WEBVTT - Live from CES Day Two and The Future of EV Charging 0:00:13.560 --> 0:00:16.200 I'm Caroline Hyde at bloom Mug's wealth headquarters in Neil 0:00:17.720 --> 0:00:20.959 and id Ludlow at CS the Consumer Electronics Show in 0:00:21.040 --> 0:00:24.639 Las Vegas. This is a special edition of Bloomberg Technology 0:00:24.720 --> 0:00:27.640 coming up this hour. Tesla concerns they worsened as the 0:00:27.680 --> 0:00:31.560 automaker drops prices in China again. Investors call it a 0:00:31.600 --> 0:00:37.320 train wreck? Is it? Plus? Competition against Tesla ramps up 0:00:37.560 --> 0:00:41.320 as Mercedes Benz reveals plans to install thousands of ev 0:00:41.640 --> 0:00:45.800 Ultra fast charging stations globally, and Samsung posted a historic 0:00:45.960 --> 0:00:48.680 drop in profit as chip sales they plummet. We discussed 0:00:48.680 --> 0:00:52.639 the demand outlook with semiconductor giant Qualcom h CEO Cristiana 0:00:52.720 --> 0:00:55.760 arm On joins us. But first and foremost we get 0:00:55.800 --> 0:00:57.800 to those markets, and today was a day of macro, 0:00:57.920 --> 0:01:00.760 not micro. Today was a day of jobs data of 0:01:00.880 --> 0:01:03.640 non farm payrolls showing that basically've got a Goldilock scenario 0:01:03.680 --> 0:01:06.000 when it comes to the federal reserves. Eyeing of the 0:01:06.080 --> 0:01:08.440 jobs market, the SMP sergs more than two percent, the 0:01:08.520 --> 0:01:11.039 NASA having its best day in a month, and this 0:01:11.120 --> 0:01:13.680 is largely because we saw wage inflation. The pressures they're 0:01:13.720 --> 0:01:16.360 just staled back somewhat so still resilience in the job 0:01:16.400 --> 0:01:18.600 market to run a thirty two thousand jobs added, even 0:01:18.640 --> 0:01:21.319 though we keep talking about there's headlines and technology of 0:01:21.840 --> 0:01:24.759 job losses there this is not featuring at a federal 0:01:24.800 --> 0:01:27.959 macro level, and therefore we see a resilient job market, 0:01:27.959 --> 0:01:30.920 but a cooling in inflatory pressures. Two year yields absolutely 0:01:31.000 --> 0:01:33.520 dar back. Money palls in to the bond market as 0:01:33.520 --> 0:01:35.319 we think the Federal Reserve can take its foot off 0:01:35.319 --> 0:01:38.000 the gas when it comes to rate hikes. Let's slip 0:01:38.040 --> 0:01:39.839 it on again. Let's get into some of the micro moves, 0:01:39.880 --> 0:01:42.319 because amid there's joy in the market, we see some 0:01:42.319 --> 0:01:44.480 of the big tech moves move higher. Apple was the 0:01:44.480 --> 0:01:47.560 biggest mover in terms of points we're seeing up well 0:01:47.640 --> 0:01:49.840 four point six points, up almost four percent, but that 0:01:49.960 --> 0:01:52.400 really helped the benchmarks moved to the upside. It's once 0:01:52.440 --> 0:01:55.320 again worth more than two trillion dollars. First solo getting 0:01:55.320 --> 0:01:57.880 a bit. This isn't light of Wells Fargo saying it's 0:01:57.880 --> 0:02:00.080 one of their best ideas of three there's so a 0:02:00.120 --> 0:02:02.560 company surging one point eight percent, one of the best 0:02:02.560 --> 0:02:04.960 performers on the SMP and Biogen I want to shine 0:02:04.960 --> 0:02:07.440 a light from biotech for you today because the FDA 0:02:07.600 --> 0:02:10.880 giving it spread up approval of of course, the Alzheimer's drug. 0:02:10.919 --> 0:02:13.280 The biogenn is in partnership trying to tackle at the moment. 0:02:13.480 --> 0:02:15.440 So we're seeing up two point eight percent end, but 0:02:15.560 --> 0:02:17.639 really overall we want to dial it back to what's 0:02:17.639 --> 0:02:19.960 happening and sees what's happening on the floor, what's happening 0:02:19.960 --> 0:02:23.600 in terms of well in the car story. Really that 0:02:23.760 --> 0:02:26.240 is upon everyone's lips. It really does feel like a 0:02:26.280 --> 0:02:30.160 car show rather than electronic show. End. Yeah, it's day 0:02:30.160 --> 0:02:32.680 two here in Las Vegas, and evs are still top 0:02:32.680 --> 0:02:35.359 of mind, not just the announcements, but actually everyone is 0:02:35.360 --> 0:02:38.360 paying attention to Tesla A raising A drops as much 0:02:38.400 --> 