WEBVTT - Meta Launches Threads and Musk's Truce with China's Automakers 0:00:01.440 --> 0:00:06.720 From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:24.800 --> 0:00:27.240 I'm Caroline Hyde, Bloomberg's WORLDEAD quarters in New York. 0:00:27.880 --> 0:00:31.160 Ed Ludlow here in San Francisco. This is Bloomberg Technology. 0:00:31.280 --> 0:00:34.840 Coming up Meta, It's taken on Twitter. Threads officially hits 0:00:34.840 --> 0:00:36.559 the app store and one of thirty million people as 0:00:36.600 --> 0:00:37.400 signed up already. 0:00:37.600 --> 0:00:40.320 We'll bring you the details of the launch classes. 0:00:40.320 --> 0:00:43.880 Elon musk rapples with competitors to Twitter. He's agreeing to 0:00:43.920 --> 0:00:46.160 a truce with China's top auto makers. 0:00:46.200 --> 0:00:47.519 Will have more on the pledge. 0:00:47.560 --> 0:00:51.000 Tesla and others have agreed to maintain fair competition in 0:00:51.040 --> 0:00:52.680 the world's biggest ev market. 0:00:52.880 --> 0:00:54.920 And we'll have an exclusive conversation with the CEO of 0:00:55.040 --> 0:00:59.680 Japanese robotics firm. It's Ali driven tell Existence SoftBank maxa 0:00:59.720 --> 0:01:02.200 company and just raising one hundred and seventy million dollars 0:01:02.440 --> 0:01:04.880 for its Series B funning round. Well, that is so 0:01:05.000 --> 0:01:08.399 much coming up. Let's focus on these markets because the 0:01:08.440 --> 0:01:11.600 exuberance on Threads is not being reflected by the lack 0:01:11.640 --> 0:01:13.679 of exuberance in the markets today. We're currently off by 0:01:13.720 --> 0:01:16.000 one point threew percent on the Nasdaq, a pullback. We're 0:01:16.000 --> 0:01:18.200 worried about basically good news being bad news ed. We're 0:01:18.200 --> 0:01:21.280 looking at jobs growth, really strong numbers from the private 0:01:21.319 --> 0:01:23.640 sector when you're looking at ADP, the jobless claim. Still 0:01:23.680 --> 0:01:26.200 looking at the strength here of a labor mark in 0:01:26.240 --> 0:01:28.319 the US, A federal reserve still going to want him 0:01:28.319 --> 0:01:30.880 to be tackling that MSCI Country World Index on the 0:01:30.880 --> 0:01:32.920 downside as well, and in fact, we seeing Europe's sell 0:01:32.959 --> 0:01:35.800 off hard so too has China, so really a global 0:01:35.880 --> 0:01:37.920 risk off field to trade today, and it means that 0:01:37.959 --> 0:01:41.119 money is actually though interestingly, coming out of the bomb market, 0:01:41.200 --> 0:01:43.280 sending yields up some ten basis points on the two 0:01:43.400 --> 0:01:45.520 year we sawt of course that eclipse more than five 0:01:45.560 --> 0:01:48.240 percentage points and an overall yield for two year dead 0:01:48.240 --> 0:01:49.560 at the moment, as we think that the Fed is 0:01:49.560 --> 0:01:53.120 going to have to tackle this really strong market and 0:01:53.520 --> 0:01:55.760 over all economy here in the United States. Let's move 0:01:55.800 --> 0:01:57.920 on what's happening in terms of the world a bitcoin, 0:01:57.960 --> 0:02:00.000 because that risk asset have been higher. In fact, we've 0:02:00.040 --> 0:02:02.960 top the thirty one thousand level high at least eight months, 0:02:02.960 --> 0:02:04.760 but now we come back down to earth a little bit. 0:02:04.800 --> 0:02:06.760 We're off by two tens of percent. We're still above 0:02:06.800 --> 0:02:08.639 that thirty thousand level overall ed. 0:02:09.800 --> 0:02:10.359 Yeah, when we. 0:02:10.280 --> 0:02:12.960 Look at the public markets, there's not, excuse me, a 0:02:12.960 --> 0:02:14.560 lot of green to talk about. 0:02:14.639 --> 0:02:15.639 That's how excited I am. 0:02:15.639 --> 0:02:18.400 But Tesla is a downside mover two point two percent. 0:02:18.440 --> 0:02:21.040 We will go to our reporter later in the program 0:02:21.040 --> 0:02:24.600 here on Bloomberg Technology, it's all about agreeing with domestic 0:02:24.680 --> 0:02:28.919 Chinese ev makers to normalize pricing. A very interesting move, 0:02:28.919 --> 0:02:31.679 but that stock down in line with the broader market. 