WEBVTT - Biden and Inflation, and Tesla's Stock Split 0:00:02.400 --> 0:00:05.760 From the heart of where innovation, money and power collive 0:00:06.519 --> 0:00:11.080 in Silicon Vallet and beyond. This is Bloomberg Technology with 0:00:11.119 --> 0:00:26.520 Emily Jay. I'm Emily Tanging in San Francisco and this 0:00:26.560 --> 0:00:28.920 is Bloomberg Technology. Coming up in the next hour. We 0:00:29.000 --> 0:00:31.960 are live at the Port of l a after fiery 0:00:32.000 --> 0:00:35.479 comments from President Biden on soaring inflation and what he 0:00:35.640 --> 0:00:41.080 calls the exploitation of oil companies that spiking gas prices, 0:00:41.880 --> 0:00:44.720 Plus developing news out of Tesla. The company is asking 0:00:44.760 --> 0:00:48.080 shareholders to authorize a three for one stock split, and 0:00:48.200 --> 0:00:52.960 there's a surprising departure from the board of directors. Plus 0:00:52.960 --> 0:00:56.680 a culture clash at Disney Drives the TV chief out, 0:00:56.720 --> 0:00:59.200 We're gonna talk about the future of the entertainment giant 0:00:59.320 --> 0:01:02.480 undersea out Bob Cha Peck. I want to get back 0:01:02.520 --> 0:01:06.240 to those inflation numbers now. President Biden paying a visit 0:01:06.280 --> 0:01:09.120 to the Port of Los Angeles and talking about surging 0:01:09.160 --> 0:01:13.720 prices as inflation hits a forty year high, including some 0:01:13.760 --> 0:01:17.360 of the biggest jumps ever in gas prices. The President 0:01:17.440 --> 0:01:20.800 going after Exxon, which is seen not only record profits 0:01:20.880 --> 0:01:24.200 but also a record rise in its share price. Take 0:01:24.200 --> 0:01:26.920 a listen to what the President had to say, Exxon 0:01:27.040 --> 0:01:30.600 made more money than God this year. And by the way, 0:01:30.600 --> 0:01:32.560 nothing's changed and they're not by the one thing I 0:01:32.600 --> 0:01:35.240 want to say about the old companies. They talked about 0:01:35.280 --> 0:01:39.560 how we have they have nine thousands permits to drill, 0:01:40.560 --> 0:01:44.840 they're not drilling. Why aren't they drilling? Because they make 0:01:44.920 --> 0:01:48.720 more money not producing more oil. Joining us now from 0:01:48.880 --> 0:01:52.280 the Port of l A. Bloomberg's Atlin Law, so walk 0:01:52.400 --> 0:01:55.320 us through the President's message. He got pretty heated at 0:01:55.360 --> 0:01:58.120 times he did, and it was interesting. He started on 0:01:58.640 --> 0:02:01.040 hit port of Los Angeles is the work they've done, 0:02:01.080 --> 0:02:04.600 the coordination between the different tentacles of the ports system, 0:02:04.680 --> 0:02:08.720 the truckers, the operators, the shipping companies. But he also 0:02:08.840 --> 0:02:11.399 talked a lot about the broader problem around supply chains, 0:02:11.440 --> 0:02:14.240 which included impact from the war in Ukraine. He didn't 0:02:14.280 --> 0:02:16.480 just have kind of ire for the oil companies, where 0:02:16.520 --> 0:02:20.040 he basically wants oil production to increase so prices come down. 0:02:20.200 --> 0:02:23.560 But he also talked about foreign shipping companies. And the 0:02:23.600 --> 0:02:25.960 reason he did is that a big driver of inflation 0:02:26.000 --> 0:02:30.040 has been the rate that retailers in this country, Walmart's targets, 0:02:30.400 --> 0:02:33.720 Amazon's pay to move goods from A to B and 0:02:33.840 --> 0:02:36.960 he essentially said those rates are unpalatably high. He called 0:02:37.000 --> 0:02:39.520 on Congress to do something to bring them down. But 0:02:39.560 --> 0:02:41.639 you know, we tracked this data at Bloomberg. Of course 0:02:41.639 --> 0:02:44.200 I do. On my Bloomberg terminal, I see that since 0:02:44.200 --> 0:02:48.200 September shipping rates have come down. So he kind of 0:02:48.240 --> 0:02:52.399 did this rapid spray. Look at what's happening. The underlying message, though, 0:02:52.639 --> 0:02:56.079 things here have improved them. So let's talk about the 0:02:56.160 --> 0:02:59.800 role of technology here. Obviously tech companies have been acutely 0:02:59.840 --> 0:03:02.960 in pacted by the supply chain delays. What does this 0:03:03.000 --> 0:03:06.240 