0:02:41.400 as eight percent Friday. This is all about EV competition 0:02:41.480 --> 0:02:44.560 heating up in China, such an important market. Shares down 0:02:44.639 --> 0:02:47.240 after the company slash prices for its cars in China 0:02:47.480 --> 0:02:49.320 for the second time in three months, and then you 0:02:49.360 --> 0:02:51.640 look at its rival Burkes A halfway back to b 0:02:51.800 --> 0:02:56.080 y D raising prices and posting record sales. I'm so pleased, 0:02:56.080 --> 0:02:59.560 Caroline that Bloomberg's Kevin Tynan is alongside me here in 0:02:59.639 --> 0:03:02.480 Las Vega. Guess, of course, our Bloomberg Intelligence senior analysts 0:03:02.480 --> 0:03:05.480 for autos, you have a very clear view on this. 0:03:05.480 --> 0:03:07.720 This is a demand problem for Tesla, isn't it. Sure? 0:03:07.800 --> 0:03:12.360 Look and globally regionally, the auto industry is cyclical, and 0:03:13.000 --> 0:03:15.919 these TV makers, including Tesla, which is the oldest of all, 0:03:16.240 --> 0:03:19.680 just haven't been through this kind of demand earth um 0:03:19.720 --> 0:03:23.200 here or in China here. Money was easy and cheap 0:03:23.280 --> 0:03:26.600 for years, so we went through this period where evaluation 0:03:26.639 --> 0:03:29.440 goes through the roof because it's easy to afford vehicles, 0:03:29.560 --> 0:03:31.120 and this is the first time that these companies are 0:03:31.120 --> 0:03:33.360 really gonna be challenged. I should say that Tesla closed 0:03:33.440 --> 0:03:35.600 up almost three percent. It was down almost eight cent 0:03:35.640 --> 0:03:37.240 at one point. You know, the market's kind of making 0:03:37.280 --> 0:03:39.600 up his mind. But over the course of weeks, the 0:03:39.640 --> 0:03:42.360 downward pressure on the stock was about demand. It seems 0:03:42.960 --> 0:03:44.960 there's a competition angle. You know, you look at what 0:03:45.040 --> 0:03:48.600 Mercedes announced here. Uh, you know, focus globally, but also 0:03:48.760 --> 0:03:51.280 United States, in China. There are so many more players. 0:03:51.640 --> 0:03:53.840 Our investors kind of now waking up to the idea 0:03:53.920 --> 0:03:56.720 that Tesla is not the only game in town. I 0:03:56.800 --> 0:03:59.280 think so. And I think on top of that, I 0:03:59.320 --> 0:04:02.800 think the idea of EV adoption slowing is becoming a 0:04:02.880 --> 0:04:07.600 reality as well, um in terms of mining materials, who 0:04:07.640 --> 0:04:12.560 controls the materials, increased in prices of the materials, and 0:04:12.600 --> 0:04:17.280 then the real environmental impact of the technology providing the 0:04:17.760 --> 0:04:20.600 energy generation to power a fleet of electric vehicles like 0:04:20.640 --> 0:04:23.240 these are all things that through the period that is 0:04:23.360 --> 0:04:26.960 ending now really weren't talked about or considered as deeply 0:04:27.000 --> 0:04:29.640 as they are going to be now well said. And 0:04:29.680 --> 0:04:31.760 it's interesting that one of the co founders of Tesla 0:04:31.800 --> 0:04:33.640 went off to try and think about how you can 0:04:33.640 --> 0:04:35.719 recycle batteries, how you can make that more of an 0:04:35.839 --> 0:04:40.040 environmentally friendly means of driving. Kevin, I'm interested that at 0:04:40.040 --> 0:04:43.279 the same time as worrying about Tesla in China, while 0:04:43.320 --> 0:04:46.080 they're dialing back prices for Tesla, b y D just 0:04:46.080 --> 0:04:47.719 seems to be cleaning up. Of course, this as a 0:04:47.760 --> 0:04:50.839 company that's backed by the likes of Warren Buffett. How 0:04:50.920 --> 0:04:53.560 big is the pie getting of EV and how much 0:04:54.000 --> 0:04:56.880 is market share being eroded by other players in the 0:04:56.920 --> 0:05:01.880 space now? Yeah, Look and and ideally each of the 0:05:01.920 --> 0:05:04.279 regions if you look at North America, you look at Europe, 0:05:04.279 --> 0:05:07.800 and you look at China, the governments are essentially the 0:05:07.839 --> 0:05:12.200 wild card in terms of whether penalizing automakers for not 0:05:12.320 --> 0:05:16.120 doing more EVY or subsidizing the losses. And here in 0:05:16.160 --> 0:05:19.200 North America