WEBVTT - Lyft's Slow Growth and Rivian's Capital 0:00:01.760 --> 0:00:06.080 From Marhart where Innovation, Money and power Collie in Silicon 0:00:06.160 --> 0:00:07.040 Vallet NBN. 0:00:07.400 --> 0:00:10.840 This is Bloomberg Technology with Caroline Hide. 0:00:10.520 --> 0:00:27.680 And Ed Ludlow. I Meed Ludlow in San Francisco. Caroline 0:00:27.720 --> 0:00:30.640 hides off today. This is Bloomberg Technology coming up on 0:00:30.680 --> 0:00:34.159 the program. Full earnings coverage ahead, Lift Falls after the 0:00:34.240 --> 0:00:38.120 ride sharing company reported its slowest revenue growth in two 0:00:38.200 --> 0:00:41.560 years plus. We sit down with GM president Mark Royce 0:00:41.600 --> 0:00:45.800 as the company unveils its first all electric escalade IQ, 0:00:46.400 --> 0:00:48.959 and Amazon is in talks to be an anchor investor 0:00:49.040 --> 0:00:51.360 in arms IPO in a deal that could raise as 0:00:51.440 --> 0:00:54.320 much as ten billion for the chip company. Those are 0:00:54.360 --> 0:00:57.160 our top stories. First, a check on the markets. Tech 0:00:57.280 --> 0:00:59.360 is lower at the index level than as that one 0:00:59.440 --> 0:01:02.040 hundred down more than a percentage point. It is chip 0:01:02.080 --> 0:01:05.280 stocks where we're seeing the biggest declines. The Philadelphia Semiconductor 0:01:05.280 --> 0:01:09.000 Index or socks softer by one point six percent, underperforming 0:01:09.319 --> 0:01:11.800 the market. We're waiting for the CPI print here in 0:01:11.840 --> 0:01:14.440 the US Thursday. We look at that data and then 0:01:14.480 --> 0:01:17.319 we think to ourselves, what will the Federal Reserve do next? 0:01:17.360 --> 0:01:19.680 And there is some posturing in the market from that 0:01:19.760 --> 0:01:21.520 point of view. But earnings is going to be a 0:01:21.560 --> 0:01:23.840 really big theme of this show. We have a number 0:01:23.840 --> 0:01:27.080 of earnings interviews with CEOs and actually the reaction to 0:01:27.120 --> 0:01:30.120 earnings to the downside also a factor, particularly for the 0:01:30.200 --> 0:01:33.360 NASDAK one hundred US tenure yield continues to go back 0:01:33.360 --> 0:01:36.120 down towards four percent. Remember we've been talking about the 0:01:36.120 --> 0:01:39.320 steady trickle down from four point two percent back nearer 0:01:39.360 --> 0:01:42.080 to four percent, and Bitcoin still at that same twenty 0:01:42.120 --> 0:01:45.480 nine five hundred US dollars per token level. These are 0:01:45.520 --> 0:01:48.000 the two key names where we're starting to show. Lift 0:01:48.320 --> 0:01:49.920 first of all, is going to be one we're going 0:01:49.960 --> 0:01:51.920 to get to in just a moment with man Deep singer. 0:01:51.960 --> 0:01:55.000 Bi Rivian is down seven and a half percent. Eve 0:01:55.120 --> 0:01:58.160 Maaker actually updated its production guidance for the year and 0:01:58.280 --> 0:02:01.160 lowered its guidance for a justed loss to four point 0:02:01.200 --> 0:02:03.840 two billion dollars. But there's something that the street doesn't like. 0:02:04.080 --> 0:02:07.040 We speak to CEO RJ. Scarrange. We asked why didn't 0:02:07.040 --> 0:02:09.200 they do more in terms of raising guidance. Then you 0:02:09.240 --> 0:02:12.800 got Lift. The story is that growth is the slowest 0:02:13.000 --> 0:02:15.360 since the pandemic era. They actually gave a pretty strong 0:02:15.440 --> 0:02:18.960 outlook for the current quarter. There are some other concerns 0:02:19.040 --> 0:02:22.000 though there about Lift versus its peers. This is the reaction. 0:02:22.120 --> 0:02:25.080 Credit Suitee keeps an outperform rating on the shares, but 0:02:25.120 --> 0:02:28.040 it's lowered its price target to eighteen dollars from twenty 0:02:28.040 --> 0:02:31.320 three dollars following those results. What it sees is revenue 0:02:31.560 --> 0:02:35.040 offset by higher insurance costs going into twenty twenty four 0:02:35.040 --> 0:02:37.720 and beyond. That's something we've talked about before. Let's break 0:02:37.760 --> 0:02:40.959 it all down with Bloomberg Intelligence Senior analyst Mandeep Singh. 