Speaker 1: Good morning. I'm Doug Krisner. Here are the stories we're
Speaker 1: following today. We begin now by looking at what's happening
Speaker 1: in the electric vehicle space. Tesla delivering more evs than
Speaker 1: expected in the fourth quarter. However, that wasn't enough for
Speaker 1: the company to stay ahead of its Chinese rival BYD
Speaker 1: in global EV's sales. Here is Bloomberg's ed ludlow.
Speaker 2: In the fourth quarter four hundred and eighty four thousand,
Speaker 2: five hundred and seven evs delivered by Tesla. That was
Speaker 2: ahead of estimates, and it does mean that Tesla exceeded
Speaker 2: its target of one point eight million vehicles in twenty
Speaker 2: twenty three. Go back to a year ago January twenty
Speaker 2: twenty three, the first earning score of the year, where
Speaker 2: Elon Musk said that two million units would be possible
Speaker 2: in the full year. So they beat the one point
Speaker 2: eight million official guidance, but it fell short of that
Speaker 2: kind of higher bound target that Elon Musket outlined.
Speaker 1: That is Bloomberg's ed Ludlow. So now BYD is the
Speaker 1: new number one in EV's globally, driven mainly by the
Speaker 1: company's much broader lineup of cheaper models in China, Incidentally,
Speaker 1: we're going to be taking a closer look at the
Speaker 1: Tesla story with Bloomberg's David Welsh. That's coming up. Tesla
Speaker 1: shares were down today by just two tents one percent, Paul,
Speaker 1: and it was.
Speaker 3: A disappointing final quarter for another one of America's largest
Speaker 3: electric vehicle makers, Bloomberg's Tom Busby has.
Speaker 4: More despite ramping up production over the past year. The
Speaker 4: Los Angeles area based electric engine vehicle maker Rivian Automotive
Speaker 4: Source shares tumble on Tuesday after missing deliveries for the
Speaker 4: fourth quarter only by about one hundred and forty vehicles.
Speaker 4: Rivian makes an ev pickup truck and a sport utility
Speaker 4: vehicle for consumers, but also a battery electric delivery van
Speaker 4: for Amazon, the etail giant. Its biggest single shareholder, Tom
Speaker 4: Busby Bloomberg Radio.
Speaker 1: We moved to Apple next. The company shares were down
Speaker 1: more than three and a half percent today, the biggest
Speaker 1: drop we've seen since September. This is after analyst over
Speaker 1: at Barclay said they are expecting softer demand for the iPhone,
Speaker 1: so they have downgraded Apple stock as a result. By
Speaker 1: the way, it's the first time Barclay's cut Apple to
Speaker 1: underweight since twenty nineteen. But as Bloomberg's Man Deep Sing
Speaker 1: tells us, don't count Apple out. As artificial intelligence gains traction.
Speaker 5: We are going through a massive refresh cycle and cloud
Speaker 5: companies are the major beneficiaries of that. We still don't
Speaker 5: know when that will happen, but we.
Speaker 3: Know it will happen. It's a matter of time.
Speaker 5: The large anglid models, the technology, the copilots will run
Speaker 5: on your phones, and right now there is no alternative
Speaker 5: device except for your Apple ecosystem, whether it's your phones
Speaker 5: or your PCs.
Speaker 1: That is Bloomberg's Man Deep Sing. Now it's not clear
Speaker 1: exactly when Apple will become the big beneficiary of artificial intelligence.
Speaker 3: Paul, the president of Havard, is stepping down. We've got
Speaker 3: more from Bloomberg's and kites.
Speaker 6: Clouding Gay's exit. NDS are brief and tumultuous tenure, marked
Speaker 6: by allegations of plagiarism and a campus controversy over antisemitism
Speaker 6: following the October seventh attack by Hamas on Israel. She
Speaker 6: got her start in July as Harvard's first black president
Speaker 6: and had the backing of the university's governing Council as
Speaker 6: recently as mid December. Since then, new questions have surfaced,
Speaker 6: a batter academic work, and a donor revolt has worsened
Speaker 6: over criticism of Harvard for not speaking out after more
Speaker 6: than thirty student groups blamed Israel solely for the violence
Speaker 6: in Washington and Kates Bloomberg Radio, we.
Speaker 1: Go to China next, where the Central Bank has injected
Speaker 1: nearly fifty billion dollars into policy oriented banks as a
Speaker 1: way of stimulating the economy. The story from Bloomberg's Juan
Speaker 1: Wong In Hong Kong.