and US specifically, you know we don't. We're 0:05:19.240 --> 0:05:22.600 doing neither, right, We're we're incentivizing the consumer worth federal 0:05:22.760 --> 0:05:27.360 tax credits. Um. So you have a different demand profile 0:05:27.680 --> 0:05:31.000 and supply profile in each region based on how the 0:05:31.000 --> 0:05:34.120 government gets involved. And in China, you know, their push 0:05:34.200 --> 0:05:37.120 for adoption is much greater than it is even in Europe, 0:05:37.120 --> 0:05:40.760 and certainly more than it is here. So um, you're 0:05:40.839 --> 0:05:44.400 just going to get this kind of demand profile that 0:05:44.440 --> 0:05:47.599 we don't know over here, and that is being driven 0:05:47.640 --> 0:05:51.039 by penalties in Europe. All right, bloom beg inteligencies. Kevin 0:05:51.040 --> 0:05:53.240 tun is so good to hang out and pick your 0:05:53.240 --> 0:05:55.599 brain here in Las Vegas. Thank you. In a few 0:05:55.600 --> 0:05:59.240 minutes time, we're going to discuss the future of electric vehicles. 0:05:59.240 --> 0:06:03.960 We've mess ad is board member and CTO Marcus Schafer. Yes, 0:06:04.040 --> 0:06:05.800 so much more to discuss there and in fact, and 0:06:05.920 --> 0:06:08.400 as we dial back demand for autos, in fact, as 0:06:08.400 --> 0:06:11.440 we dial back demand well for anything that involves a chip. 0:06:11.480 --> 0:06:14.159 At the moment, semiconductors have been under some significant pressure. 0:06:14.240 --> 0:06:17.040 Just look at the quarterly profit coming from sam Summer Electronics. 0:06:17.200 --> 0:06:19.840 It was its initial profit forecast, and in fact it 0:06:19.880 --> 0:06:21.840 said it fell the most in more than a decade. 0:06:22.080 --> 0:06:23.360 Of course, it's a little bit of a sign in 0:06:23.400 --> 0:06:27.839 the global economic slowdown, and it's hurting electronics demand even 0:06:27.880 --> 0:06:31.240 more than many had actually expected, sometimes operating profit plunging 0:06:31.279 --> 0:06:33.920 sixty nine percent. To remember, this is the Bellweather of 0:06:34.000 --> 0:06:37.320 South Korea. It's its largest company, and Sundsung has kind 0:06:37.320 --> 0:06:40.720 of in grappling with weak demand for memory, cheap chips, 0:06:40.880 --> 0:06:45.280 smartphone starting back displays of course less in demand. It's 0:06:45.320 --> 0:06:48.080 all about what had been the pandemic ramp up ed 0:06:48.400 --> 0:06:50.480 and then this sudden are back. We see it whether 0:06:50.560 --> 0:06:52.880 it's the purchasing of these goods, and of course in 0:06:52.920 --> 0:06:55.200 many ways that's why we're seeing the reflection and people 0:06:55.520 --> 0:06:59.480 cutting jobs at these sorts of companies too. The dynamic 0:06:59.520 --> 0:07:02.760 here is is fascinating. Yes, there's just a complete drop 0:07:02.760 --> 0:07:05.320 in demand for d ram right, there's memory chips. Also, 0:07:05.360 --> 0:07:08.120 think about Apple, how difficult it was for Apple in 0:07:08.160 --> 0:07:11.920 the final month of two the worries around demand for 0:07:11.960 --> 0:07:14.800 Apple handsets and how there was such a revision for 0:07:14.840 --> 0:07:18.080 the four year number. Will remember, ironically, Apple is so 0:07:18.120 --> 0:07:20.880 important to Samsung's business as well from that memory perspective. 0:07:20.960 --> 0:07:23.960 So we're going to continue that conversation here in Las Vegas. 0:07:24.080 --> 0:07:26.760 Later this hour, we will discuss the chip outlook with 0:07:26.840 --> 0:07:30.640 Qualcom's CEO, Christiano am On Carrow, which is, you know, 0:07:30.760 --> 0:07:33.240 I can't wait because they are so key to that 0:07:33.320 --> 0:07:36.040 smartphone market as well, and he's actually managed to weather 0:07:36.080 --> 0:07:38.680 supply chains so well with the business and has remains 0:07:38.720 --> 0:07:41.360 pretty bullish throughout all of it. We'll see how he's 0:07:41.400 --> 0:07:44.520 talking about overall end demand at the moment. Meanwhile, coming up, 0:07:44.560 --> 0:07:46.760 so much more to be talking about. We've got more 0:07:46.760 --> 0:07:48.520 on cars. As I kept saying, this is kind of 0:07:48.560 --> 0:07:51.280 an auto show as well as electronics show. I'm going 0:07:51.320 --> 0:07:55.200 to exclusive conversation Marcus Schaefer Mercedes Benz Group as the 0:07:55.240 --> 0:07:59.040 car maker launcher's efforts to expand their own electric vehicle strategy. 