a new decision on every purchase. So actually that's why our losses are below credit card industry standards. Do to that, now you've been doing restructuring and you've been pretty upfront about this. Are

you are you doing more of that? Are you going to have more cuts before the end of the year. How many employees will you have at the end of this year, and how much of that is in the US where I know you were growing quickly. No, I mean the big restructure that we did was back in May. There's always been obviously before that and after that, minor changes to the organization and so forth, but that was

the big one. And I think as much as it was very painful and hard and it's it's obviously a very sad thing to see amazing colleagues need um, but at the same point of time, what I'm what I think is what was good about it was we did it early on. We took the decision, and I'm now hearing from a lot of people that like they're coming to those decisions now. So I'm still proud about the fact that we we we faced the fact that times

have changed, and we acted on it. And I think in the end that that agility it was is what sets to your part, How are you thinking about the I p O potential fundraising the changing environment? To some degree? You know, I got that question a year ago. Obviously, no, no, no, for sure, and but I think then I said, look,

I don't like the volatility of this environment. I felt it was a hype environment that we were in, and now it's a little bit different than my dream has always been to I pod company, where it's in a similar fashion. When Google did it into thousand five was kind of a perfect market. It wasn't like overhyped, it wasn't underhyped. It was like it was stable. And you also, we have so much growth left left in the US.

We're still growing percent. You know, we see tremendous success here and so like I want to, I feel when there's still that amazing upside left like Google also had. Obviously, we're now thinking about the I think the market cap is billion dollars when they you know, so you want that. So I think we're getting close to that spot. So I won't have to ask you this question next. Okay, um smashing is so great to have you, CEO of Karna. Good to see you here in person. Thank you for

having me. All right, coming up, is this bear market going to be the best opportunity to invest in crypto for the long term? Some banks seem to think maybe we will discuss next Mrs Boomberg for a quaint it's about the macro, but for the rest of crypto, right the ethery and ecosystem and all the other you know, layer one and layer two, the block chains being built and what'spilled on top of them. That's a march, an inevitable march to starting to change how we actually operate.

And there's a tremendous amount of venture capital that continues to come into space. Five billion last quarter and nine billion the quarter before that. If you look at from Citadel to JP Morgan, to Bank, the Bank of New York, black Rock, the biggest players in traditional finance are actually making huge investments in and around this architecture. That was some of Galaxy Digital Mic novograts interview earlier on Bloomberg Television.

Kavia Gupta is the founder of the Delta Blockchain Fund and investor in Webb three focused startups and joining me now here um at the NAV conference. So do you agree or disagree with Nomograts? There a pot of it it, yes, right, because all these institutional money is coming into crypto. The point is is it coming at the thick site? Is it coming hedge fund crypto micro side. Some of the

hedge funds are directly going only for internal dashboats. They are not really contributing to build an economy as we call it on the tech side. But yes, is that affecting cryptoprises good and bad? Yes. But at the same time, institutional banks like Jimmy Morgan or Golden Zacks, I think are taking dual bets. They are going both on the crypto U now partnering with coin base and other platforms to be enable to have their private wealth managers to

have that asset class. But they also are investing in like Circle and Figure, like a bunch of other technical technology companies too. So is now the time to invest? Should everyone? By the deep um? Is it a dip though we have to me? Or maybe it's gonna go further down, or maybe it's stable as this here I my personal opinion, and it's a financial Yeah, it's not a financial advice. I want to make that very clear. But my personal opinion is it's not the bottom yet.

I stick to my prices, which a couple of months back I said, I still find what might further ye in my personal opinion, if I would be buying it I'm still holding my personal capacity. I am going to go into ether somewhere between six hundred eight. I'm going to go into bitcoins somewhere between twelve to fourteen K and I still think December to March we're going to see that it's not there yet. That's what we're telling our investors and our investor up. Okay, so let's say

you you come in at that at those prices. How long are you going to have to wait to see some games? How long is this downturn gonna last? How tied to the downturn is crypt out I feel like crypto is a very unique case. It does go down when the whole market is going down. It also sometimes is the one of the first commodity or the security to go down. But if you look at last time during COVID, it was also one of the first asset

class that started going up. So I do believe that two thousand twenty four is going to be good for crypto. We're gonna see all time high maybe summer on May, June, July. I don't think we have to be in the dip for more than fourteen bounds starting from January. Okay, what areas of the blockchain do you think come back first or are going to be the best pats for let's say next year. Infrastructure? A lot of indexing, cross chain analytics,

a lot of hardcore institutional adoption problems. What happened to blockchain and supply chain, what happened to blockchain into mortgage securities, a lot of Web two problems where blockchain came and said, hey, we're gonna revolutionize it, but then the bullish market came and everybody was excited about defy and n f T like the whole crypto native use case, I feel like the dep market is where the builder's gonna come out,

and the billion dollar institutional adoption, not with respect to crypto, but technology in the real infrastructure problems are going to take taken care of. Looking forward, what are your biggest concerns? What should investors or people who are thinking about becoming investors, retail or tech investors, both crypto investors. I love saying by the day, stay in the space, experiment with some of that crypto in the real use cases, and if

you want to have an exit, have an exit. Uh. For the thick investors, I would say builders are going to continue to build. So people who go through the British market and build their product and come up in the Bullish market are the founders you want to stick to. So I'm very excited about this all right, Kamira Gupta, Delta blockchain founder, going to have you on the show and see you in person. Thank you for stopping by.