all mean for check? So we're on a tech show. 0:03:06.400 --> 0:03:08.239 You and I talked about the cutting edge of say 0:03:08.360 --> 0:03:11.320 drones and and ask fishal intelligence, et cetera. But in 0:03:11.360 --> 0:03:14.280 this case, it's the lack of technology. It's a very 0:03:14.320 --> 0:03:17.359 manual process. A container gets lifted off a ship by 0:03:17.360 --> 0:03:20.560 a crane, put down on the bottom of a truck cab, 0:03:20.840 --> 0:03:22.960 and they're driven off to his destination or he gets 0:03:23.000 --> 0:03:26.080 moved onto a rail. The message I'm hearing over and 0:03:26.160 --> 0:03:29.160 over from executives and officials is rail is letting us 0:03:29.240 --> 0:03:32.200 down because they have cranes that take the containers of 0:03:32.360 --> 0:03:35.760 ships directly onto rail lines, but there are no rail 0:03:35.840 --> 0:03:37.920 carts to meet them, so they just pile up and 0:03:38.120 --> 0:03:41.880 left idly. A positive is Friday. Let's end on a positive. 0:03:42.320 --> 0:03:44.400 I think the sports system, the executives, I suppose to 0:03:44.400 --> 0:03:47.360 you throughout the day are really happy about the administration 0:03:47.760 --> 0:03:51.080 getting out their checkbook putting money into the ports system 0:03:51.120 --> 0:03:53.680 to the tunes of billions of dollars to modernize that. 0:03:53.720 --> 0:03:56.960 We can get more automation. We can have software systems 0:03:57.080 --> 0:03:59.120 that get all of these folks talking to one another, 0:03:59.320 --> 0:04:00.760 and so we prove and what we saw in the 0:04:00.800 --> 0:04:03.680 lost happening eighteen months from happening again. Ludlow. Thanks, We're 0:04:03.680 --> 0:04:05.000 going to see you a bit later in this show 0:04:05.040 --> 0:04:08.480 when we talk about the president's push for electric cars 0:04:08.560 --> 0:04:11.520 and the role Tesla plays in all of that. I 0:04:11.520 --> 0:04:14.320 want to continue this conversation on inflation and the broader 0:04:14.320 --> 0:04:18.320 market implications and bringing Tim Sullivan, the CEO of Oceanic. Tim, 0:04:18.320 --> 0:04:19.880 thank you so much. What do you make of the 0:04:20.279 --> 0:04:23.479 notes that the President struck today? Um? I think there's 0:04:23.640 --> 0:04:26.359 you know, a lot more to inflation that includes monetary 0:04:26.440 --> 0:04:30.359 policy and demand pull and cost push. I think the 0:04:30.400 --> 0:04:36.240 manufactured demand by you know, strinkling five trillion dollars out 0:04:36.240 --> 0:04:39.840 of the economy over COVID, UH created you know, kind 0:04:39.839 --> 0:04:43.240 of a virtual demand. UM supply in fact diminished some 0:04:43.279 --> 0:04:46.120 of the things that were shut down during COVID haven't 0:04:46.200 --> 0:04:50.080 haven't restarted and and may never restart, So diminished supply 0:04:50.200 --> 0:04:54.560 and and manufactured demand that's now decreasing. The combination is 0:04:55.240 --> 0:04:58.920 leading to inflation that's kind of at a runaway pace 0:04:59.040 --> 0:05:00.960 right now. Obviously the Feds got a lot to do. 0:05:01.920 --> 0:05:04.120 So are you saying that the President shouldn't just be 0:05:04.120 --> 0:05:07.480 blaming X on there are other factors at play. Uh, 0:05:07.600 --> 0:05:09.880 there's definitely other factors at play in as far as 0:05:10.360 --> 0:05:12.880 Exxon goes or any of their old companies for that matter. 0:05:13.440 --> 0:05:18.200 UM investments in energy over the last eight to ten 0:05:18.279 --> 0:05:20.400 years have have not been what they should have been. 0:05:20.800 --> 0:05:23.800 UM money has been kind of transitioned over to green 0:05:23.839 --> 0:05:27.960 projects under the things. And at this time when there's 0:05:27.960 --> 0:05:31.120 a war in Russia and we're basically reduced by three 0:05:31.120 --> 0:05:34.440 million barrels a day, the OPEC increase it's coming in 0:05:34.560 --> 0:05:37.200 July four and fifty thousand barrels a day is a 0:05:37.279 --> 0:05:39.480 drop in the bucket, and and we're going to obviously 0:05:39.480 --> 0:05:42.080 feel that as a country. So how long do you 0:05:42.160 --> 0:05:45.560 think this inflation and this general