0:07:59.040 --> 0:08:01.920 But first we also going to talk about and wearable 0:08:01.960 --> 0:08:03.960 tech continues to be a top trend. I know you're 0:08:03.960 --> 0:08:07.120 seeing at CS and it's only getting bigger. According to 0:08:07.240 --> 0:08:09.360 our CEO, Tom Hale. Just got to listen what he 0:08:09.440 --> 0:08:11.200 told it a little bit earlier in terms of the 0:08:11.280 --> 0:08:16.560 holiday season. We actually went into the Black Friday Cyber 0:08:16.560 --> 0:08:19.360 Monday with a price increase and we saw incredible unit 0:08:19.400 --> 0:08:21.960 volumes and incredible unit economics as a result. So we're 0:08:21.960 --> 0:08:23.720 actually bucking the trend, and I think that's part of 0:08:23.760 --> 0:08:26.920 a larger trends. Post COVID, people are much more aware 0:08:26.920 --> 0:08:29.680 of their health, of their wellness, how they're feeling. We've 0:08:29.680 --> 0:08:32.160 got a mental health crisis amongst teams. We've got people 0:08:32.200 --> 0:08:34.760 really starting to think about longevity and sleep is the 0:08:34.760 --> 0:08:37.400 foundation of all these things. And as a product, we've 0:08:37.400 --> 0:08:40.280 been spearing right into health right. We want to we 0:08:40.320 --> 0:08:43.000 want to extend from sleep into heart health. The American 0:08:43.040 --> 0:08:46.680 Heart Association just declared eight you know, sort of key 0:08:46.760 --> 0:08:49.680 factors in health. Sleep is one of them, and if 0:08:49.679 --> 0:08:51.640 you're getting bad sleep, you're gonna you know, you're gonna 0:08:51.760 --> 0:08:56.240 higher risk for cardiovascular issues, mental cognitive health. Alzheimer Parkin says, 0:08:56.440 --> 0:08:57.960 people are just much more aware of but now and 0:08:57.960 --> 0:09:00.080 that's really the tale when they're driving it. Yeah, there 0:09:00.160 --> 0:09:03.240 might be short term economic concerns, but what values your 0:09:03.240 --> 0:09:25.600 health priceless. I think was one of the best years 0:09:25.600 --> 0:09:29.320 in the car industry from the car makers perspective. I 0:09:29.360 --> 0:09:33.679 think supply is still limited and demand is still exceeding supplies. 0:09:33.960 --> 0:09:37.280 I don't see as a challenging year. From dort to 0:09:37.320 --> 0:09:43.959 Motiv perspective. That was the CEO there of Mobile I 0:09:44.120 --> 0:09:47.520 and here it's CS Las Vegas. Sustainability has been a 0:09:47.559 --> 0:09:51.199 big focus, not just for tech but also companies as well. 0:09:51.360 --> 0:09:54.600 This year's CS luxury car make a Mercedes Benz announcing 0:09:54.640 --> 0:09:58.040 plans to build a global network of ultra fast charges 0:09:58.080 --> 0:10:01.120 four evs, the first stations this year in North America, 0:10:01.240 --> 0:10:04.600 later expanding to Europe and then China. And I'm delighted 0:10:04.640 --> 0:10:06.839 to say, Caroline, they're here with more on the e 0:10:06.960 --> 0:10:10.360 V outlook from Mercedes Benz is their chief technology Officer, 0:10:10.880 --> 0:10:14.000 Marcus Schaefer. This is a real announcement, This is a 0:10:14.080 --> 0:10:19.160 real move by Mercedes to drive EV adoption, to drive electrification. 0:10:19.240 --> 0:10:23.560 Talk us through the timeline for rollout of this charging infrastructure. Well, 0:10:23.640 --> 0:10:28.560 this Mercedes branded globally charging infrastructure is complementing a roaming 0:10:28.640 --> 0:10:32.680 network which is currently existing UH and consisting of one 0:10:32.760 --> 0:10:36.600 million points, so it's a great addition to this network. 0:10:36.720 --> 0:10:41.440 The timeline to establish our own network globally in North America, 0:10:41.520 --> 0:10:45.600 Europe is starting twenty three and completion actually is planned 0:10:45.720 --> 0:10:49.240 by twenty twenty seven. My question is why are you 0:10:49.280 --> 0:10:52.320 doing this? You know you you have electric vehicle offerings 0:10:52.360 --> 0:10:55.320 in key markets. Do you think that this will be 0:10:55.360 --> 0:10:59.120 a driver of sales for those legacy Mercedes buyers who 0:10:59.160 --> 0:11:01.760 want to go electric I guess are concerned about charging. 