0:02:41.200 --> 0:02:45.760 The thing is Mandy Lift's growth is below that of 0:02:45.800 --> 0:02:48.679 the rest of the ride share industry. How much is 0:02:48.720 --> 0:02:49.360 that a concern? 0:02:50.160 --> 0:02:52.560 Well, I mean that's where when you look at all 0:02:52.639 --> 0:02:57.079 the market places, the skilled market places like booking, like erebnb, 0:02:57.880 --> 0:03:01.280 you know, it's a venotick all market and I feel 0:03:01.480 --> 0:03:03.840 it's going to pan out the same way in this case, 0:03:03.880 --> 0:03:08.080 simply because Lift doesn't have a differentiated offering when it 0:03:08.120 --> 0:03:11.880 comes to right sharing. I mean, consumers are price sensitive. 0:03:12.240 --> 0:03:14.240 They're going to go with, you know, the company that 0:03:14.280 --> 0:03:18.880 has the lower ETAs, that has more variety in terms 0:03:18.880 --> 0:03:22.600 of the products it's offering, and over time, you know, 0:03:22.680 --> 0:03:25.800 when you look at lift strategy around lowering its prices, 0:03:25.840 --> 0:03:29.280 you have to ask yourself, what can they accomplish. It's 0:03:29.400 --> 0:03:31.760 they're not going to get an Amazon like a subscription 0:03:31.880 --> 0:03:34.920 model where they have a prime subscription and you know, 0:03:35.000 --> 0:03:39.000 that's how you drive engagement. And that's where I feel 0:03:39.040 --> 0:03:42.000 like they're going to be short sighted in terms of 0:03:42.200 --> 0:03:47.520 using pricing as a lever and the marketplaces with the 0:03:47.560 --> 0:03:50.800 most supply growth eventually are the ones that you know 0:03:51.440 --> 0:03:54.920 end up winning. And that's where Uber has an advantage. 0:03:54.840 --> 0:03:57.640 Which is showing a chat on the screen that active 0:03:57.760 --> 0:04:01.600 riders actually grew in the quarter. What are we learning 0:04:01.640 --> 0:04:05.119 from lyft about that business in a sense of engagement? 0:04:05.280 --> 0:04:07.280 You know, a ride is broadly coming back. 0:04:07.880 --> 0:04:10.120 They are coming back, but when you compare it to 0:04:10.200 --> 0:04:13.320 pre pandemic levels, they're still not there. And all this 0:04:13.520 --> 0:04:16.479 is driven by subsidies. We know the biggest problem with 0:04:16.560 --> 0:04:19.520 this business model is the use of subsidies and how 0:04:19.560 --> 0:04:22.960 it affected the unit economics. It's the same thing here. Yes, 0:04:23.040 --> 0:04:26.640 you're going to bring those customers back, but how long 0:04:26.680 --> 0:04:29.040 are they going to stay and what is the repeat 0:04:29.120 --> 0:04:33.240 rate when it comes to you know, driving the transactions 0:04:32.960 --> 0:04:36.280 on a recurring basis. And I think that's where if 0:04:37.040 --> 0:04:41.040 Lift raises prices or Uber lowers its prices, those customers 0:04:41.080 --> 0:04:43.560 are going to go back. And the retention level is 0:04:43.600 --> 0:04:45.440 fairly low at this point of time, I. 0:04:45.400 --> 0:04:49.840 Feel Mandy David Richard, the CEO, told Bloomberg in an 0:04:49.839 --> 0:04:53.840 interview that he's trying to make Lifts healthier business, you know, 0:04:54.000 --> 0:04:56.800 move prices more in line with market. He only just 0:04:56.880 --> 0:05:00.279 joined in April. What's your assessment of the job he's 0:05:00.320 --> 0:05:03.200 done and what he can do really to change the 0:05:03.240 --> 0:05:04.359 fortunes of the company. 0:05:04.720 --> 0:05:07.120 Yeah, And the good thing is I feel he's been 0:05:07.200 --> 0:05:10.800 open minded about all the strategic options, even you know, 0:05:11.480 --> 0:05:13.760 the company being up for sale, and when you look 0:05:13.800 --> 0:05:17.880 at the history of marketplaces, the distance second ones, whether 0:05:17.920 --> 0:05:21.600 it was grub Hub or Postmates or Caviar, these are 0:05:21.640 --> 0:05:24.919 all the small players they got taken out. And so 0:05:25.120 --> 0:05:28.159 in Lift's case, clearly, you know that is an option. 