0:02:31.880 --> 0:02:35.000 One big name we're watching is Meta Meta formerly known 0:02:35.000 --> 0:02:37.800 as Facebook, and all about threads. It's been really interesting, 0:02:37.880 --> 0:02:40.680 right the open Meta was up more than one point 0:02:40.720 --> 0:02:43.720 three percent. It's kind of chop traded. We're now down 0:02:43.720 --> 0:02:47.000 two tens to one percent. Analysts kind of somewhat bullish 0:02:47.280 --> 0:02:50.639 on this move with Threads the headline. As you said, Caroline, 0:02:50.840 --> 0:02:54.400 thirty million users signed up. Let's get more details on 0:02:54.480 --> 0:02:58.680 Threads day one with the Bloomberg Technology editor who literally 0:02:58.720 --> 0:03:02.680 wrote the book on Instagram, Sarah Fryar. Sarah, what do 0:03:02.680 --> 0:03:06.000 we know about Threads day one? 0:03:06.520 --> 0:03:09.800 Well, it's just been an incredible amount of enthusiasm. I 0:03:09.800 --> 0:03:13.680 think this is the first time Meta has done a 0:03:13.760 --> 0:03:17.600 covey cut product that people are actually hankering for. Everyone 0:03:17.760 --> 0:03:20.280 was looking for an alternative to Twitter. Given all the 0:03:20.320 --> 0:03:24.000 turbulence from Elon Musk, including over the weekend with rate 0:03:24.080 --> 0:03:27.040 limiting people who are posting on Twitter trying to limit 0:03:27.080 --> 0:03:29.480 the number of tweets they could see. There was a 0:03:29.560 --> 0:03:34.560 lot of searching for an alternative, and Threads is seeming 0:03:34.600 --> 0:03:38.520 to build that critical mass that people need if they 0:03:38.560 --> 0:03:41.040 want to post something that could have impact. And we're 0:03:41.080 --> 0:03:44.920 seeing very high engagement, you know, thirty million users, as 0:03:44.960 --> 0:03:48.440 you said, just blew up overnight. And this is this 0:03:48.480 --> 0:03:54.040 is a really exciting moment in the rivalry between Twitter 0:03:54.280 --> 0:03:57.520 and Meta. I just think, you know, we're a couple 0:03:57.640 --> 0:04:02.200 decades into that now and it's been really incredible to see. 0:04:03.600 --> 0:04:05.920 This is the moment of all the times that Meta 0:04:06.000 --> 0:04:09.480 could have copied Twitter. I don't know that it would 0:04:09.520 --> 0:04:10.520 have worked until now. 0:04:11.320 --> 0:04:15.400 Mistiming seems to be really painful, probably on Twitter's pot 0:04:15.480 --> 0:04:18.760 as you say, amid the swirling chaos of limitations to 0:04:18.800 --> 0:04:21.600 certain numbers of tweets that you can see, Sarah. To 0:04:21.600 --> 0:04:24.520 that point, Twitter's response Linda and Gakarina. We're going to 0:04:24.520 --> 0:04:26.560 dig into that later in the show has been responding 0:04:26.560 --> 0:04:28.719 to all of this, But ultimately, what does thirty million 0:04:28.800 --> 0:04:31.800 look like in comparison to historical levels of growth. 0:04:33.040 --> 0:04:36.360 Well, it's a big start for a new social media app, 0:04:36.400 --> 0:04:39.240 and I think the reason that it is getting so 0:04:39.279 --> 0:04:42.800 much enthusiasm is because it has that existing connection to 0:04:42.839 --> 0:04:45.159 the Instagram network. Now, that's also been a point of 0:04:45.200 --> 0:04:48.919 frustration for Threads users. People who don't use Instagram, or 0:04:48.920 --> 0:04:52.000 who don't like their Instagram handle, or have an invested 0:04:52.040 --> 0:04:54.080 in that platform, or have a different community there than 0:04:54.120 --> 0:04:56.880 they have on Twitter. They're not exactly excited to copy 0:04:56.920 --> 0:04:58.840 that over to a new app where they want to 0:04:58.839 --> 0:05:01.640 build a new identity. However, it has made it a 0:05:01.680 --> 0:05:05.880 lot easier for those key users, the celebrities, the public figures, 0:05:06.200 --> 0:05:11.960 the brands, those that use Instagram already for professional reasons 0:05:12.360 --> 0:05:15.039 wanting to pour it over all of that influence to 0:05:15.160 --> 0:05:18.080 an app without having to start from scratch. And that's 0:05:18.240 --> 0:05:22.120 really a big motivator. So if everyone else wants to 0:05:22.120 --> 0:05:25.440 follow those people in Threads