0:11:01.760 --> 0:11:04.280 Why are you doing this? Well, if you are an 0:11:04.280 --> 0:11:07.080 EV driver and you know all about the experience and 0:11:07.120 --> 0:11:10.600 all the shortcomings range anxiety, but we want to provide 0:11:10.720 --> 0:11:14.120 two customers to all, must say the customers a real premium. 0:11:15.040 --> 0:11:18.520 Range anxiety is still an issue though absolutely absolutely. I 0:11:18.600 --> 0:11:22.400 mean despite we offer probably the best rangers in class, 0:11:22.480 --> 0:11:24.440 so just look at the eque as more than four 0:11:24.480 --> 0:11:28.240 hundred miles of range. That's phenomenal, But still looking at 0:11:28.280 --> 0:11:31.320 the market, I think still there's range anxiety. So to 0:11:31.400 --> 0:11:35.480 address this, we need a premium charging experience, and that's 0:11:35.679 --> 0:11:38.600 exactly what we're targeting. Let's look at some of your 0:11:38.600 --> 0:11:41.719 electric vehicles and let's look at ultimately demand for them. 0:11:41.760 --> 0:11:44.920 There's range anxiety, but there's also economic factors that player. 0:11:44.920 --> 0:11:47.600 At the moment markets you were perhaps ahead of what 0:11:47.600 --> 0:11:51.360 we're seeing on today. With Tesla. Tesla cutting its overall 0:11:51.440 --> 0:11:54.040 supplied to China, you had to do that back in November. 0:11:54.320 --> 0:11:56.440 What does the man look like for you globally and 0:11:56.440 --> 0:12:01.679 in specific, what is it like in China. Well, if 0:12:01.720 --> 0:12:04.800 I look at the global markets, there's a high increase 0:12:05.200 --> 0:12:09.720 and a production of Mercedes Pense EV vehicles. So the 0:12:09.760 --> 0:12:12.720 pace we are introducing and the growth rate we're having 0:12:13.040 --> 0:12:16.120 is more than one. Looking at the first nine months 0:12:16.160 --> 0:12:21.720 of twenty twenty two, so customers accepting our vehicles, so 0:12:22.080 --> 0:12:24.440 the introduction is just in full swing. So we are 0:12:24.679 --> 0:12:28.079 in the market with eight electric vehicles, which is probably 0:12:28.120 --> 0:12:32.120 the most comprehensive portfolio of evs in the market. And 0:12:32.160 --> 0:12:35.200 the first cars are entering the Chinese market in an 0:12:35.280 --> 0:12:38.680 interesting segment, the top end segment. Now we just we're 0:12:38.720 --> 0:12:41.640 in the course segment, starting in the course segment. Now 0:12:41.640 --> 0:12:45.000 we're entering into the top end segment, which is not 0:12:45.080 --> 0:12:47.959 existing at the moment, a segment over one million R 0:12:48.080 --> 0:12:51.520 and B which is a one hundred fifty U S dollars. 0:12:51.559 --> 0:12:54.839 That's an interesting segment. And now the first offering is 0:12:54.880 --> 0:12:59.319 there for Merced dispense the EQS electrics class interesting, so 0:12:59.360 --> 0:13:02.120 that our a luxury sort of price point is still 0:13:02.160 --> 0:13:05.480 their markets. But what about the middle and what about 0:13:05.520 --> 0:13:10.960 pricing pressure there? Well, it's a it's a market that's 0:13:10.960 --> 0:13:14.120 not a solid market yet, so there are always new 0:13:14.160 --> 0:13:16.920 players coming into the market. The ice market is very 0:13:16.960 --> 0:13:21.000 well established over a long time, but the EV market 0:13:21.520 --> 0:13:24.720 is very fragile at the moment, new players coming into 0:13:25.000 --> 0:13:29.720 So it's about content, customer acceptance and pricing and so 0:13:29.840 --> 0:13:32.280 the market is just getting in the balance at the moment. 0:13:32.679 --> 0:13:35.400 We surprised that you had to cut prices in China 0:13:35.520 --> 0:13:38.120 in in November of last year. Was that something that 0:13:38.280 --> 0:13:41.160 caught you off guard a Mercedes a little bit? Well, 0:13:41.200 --> 0:13:42.839 as I said, it's it's a new it's a new 0:13:42.880 --> 0:13:46.480 bracket that's coming together, so their new players entering it. 0:13:46.920 --> 0:13:50.439 So we were in this bracket for one million R 0:13:50.559 --> 0:13:54.360 and B started there and we did reposition the price. 