0:05:28.360 --> 0:05:32.240 The valuation is right now at its lowest level. You know, 0:05:32.279 --> 0:05:35.359 it's trading at one time sales and probably a B 0:05:35.400 --> 0:05:38.080 two B partnership. It could be a catalyst. So there 0:05:38.080 --> 0:05:40.840 are a number of catalysts for them to you know, 0:05:41.440 --> 0:05:43.880 think of the next steps. Clearly, I think from a 0:05:43.920 --> 0:05:47.680 standalone perspective, it's a hard job, but at least I 0:05:47.720 --> 0:05:50.680 feel he's quite open minded about the various options on 0:05:50.720 --> 0:05:51.160 the table. 0:05:51.839 --> 0:05:54.520 All right, Bloomberg Intelligence senior around list Man deep saying, 0:05:54.520 --> 0:05:56.839 if you're a rider or even a driver for lifts, 0:05:56.880 --> 0:05:58.919 and you've got to reach out to me on social 0:05:59.000 --> 0:06:01.880 media the other stuff we want Rivian. Rivian's leader doesn't 0:06:01.920 --> 0:06:04.479 see a need to raise capital before the end of 0:06:04.480 --> 0:06:08.280 twenty twenty five, even as the company pursues some costly projects. 0:06:08.320 --> 0:06:11.080 I talked to the EV makers CEO our Jascarrange a 0:06:11.160 --> 0:06:14.240 day after the company reported better than expected earnings. As 0:06:14.279 --> 0:06:18.159 it works through the supply chain snags and accelerates EV production, 0:06:18.320 --> 0:06:19.120 have a listen. 0:06:20.560 --> 0:06:22.960 Ultimately when we think about the path to the positive 0:06:22.960 --> 0:06:25.479 gross margin, ultimately the path the probabilities of business. We 0:06:25.520 --> 0:06:28.159 have a very clear line of site as we now 0:06:28.160 --> 0:06:30.920 have predictability in our production ramp, and we have really 0:06:31.040 --> 0:06:35.000 tight predictability around the supply chain and the contractual cost 0:06:35.160 --> 0:06:37.599 reductions that we're going to start to see. We're already 0:06:37.600 --> 0:06:40.640 witnessing those, as evidenced by the numbers we put up yesterday. 0:06:41.160 --> 0:06:44.080 So we're looking with a lot of excitement towards the 0:06:44.080 --> 0:06:48.719 next several quarters as we march and run, I should 0:06:48.720 --> 0:06:51.200 say as fast as we can towards profitability, and that 0:06:51.279 --> 0:06:55.359 ultimately is the long term necessity for the business is 0:06:55.400 --> 0:06:59.000 to self finance our growth. Now, with that said, we've 0:06:59.040 --> 0:07:01.080 been also very clear that our cash balance and as 0:07:01.080 --> 0:07:03.599 you loose in your question, puts us in a position 0:07:03.680 --> 0:07:07.520 to be able to focus appropriately on the long term 0:07:07.560 --> 0:07:11.040 as well. Meaning while we're very, very focused on ramping 0:07:11.440 --> 0:07:15.080 R one and eDV and driving those to the normal 0:07:15.120 --> 0:07:19.280 facility to twenty five percent gross margin, we're also developing 0:07:19.480 --> 0:07:22.920 and proceeding with the R two program and it's making 0:07:23.040 --> 0:07:26.080 great progress. I don't think I've been as excited as 0:07:26.080 --> 0:07:28.080 I am about R two as have ever been on 0:07:28.160 --> 0:07:30.880 a product. So we're looking forward to showing that. But 0:07:31.000 --> 0:07:33.040 the cash balance we've put ourselves with the cash that 0:07:33.080 --> 0:07:35.840 we have, is put ourselves in a position to not 0:07:36.000 --> 0:07:38.560 need capital through the end of twenty twenty five. 0:07:38.800 --> 0:07:42.880 You have the infrastructure to service the Amazon eDV. Does 0:07:42.880 --> 0:07:45.680 that mean you can now start shipping our one to 0:07:45.760 --> 0:07:47.440 Europe because that infrastructure is in. 0:07:47.400 --> 0:07:50.840 Place today, We're focused in the immediate term on continued 0:07:50.880 --> 0:07:54.000 to ramp sales and deliveries in North America. We have 0:07:54.080 --> 0:07:56.720 so much demand backlog, We have so many customers that 0:07:57.400 --> 0:08:01.120 very much are looking