market funk is going 0:05:45.600 --> 0:05:47.520 to be with us? I mean, that's one of the 0:05:47.560 --> 0:05:51.400 toughest questions I think out there. I personally see my market, 0:05:51.440 --> 0:05:55.919 which is the private markets, uh, existing at least, you know, 0:05:55.960 --> 0:05:58.840 through the end of the year, it being a tumultuous, 0:05:58.920 --> 0:06:03.000 choppy at best, and recovery hopefully starting sometime next year. 0:06:03.160 --> 0:06:05.360 So let's talk about what it's going to take, you know, 0:06:05.400 --> 0:06:07.600 otherwise to get inflation under control. Are there are other 0:06:07.680 --> 0:06:10.680 things that the administration, in your view, could and should 0:06:10.680 --> 0:06:15.000 be doing to alleviate the pressure on consumers. That's a 0:06:15.000 --> 0:06:17.320 tough one. I think. You know, they're using every tool 0:06:17.360 --> 0:06:20.200 that they can to moderate inflation, and you know, using 0:06:20.240 --> 0:06:24.719 tightening and trying to manage the workforce and employment numbers 0:06:24.760 --> 0:06:27.800 things like that. So it's, you know, it's become a 0:06:27.800 --> 0:06:30.240 bit of a whip saw right now, and inflation numbers 0:06:30.279 --> 0:06:33.640 are obviously getting pretty tough. I see milk at the 0:06:33.640 --> 0:06:36.320 grocery store ten dollars a gallon here in California and 0:06:36.360 --> 0:06:40.240 gas over seven dollars um. It's it's gonna be tough 0:06:40.279 --> 0:06:41.920 for a lot of people to night. I don't think 0:06:41.920 --> 0:06:45.000 there's an instant panacea that the government has that they 0:06:45.040 --> 0:06:47.600 can employ. You're also a venture capitalist, and I'm curious 0:06:47.640 --> 0:06:50.320 what the impact is that you're seeing on the private markets. Obviously, 0:06:50.360 --> 0:06:52.680 we see what's happening in the public markets. We're hearing 0:06:52.720 --> 0:06:57.880 that companies are having trouble raising money, doing um down rounds, 0:06:58.160 --> 0:07:02.800 slashing their valuations, lay offs, hiring freezes. You know, what 0:07:02.880 --> 0:07:06.120 do you think the fallout from this period of time 0:07:06.160 --> 0:07:07.960 is going to be on all of these private companies 0:07:08.000 --> 0:07:10.080 that were, you know, living high on the hog for 0:07:10.120 --> 0:07:13.000 a while there. Yeah, I mean I've seen this in 0:07:13.120 --> 0:07:16.640 two thousand and two thousand and eight, and uh, it's 0:07:16.680 --> 0:07:18.840 to me, it's kind of like, uh, one of these 0:07:18.840 --> 0:07:21.600 California fires that we have. It. It's horrible and horrendous 0:07:21.600 --> 0:07:24.880 and and terrifying UM and a lot of companies will 0:07:24.920 --> 0:07:29.240 will be absorbed in. Other companies will just disappear UM. 0:07:29.280 --> 0:07:32.920 But at the end, typically a situation like this creates 0:07:33.080 --> 0:07:35.239 a lot of new growth. And in the private markets, 0:07:35.800 --> 0:07:38.640 we are really the public markets are leading indicator for 0:07:38.680 --> 0:07:41.040 the private markets. So a lot of the private company 0:07:41.200 --> 0:07:45.840 valuations are are pegged off of uh, you know, public 0:07:45.880 --> 0:07:49.680 company valuations on future value, and if the public company 0:07:49.720 --> 0:07:54.520 valuations decrease significantly, the future value of those few private 0:07:54.520 --> 0:07:56.480 companies that are buying to be number one. In some 0:07:56.600 --> 0:07:59.360 cases there's only two or three market leaders in the 0:07:59.400 --> 0:08:01.880 private company space, they are all going to take a 0:08:02.000 --> 0:08:04.400 huge hit. And so, like you said, we are seeing 0:08:05.160 --> 0:08:09.680 um difficulty, challenges with financing terms that are changing, liquidation 0:08:09.720 --> 0:08:12.120 preferences that are increasing, you know, from one to two 0:08:12.160 --> 0:08:15.280 to three to who knows what um, and and of 0:08:15.320 --> 0:08:18.040 course to manage cash flow, people are gonna get laid off, 0:08:18.040 --> 0:08:20.280 and it's it's going to be it is going to 0:08:20.320 --> 0:08:23.400 be a rough road for for everyone. Tough. Indeed, Tim Salivan, 0:08:23.480 --> 0:08:26.720 CEO of Oceanic, thank you for giving us your view 0:08:27.240 --> 0:08:30.560 there on what we're dealing with. Thank you well. Tesla 0:08:30.640 --> 0:08:33.480 shares are up in late trading as it plans for 0:08:33.559 --> 0:08:35.760 a three for one stock split, the ev maker joining 0:08:35.800 --> 0:08:38.600 other tech companies with lofty share prices that have taken 0:08:38.640 --> 0:08:42.960 similar steps to make ownership more accessible to individual investors. 