Speaker 7: The fifty billion dollars worse of low cost funds is
Speaker 7: the largest increase via the Central Bank's Pledged Supplemental Lending program.
Speaker 7: This takes the outstanding amount of the PSL program to
Speaker 7: four hundred and fifty six billion dollars. The program is
Speaker 7: seen as an important tool for Beijing to shore up
Speaker 7: the property sector and stabilized growth this year. Markets have
Speaker 7: been expecting the central banks to use the money to
Speaker 7: drive construction of public housing to alleviate a property slum
Speaker 7: that's hammered consumer confidence in Hong Kong. Joanne Wong, Bloomberg Radio.
Speaker 1: Let's move on to Global news next, and we have
Speaker 1: Hamas saying that Israel has killed a senior leader in Beirut.
Speaker 1: At Baxter has more from the Bloomberg newsroom.
Speaker 8: Mattie, all right, thank you, Douglas.
Speaker 9: Yeah.
Speaker 8: The leader sale Al Arori, saying that to have been
Speaker 8: a mastermind behind the militant arm in the West Bank,
Speaker 8: the Israeli attack and a parent drone strike in beirut
Speaker 8: southern suburbs, the first such attack on the Lebanese capital
Speaker 8: of nearly two decades. Lebanon's caretaker Prime Minister Najeeb Mataki
Speaker 8: says that mccatti says that the attack is a new
Speaker 8: Israel crime and that aims to drag Lebanon into a
Speaker 8: new phase of confrontations. Hager Shanali, Greenwich Media CEO, says, actually,
Speaker 8: the action was pretty predictable.
Speaker 10: You saw today, for example in Beirut. Is not totally surprising,
Speaker 10: and I don't expect to explode into some kind of
Speaker 10: full scale war. And the reason for that is that
Speaker 10: that strike was specifically to hit as a Hamas leader,
Speaker 10: in particular Salruri, who has funded and directed operations in
Speaker 10: the West Bank and who has been tied to kidnappings
Speaker 10: hijackings and other terrorist.
Speaker 8: Attacks nationally on Bloomberg's A balance of Power. There's been
Speaker 8: no official comment from Israel. Harvard University President Claudine Gay
Speaker 8: has resigned today, involved in two issues that she says
Speaker 8: made her a distraction. The first when she was called
Speaker 8: before Congress in December to testify about Harvard's anti Semitism policies.
Speaker 8: This was in December.
Speaker 11: We embrace a commitment to free expression, even of views
Speaker 11: that are objectionable, offensive, hateful. It's when that speech crosses
Speaker 11: into conduct that violates our policies against bullying.
Speaker 6: Does that speech not cost that barrier?
Speaker 9: There?
Speaker 8: With congress Woman Elaine Stefanic and Bloomberg's David Weston says.
Speaker 8: The second issue accusation of plagiarism.
Speaker 12: About some of the work that President Gay had done
Speaker 12: for her dissertation for her PhD, and allegations that she
Speaker 12: had improperly used sources that she did not identify. Initially,
Speaker 12: the Corporation of Harvard, which is what they call the
Speaker 12: Board of Trustees of corporation, said there'd be an investigation
Speaker 12: and they had totally exonerated her. There was no problem,
Speaker 12: But now she said she slipped on it.
Speaker 8: And David says he takes out a word distraction. We'll
Speaker 8: have more on this in just a few minutes. Donald
Speaker 8: Trump has filed a lawsuit seeking to restore his name
Speaker 8: to Mainz presidential primary after the state disqualify because of
Speaker 8: attempt to reverse the twenty twenty election. Politically, Bloomberg's Gregory
Speaker 8: Corte says, any activity like this always helps his polling.
Speaker 13: And look, every time an issue like this has popped up,
Speaker 13: at least in the short term, former President Trump gets
Speaker 13: a little bit of a blip in the polls among
Speaker 13: Republican likely voters. It's not a permanent blip. It always
Speaker 13: just sort of reverts back to the mean. But there
Speaker 13: is sort of a rallying around Trump effect that happens
Speaker 13: every time that Republicans feel like he's being picked on.
Speaker 8: Trump's stud allegias Secretary of State of Shenna Bellows is
Speaker 8: a biased decision maker. Horrific airline collision in Japan's Saneda
Speaker 8: Airport has left five people crew members of the Japan
Speaker 8: Airlines Airbus sc three point fifty nine hundred. They all
Speaker 8: got out. The crew of japan Airlines Airbus is being
Speaker 8: characterized as heroes today because all three hundred and seventy
Speaker 8: nine passengers managed to escape after their plane hit the
Speaker 8: japan Coast Guard plane on the runway. Now, five of
Speaker 8: the six crew members on the Coastguard crew were killed.