forward to their vehicles that that 0:08:01.240 --> 0:08:03.520 is the focus. And when we think about really going 0:08:03.560 --> 0:08:07.480 heavily into Europe, the R two program and that platform 0:08:08.520 --> 0:08:13.840 contemplates really a significant market entry and we think a 0:08:13.920 --> 0:08:18.200 really nice market fin So that's something that over the 0:08:18.240 --> 0:08:21.480 next few years will become a really important market for us. 0:08:21.720 --> 0:08:23.680 You've talked a lot about trying to get out of 0:08:23.720 --> 0:08:26.760 the exclusivity agreement with Amazon. The other big question that 0:08:27.480 --> 0:08:32.360 your Rivian followers have is what type of deal would 0:08:32.360 --> 0:08:34.640 you do next? Would you go for the big fleet 0:08:34.640 --> 0:08:37.840 operators like ups or FedEx or you try to do 0:08:37.960 --> 0:08:41.560 many different deals with smaller mum and pop shops, smaller 0:08:41.559 --> 0:08:42.440 fleet operators. 0:08:42.640 --> 0:08:45.679 There's elements of both, and we're seeing a broad spectrum 0:08:45.679 --> 0:08:49.640 of use cases from pure last mile delivery to more 0:08:49.640 --> 0:08:52.800 of a commercial ban application, and so we're navigating that 0:08:53.080 --> 0:08:57.520 as we speak. In terms of selecting following our Amazon relationship, 0:08:57.559 --> 0:08:59.439 what are the next big customers and then how to 0:08:59.440 --> 0:09:02.120 those sequence and together, and a lot of it ties 0:09:02.120 --> 0:09:05.079 to use case and trying to minimize the amount of complexity. 0:09:05.120 --> 0:09:08.560 We had to the business by having similar use cases 0:09:08.600 --> 0:09:11.920 with the follow on immediate follow on customers, and then 0:09:11.920 --> 0:09:14.000 over time we'll broaden the use cases of course. As 0:09:14.000 --> 0:09:16.280 a platform, and it's an architecture who we call the 0:09:16.320 --> 0:09:20.640 Rivian Commercial Band Platform. It's designed long term to cover 0:09:20.800 --> 0:09:24.240 a very broad spectrum of three use cases. 0:09:25.320 --> 0:09:27.880 There was Rivian CEO R. J. Scarrin speaking to me earlier. 0:09:27.920 --> 0:09:29.760 You look at the shares were down more than eight percent, 0:09:29.840 --> 0:09:32.240 but off session loads. If we close at this level 0:09:32.640 --> 0:09:34.760 of decline down more than eight percent, it's the biggest 0:09:34.800 --> 0:09:38.319 drop since March. They raised guidance to fifty two thousand 0:09:38.400 --> 0:09:41.120 units this year, but that's only two thousand more than 0:09:41.160 --> 0:09:43.600 they previously said. And there are people out there in 0:09:43.640 --> 0:09:47.600 the market saying, really, guys, come on, because the plant 0:09:47.640 --> 0:09:50.760 in normal Illinois on paper can build many more electric 0:09:50.840 --> 0:09:53.559 vehicles than that even so big focus on cost cuts 0:09:53.559 --> 0:09:55.319 and they're doing well compared to some of those other 0:09:55.440 --> 0:09:57.880 names out there in the EV space. Speaking of coming 0:09:57.960 --> 0:10:00.400 up here on the program, we sit down with GM 0:10:00.480 --> 0:10:04.600 president Mark Royce as General Motors unveils its first all 0:10:04.640 --> 0:10:09.040 electric escalaid IQ. That conversation coming out out from the 0:10:09.080 --> 0:10:32.480 East coast here on Bloomberg Technology. Welcome to our Bloomberg 0:10:32.520 --> 0:10:36.360 television and radio audience worldwide. General Motors unveiling its first 0:10:36.440 --> 0:10:40.160 all electric twenty twenty five Escalaid IQ. Let's send it 0:10:40.200 --> 0:10:43.240 over to Bloomberg's Matt Miller, who's sitting down with General 0:10:43.280 --> 0:10:44.880 Motors president Mark Royce. 