With the pandemic prompting a big shift towards e commerce, retail companies are rethinking everything from the customer and the employee experience online and off to just how many physical stores to open. That's the challenge facing Warby Parker and it's clo ce O'Neil bluementhal with us now. So I'd love to hear how your strategy is involving in a post pandemic world. You obviously have this thriving online business. You would to close a D and twenty stores during

the pandemic, but now you've opened almost two hundred. How do you find the balance of how many and how much? Yeah, you know, I think the key is to have a multi channel approach and to constantly meet customers where they

want to be met. And we know that customers are shopping as they live physically and digitally UM, and thankfully because we're directed consumer, because we have those direct relationships with our customers, were able to get feedback and hear from them, and that helps us, you know, our e commerce business helps us dictate where we should open up stores. Similarly, UM, you know, we're able to invest in I exams and virtual vision tests that then make it easier for people

to buy online or in in store. Enough consumers are paying more for everything from gas to groceries, how are you evolving to meet their needs in a high intuation environment. You know you talked about feedback. What feedback are you getting and how are you responding to that? Yeah, we're hearing from customers that value is super important, and we always think about value as that price to quality ratio.

So being able to sell n glasses instead of you know, the four or five dollars that they would call elsewhere. What we've seen is competitors UM, but also other retailers and other categories right over the last year or two raise prices now only to you know, do heavy discounting as they've established a large inventories. You know, we've been able to be more consistent with our customers and keep pricing like as it's been over the last few years.

So that way we can have simple, unified pricing, just make it easy for our customers. And we think that we continue to deliver exceptional value, will continue gain more and more and more good share. So let's talk about what's the main strategic driver of market share gates. You know,

are you going to keep focusing on the US? I think more broadly, so we'll continue focus on the U. S will continue to open up stores, will have opened forty stores this year, while investing in our online experience, you know, in particular our virtual Vision UH tests, which enables people to renew their prescription online through our i OS app or our virtual try on UM. We've also been really investing in contacts UM and that's a business

that's been growing over a year for us. So we're finding our customers really want to come to us for a one stop shop for a holistic vision care experience. So talk to us about the criteria to reopen stores or to open new stores, I should say, given the potential for the footprint to be what, yeah, so where are these going to be? Are they in malls? Are they elsewhere? They're in malls? Their street location, transportation, and hubs.

Throughout the pandemic, right, we saw massive sort of shifts in in traffic as people's routines change, and we saw you know, traffic increase in our suburban locations and big deltas between sort of urban and suburban locations. We're seeing that start to narrow now, especially after Labor Day, as you know, a lot of offices have reopened and a lot of folks have started to return to sort of there,

you know, pre pandemic routines. Um. You know, for us again, we're opening up stores close to our customers, so whatever is easiest for them to shop at, that's where we'll reports the trends. So what's a little disturbing if I was just visiting some stores in the Bay Area and we have customers coming in asking for Jeffrey Dahmer glasses because of the Netflix series, which is just sick, right, the guy was a monster. Um, but I guess it

might be having you know, some fashion anything else. Let's send on a happier note, people want to wear right now. Aside from that, I think people are looking for some bright colors and just some some happiness. Over the last two years, right, which has been really tougher from US Americans. So monster or bright colors that trap. Okay, Neal woman Thokoso Barden Parker, good to see you, Thanks for thanks for having me. I want to go back to Tesla now.

Bloombergs and Ludlow has been listening into the call, and what are you hearing from Ellen? Hearing a lot from Ellen. Apparently is going to be an epic d to the year. The fourth quarter will have record breaking deliveries. But actually we've got some more granularity on that from CFO Zack Corker, Zack kirkcorn You said that actually, even if production is an annual growth rate of fifty all told, by the end of this year, delivery will fall just short of fifty.

Ellen's talking about the idea of a buy back, which has been really important for investors. He said at five to ten billion dollar buyback is possi next year, pending board approval. It's something that a lot of investors have been calling for. And the kind of big one that jumped out out of nowhere was that Elon sees a path for Tesla to have a greater market cap than Apple and in the long run twice the market cap that Saudi Aramco has, So that shows his confidence in

where this company is going. Quite a proclamation, even from someone like Elon Musk. Are we expecting to hear anything from him about the potential Twitter deal or for him to take questions about what this would mean for Tesla investors? So just like in previous quarters, Tesla started by taking questions from retail investors that have voted on on the

same platform. Right, So that hasn't come up yet, but you would expect it, I think, not just the issue of whether Elon Musk has to sell Tesla stock to fund the purchase of Twitter, but there's also this idea of key man risk, Right, how distracted would an Elon must be? Who is CEO of Tesla SpaceX And we don't know what role he might take it Twitter, but it's something to add to the to a very busy manner. Would say a number of names in the street have come out of late to say test has become a

pretty well or machine. Zach Kirk on the CFO is demonstrating on this call that he has commanded the numbers and that he's got a pretty clear vision of what the head winds that tester is facing our What he said so far about the supply story seems like it's not so much of a demand story anywhere as it is a supply story. Yeah, he really actually underlined that the demand is there. They think they can sell every vehicle they build, particularly in the fourth quarter. The demand

is there. On the supply side. One third of all the vehicles delivered in the third quarter came in the last two weeks. We know about the mad scramble. They're trying to smooth that out. We should boost the cost per vehicle. But this is how Elon must put it. There were no boats, there were no trains, and there were no carriers when they got to the end of the quarter, and that's why a number of vehicles were in transit. That's why the third quarter of delivery numbers

fell short of estimates. And it seems like that's why they missed on the top line for the first time since the third quarter of last year. All Right, i'd love low. Thanks for breaking it down. We'll continue to look to you for more headlines. And that does it for this edition of Bloomberg Technology. We've got a great show coming up Thursday. Arianna Huffington's will be with us to talk about what she calls the productivity paradox, where employees work more but get less done. M and don't

forget to check out our podcast. Wherever you get your podcast, I'm Emily Changing in New York. This is Bloomberg