0:13:54.600 --> 0:13:59.160 But still after repositioning, we are in the top not bracket. 0:13:59.720 --> 0:14:04.679 Still talk to us about adoption overall markets. We actually 0:14:04.720 --> 0:14:06.920 went to our own audience. We asked them in a 0:14:06.960 --> 0:14:09.200 poll on Twitter, at what point are they going to 0:14:09.240 --> 0:14:11.960 be getting into the e V space if they're not already, 0:14:12.480 --> 0:14:16.520 And actually in large part said they already owned one, 0:14:16.840 --> 0:14:20.320 but the majority said that they'll be buying one in 0:14:20.520 --> 0:14:24.640 three years plus, so they still need hearts and minds one. 0:14:24.680 --> 0:14:27.240 They still need perhaps the infrastructure that you're building out. 0:14:27.520 --> 0:14:29.920 But what also about do you need to meet from 0:14:29.920 --> 0:14:32.360 a supply side right now? Have you got the right talent, 0:14:32.440 --> 0:14:35.080 have you got the right software technicians at the moment? 0:14:35.120 --> 0:14:38.280 Are you managing to avoid any supply side problems coming 0:14:38.320 --> 0:14:43.600 down the pipe? Well, I think they are lots of challenge. 0:14:43.600 --> 0:14:48.120 You're starting from R material through battery assembly planned, but 0:14:48.480 --> 0:14:50.960 attacking all these elements and there really is through under 0:14:51.040 --> 0:14:54.760 sixty degree approach. So we're taking care about DR materials. 0:14:54.840 --> 0:14:58.960 So we're changing our sourcing activities, really taking care about 0:14:59.000 --> 0:15:03.240 DR materials, talking to mining companies, having off take agreements, 0:15:03.560 --> 0:15:08.240 establishing our own or joint venture cell factories or battery 0:15:08.240 --> 0:15:15.760 assembly plans, and converting all production and global assembly plants worldwide. 0:15:16.040 --> 0:15:20.280 So we are in the midst of completing basically this 0:15:20.640 --> 0:15:23.400 um This really is three under sixty degree approach here, 0:15:23.560 --> 0:15:26.240 and the one missing point was the charging infrastructure. So 0:15:26.280 --> 0:15:29.840 now you have it all starting from raw materials up 0:15:29.840 --> 0:15:32.800 to charging. Really in the comprehensive to under sixty degree. 0:15:32.960 --> 0:15:36.360 That was a big commitment on charging software. I want 0:15:36.400 --> 0:15:38.240 to talk to you about Formula one, but we can't. 0:15:38.280 --> 0:15:41.520 Not today another time Formula one, but talks me about software. 0:15:41.800 --> 0:15:44.360 It's competitive on the hiring side. You look at some 0:15:44.400 --> 0:15:48.920 of your peers, VW had some challenges with software. Do 0:15:48.960 --> 0:15:51.440 you feel happy with where you are with talent, with 0:15:51.520 --> 0:15:54.480 the timelines for development for the platforms that are in 0:15:54.520 --> 0:15:58.120 work sorts me about software, Well, we're absolutely happy. So 0:15:58.160 --> 0:16:02.120 we just completed hiring or three additional software engineers and 0:16:02.200 --> 0:16:05.480 actually the company is very attractive and so we had 0:16:05.520 --> 0:16:08.960 really no issue attractive talent, the best talent on the 0:16:09.000 --> 0:16:12.920 software site. So right now we're establishing our own operating 0:16:12.960 --> 0:16:15.600 system MBO as we call it. It's a chip to 0:16:15.800 --> 0:16:20.360 cloud software actually, and it's on track. So we're going 0:16:20.400 --> 0:16:24.360 to market in twenty five actually, and even in the 0:16:24.400 --> 0:16:27.080 next class coming out this year, we will have the 0:16:27.120 --> 0:16:30.120 first glimpse of how this operating system will look like. 0:16:30.480 --> 0:16:33.520 So there's great software talent on board, and as we 0:16:33.520 --> 0:16:36.920 were able to show here at cs OR, is the 0:16:37.000 --> 0:16:40.760 first idea what this software will deliver in terms of performance. 