1
00:00:02,480 --> 00:00:03,000
Speaker 1: Good morning.

2
00:00:03,080 --> 00:00:06,040
Speaker 2: I'm Nathan Hager and I'm Amy Morris. Here are the

3
00:00:06,080 --> 00:00:07,680
Speaker 2: stories we're following today.

4
00:00:08,119 --> 00:00:12,080
Speaker 3: Shares of Tesla are going in reverse this morning. They're

5
00:00:12,119 --> 00:00:14,840
Speaker 3: down more than seven percent in the pre market. The

6
00:00:14,880 --> 00:00:17,880
Speaker 3: electric vehicle maker says it expects sales growth this year

7
00:00:17,920 --> 00:00:21,320
Speaker 3: to be quote notably lower. We get more from Bloomberg's

8
00:00:21,320 --> 00:00:21,960
Speaker 3: Oliver Kruk.

9
00:00:22,400 --> 00:00:24,880
Speaker 4: They gave no guidance in terms of deliveries for this year.

10
00:00:24,920 --> 00:00:27,640
Speaker 4: They delivered one point eight last year million. That is

11
00:00:27,800 --> 00:00:30,120
Speaker 4: they're expecting two point two. That's what the analysts are expecting.

12
00:00:30,160 --> 00:00:32,720
Speaker 4: That's still twenty percent growth against a backdrop that is

13
00:00:32,840 --> 00:00:34,839
Speaker 4: challenging for a lot of the auto sector and a

14
00:00:34,840 --> 00:00:36,839
Speaker 4: lot of the EV market. There's going to be a

15
00:00:36,920 --> 00:00:39,080
Speaker 4: slow down in EV's that seems more or less certain

16
00:00:39,159 --> 00:00:42,320
Speaker 4: this year. Interest rates, basically, Elon Musk said that our

17
00:00:42,400 --> 00:00:45,640
Speaker 4: margin is directly pegged to interest rates in the United States,

18
00:00:45,680 --> 00:00:47,519
Speaker 4: So if they come down, our margins will be good.

19
00:00:47,600 --> 00:00:49,879
Speaker 4: If they don't, they'll be worse. And there's a competition

20
00:00:49,920 --> 00:00:52,560
Speaker 4: from China. There's all these other competitors with cheaper models

21
00:00:52,560 --> 00:00:53,680
Speaker 4: that are coming into the market.

22
00:00:53,760 --> 00:00:56,480
Speaker 3: Bloomberg Zolli Krouk says On the conference call, Elon Musk

23
00:00:56,520 --> 00:00:58,640
Speaker 3: said he needs a bigger steak in Tesla to prevent

24
00:00:58,680 --> 00:01:01,320
Speaker 3: being ouse to a CEO. Right now, he owns about

25
00:01:01,320 --> 00:01:02,880
Speaker 3: thirteen percent of the company.

26
00:01:03,600 --> 00:01:06,400
Speaker 2: While Taesla's shares are sliding. It's a different picture at

27
00:01:06,440 --> 00:01:08,800
Speaker 2: IBM this morning, shares up more than seven and a

28
00:01:08,840 --> 00:01:12,400
Speaker 2: half percent. The company delivered a positive outlook for revenue

29
00:01:12,400 --> 00:01:15,120
Speaker 2: and cash flow in twenty twenty four. Those details now

30
00:01:15,120 --> 00:01:16,560
Speaker 2: from Bloomberg's Charlie Pellett.

31
00:01:16,920 --> 00:01:19,679
Speaker 5: It is an optimistic signal for the pace of corporate

32
00:01:19,720 --> 00:01:23,520
Speaker 5: technology spending. IBM also announced it does expect to reduce

33
00:01:23,640 --> 00:01:27,640
Speaker 5: jobs by a percentage in the low single digits. The ARMANC,

34
00:01:27,760 --> 00:01:31,440
Speaker 5: New York based company has focused on streamlining its operations

35
00:01:31,480 --> 00:01:37,200
Speaker 5: around software and services in recent years by divesting managed infrastructure, weather,

36
00:01:37,319 --> 00:01:41,000
Speaker 5: and health businesses. IBM has also introduced new products to

37
00:01:41,040 --> 00:01:45,679
Speaker 5: capitalize on growing interest in artificial intelligence in New York.

38
00:01:45,840 --> 00:01:47,440
Speaker 5: Charlie Pellett Bloomberg.