0:08:43.200 --> 0:08:46.320 Tesla also announcing Oracle founder Larry Ellison will step down 0:08:46.400 --> 0:08:49.000 from the Tesla board. Will have more on this developing 0:08:49.000 --> 0:09:01.480 story later this hour. Stopping counter it luxury goods. Stock 0:09:01.679 --> 0:09:03.480 x has taken a leading role in this and as 0:09:03.520 --> 0:09:05.880 new data out on the rise of counterfeit items that 0:09:05.920 --> 0:09:09.200 are flooding the market. Joining me now, stock x CEO 0:09:09.600 --> 0:09:11.839 Scott Cutler. Scott great to have you back with us. 0:09:11.840 --> 0:09:14.240 So just how many more of these things are flooding 0:09:14.280 --> 0:09:17.640 the market now? Well, just taken a step back. If 0:09:17.640 --> 0:09:21.480 you look at the trends for consumers. Consumers are inspired 0:09:21.520 --> 0:09:24.320 by what they see with brands, and brands are going 0:09:24.320 --> 0:09:28.080 more directly to consumer, but they're also releasing product, their 0:09:28.080 --> 0:09:31.680 best product in scarce quantities and sometimes it's very difficult 0:09:31.720 --> 0:09:35.080 to get and so consumers are going to marketplaces to 0:09:35.160 --> 0:09:38.480 actually get product that they can't get in other channels. 0:09:38.760 --> 0:09:40.800 So stock x has been at the forefront of being 0:09:40.840 --> 0:09:45.640 a marketplace that connects buyers and sellers and we've authenticated 0:09:45.640 --> 0:09:48.960 over thirty five million products that have gone through our 0:09:49.040 --> 0:09:52.960 rigorous authentication process and it's a service that we provide 0:09:53.000 --> 0:09:57.160 to our customers to essentially ensure that they're getting access 0:09:57.559 --> 0:10:02.160 to great product from brands at authenticated. So what kind 0:10:02.160 --> 0:10:06.520 of fake stuff are you seeing more of? Well, if 0:10:06.760 --> 0:10:09.440 you look at the last twelve months alone, we have 0:10:09.520 --> 0:10:15.040 protected customers by rejecting over three hundred thousand products worth 0:10:15.080 --> 0:10:18.679 more than a hundred million dollars. Those products range from 0:10:19.120 --> 0:10:25.680 sneakers to apparel, accessories, handbags, across a broad category of 0:10:25.840 --> 0:10:29.640 goods that today consumers are defining as a next generation 0:10:29.760 --> 0:10:34.520 asset class. But when we reject an item for being inauthentic, 0:10:34.960 --> 0:10:37.679 what's interesting When you peel back the report that we 0:10:38.160 --> 0:10:42.160 put out this week, you'll realize that the most common 0:10:42.240 --> 0:10:45.480 reason for us rejecting something as a manufacturing defect, it 0:10:45.480 --> 0:10:49.400 could be a glue stitching, it could be the way 0:10:49.440 --> 0:10:54.000 that product was manufactured, damaged, boxed, use product, and then 0:10:54.080 --> 0:10:56.920 fake product. So essentially we're looking at that end to 0:10:57.040 --> 0:11:00.040 end experience and want to be able to deliver for 0:11:00.240 --> 0:11:04.320 that customer, as you know, a legitimate brand experience that 0:11:04.400 --> 0:11:08.320 they quite frankly expect from us. So obviously we know 0:11:08.559 --> 0:11:11.000 what stock X does to keep these kind of things 0:11:11.040 --> 0:11:13.640 off the market. Is there something more broadly that you 0:11:13.679 --> 0:11:17.480 think should be happening to prevent these black markets, if 0:11:17.520 --> 0:11:20.520 you will, from flourishing. Well, if you look at where 0:11:20.520 --> 0:11:24.679 the consumer is today, as I said, going to places 0:11:24.880 --> 0:11:27.160 where they can't find product, and so they're going to 0:11:27.480 --> 0:11:31.360 other marketplaces