Speaker 8: Authority say the jial was cleared to take off, they kept.
Speaker 14: Going on down the runway. The airplane eventually came to
Speaker 14: a stop, skid into a stop. You can see at
Speaker 14: least the right engine is still turning. The deployed the
Speaker 14: emergency evacuation slides and everybody got off safely. But that
Speaker 14: wouldn't have happened if that Japanese Coastguard aircraft had hit.
Speaker 1: Just a few feet closer in towards the fuselaw.
Speaker 9: That is ABC.
Speaker 8: Steve Kanyard has heard here on Bloomberg and Global News
Speaker 8: twenty four hours a day and whenever you want to.
Speaker 8: With Bloomberg News Now in San Francisco, I met Baxter.
Speaker 8: This is Bloomberg Daybreak Asia.
Speaker 1: We're about eleven minutes past the hour as we take
Speaker 1: a closer look now at Tesla with Bloomberg's David Weldshe
Speaker 1: is our Detroit bureau chief.
Speaker 9: David.
Speaker 1: It's always a pleasure. Thanks for being with us. Was
Speaker 1: this really a surprise that Tesla kind of fell behind BYD.
Speaker 9: Not really, Tesla's growth rates have been slowing. Still a
Speaker 9: growth company, but it's really come way down. And BYD
Speaker 9: just keeps building sales all the time. It's kind of
Speaker 9: a hot company right now. I think it's d I
Speaker 9: D relies on the Chinese market for sales growth. In China,
Speaker 9: EV sales are not only growing faster just because the
Speaker 9: market's bigger and it's really the thing there, but the
Speaker 9: government mandates this. Practically, you can't even get new vehicle
Speaker 9: registrations in some of the big cities lessons an electric vehicle.
Speaker 9: They are heavy incentives for it. It is the EV
Speaker 9: market in the world. So if you're the dominant EV
Speaker 9: player in the Chinese market and you're a Chinese domestic brand, also,
Speaker 9: how right now you're going to keep growing. Tesla's relying
Speaker 9: in significant degree in the US market or EV sales
Speaker 9: aren't doing that well. They're still growing in the I
Speaker 9: don't this myth that they're going in reverse is not
Speaker 9: really true, but they're not growing as fast.
Speaker 3: So it sounds like you're describing a new normal for Tesla.
Speaker 3: What does the future look like for this company?
Speaker 9: Again? Tesla is still growing, but the idea that they
Speaker 9: were going to hit two million vehicle sales, they're probably
Speaker 9: not going to reach that. It sounds like from what
Speaker 9: they were saying with the sales report, that they're looking
Speaker 9: at sales growth rates at twenty percent range. It wasn't
Speaker 9: that long ago. Twelve eighteen months ago they were still
Speaker 9: talking about fifty percent growth rates. Last journings call, Elon
Speaker 9: Musk said they can't grow at fifty percent anymore. They've
Speaker 9: given up the ghost on that, but I think it's
Speaker 9: still significantly less. In fairness, one of the reasons the
Speaker 9: stock didn't do too badly today is because you know
Speaker 9: what the car company's growing at eighteen twenty percent, and
Speaker 9: if that's the projected growth rate for Tesla, it could
Speaker 9: still be better than that. With the cyber truck. That's
Speaker 9: still very good. It's just not the meteoric growth company
Speaker 9: that it has been for years.
Speaker 1: David, I'm wondering about the overall market for evs given
Speaker 1: the fact that yesterday in the US, that would be
Speaker 1: January first, the government issued some new rules for a
Speaker 1: seventy five hundred dollars consumer tax credit, and now the
Speaker 1: total number of vehicles eligible is only thirteen. That's down
Speaker 1: from about two dozen earlier. What is this going to
Speaker 1: mean for not just Tesla but the overall market.
Speaker 9: It's going to make it tougher. We sort of thought,
Speaker 9: I think six months ago, eight months ago, that every
Speaker 9: vehicle out there would be getting these seventy five hundred
Speaker 9: dollars credits. Some of these vehicles will in the very
Speaker 9: in near future be added to that list. General Motors
Speaker 9: said some of its vehicles they're in the process of
Speaker 9: resourcing some of the battery ingredients for those vehicles and
Speaker 9: they will be qualified, they said, sometime in the first quarter,
Speaker 9: maybe second quarter. So you're looking at a few months
Speaker 9: where some of the GM vehicles, Cadillac Lyric, I think
Speaker 9: the Blazer and Silverado won't get the credits, but in
Speaker 9: a few months they will. But still, we really thought
Speaker 9: this was going to be the big shot on the
Speaker 9: arm and it's something that all the companies are going
Speaker 9: to have to work harder to get that money for
Speaker 9: their EV buyers. So that's not going to you know,
Speaker 9: that's not automatic, and we're going to need to get
Speaker 9: that momentum. And I think in the US we're still
Speaker 9: in this issue where luxury buyers, early adopters have the revs,
Speaker 9: and now we're kind of moving into the mass market.