39
00:01:47,080 --> 00:01:49,800
Speaker 3: Radio, All right, Charlie, thank you. We're also following Boeing

40
00:01:49,880 --> 00:01:52,640
Speaker 3: this morning. That stock is down another two percent. The

41
00:01:52,680 --> 00:01:56,600
Speaker 3: Federal Aviation Administration is freezing planned production increases for Boeing

42
00:01:56,640 --> 00:01:59,600
Speaker 3: seven thirty seven Max. At the same time, the FAA

43
00:01:59,600 --> 00:02:02,520
Speaker 3: approved inspection procedures that airlines need to carry out in

44
00:02:02,600 --> 00:02:05,640
Speaker 3: order for the Max to resume flights. Boeing CEO Dave

45
00:02:05,720 --> 00:02:08,840
Speaker 3: Calhoun met with senators yesterday. Before that meeting, he was

46
00:02:08,880 --> 00:02:11,720
Speaker 3: asked what message he has for concerned passengers.

47
00:02:12,160 --> 00:02:14,680
Speaker 6: We fly safe planes. We don't put airplanes in the

48
00:02:14,720 --> 00:02:17,200
Speaker 6: air that we don't have one hundred percent confidence in.

49
00:02:18,200 --> 00:02:21,320
Speaker 6: I'm here today in the spirit of transparency to number one,

50
00:02:21,360 --> 00:02:25,079
Speaker 6: recognize the seriousness of what you just asked. Number two,

51
00:02:25,120 --> 00:02:29,119
Speaker 6: to share everything I can with our Capitol Hill interests

52
00:02:29,919 --> 00:02:31,960
Speaker 6: and answer all their questions because they have a lot

53
00:02:32,000 --> 00:02:32,280
Speaker 6: of them.

54
00:02:32,360 --> 00:02:35,560
Speaker 3: I'm Boeing CEO Dave Calhoun told senators the planemaker's current

55
00:02:35,600 --> 00:02:39,200
Speaker 3: safety issue can be resolved in days and weeks, not months.

56
00:02:39,600 --> 00:02:42,560
Speaker 2: Turning to politics now, Earlier this week, Donald Trump was

57
00:02:42,600 --> 00:02:45,119
Speaker 2: in New Hampshire for the primary. Now he is set

58
00:02:45,160 --> 00:02:48,160
Speaker 2: to take the witness stand today in the defamation suit

59
00:02:48,200 --> 00:02:51,960
Speaker 2: brought by Ejing Carrol Bloomberg's Ed Baxter has that story.

60
00:02:52,440 --> 00:02:55,240
Speaker 7: This comes two days after his New Hampshire victory, and

61
00:02:55,280 --> 00:02:58,560
Speaker 7: he'll be in front of a jury. Carol contends his

62
00:02:58,680 --> 00:03:01,920
Speaker 7: denials of her rape clam have hurt her reputation. It

63
00:03:01,960 --> 00:03:04,600
Speaker 7: gives Trump a chance in the witness box to repeat

64
00:03:04,680 --> 00:03:08,840
Speaker 7: the denials. This could be very contentious. Judge Lewis Kaplan

65
00:03:08,880 --> 00:03:12,919
Speaker 7: has already held Trump liable for defamation, and if Trump

66
00:03:12,960 --> 00:03:15,799
Speaker 7: ignores the judicial restraints on what he can say, as

67
00:03:15,800 --> 00:03:18,680
Speaker 7: he has in the past, it could lead to fireworks.

68
00:03:19,280 --> 00:03:22,880
Speaker 7: Last week, remember Kaplan threatened to bar him from the courtroom,

69
00:03:22,960 --> 00:03:27,560
Speaker 7: saying he couldn't control himself. Ed Baxter Bloomberg Radio, all.

70
00:03:27,520 --> 00:03:28,200
Speaker 8: Right, and thank you.

71
00:03:28,240 --> 00:03:30,960
Speaker 3: As for President Biden, he's picked up a key endorsement

72
00:03:30,960 --> 00:03:33,640
Speaker 3: as he ramps up his reelection campaign, winning the banking

73
00:03:33,720 --> 00:03:37,640
Speaker 3: of the United Autoworkers' Union UAW. President Sean Fain says

74
00:03:37,680 --> 00:03:38,840
Speaker 3: the president has earned it.

75
00:03:39,240 --> 00:03:43,920
Speaker 9: He joined us in solidarity on the picket line for

76
00:03:44,000 --> 00:03:48,000
Speaker 9: the first time in our nation's history a sitting president

77
00:03:48,040 --> 00:03:49,480
Speaker 9: has ever done that.