0:10:44.920 --> 0:10:50.120 Matted, thanks very much, Mark, We really appreciate you joining us. 0:10:50.280 --> 0:10:53.800 This is a very powerful vehicle with four hundred and 0:10:53.840 --> 0:10:56.520 fifty miles range, but also a very high price tag. 0:10:56.720 --> 0:10:58.600 Who are you aiming this product at. 0:10:58.840 --> 0:11:00.600 Well, if you look at the current Escalade, you know 0:11:00.600 --> 0:11:03.880 we sold over a million units and you know, one 0:11:03.920 --> 0:11:07.840 out of every three of these SUVs in this luxury 0:11:07.880 --> 0:11:11.200 segment is an Escalade. So we've got a very successful brand. 0:11:12.120 --> 0:11:14.599 It's been, you know, an unbelievable vehicle for Cadillac and 0:11:14.640 --> 0:11:18.000 General Motors, but this has added to business. So we 0:11:18.080 --> 0:11:21.839 know there's people that are wanting an electric three to 0:11:21.880 --> 0:11:24.560 row SUV full sized suv. We're going to be the 0:11:24.559 --> 0:11:27.760 first ones that really bring it here with an iconic brand. 0:11:27.840 --> 0:11:30.960 So we know this is in addition to our internal 0:11:31.000 --> 0:11:34.120 combustion engine escalating and you can see it as the 0:11:34.160 --> 0:11:36.840 next step in the design language for Cadillac, both inside 0:11:36.840 --> 0:11:39.280 and out, and so this is going to be right 0:11:39.320 --> 0:11:43.640 on the cutting edge of everything. It's the Escalade standard 0:11:43.679 --> 0:11:44.720 of the world, it really is. 0:11:44.960 --> 0:11:48.520 So you already have the Hummer though, which is definitely 0:11:48.559 --> 0:11:51.360 on the cutting edge of everything, right, and early adopters 0:11:51.640 --> 0:11:54.400 who are waiting for a big electric vehicle, I'm assuming 0:11:54.400 --> 0:11:56.960 went out and got that. Who's left it to buy 0:11:56.960 --> 0:11:59.079 the Escalade A one hundred and thirty thousand to start. 0:11:59.160 --> 0:12:01.240 Yeah, I was going to say, the ultimand platform here 0:12:01.280 --> 0:12:04.320 that we're talking about is very flexible and it's very 0:12:04.360 --> 0:12:07.480 different than the SUV offered from Hummer, and so you'll 0:12:07.480 --> 0:12:11.400 see it in the proportions here where we really are 0:12:11.440 --> 0:12:14.520 going after efficiency. With four hundred and fifty miles of range, 0:12:14.559 --> 0:12:18.079 that's a big deal for families and people who who travel, 0:12:18.800 --> 0:12:21.040 So it's a big range vehicle, but it's also seve 0:12:21.120 --> 0:12:24.280 hundred and fifty horsepower. The Hummers are in the thousand 0:12:24.360 --> 0:12:27.400 horsepower stand in that part of the part of the 0:12:27.440 --> 0:12:29.760 market there, so it's a little bit different customer. It's 0:12:29.880 --> 0:12:32.640 very different from a duty cycle standpoint, but it's still 0:12:32.640 --> 0:12:34.640 built on the twenty four mod pack that we use 0:12:34.679 --> 0:12:36.559 in our battery electric truck platforms. 0:12:36.679 --> 0:12:40.920 There has been some criticism about these big battery packs. 0:12:41.360 --> 0:12:44.840 Bloomberg New Energy Finance, for example, wrote that you're using 0:12:44.880 --> 0:12:47.880 a lot of lithium that maybe should be left for 0:12:48.080 --> 0:12:50.319 the smaller electric vehicles. How do you respond to. 0:12:50.280 --> 0:12:52.839 That, Well, Jeneral Motors is going to make both number one, 0:12:52.960 --> 0:12:54.880 So we're going to make everything from the bolt with 0:12:54.960 --> 0:12:58.199 an LTM based pack here as we bring it back online, 0:12:58.679 --> 0:13:01.200 to the equinox to the So those are right in 0:13:01.240 --> 0:13:04.560 the biggest segments in the world at price points that 0:13:04.600 --> 0:13:07.640 are you know, the most affordable, right in the wheelhouse 0:13:07.640 --> 0:13:09.840 of those big voying segments. So we're going to do 0:13:09.880 --> 0:13:13.480 that too. But you know, technology changes, and so anybody 0:13:13.480 --> 0:13:15.440 that thinks that we're going to have the same technology 0:13:15.480 --> 0:13:19.560 even a year from now chemistry rise with our battery 0:13:19.600 --> 0:13:23.439 systems across the whole industry isn't thinking about it quite right. 