that range from social networks to peer to 0:11:31.400 --> 0:11:35.480 peer marketplaces. And the challenge with these marketplaces is that 0:11:35.840 --> 0:11:41.679 there's a lack of quality. Uh, there's no certification around authenticity, 0:11:41.720 --> 0:11:45.000 and typically it's a bad user experience. And so when 0:11:45.040 --> 0:11:48.760 we started, we created the highest standard among the industry 0:11:48.800 --> 0:11:53.599 for marketplaces and quite frankly, revolutionized a process to authenticate 0:11:54.120 --> 0:11:57.560 every single product that's sold on our platform before it 0:11:57.600 --> 0:11:59.880 gets to the consumer. And so I think the cha 0:12:00.040 --> 0:12:03.280 challenge and quite frankly, I think the challenge to marketplaces 0:12:03.400 --> 0:12:06.840 is to stand up for your consumer, authenticate that product, 0:12:06.920 --> 0:12:10.400 and stand by the product that's being sold on your platform, 0:12:10.480 --> 0:12:12.760 and take responsibility as a platform, which is what we 0:12:12.800 --> 0:12:16.839 do every single day. Now, you've been in the midst 0:12:16.840 --> 0:12:19.720 of this ongoing legal battle with Nike. Nike suit you 0:12:19.960 --> 0:12:22.920 over an n f T series based on Nike shoes 0:12:23.000 --> 0:12:28.600 and then more recently accused sock x of selling counterfeits. 0:12:28.840 --> 0:12:32.080 You know what's your response to this response to this 0:12:32.160 --> 0:12:36.360 latest salvo. So from a from a legal perspective, we 0:12:36.440 --> 0:12:40.120 believe the original case has no merit. The additional amendment 0:12:40.280 --> 0:12:43.000 equally has no merit. We have the right to use 0:12:43.240 --> 0:12:47.800 any brand's name and trademarks when selling products, and that's 0:12:47.840 --> 0:12:50.800 well established under current law. I think as it relates 0:12:50.840 --> 0:12:53.640 to the experience, and that's the experience in the most 0:12:53.720 --> 0:12:57.600 recent recent claims is just backed up by the facts 0:12:57.679 --> 0:13:01.160 that we authenticate one of the products that are sold 0:13:01.200 --> 0:13:03.280 on our platform. And I think we have a really 0:13:03.320 --> 0:13:07.199 symbiotic relationship with great brands that are releasing great product 0:13:07.480 --> 0:13:10.520 because stock x you can see every single day what 0:13:10.720 --> 0:13:13.240 is this great product worth and what could it be 0:13:13.320 --> 0:13:16.640 traded for? And we provide an economic opportunity for those 0:13:16.640 --> 0:13:20.000 sellers that hold onto those assets and then sell them 0:13:20.000 --> 0:13:22.600 to buyers. But we stand in the middle of that 0:13:22.640 --> 0:13:26.760 transaction to authenticate every single one and so you know, 0:13:26.840 --> 0:13:29.800 to claim that we're not doing that is patently false. 0:13:30.080 --> 0:13:33.559 But most importantly for us, it's really about ensuring that 0:13:33.720 --> 0:13:37.319 user experience. So, if that's the case, what went wrong 0:13:37.360 --> 0:13:39.800 with the relationship with Nike, because I assume you have 0:13:39.880 --> 0:13:43.400 to maintain strong relationships with a lot of brands. Well, 0:13:43.640 --> 0:13:46.000 if you if you look at the platform itself, we're 0:13:46.000 --> 0:13:52.920 actually intermediary between sellers and buyers. Those sellers are typically consumers. Um, 0:13:53.040 --> 0:13:56.559 we do have relationships with brands that actually release product 0:13:56.600 --> 0:13:59.920 and sub product, but a vast majority of what transact 0:14:00.160 --> 0:14:03.200 on the platform is not coming from a brand directly, 0:14:03.240 --> 0:14:06.600 but it's coming from consumers to get access to that 0:14:06.679 --> 0:14:09.600 product over time. You know, we have partnered in so 0:14:09.640 --> 0:14:14.600 many different ways with the industry on on counterfeits. In fact, 0:14:15.040 --> 0:14:17.679 even Nike itself have come to us to say, we 0:14:17.720 --> 0:14:21.560 think you're among the highest standards in the marketplace. Partner 0:14:21.640 --> 0:14:26.080 with us with the Department of Homeland Security on other councils, 0:14:26.120 --> 0:14:30.160 participating in in