78
00:03:50,000 --> 00:03:53,160
Speaker 3: And the UAW Shan Fain laid into former President Trump,

79
00:03:53,200 --> 00:03:57,040
Speaker 3: calling him a scab who represents billionaires. President Biden says

80
00:03:57,080 --> 00:03:59,360
Speaker 3: he's kept his word to be the most pro union

81
00:03:59,400 --> 00:03:59,880
Speaker 3: president ever.

82
00:04:00,520 --> 00:04:02,200
Speaker 5: I'm proud you have my back.

83
00:04:02,600 --> 00:04:05,440
Speaker 4: Let me just say, I'm honored to have your back

84
00:04:05,520 --> 00:04:06,680
Speaker 4: and you have mine.

85
00:04:06,800 --> 00:04:07,480
Speaker 5: That's the deal.

86
00:04:07,800 --> 00:04:09,880
Speaker 3: How President Biden will still need to win the back

87
00:04:09,880 --> 00:04:12,840
Speaker 3: of rank and file union members. The UAW says it'll

88
00:04:12,880 --> 00:04:14,960
Speaker 3: ramp up get out the vote efforts for the president

89
00:04:15,000 --> 00:04:16,960
Speaker 3: in Michigan and other battleground states.

90
00:04:17,560 --> 00:04:20,240
Speaker 2: The Federal Reserve has raised the rate on loans to

91
00:04:20,279 --> 00:04:23,600
Speaker 2: banks issued under an emergency lending program launched last year.

92
00:04:23,960 --> 00:04:27,200
Speaker 2: The move comes after borrowing surged in recent weeks as

93
00:04:27,279 --> 00:04:31,120
Speaker 2: institutions took advantage of the attractive financing terms overseas.

94
00:04:31,120 --> 00:04:34,360
Speaker 3: Amy we're expecting a policy decision from the European Central Bank.

95
00:04:34,400 --> 00:04:37,159
Speaker 3: Economists to expect the ECB to leave rates unchanged in

96
00:04:37,200 --> 00:04:40,240
Speaker 3: its first monetary policy decision of the year. Instead, the

97
00:04:40,279 --> 00:04:44,080
Speaker 3: focus is on President Christine Legard's news conference and any

98
00:04:44,120 --> 00:04:46,919
Speaker 3: fresh signals on the outlook for borrowing costs and.

99
00:04:47,000 --> 00:04:50,360
Speaker 2: A warning from former Treasury Secretary Robert Rubin. He says

100
00:04:50,440 --> 00:04:53,560
Speaker 2: risks are even greater today than in the early nineteen nineties,

101
00:04:53,760 --> 00:04:57,800
Speaker 2: when incoming President Bill Clinton crafted a budget tightening package

102
00:04:57,800 --> 00:05:00,719
Speaker 2: to shrink the deficit. Reuben spoke with David Weston on

103
00:05:00,760 --> 00:05:02,120
Speaker 2: Bloomberg's Wall Street Week.

104
00:05:02,279 --> 00:05:05,200
Speaker 10: I think we're in a terrible place because, unfortunately, once

105
00:05:05,240 --> 00:05:06,240
Speaker 10: you get to legislating.

106
00:05:06,480 --> 00:05:07,320
Speaker 5: There isn't the will.

107
00:05:07,640 --> 00:05:10,600
Speaker 10: There's a lot of talk, but the talk is always

108
00:05:10,920 --> 00:05:15,200
Speaker 10: divided politically between the Republicans who refused to raise taxes

109
00:05:15,560 --> 00:05:18,200
Speaker 10: and the Democrats who won't deal in titlements.

110
00:05:18,520 --> 00:05:21,640
Speaker 2: You can catch the entire interview with former Treasury Secretary

111
00:05:21,720 --> 00:05:24,960
Speaker 2: Robert Rubin on Bloomberg Wall Street Week with David Weston

112
00:05:25,200 --> 00:05:27,920
Speaker 2: on both Bloomberg Radio and television.