0:13:24.280 --> 0:13:26.880 I think it's been mentioned before that the telem of 0:13:26.960 --> 0:13:29.960 communications industry, there is all these people that were fearful 0:13:30.280 --> 0:13:33.920 of copper, right, that all changed, right, and so you 0:13:33.960 --> 0:13:35.760 get into silicon, and you get into chips, you get 0:13:35.760 --> 0:13:38.680 into all those things that are new technologies on a 0:13:38.760 --> 0:13:42.520 breaking transformation of the industry. I can tell you the 0:13:42.600 --> 0:13:45.280 history books will see this as just the first step. 0:13:45.400 --> 0:13:48.000 All right, we're talking again with Mark Roy's, president of 0:13:48.040 --> 0:13:51.439 General Motors, at the introduction of their brand new Cadillacs 0:13:51.480 --> 0:13:56.600 brand new ev Escalate IQ. And you know I have 0:13:56.720 --> 0:14:01.720 driven the Escalade, the v with also about seven hundred horsepower. Right, 0:14:01.760 --> 0:14:03.520 it's got a big V eight eats up a lot 0:14:03.520 --> 0:14:05.880 of gas. That's the problem you're trying to solve with this, 0:14:06.040 --> 0:14:07.679 but there are still going to be people out there 0:14:07.679 --> 0:14:09.560 who want the V eight. How long are you going 0:14:09.640 --> 0:14:13.840 to sell the internal combustion engine Escalade next to the 0:14:13.960 --> 0:14:14.520 Escalade IQ. 0:14:15.000 --> 0:14:17.680 Well, you are very different vehicles again in terms of 0:14:17.720 --> 0:14:19.840 the package. You know, we've got a huge amount of 0:14:19.840 --> 0:14:22.360 storage in this vehicle because of what we have up 0:14:22.360 --> 0:14:24.840 front where the engine used to be, and then also 0:14:25.240 --> 0:14:27.600 a longer wheelbase and the second row package is quite 0:14:27.600 --> 0:14:30.920 different too. So you have those things together, they're different vehicles, 0:14:30.920 --> 0:14:32.920 even though sort of the output on a power basis 0:14:32.960 --> 0:14:35.840 are similar. We're going to do both when as long 0:14:35.880 --> 0:14:38.000 as people want both. And so you know, if you 0:14:38.000 --> 0:14:40.600 look at this over the long term horizon, the market 0:14:40.600 --> 0:14:43.560 and the customer, we haven't sold a vehicle like this ever, 0:14:43.720 --> 0:14:46.320 the market has never seen a vehicle like this. This 0:14:46.400 --> 0:14:48.960 is the first standard of the world, and so we're 0:14:48.960 --> 0:14:49.880 going to see what people do. 0:14:50.280 --> 0:14:53.040 You are going to bring out the Silverado with I 0:14:53.080 --> 0:14:56.240 believe a similar battery pack and range at least as 0:14:56.280 --> 0:15:00.320 an option. Are you seeing price pressure, because as we're 0:15:00.360 --> 0:15:05.040 now seeing forward capitulate and cut prices, Tesla obviously driving that, 0:15:05.400 --> 0:15:07.320 how do you expect the pricing to work out well? 0:15:07.360 --> 0:15:09.680 The pricing though, we're starting with the Silverado with our 0:15:09.680 --> 0:15:13.640 work truck, so you know, our pricing and our ladders 0:15:13.680 --> 0:15:17.960 and our battery capacity and range capacity and duty cycle 0:15:18.040 --> 0:15:21.480 capacity on Silverado and Sierra are going to be for 0:15:21.520 --> 0:15:24.400 everybody's pocket put and price points, so you know, we 0:15:24.480 --> 0:15:26.360 know where people want it from a work truck and 0:15:26.400 --> 0:15:28.960 our fleet standpoint, and then it'll it'll go all the 0:15:28.960 --> 0:15:31.480 way up through the RST, which will you know, again 0:15:31.600 --> 0:15:34.680 be a high range, high module. But you don't have 0:15:34.720 --> 0:15:36.680 to just do that. So we're going to offer those 0:15:36.720 --> 0:15:40.040 things as options. Cutting price though, means that we didn't 0:15:40.080 --> 0:15:42.520 see it right, and I don't think that's true. I 0:15:42.520 --> 0:15:44.480 think we're right in that wheelhouse of what people can 0:15:44.520 --> 0:15:46.920 afford and want, and so you know, I feel good 0:15:46.920 --> 0:15:47.600 about our pricing. 