0:16:41.160 --> 0:16:44.080 I've got to ask you about autonomy level three you've 0:16:44.120 --> 0:16:48.600 received the permit for Nevada or inside California maybe this year. 0:16:48.920 --> 0:16:51.120 Do you think that that will happen. Oh, we are 0:16:51.240 --> 0:16:55.520 actually really really hopeful that that's going to happen soon. Actually, so, 0:16:55.760 --> 0:16:58.560 the d m V of Nevada approved our application. That's 0:16:58.560 --> 0:17:01.160 a great step moving from level to lever the three. 0:17:01.640 --> 0:17:03.800 We call it the moon lendings that first time, really 0:17:04.200 --> 0:17:08.199 responsibility is taken over by d vehicle itself, if not 0:17:08.240 --> 0:17:12.040 by the driver anymore, and no hands and no eyes 0:17:12.080 --> 0:17:14.879 on the road anymore. But still, of course safety is 0:17:14.880 --> 0:17:16.840 a keute element for us. As going to say, dispense. 0:17:17.359 --> 0:17:20.080 Marcus Schaeffer has been so great speaking to you, Mercedes 0:17:20.119 --> 0:17:23.240 Ben's chief technology officer, say well, enjoy the rest of 0:17:23.280 --> 0:17:25.720 CS interesting will be speaking much more with qual Calm 0:17:25.720 --> 0:17:36.320 about autonomous driving and the technology behind it. So movement. 0:17:36.359 --> 0:17:39.440 When it comes to ft X, Behamian and US officials 0:17:39.480 --> 0:17:42.639 overseeing the bankruptcy of the Crypto Empire have actually struck 0:17:42.640 --> 0:17:44.200 a deal. They're going to work together. They're going to 0:17:44.359 --> 0:17:47.239 end most of their legal disputes. Now this comes at 0:17:47.240 --> 0:17:49.320 a time while the ripple effects of f t X 0:17:49.359 --> 0:17:51.080 are going far and wide. We've got to focus in 0:17:51.160 --> 0:17:53.800 on silver Gate, the key lender to many crypto firms. 0:17:54.200 --> 0:17:57.200 It too continues to plummet. Let's talk about the share slide, 0:17:57.200 --> 0:18:01.040 about the implications of bluemosh Yang following the FTX implosion 0:18:01.160 --> 0:18:04.320 and the contagion effects. Silvigate such an important player when 0:18:04.320 --> 0:18:07.919 it comes to the crypto ecosystem and basically saw a 0:18:08.000 --> 0:18:10.159 run on the bank, but for quite different reasons, and 0:18:10.240 --> 0:18:12.400 we usually expect for a run on the bank. Yes, 0:18:12.520 --> 0:18:16.160 so silver It's really one of the most important bank 0:18:16.280 --> 0:18:19.960 in the crypto space because it provides banking services um 0:18:20.119 --> 0:18:24.560 deposit services to companies in the cryptal industry, which is 0:18:24.840 --> 0:18:27.000 historically kind of cut off from the rest of the 0:18:27.040 --> 0:18:30.320 banking system. And silver Gate really made a name for 0:18:30.359 --> 0:18:35.359 themselves as being this very essential provider of banking services 0:18:35.400 --> 0:18:38.879 to crypto players and it benefited over the years when 0:18:38.920 --> 0:18:41.399 the crypto market was in a ball round. But now, 0:18:41.520 --> 0:18:45.440 as we know, one of their biggest client was FTX, 0:18:45.520 --> 0:18:48.440 which is in trouble. And then there are other depositors 0:18:48.640 --> 0:18:51.800 who are mostly concentrated in the cryptal industry are also 0:18:51.880 --> 0:18:55.600 pulling out assets and deposits from the bank and hence 0:18:55.680 --> 0:18:58.800 we saw this run off a Bank for Sewergate, which 0:18:58.840 --> 0:19:01.440 is very different from the other run of banks UM 0:19:01.520 --> 0:19:06.160 that we've seen historically during the Great depressions, for example, 0:19:06.359 --> 0:19:09.120 what's extraordinary is that it survived it It survived an 0:19:09.119 --> 0:19:13.000 eighty billion draw down, a basically pulled down on deposits. 