113
00:05:27,480 --> 00:05:30,520
Speaker 3: And this note from overseas Amy. Pay for most senior

114
00:05:30,560 --> 00:05:33,279
Speaker 3: investment bankers at Wall Street firms in Asia fell to

115
00:05:33,320 --> 00:05:36,760
Speaker 3: its lowest level in almost two decades. Sources say total

116
00:05:36,760 --> 00:05:41,520
Speaker 3: compensation in Asia, leaving out Japan fell to between seven

117
00:05:41,560 --> 00:05:43,960
Speaker 3: hundred thousand to eight hundred thousand dollars. That is well

118
00:05:43,960 --> 00:05:46,960
Speaker 3: below the million or more that senior investment bankers have

119
00:05:47,120 --> 00:05:50,840
Speaker 3: typically earned. At least twenty percent at Managing directors at

120
00:05:50,920 --> 00:05:55,880
Speaker 3: lenders including Morgan, Stanley and Ubs received no bonuses last

121
00:05:56,000 --> 00:06:01,480
Speaker 3: year in Asia.

122
00:06:01,640 --> 00:06:03,080
Speaker 2: Time now for a look at some of the other

123
00:06:03,120 --> 00:06:05,400
Speaker 2: stories making news around the world, and for that we're

124
00:06:05,480 --> 00:06:07,280
Speaker 2: joined by Bloomberg's John Tucker.

125
00:06:07,320 --> 00:06:09,599
Speaker 5: Good morning John, and Good morning Amy.

126
00:06:09,720 --> 00:06:12,840
Speaker 11: There is hope of a bipartisan border deal, but some

127
00:06:12,960 --> 00:06:16,120
Speaker 11: lawmakers say if they're no big policy changes, then immigration

128
00:06:16,200 --> 00:06:20,040
Speaker 11: reform is dead on a rival. More from Bloomberg's Nancy Lyons.

129
00:06:20,200 --> 00:06:22,680
Speaker 12: The details of the agreement have not yet been released,

130
00:06:22,720 --> 00:06:26,200
Speaker 12: but some Republican senators are already criticizing the bones of

131
00:06:26,240 --> 00:06:27,920
Speaker 12: the deal, like you TOAs Mike Lee.

132
00:06:28,040 --> 00:06:30,480
Speaker 13: I have great respect for colleagues who are working hard

133
00:06:30,520 --> 00:06:33,160
Speaker 13: trying to fix the problem, and I'm sure they are

134
00:06:33,200 --> 00:06:36,120
Speaker 13: coming up with some provisions that might help certain things.

135
00:06:36,680 --> 00:06:40,200
Speaker 13: But from what I'm hearing, this could cause as many

136
00:06:40,240 --> 00:06:42,119
Speaker 13: problems as it's sold.

137
00:06:42,320 --> 00:06:45,919
Speaker 12: The bill being drafted would reportedly grant humanitarian parole to

138
00:06:46,000 --> 00:06:50,760
Speaker 12: five thousand undocumented immigrants a day. These GOP lawmakers say

139
00:06:50,880 --> 00:06:53,240
Speaker 12: that's a magnet that will draw more people to our

140
00:06:53,279 --> 00:06:56,520
Speaker 12: border in Washington, Nancy lyons Bloomberg Radio.

141
00:06:56,640 --> 00:06:59,680
Speaker 11: Nicky Haley campaigns in our home state of South Carolina.

142
00:06:59,720 --> 00:07:02,760
Speaker 11: Last night, she talked in part about Donald Trump's reaction

143
00:07:02,880 --> 00:07:06,120
Speaker 11: to her not dropping out of the race after New Hampshire.

144
00:07:06,360 --> 00:07:09,120
Speaker 8: He pitched a fit, he was insulting.

145
00:07:09,160 --> 00:07:11,400
Speaker 12: He was doing what he does, But I know that's

146
00:07:11,440 --> 00:07:12,920
Speaker 12: what he does when he's insecure.

147
00:07:13,040 --> 00:07:14,360
Speaker 5: I know that's what he does when he.

148
00:07:14,800 --> 00:07:17,440
Speaker 4: Is threatened, and he should feel threatened without a.

149
00:07:17,400 --> 00:07:21,280
Speaker 11: Doubt, Haley is vowing to press on. Thanks to the

150
00:07:21,320 --> 00:07:24,480
Speaker 11: backing of Wall Street Titans, wealthy donors, and a group

151
00:07:24,520 --> 00:07:27,880
Speaker 11: funded by industrialist Charles Koch means she has enough funding

152
00:07:27,960 --> 00:07:31,480
Speaker 11: to keep running. Another attempted attack on merchant shipping by

153
00:07:31,520 --> 00:07:35,960
Speaker 11: iranbak Houthi militants. US Central Command says US Guided missile

154
00:07:36,000 --> 00:07:39,480
Speaker 11: destroyer shot down two anti ship ballistic missiles aimed at