0:15:47.880 --> 0:15:49.960 Are these vehicles going to be profitable when you start 0:15:50.000 --> 0:15:50.560 selling them? 0:15:50.920 --> 0:15:51.240 Yes? 0:15:51.840 --> 0:15:54.080 And are you going to be able to make a 0:15:54.120 --> 0:15:55.560 million of them in twenty twenty five? 0:15:55.680 --> 0:15:55.880 Not? 0:15:55.880 --> 0:15:59.440 Not the escalated IQ electric vehicles. 0:15:59.160 --> 0:16:01.880 Electric vehicle, Yeah, I think so. I think we're well 0:16:01.880 --> 0:16:04.680 on our track. You know, we're well. We did fifty 0:16:04.720 --> 0:16:07.120 thousand here the first half a year. That was our 0:16:07.240 --> 0:16:10.080 our target, and we did that. You got to bring 0:16:10.160 --> 0:16:13.440 cell plants along online as we do the assembly plans 0:16:13.440 --> 0:16:17.000 to make these. Our first plant in Lawstwn, Ohio is 0:16:17.040 --> 0:16:19.920 now full capacity and running really well on the second 0:16:19.920 --> 0:16:22.600 one will be in spring Hill, Tennessee, right next to 0:16:22.640 --> 0:16:26.360 our lyric facility there, so that's coming online next. And 0:16:26.440 --> 0:16:29.480 the third one will be in Lansing, Michigan, and we're 0:16:29.560 --> 0:16:31.760 just you know, doing the construction on that right now. 0:16:31.840 --> 0:16:35.000 So once we get past the first plant in Lordstown, Ohio, 0:16:35.200 --> 0:16:37.920 we learned how to make them, we do it at volume. 0:16:38.320 --> 0:16:41.480 We duplicate that in spring Hill, and we duplicate that 0:16:41.520 --> 0:16:44.320 in Lansing. So the first ones out here we knew 0:16:44.360 --> 0:16:47.560 we're going to be, you know, something we've never done before. 0:16:47.600 --> 0:16:49.840 And we tackled that and we're doing it with high quality, 0:16:49.840 --> 0:16:52.080 and we're doing it rates. So those are you know, 0:16:52.080 --> 0:16:53.400 that's how you get into volume production. 0:16:53.680 --> 0:16:56.120 I got to ask about the negotiations with the UA, 0:16:56.360 --> 0:17:00.840 w are you prepared to make an expense of investment 0:17:00.920 --> 0:17:03.480 and raising those costs because their demands are I think 0:17:03.920 --> 0:17:05.160 they said pretty audacious. 0:17:05.840 --> 0:17:08.480 I can't come on what people say or don't say 0:17:08.520 --> 0:17:13.199 about that. We are negotiating with our represented workforce in 0:17:13.240 --> 0:17:15.920 earnest as we always do, and we're there to make 0:17:16.080 --> 0:17:18.880 a good agreement, a fair agreement, an agreement that works 0:17:18.880 --> 0:17:20.400 for everybody. And that's all I have to say. 0:17:20.680 --> 0:17:21.800 Mark, thanks very much, true time. 0:17:21.840 --> 0:17:22.399 Really appreciate it. 0:17:22.400 --> 0:17:23.560 Mark West, always a pleasure. 0:17:23.600 --> 0:17:26.520 Thank President of General Motors talking to us about Cadillacs 0:17:26.560 --> 0:17:28.440 new Escalade iq. 0:17:28.520 --> 0:17:41.400 ED Bloomberg's Matt Miller, thank you very much. Okay, time 0:17:41.440 --> 0:17:44.040 for work shifting, where we look at the changing landscape 0:17:44.160 --> 0:17:47.160 of the labor market amid advances in technology. First Up 0:17:47.160 --> 0:17:50.840 We Work is saying there's substantial doubt that the Coworking 0:17:50.880 --> 0:17:53.199 startup will be able to stay in business. The New 0:17:53.240 --> 0:17:56.160 York based company is bleeding cash and customers of its 0:17:56.200 --> 0:18:00.679 office rentals are canceling their memberships in droves. CLA overnight 0:18:00.760 --> 0:18:03.119 soft Bank drops as much as four point six percent, 0:18:03.160 --> 0:18:06.640 the most since May, after it reported an unexpected net 0:18:06.680 --> 0:18:09.840 loss for the latest quarter and reframed from announcing any 0:18:09.880 --> 0:18:11.919 plans to buy back shares. The company also said, by 0:18:11.960 --> 0:18:16.200 the way, it's cautiously resuming investments to capitalize on opportunities 0:18:16.200 --> 0:18:19.959 in AI and other emerging technologies, and the US Commerce 0:18:20.000 --> 0:18:23.240 Department has received more than four hundred and sixty statements 0:18:23.240 --> 0:18:27.280 for projects seeking federal funds from last year's Chips and 0:18:27.359 --> 0:18:30.760 Science Acts. Proposals to the Department's office will compete for 0:18:30.800 --> 0:18:33.600 some of the thirty nine billion dollars in direct funding 0:18:33.760 --> 0:18:36.160 and seventy five billion dollars in loans under the law, 0:18:36.320 --> 0:18:39.640 which is aimed at reducing US reliance on Asia's semiconductor 0:18:39.680 --> 0:18:44.360 supply chains and of course, boosting domestic manufacturing of chip technology. 