preventing counterfeits for getting to the market, 0:14:30.560 --> 0:14:32.520 and so I think we work in partnership with the 0:14:32.560 --> 0:14:36.160 industry and hold ourselves to those standards. Now, you spent 0:14:36.240 --> 0:14:38.320 a lot of time at the New York Stock Exchange, 0:14:38.360 --> 0:14:41.000 and I'm curious what unique perspective that gives you on 0:14:41.040 --> 0:14:44.800 the market turmoil that we're seeing now, and you specifically 0:14:44.840 --> 0:14:48.320 oversaw listings, you know, you know, do you think this 0:14:48.480 --> 0:14:50.560 I p O window is shut? And what does that 0:14:50.600 --> 0:14:53.080 mean for stock X, which we were expecting to go 0:14:53.160 --> 0:14:57.120 public potentially soon. Well, you know, everybody is watching the 0:14:57.160 --> 0:14:59.840 headlines in the markets today. What I would say is 0:15:00.480 --> 0:15:04.480 for the market overall, today's headlines are rarely tomorrow's history, 0:15:04.600 --> 0:15:07.480 so we will get through this time. UM. It's certainly 0:15:07.480 --> 0:15:11.280 a very difficult time for the consumer. UM for us specifically, 0:15:11.480 --> 0:15:15.920 I can't comment on rumors speculation about us, but we 0:15:16.000 --> 0:15:20.680 are focused on executing our business, growing our business during 0:15:20.720 --> 0:15:24.680 these challenging times, and expanding into other exciting categories and 0:15:24.760 --> 0:15:29.560 areas to attract this next generation of consumer to our platform. 0:15:29.800 --> 0:15:34.440 Stock X also sells collectibles like trading cars, figurines. You know, 0:15:34.600 --> 0:15:37.680 talk to us about your plans for non shoe alternative 0:15:37.720 --> 0:15:40.320 assets and the kind of demand you see from gen 0:15:40.440 --> 0:15:43.480 Z and millennials, especially in the midst of a downturn. 0:15:44.280 --> 0:15:46.640 Well in two thousand and six, team we started with 0:15:47.080 --> 0:15:49.840 with this idea of creating a real time marketplace for 0:15:49.960 --> 0:15:53.520 high demand consumer goods. We started with sneakers. Our second 0:15:53.600 --> 0:15:57.000 category actually was in watches, and then handbags, and then 0:15:57.040 --> 0:15:59.560 we got into apparel and that's expanded now and to 0:15:59.640 --> 0:16:02.320 collect to bowls. It's all part of a big trend 0:16:02.400 --> 0:16:05.680 that I think includes digital assets, include some of these 0:16:05.680 --> 0:16:09.800 physical assets where the next generation consumer gen Z jen 0:16:09.920 --> 0:16:14.760 A actually looking at different things besides oil and commodities 0:16:14.800 --> 0:16:17.920 and even the market itself as a place to invest 0:16:18.440 --> 0:16:21.560 their time, their energy, their passions, and now you have 0:16:21.600 --> 0:16:26.480 opportunities to actually turn that passion into an economic opportunity. 0:16:26.840 --> 0:16:29.320 And so it's a big trend across all the things 0:16:29.360 --> 0:16:32.640 that trade into our platform that these are considered assets 0:16:32.640 --> 0:16:36.400 by this set of consumers. All right, Scott Cutler, CEO 0:16:36.600 --> 0:16:38.360 of stock X, Great to have you with us. Thanks 0:16:38.360 --> 0:16:41.280 Scott for stopping by. Coming up another stock split in 0:16:41.400 --> 0:16:43.280 the tech sector. This time it's Tesla. Why the e 0:16:43.360 --> 0:16:46.880 V maker is eyeing a three for one split? Up next, 0:16:47.080 --> 0:17:01.680 this is Bloomberg now today is on Tesla that broke 0:17:01.880 --> 0:17:04.480 just after the US market closed, the e V company 0:17:04.600 --> 0:17:07.040 saying in a proxy statement it is asking shareholders to 0:17:07.119 --> 0:17:09.199 vote on a three for one stock split. Joining us 0:17:09.240 --> 0:17:11.719 now on the phone for more Bloomware, Stata Hall, who 0:17:11.800 --> 0:17:14.440 covers Tesla Flora, So it works for Alphabet, it worked 0:17:14.440 --> 0:17:17.200 for Amazon, giving the stocks a bit of a jump 0:17:17.200 --> 0:17:19.119 when they did their own stocks. That's why is Tesla 0:17:19.200 --> 0:17:22.600 doing this? Dantum, well, Tessaly the stock split a couple 0:17:22.640 --> 0:17:25.480 of years ago that was wildly popular with