155
00:07:39,480 --> 00:07:42,440
Speaker 11: two American flag vessels in the Gulf of Aden. A

156
00:07:42,520 --> 00:07:45,280
Speaker 11: third missile fell into the sea. The attack is the

157
00:07:45,280 --> 00:07:49,120
Speaker 11: first in five days, comes despite multiple rounds of retaliatory

158
00:07:49,160 --> 00:07:52,680
Speaker 11: strikes by the US and the UK. Fox has been

159
00:07:52,800 --> 00:07:55,760
Speaker 11: ordered to face a two point seven billion dollar defamation

160
00:07:55,880 --> 00:08:00,640
Speaker 11: lawsuit by Smartmatic Corporation, one of two voting technologies companies

161
00:08:00,800 --> 00:08:04,240
Speaker 11: falsely accused on Fox News of rigging the twenty twenty

162
00:08:04,400 --> 00:08:08,480
Speaker 11: presidential election against Donald Trump. The decision Wednesday by New

163
00:08:08,560 --> 00:08:11,160
Speaker 11: York Jidts Who's the latest sent back for Fox after

164
00:08:11,200 --> 00:08:13,880
Speaker 11: the media giant agreed in April to pay seven hundred

165
00:08:13,920 --> 00:08:17,040
Speaker 11: and eighty eight million dollars to settle a similar suit

166
00:08:17,120 --> 00:08:20,520
Speaker 11: by Dominion Voting Systems. Global News twenty four hours a

167
00:08:20,600 --> 00:08:23,160
Speaker 11: day and whatever you want it with Bloomberg News Now.

168
00:08:23,440 --> 00:08:26,000
Speaker 11: I'm John Tucker Han. This is Bloomberg Amy.

169
00:08:26,240 --> 00:08:28,640
Speaker 2: All right, thank you John. We bring you the news

170
00:08:28,680 --> 00:08:31,680
Speaker 2: throughout the day here on Bloomberg Radio. But now you

171
00:08:31,720 --> 00:08:34,600
Speaker 2: can get the latest news on demand whenever you want it.

172
00:08:34,920 --> 00:08:37,840
Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines

173
00:08:37,880 --> 00:08:41,320
Speaker 2: at the click of a button. Get informed on your schedule.

174
00:08:41,360 --> 00:08:44,000
Speaker 2: You can listen and subscribe to Bloomberg News Now on

175
00:08:44,040 --> 00:08:47,920
Speaker 2: the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify,

176
00:08:48,040 --> 00:08:56,720
Speaker 2: and anywhere else you get your podcasts. Time now for

177
00:08:56,760 --> 00:08:59,280
Speaker 2: our Bloomberg Sports Updated. For that, we bring in John

178
00:08:59,360 --> 00:08:59,920
Speaker 2: stash Hour.

179
00:09:01,120 --> 00:09:03,679
Speaker 14: Amy Jin. Harbaugh was going to be a hot NFL

180
00:09:03,760 --> 00:09:07,000
Speaker 14: coaching commodity considering the success he had had with the

181
00:09:07,040 --> 00:09:08,680
Speaker 14: forty nine Ers getting them to the Super Bowl, and

182
00:09:08,679 --> 00:09:11,480
Speaker 14: then when he coached Michigan too the undefeated season of

183
00:09:11,480 --> 00:09:14,480
Speaker 14: the National Championship, he became even hotter. Spoke with many

184
00:09:14,880 --> 00:09:17,760
Speaker 14: NFL teams, but the LA Chargers were always seen as

185
00:09:17,800 --> 00:09:21,440
Speaker 14: the favorites. He wants quarterback the Chargers back in nineteen

186
00:09:21,520 --> 00:09:24,720
Speaker 14: ninety nine. In two thousand, hits official a five year deal,

187
00:09:24,840 --> 00:09:28,920
Speaker 14: Harbaugh taking over an underachieving Chargers team that has a

188
00:09:28,920 --> 00:09:34,000
Speaker 14: good quarterback in Justin Herbert Nick. Sirianni staying in Philadelphia,

189
00:09:34,040 --> 00:09:37,440
Speaker 14: but the Eagles changing both coordinators and they say that

190
00:09:37,520 --> 00:09:40,800
Speaker 14: Sirianni will no longer be as involved in the offense.