0:18:44.359 --> 0:18:46.760 All right, Sticking with commerce, Amazon in talks to join 0:18:46.840 --> 0:18:51.000 other tech companies as an anchor investor in ARMS initial 0:18:51.000 --> 0:18:53.600 public offering that could raise as much as ten billion. 0:18:53.640 --> 0:18:55.840 That's according to a Bloomberg source. ARM is the chip 0:18:55.880 --> 0:18:58.560 designer that counts the world's biggest tech firms as some 0:18:58.600 --> 0:19:01.359 of its clients has also held to cushions, as we've reported, 0:19:01.600 --> 0:19:04.919 with Intel and Nvidia joining us. For more, Bloomberg Technology 0:19:05.000 --> 0:19:08.119 Executive editor Tom Giles, this is an interesting one, I 0:19:08.119 --> 0:19:11.240 guess the obvious question is why would Amazon be an 0:19:11.280 --> 0:19:12.520 anchor investor in ARM. 0:19:12.600 --> 0:19:15.360 So youah, one word for you, two hundred and fifty 0:19:15.400 --> 0:19:19.679 billion chips. That's how many chips ARM has designed over 0:19:19.720 --> 0:19:24.119 the years. ARM is an incredible player, incredibly important player 0:19:24.400 --> 0:19:31.240 in the design of chips. In particular, it's a leader 0:19:31.440 --> 0:19:34.400 in designing chips that are used in the data centers 0:19:34.800 --> 0:19:38.560 that are running all the all this computing power that 0:19:38.680 --> 0:19:43.000 Amazon Web Services is behind, the data centers that run 0:19:43.080 --> 0:19:46.960 things like Azure for Microsoft, the data centers that work 0:19:47.040 --> 0:19:50.320 for Google for example. These are the kinds of chips 0:19:50.400 --> 0:19:58.560 that that that ARM is behind, and companies like Nvidia, 0:19:59.040 --> 0:20:01.960 Intel and amaz On want a piece of that. That's 0:20:02.000 --> 0:20:04.720 why there's so much interest in the ARM IPO right now. 0:20:04.800 --> 0:20:08.720 Amazon uses, for example ARMS designs and the Graviton server chip. 0:20:08.760 --> 0:20:13.159 These talks about. One of the best stories in covering 0:20:13.200 --> 0:20:16.320 technology is always the big IPO. This feels like the 0:20:16.359 --> 0:20:19.639 Big IPO of twenty twenty three. We're waiting on a huge, 0:20:19.880 --> 0:20:22.880 huge and the anchor investors are notable in video intel, 0:20:23.000 --> 0:20:25.200 they're obviously chip makers as well. What's the vibe in 0:20:25.240 --> 0:20:26.879 the newsroom about this one? What are we trying to 0:20:26.960 --> 0:20:27.520 learn about? 0:20:27.520 --> 0:20:30.800 Well, we're in this incredible lull for IPOs right now, 0:20:30.920 --> 0:20:34.960 and if ARM gets to market around the September timeframe, 0:20:35.040 --> 0:20:38.280 as we've been hearing and reporting, it's going to be 0:20:38.320 --> 0:20:42.080 a huge turning point right for the IPO market, which 0:20:42.080 --> 0:20:45.280 has been moribun for a very long time. We haven't 0:20:45.320 --> 0:20:49.359 seen much. This would be not just an important idea, 0:20:49.440 --> 0:20:52.480 but a very big IPO, the likes of which we 0:20:52.600 --> 0:20:58.760 haven't seen since Facebook many many years ago. And also 0:21:00.040 --> 0:21:02.760 Ali Baba from China. So it's been a long time 0:21:02.800 --> 0:21:06.560 since we've seen IPOs of this size and it would 0:21:06.560 --> 0:21:09.200 be a big sharp in the arm through this market. 0:21:09.840 --> 0:21:11.800 You know, we've been talking about Rivian on the show today. 0:21:11.800 --> 0:21:14.119 That was the last big ipo I covered in twenty 0:21:14.160 --> 0:21:16.280