0:19:13.000 --> 0:19:16.920 What it isn't surviving so much is investors confidence. In particular, 0:19:17.040 --> 0:19:19.560 Kathy would Well known for buying the dip, has not 0:19:19.680 --> 0:19:21.679 bought the dip on silver Gating. Fact, they sold out 0:19:21.720 --> 0:19:25.680 almost entire mentality of their steak. What what's investor sentiment 0:19:25.720 --> 0:19:28.840 like around this name? UM The investors still have great 0:19:28.840 --> 0:19:31.919 doubts about the future of the company. I think super 0:19:32.320 --> 0:19:34.760 is a really unique name in the market in the 0:19:34.800 --> 0:19:37.919 sense that is really doubling down on crypto. There are 0:19:37.920 --> 0:19:41.280 other banks that are friendly with crypto, for example Signature 0:19:41.320 --> 0:19:44.760 Bank that are starting to scale back their exposure to 0:19:44.840 --> 0:19:47.840 the cryptal industry. But for silver Gate, they talk about 0:19:47.840 --> 0:19:52.200 how there's they're still deeply committed to serving the cryptal clients, 0:19:52.200 --> 0:19:56.000 and that of course introduced great uncertainty for its future 0:19:56.040 --> 0:20:00.520 because there's all the regulatory overhand, and there's also the 0:20:00.080 --> 0:20:03.720 the market conditions that's not looking good for crypto and 0:20:03.800 --> 0:20:06.640 therefore analysts are worrying that the run of the bank 0:20:06.680 --> 0:20:12.800 will still continue for Silvergate. The UK readio story yesterday 0:20:12.840 --> 0:20:15.840 about the worst case scenario. Are we add a worst 0:20:15.880 --> 0:20:20.560 case scenario with all this crypto concern um sally UM. 0:20:21.200 --> 0:20:25.560 I think there's still significant concerns in the industry UM 0:20:25.640 --> 0:20:29.520 for some of the remaining big players. UM. This week, 0:20:29.560 --> 0:20:33.480 for example, Genesis, we solved further lay off for the company, 0:20:33.840 --> 0:20:37.040 and then we're still looking for more updates from both 0:20:37.040 --> 0:20:39.640 Genesis and the parent company d C g at. Their 0:20:39.720 --> 0:20:44.800 both just big important players that in the crypto industry 0:20:44.840 --> 0:20:48.600 that historically played an important role building up the industry 0:20:48.640 --> 0:20:51.960 for others. So UM, there's more to see for sure. 0:20:52.040 --> 0:20:55.680 Besides the companies that are already in the bankruptcy court. 0:20:56.640 --> 0:21:00.080 Yu Chiang has been continuing to follow the fallout. We 0:21:00.119 --> 0:21:02.119 thank us so much for it from Blomberg News. Meanwhile, 0:21:02.160 --> 0:21:05.240 of course, many of sort of rift that you maybe 0:21:05.240 --> 0:21:07.000 you're getting out of crypto and you're going into the 0:21:07.040 --> 0:21:10.760 new big talked about space, which is AI artificial intelligence, 0:21:10.760 --> 0:21:12.679 and there's some latest news on that because we're all 0:21:12.680 --> 0:21:15.560 talking about chat, GBT and some of the generator AI. 0:21:15.640 --> 0:21:18.640 But New York City public schools have taken we'll aim 0:21:18.680 --> 0:21:21.640 at this. They're banning its students from accessing chat gbt 0:21:21.920 --> 0:21:24.720 on its networks, on its devices, saying, look at the 0:21:24.760 --> 0:21:27.280 chat gybt, which is called an open AI program for 0:21:27.320 --> 0:21:30.400 generating text, and some speculate could be used to cheat 0:21:30.440 --> 0:21:33.639 on essays or other assignments. And the public school system 0:21:33.640 --> 0:21:37.040 is therefore saying, look, they're worried about safety, about accuracy, 0:21:37.280 --> 0:21:42.399 and actually more about well creation, creativity, about intelligence in 0:21:42.400 --> 0:21:45.720 the way in which children youth build it. And this 0:21:45.800 --> 0:21:48.320 of course was something immediately that people thought about when 0:21:48.359 --> 0:21:51.879 they started playing with this particular program. Is that, boy, 0:21:52.040 --> 0:21:55.199 where's content editing going to go? Where's copyrighting going to go? 0:21:55.560 --> 0:21:57.439 Where is the ability to be able to mark the 0:21:57.480 --> 0:22:02.159 students essays? I just find it astonishing how quickly we 0:22:02.200 --> 0:22:05.160 went from brand new, exciting tech to plagiarism, and how 0:22:05.160 --> 0:22:15.960 many column inches already written welcome back to Bloomberg Technology. 0:22:15.960 --> 0:22:18.240 I'm Caroline Hide in New York with Ed Ludlow, who 0:22:18.280 --> 0:22:22.320 is out in a very busy Las Vegas. Said, Yeah, 0:22:22.520 --> 0:22:24.400 there's a lot going on right you. You get caught 0:22:24.440 --> 0:22:26.560 up in the moment here. You can't ignore what's going 0:22:26.600 --> 0:22:30.600 on globally. There are macroeconomic concerns, but a report from 0:22:30.640 --> 0:22:35.040