191
00:09:40,840 --> 00:09:43,640
Speaker 14: The Eagles had that horrendous slump at the end of

192
00:09:43,679 --> 00:09:48,240
Speaker 14: this past season. Joe Tony, pro Bowl guard doubtful for

193
00:09:48,360 --> 00:09:51,679
Speaker 14: the Kansas City Chiefs in their AFC Championship game Sunday

194
00:09:52,200 --> 00:09:56,200
Speaker 14: in Baltimore, NBA Milwaukee Cleveland won twenty six to one sixteen.

195
00:09:56,240 --> 00:09:57,920
Speaker 14: It was the first game for the Bucks since the

196
00:09:58,000 --> 00:10:01,880
Speaker 14: coaching change the firing of Adrian Griffin. Joe Prunty coached

197
00:10:01,880 --> 00:10:05,040
Speaker 14: them last night, but Doc Rivers is taking over the Bucks.

198
00:10:05,240 --> 00:10:08,760
Speaker 14: He went to college in Milwaukee at Marquette. He's had

199
00:10:08,840 --> 00:10:12,720
Speaker 14: sixteen straight coaching seasons with an over five hundred record.

200
00:10:12,880 --> 00:10:15,240
Speaker 14: Minnesota got thirty eight points from Anthony Edwards in a

201
00:10:15,280 --> 00:10:18,360
Speaker 14: one eighteen one oh seven win at Washington. The Warriors

202
00:10:18,360 --> 00:10:20,080
Speaker 14: played for the first time since the death of their

203
00:10:20,120 --> 00:10:23,880
Speaker 14: assistant coach Dejon Milojovich. They beat Atlanta one thirty four

204
00:10:23,880 --> 00:10:26,839
Speaker 14: to one twelve. Joseph Kamega scored twenty five points. He

205
00:10:26,880 --> 00:10:31,200
Speaker 14: shot eleven for eleven John Stashanward Bloomberg Sports.

206
00:10:33,000 --> 00:10:36,000
Speaker 8: From coast to coast, from New York to San Francisco,

207
00:10:36,320 --> 00:10:41,400
Speaker 8: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business

208
00:10:41,400 --> 00:10:45,160
Speaker 8: appened Bloomberg dot Com. This is Bloomberg Daybreak.

209
00:10:46,280 --> 00:10:46,720
Speaker 5: Good morning.

210
00:10:46,760 --> 00:10:49,920
Speaker 3: I'm Nathan Hager. The latest earnings report from Tesla isn't

211
00:10:50,000 --> 00:10:53,439
Speaker 3: exactly giving investors a charge this morning. The electric vehicle

212
00:10:53,480 --> 00:10:55,760
Speaker 3: Giant came in with earnings and revenue just shy of

213
00:10:55,800 --> 00:10:58,960
Speaker 3: Wall Street estimates, but CEO Elon Musk's warning that growth

214
00:10:59,000 --> 00:11:02,720
Speaker 3: will be notably lower this year is certainly putting a

215
00:11:02,720 --> 00:11:05,199
Speaker 3: weight on the share price this morning. So let's get

216
00:11:05,240 --> 00:11:08,200
Speaker 3: more on the outlook for Tesla and EV's. We're joined

217
00:11:08,200 --> 00:11:12,160
Speaker 3: now by Bloomberg News transportation reporter Danny Lee. Danny, thanks

218
00:11:12,200 --> 00:11:16,280
Speaker 3: for being with us. Notably lower is that the phrase

219
00:11:16,320 --> 00:11:18,200
Speaker 3: that's gott investors spoke this morning.

220
00:11:19,000 --> 00:11:22,400
Speaker 15: I think it's a combination of being notably lower or

221
00:11:22,520 --> 00:11:25,920
Speaker 15: nottally slower in fact on growth, and the EV Giant

222
00:11:26,080 --> 00:11:29,400
Speaker 15: didn't even offer four year guidance for twenty twenty four,

223
00:11:29,880 --> 00:11:33,000
Speaker 15: and that is what is spooking investors. And fans alike,

224
00:11:33,080 --> 00:11:36,520
Speaker 15: and what you could characterize this year twenty twenty four

225
00:11:36,600 --> 00:11:40,240
Speaker 15: as a transition year for Tesla, you know, all that

226
00:11:40,400 --> 00:11:43,240
Speaker 15: growth of the past couple of years and nothing in

227
00:11:43,320 --> 00:11:47,320
Speaker 15: between until next year when it releases new models.

228
00:11:47,960 --> 00:11:51,960
Speaker 3: Those new models include, at least according to Elon Musk

229
00:11:52,040 --> 00:11:55,520
Speaker 3: on the call, a new lower priced car. We've kind

230
00:11:55,520 --> 00:11:57,120
Speaker 3: of heard that before, haven't we.