retail investors 0:17:25.520 --> 0:17:29.240 because you know, fans of the company loved the company, 0:17:29.359 --> 0:17:31.600 loved the stock. But as the stock price rises, it's 0:17:31.640 --> 0:17:33.480 harder for them to get an entry point, and so 0:17:34.040 --> 0:17:36.520 Tesla wants to do this not just for retail shareholders, 0:17:36.560 --> 0:17:38.520 but also for its own employees. I mean, they give 0:17:38.560 --> 0:17:41.080 stock options to employees and it's a big part of 0:17:41.119 --> 0:17:44.160 the compensation. And um, you know, I think the last 0:17:44.160 --> 0:17:46.400 stock split was just wildly popular and there's no reason 0:17:46.520 --> 0:17:50.119 not to do it again. Meantime, Tesla also announcing that 0:17:50.160 --> 0:17:52.320 Larry Elson is stepping down from the board, which is 0:17:52.359 --> 0:17:55.760 interesting given that Larry is one of the big backers 0:17:55.840 --> 0:17:59.160 of Elon Steal to buy Twitter. What do you make 0:17:59.160 --> 0:18:02.720 of this? Yeah, that was a surprise. Larry has been 0:18:02.720 --> 0:18:07.720 on the board since lateen He is considered an independent director. Um, 0:18:07.760 --> 0:18:09.960 he just is not standing for re elections and his 0:18:10.080 --> 0:18:12.919 charm is up and he's not gonna, you know, be 0:18:13.200 --> 0:18:15.760 be reelected. The board is gonna shrink from eight members 0:18:15.800 --> 0:18:18.480 to seven. Um. You know, I don't know what is 0:18:18.560 --> 0:18:20.920 behind that. Um. I mean we know that Mr Ellison 0:18:20.920 --> 0:18:23.200 spends a lot of his time in Lamai, Hawaii. Maybe 0:18:23.240 --> 0:18:25.520 he just didn't have time to come to all the 0:18:25.520 --> 0:18:27.720 board meetings or wants to do other things. But he 0:18:27.760 --> 0:18:31.000 has been a pretty instrumental player on the board. And yeah, 0:18:31.000 --> 0:18:34.480 obviously is backing Elon's bid to buy Twitter. So I'm 0:18:34.480 --> 0:18:37.520 not entirely sure went what went on there. We were 0:18:37.560 --> 0:18:40.840 just covering Bloomberg's big takes focused on Larry Allison and Lanni. 0:18:40.960 --> 0:18:44.720 How does this change the constitution of the Tesla board 0:18:45.040 --> 0:18:50.040 in the meantime? Uh, well, Larry's departure just means that 0:18:50.080 --> 0:18:54.160 the board shrinks and um and so, you know, seven 0:18:54.160 --> 0:18:56.800 people is pretty small for a company of Tesla size. 0:18:56.840 --> 0:18:58.879 I mean most boards are going in the opposite direction, 0:18:58.920 --> 0:19:02.439 adding members, add more diversity. Tesla is kind of you know, 0:19:02.520 --> 0:19:06.240 shrinking its numbers even though it's become this massive company. 0:19:06.359 --> 0:19:08.919 All right, well, we'll continue to follow your reporting on this. 0:19:09.000 --> 0:19:12.719 Dana Hall of Bloomberg News, who covers Tesla for us. 0:19:12.800 --> 0:19:23.800 Thank you Dana for that update. Welcome back to Bloomberg 0:19:23.800 --> 0:19:26.320 Technology and Emily Chang in San Francisco. This week, the 0:19:26.359 --> 0:19:29.320 Biden administration announced new steps to build out the first 0:19:29.440 --> 0:19:34.160 ever national network of five thousand electric car chargers along 0:19:34.280 --> 0:19:36.920 US highways and in select neighborhood. This is a key 0:19:36.920 --> 0:19:40.600 piece of the bipartisan Infrastructure Law. Let's get back to 0:19:41.119 --> 0:19:43.399 ad Ludlow joining us down from l A, where President 0:19:43.440 --> 0:19:46.080 Biden spoke just a few hours ago. So I talked 0:19:46.080 --> 0:19:49.360 to us about these new charging stations and just how 0:19:49.440 --> 0:19:54.880 much this could supercharge electric car ownership. This is a 0:19:54.920 --> 0:19:58.040 case of build it and they will come right. Biden's 0:19:58.040 --> 0:20:00.840 administration laid out seven and a half BI in dollars 0:20:00.880 --> 0:20:04.320 for charging infrastructure, and they were very specific in the 0:20:04.440 --> 0:20:08.760 wording of the rules. They basically want an America where 0:20:08.760 --> 0:20:10.800 the standards are the same. It doesn't matter if you 0:20:10.880 --> 0:20:14.240 drive yourself a Tesla, a