Speaker 9: And even consumers who spend a pretty good amount of
Speaker 9: money on new vehicles, they're not convinced the charging network
Speaker 9: is there. They're not convinced that they need to spend
Speaker 9: fifty eight thousand dollars on a Chevy Blazer with a
Speaker 9: battery in it when they can get one with an
Speaker 9: engine in it that costs thirty five or forty thousand dollars.
Speaker 9: Still a lot more money to spend on some of
Speaker 9: these vehicles and consumers. Eaveis have captured the imagination, they
Speaker 9: just haven't captured the wallet yet in the mass market.
Speaker 3: Yeah, and to your point, I mean Tesla has been
Speaker 3: heading that high niche market. I mean here in Australia.
Speaker 3: It's certainly not a cheap car and attracts luxury car tax.
Speaker 3: In fact, is Tesla working on the future models? Cheap
Speaker 3: the models and that smaller models they are.
Speaker 9: But the thing with Tesla is Elon Musk always promised
Speaker 9: is a very low sales place and they usually don't
Speaker 9: quite hit it. We're supposed to have a cyber truck
Speaker 9: under forty thousand, and it's considerably more than that. The
Speaker 9: cheap vehicle is the model too, which is supposed to
Speaker 9: be well under thirty thousand dollars. We'll see when that
Speaker 9: comes out and where he ends up pricing it, because
Speaker 9: that vehicle could be like a lot of other Teslas,
Speaker 9: where not only is it not on time, the cyber
Speaker 9: truck was at least a year late. It ends up
Speaker 9: being priced more than they say. You know, General Motors
Speaker 9: had the Chevy Equinox. They said it was going to
Speaker 9: be priced at thirty thousand dollars. Coming in at thirty
Speaker 9: five thousand to start, that's still a pretty good price
Speaker 9: considering where new vehicles sell in the US market today,
Speaker 9: and that thirty five thousand dollars Blazer gets three hundred
Speaker 9: and twenty miles of range instead of the two hundred
Speaker 9: and fifty that they were talking about with a thirty
Speaker 9: thousand dollars model. But you see what I'm saying. Every
Speaker 9: time we knew EV comes out, it's more expensive than
Speaker 9: they told us it was going to be a year ago.
Speaker 9: And Pricematics, well.
Speaker 1: You mentioned the Tesla cyber truck. How does it go
Speaker 1: head to head with Ford's F one fifty lightning that
Speaker 1: ev pickup.
Speaker 5: I think you know.
Speaker 9: GM's Silverado V is in the process of coming out
Speaker 9: right now. I think for those buyers you're talking about,
Speaker 9: these are two different calculations. I mean GM and the
Speaker 9: Chevy and Ford truck buyers. Some of them will use
Speaker 9: this thing as a work vehicle. For those who buy
Speaker 9: it as kind of a statement or a fun vehicle,
Speaker 9: the cyber truck really could be a competitor, But I
Speaker 9: would see the cyber truck going more head to head
Speaker 9: with Rivian's pickup because neither one is a work truck.
Speaker 9: They're both of fashion statements in a way, very very
Speaker 9: different fashion statements, mind you, but they're more of a
Speaker 9: recreational fashion truck for somebody who's not going to use
Speaker 9: the bed that much and isn't going to be towing
Speaker 9: and hauling a lot of stuff.
Speaker 3: Is this why we didn't see cyber truck numbers included
Speaker 3: in the release of this quota.
Speaker 9: Well, look, this is Tessa. I think we didn't see
Speaker 9: cyber truck numbers because they were very low. You can
Speaker 9: bet when, if and when the numbers are very good,
Speaker 9: they'll be headlining the Cyberstar sales number.
Speaker 1: We'll leave it there. David Always pleasure. David Welsh, Bloomberg's
Speaker 1: Detroit bureau chief. This is Bloomberg day Break Asia, your
Speaker 1: morning brief on the stories making news from Hong Kong
Speaker 1: to Singapore and Wall Street. Look for us on your
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Speaker 1: your day right here on Bloomberg day Break Asia.
Speaker 5: Mm hmm