231
00:11:58,720 --> 00:12:02,319
Speaker 15: The el Mousk has a who aspired to have a

232
00:12:02,520 --> 00:12:05,599
Speaker 15: low cost car but has never delivered. And this is

233
00:12:05,679 --> 00:12:09,360
Speaker 15: now Elon Musk for the first time with Tesla executing

234
00:12:09,600 --> 00:12:13,679
Speaker 15: on that promise. But this is still going to come

235
00:12:13,800 --> 00:12:17,120
Speaker 15: in the back end of twenty twenty five. So even

236
00:12:17,200 --> 00:12:19,320
Speaker 15: though this does come in twenty twenty five, it's still

237
00:12:19,440 --> 00:12:21,800
Speaker 15: almost like two years away from where we are now,

238
00:12:21,920 --> 00:12:25,640
Speaker 15: and it's a considerable weight for then investors having to

239
00:12:25,720 --> 00:12:28,160
Speaker 15: wait for this ramp up all the costs that go

240
00:12:28,320 --> 00:12:31,120
Speaker 15: into building up new models. As we've seen with the

241
00:12:31,160 --> 00:12:34,760
Speaker 15: struggle Tesla has with the cyber truck, it's going to

242
00:12:34,840 --> 00:12:37,080
Speaker 15: be a potential dragon earnings.

243
00:12:37,880 --> 00:12:39,600
Speaker 5: And in the meantime, the.

244
00:12:41,080 --> 00:12:45,720
Speaker 3: Ev giant has been cutting costs pretty aggressively and trying

245
00:12:45,760 --> 00:12:49,719
Speaker 3: to get past the headwind of higher interest rates. Is

246
00:12:49,920 --> 00:12:54,439
Speaker 3: there a trajectory for Tesla to continue with that strategy.

247
00:12:55,720 --> 00:13:00,160
Speaker 15: Well, Tesla has been looking to cut its costs. He's

248
00:13:00,160 --> 00:13:04,000
Speaker 15: also been cutting prices, you know, trying to lure consumers

249
00:13:04,120 --> 00:13:07,719
Speaker 15: with these obviously battling higher interest rates, So there is

250
00:13:07,880 --> 00:13:11,440
Speaker 15: always that person pull factor, and Elon's trying to find

251
00:13:11,800 --> 00:13:14,240
Speaker 15: any way which possible to make sure he's getting the

252
00:13:14,360 --> 00:13:17,679
Speaker 15: best possible costs for his product in order to be

253
00:13:18,000 --> 00:13:20,760
Speaker 15: so much more competitive when it comes to a price.

254
00:13:20,960 --> 00:13:23,439
Speaker 15: And obviously what we see right now the backdrop for

255
00:13:23,520 --> 00:13:27,000
Speaker 15: the US consumer in particular is they're not necessarily as

256
00:13:27,160 --> 00:13:29,760
Speaker 15: willing to buy new electric vehicles.

257
00:13:30,080 --> 00:13:32,719
Speaker 3: Another interesting note for Musk on the call, saying that

258
00:13:32,880 --> 00:13:35,079
Speaker 3: he might need a bigger stake in the company to

259
00:13:35,160 --> 00:13:38,719
Speaker 3: avoid being ousted as CEO. Is governance becoming more of

260
00:13:38,760 --> 00:13:42,800
Speaker 3: an issue for Tesla on the board, particularly with all

261
00:13:42,800 --> 00:13:44,640
Speaker 3: the distractions around X and whatnot.

262
00:13:45,800 --> 00:13:51,080
Speaker 15: Well, Elon Musk, you know, after buying Twitter and selling

263
00:13:51,160 --> 00:13:56,920
Speaker 15: down his shares in Tesla to fund this purchase, he

264
00:13:57,000 --> 00:13:59,560
Speaker 15: will saber rattle as much as he wants to ensure

265
00:13:59,600 --> 00:14:02,920
Speaker 15: that he potentially will get what he ultimately wants is

266
00:14:03,440 --> 00:14:06,720
Speaker 15: some form of better control, bigger controlled again of Tesla.

267
00:14:06,840 --> 00:14:09,120
Speaker 15: So I think this is a wait and see moment

268
00:14:09,720 --> 00:14:15,440
Speaker 15: whether the border seeds to his demands. But ultimately Tesla,

269
00:14:16,400 --> 00:14:20,280
Speaker 15: Elon Musk Rather is really the lynchpin in driving Tesla forward.