Ford, Mustang, Marquis and Nissan 0:20:14.400 --> 0:20:18.280 Leaf that you should dependably be able to drive up 0:20:18.280 --> 0:20:20.520 to the nearest service station, plug in your e V 0:20:21.040 --> 0:20:23.960 and off you go. There's been skepticism that this money 0:20:24.000 --> 0:20:27.359 materializes in the numbers promised. There's been skepticism that it 0:20:27.400 --> 0:20:29.000 will be built in time. But there are also a 0:20:29.080 --> 0:20:32.119 number of private sector players. Right you have Electrify America 0:20:32.280 --> 0:20:35.479 charge point and they have all gone about, along with Tesla, 0:20:35.560 --> 0:20:40.119 building out these networks relatively quickly. The discussion around adoption 0:20:40.240 --> 0:20:43.240 is still a debate because the pre order numbers for 0:20:43.280 --> 0:20:46.159 the F one fifty Lightning for example, or a Riviewan 0:20:46.280 --> 0:20:48.879 or even the backlog that you see in Tesla shows 0:20:48.880 --> 0:20:51.119 that there's demand here in the United States, but the 0:20:51.160 --> 0:20:55.840 backward looking data speaks for itself. Basically, the ev adoption 0:20:55.960 --> 0:20:58.359 is just a few percentage points of all new car sales. 0:20:58.480 --> 0:21:01.560 In China, it's almost twenty percent. So that's why I 0:21:01.600 --> 0:21:04.359 say it's a question of building and will and will 0:21:04.440 --> 0:21:07.200 they come. That's what the Biden administration hopes that making 0:21:07.200 --> 0:21:10.800 this infrastruction more commonplace will make EVIED option more commonplace 0:21:10.840 --> 0:21:15.359 as well. Now, something really curious, and we've seen a 0:21:15.560 --> 0:21:19.200 rift grow between President Biden and Elon Musk, who you 0:21:19.240 --> 0:21:22.639 would think is a natural ally in this administration, and 0:21:22.680 --> 0:21:27.159 in this push to electric cards, we've seen barbs from both, 0:21:27.640 --> 0:21:30.920 you know, in in you know, towards each other. Why 0:21:31.119 --> 0:21:34.080 is this? Why haven't they been able to form some 0:21:34.160 --> 0:21:40.720 sort of alliance? You know? I remember very vividly when 0:21:40.880 --> 0:21:43.800 I sat in l a at CODE conference or RECO 0:21:43.800 --> 0:21:46.480 conference and Elon Musk sat in the chair and said 0:21:47.000 --> 0:21:52.440 that President Biden is leading the Russian quote Russian revolution 0:21:52.960 --> 0:21:55.840 in electric vehicles. We've known since early in the year 0:21:56.280 --> 0:21:59.600 that Elon Musk and the President don't have a direct 0:21:59.640 --> 0:22:02.560 relation ship. We know that When President Biden talks about 0:22:02.560 --> 0:22:05.840 the electrification movement, he is kind of primarily name check 0:22:05.960 --> 0:22:10.720 forward in GM's leadership in that despite Tesla dominating the 0:22:10.800 --> 0:22:14.920 sale of electric vehicles in this country and globally. Frankly, 0:22:15.480 --> 0:22:17.120 but there's the other side of the story as well. 0:22:17.160 --> 0:22:20.720 Elon Musk has an unwunusual way of doing things. Tesla 0:22:20.840 --> 0:22:23.959 is not a union shop. It does not have unionized labor. 0:22:24.320 --> 0:22:27.040 Biden is the president of the labor movement. He's very 0:22:27.080 --> 0:22:29.600 open about that. And now we see this shift where 0:22:29.600 --> 0:22:32.760 Elon must has shifted his politics. The thing is, Elon 0:22:32.840 --> 0:22:35.199 Musk is the world's richest man and he himself is 0:22:35.240 --> 0:22:38.520 incredibly popular, and we won't be able to quantify it, 0:22:38.720 --> 0:22:40.760 but it will be interesting as we approach November in 0:22:40.800 --> 0:22:44.160 the mid terms. Does Elon Musk take some votership away 0:22:44.160 --> 0:22:47.400 from Biden. That's a question I'm going to be asking. Fascinating, 0:22:47.440 --> 0:22:50.800 fascinating question. All right at Lunlow. Thank you from the 0:22:51.000 --> 0:22:54.800 Port of l I appreciate your reporting. Meantime, we continue 0:22:54.840 --> 0:22:58.119 to celebrate pride. This month of June, Bloomberg Television is 0:22:58.160 --> 0:23:01.440 focusing on a wide range of topics highlighting what equality 0:23:01.520 --> 0:23:05.520