270
00:14:20,680 --> 00:14:23,840
Speaker 3: Of course, it's not just Tesla facing headwinds. Boeing has

271
00:14:23,920 --> 00:14:27,240
Speaker 3: the grounded seven thirty seven Max nine and now this

272
00:14:28,320 --> 00:14:32,280
Speaker 3: production freeze ordered from the FAA. It seems like the

273
00:14:32,400 --> 00:14:34,200
Speaker 3: hits just keep on coming for Boeing.

274
00:14:34,280 --> 00:14:40,400
Speaker 15: Danny, Yeah, I mean the US Federal Aviation Administration escalating

275
00:14:40,760 --> 00:14:44,200
Speaker 15: its response in the wake of the Alaska Airlines accident,

276
00:14:44,680 --> 00:14:47,720
Speaker 15: and in two parts it's partly good news for Boeing

277
00:14:47,800 --> 00:14:51,360
Speaker 15: and obviously partly very bad news. On the good side,

278
00:14:51,400 --> 00:14:55,840
Speaker 15: there is the restart of the inspections that airlines can

279
00:14:56,040 --> 00:14:59,120
Speaker 15: now look to get the grounded Max nines back into

280
00:14:59,200 --> 00:15:05,200
Speaker 15: the how the restriction on expanding production. This is all

281
00:15:05,320 --> 00:15:10,680
Speaker 15: key and very directly important to Boeing's ability to grow.

282
00:15:10,960 --> 00:15:15,480
Speaker 15: It's cash cow seventy seven Max. You all the money

283
00:15:15,520 --> 00:15:18,600
Speaker 15: that goes into delivering the revenue. It's so important. It

284
00:15:18,800 --> 00:15:21,320
Speaker 15: delivers thirty eight planes a month and it's trying to

285
00:15:21,360 --> 00:15:23,640
Speaker 15: grow that to fifty. So there's a big gap right

286
00:15:23,720 --> 00:15:26,880
Speaker 15: now into what it potentially could do in future. And

287
00:15:27,080 --> 00:15:30,680
Speaker 15: on January thirty first, Boeing is meant to be delivering

288
00:15:30,800 --> 00:15:34,240
Speaker 15: its guidance for twenty twenty four, so what effect this

289
00:15:34,440 --> 00:15:37,720
Speaker 15: has on its future outlook into twenty twenty four will

290
00:15:37,760 --> 00:15:38,600
Speaker 15: be very, very key.

291
00:15:40,680 --> 00:15:43,560
Speaker 1: This is Bloomberg day Break Today, your morning brief on

292
00:15:43,680 --> 00:15:47,120
Speaker 1: the story's making news from Wall Street to Washington and beyond.

293
00:15:47,400 --> 00:15:50,360
Speaker 2: Look for us on your podcast feed by six am

294
00:15:50,520 --> 00:15:54,680
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you

295
00:15:54,800 --> 00:15:55,800
Speaker 2: get your podcasts.

296
00:15:56,160 --> 00:15:58,800
Speaker 1: You can also listen live each morning starting at five

297
00:15:58,880 --> 00:16:01,280
Speaker 1: am Wall Street Time. I'm on Bloomberg eleven three to

298
00:16:01,320 --> 00:16:04,320
Speaker 1: zero in New York, Bloomberg ninety nine one in Washington,

299
00:16:04,480 --> 00:16:07,680
Speaker 1: Bloomberg one oh sixty one in Boston, and Bloomberg ninety

300
00:16:07,720 --> 00:16:09,080
Speaker 1: sixty in San Francisco.

301
00:16:09,280 --> 00:16:12,800
Speaker 2: Our flagship New York station is also available on your

302
00:16:12,920 --> 00:16:18,239
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

303
00:16:18,160 --> 00:16:20,960
Speaker 1: Plus listen coast to coast on the Bloomberg Business app,

304
00:16:21,080 --> 00:16:24,960
Speaker 1: Sirius Xmbiheartradio app, and on Bloomberg dot Com.

305
00:16:25,120 --> 00:16:28,520
Speaker 2: I'm Nathan Hager and I'm Abe Morris. Join us again

306
00:16:28,640 --> 00:16:31,520
Speaker 2: tomorrow morning. For all the news you need to start

307
00:16:31,560 --> 00:16:34,240
Speaker 2: your day right here on Bloomberg Daybreak