becomes the place to do it. 0:05:25.640 --> 0:05:28.560 I think we're going to see those issues work out 0:05:28.560 --> 0:05:30.800 of her time, but of course Instagram is going to 0:05:30.839 --> 0:05:32.280 try to deal. 0:05:32.080 --> 0:05:33.560 With some of the pain points as they can. 0:05:34.040 --> 0:05:37.280 J Lo Paris Hilton many a funny post coming from 0:05:37.279 --> 0:05:40.200 them already. I'm sure joyous for those that have been 0:05:40.240 --> 0:05:43.080 overseeing the launch. Blomberg, Sarah Fry, thanks for that update. Meanwhile, 0:05:43.160 --> 0:05:45.120 let's just dive into the conversation also, perhaps some of 0:05:45.120 --> 0:05:48.320 the financial drivers that obviously follow success. Just when Enburg 0:05:48.320 --> 0:05:50.360 and Police to say is right here in New York. 0:05:50.400 --> 0:05:52.720 She of course leads coverage of influencer marketing and social 0:05:52.760 --> 0:05:57.880 commerce and inside Intelligence you focus on TikTok, Instagram, YouTube, Snapchat, Twitter, Facebook, 0:05:57.920 --> 0:06:01.760 Let's focus on threads first, because well, it looks like 0:06:01.800 --> 0:06:05.159 it's going well, what do you think is the monetization 0:06:05.400 --> 0:06:07.960 angle ultimately here for the investors that are listening to us, 0:06:07.960 --> 0:06:12.120 because I've seen already Zuck post about monetization not coming immediately. 0:06:12.600 --> 0:06:14.840 Absolutely well, just to put this into perspective, I mean, 0:06:14.920 --> 0:06:19.120 thirty million users is an incredibly strong start. At Insider Intelligence, 0:06:19.160 --> 0:06:22.680 We're expecting Twitter to have about fifty six million users 0:06:22.720 --> 0:06:24.680 in the US by the end of twenty twenty three, 0:06:24.920 --> 0:06:27.520 so that just gives you some context for how many 0:06:27.520 --> 0:06:31.560 people Threads was able to have signed up just overnight. 0:06:31.960 --> 0:06:36.200 In terms of the monetation, monetization ads are metas bread 0:06:36.240 --> 0:06:41.200 and butter, and I would assume that any monetization strategy 0:06:41.279 --> 0:06:45.360 for Threads would include advertising. That said, I'm expecting that 0:06:45.480 --> 0:06:48.640 Meta will wait until Threads really reach his scale before 0:06:48.680 --> 0:06:51.440 they bring on any sort of monetization opportunities. 0:06:51.760 --> 0:06:53.839 Zak and self saying, look, we want to get to 0:06:53.839 --> 0:06:56.000 a billion here. How quickly do you think they can 0:06:56.040 --> 0:06:56.880 scale to a billion? 0:06:56.920 --> 0:06:57.960 And is it really. 0:06:59.360 --> 0:07:02.000 The area, the focus, the number you want to see? 0:07:02.200 --> 0:07:04.360 Well, I mean Meta obviously has a scale, it has 0:07:04.360 --> 0:07:08.359 the resources, and it has the execution strategy to scale Threads. 0:07:08.680 --> 0:07:10.520 I do think, you know, the challenge will be in 0:07:10.640 --> 0:07:13.000 keeping up the momentum that we saw yesterday and that 0:07:13.080 --> 0:07:16.040 continued into this morning. You know, it is a new app, 0:07:16.080 --> 0:07:18.360 and there are very few new new apps that are 0:07:18.400 --> 0:07:21.800 able to keep up that growth rate that Threads has 0:07:21.840 --> 0:07:24.760 seen already. And I also think that you know, Meta 0:07:24.800 --> 0:07:27.880 will have to continue innovating, will have to keep Threads interesting. 0:07:28.240 --> 0:07:31.360 Right now, it's simplicity and it's bare bones. Ux are 0:07:31.400 --> 0:07:35.080 some things that really are attractive to users, especially those 0:07:35.080 --> 0:07:37.080 that are tired of the chaos and the ad hoc 0:07:37.200 --> 0:07:40.200 changes at Twitter. But eventually it is going to have 0:07:40.320 --> 0:07:43.760 to innovate to keep people engaged and on the app. 0:07:44.120 --> 0:07:47.480 And as many would say, innovation is elon strong point. 0:07:47.560 --> 0:07:51.720 And Lyndia Karino ed brings well the monetization strategy for 0:07:51.760 --> 0:07:54.840 Twitter as well. But you've been tracking ultimately how the 0:07:54.880 --> 0:07:56.720 growth of Threads compares. 0:07:56.400 --> 0:08:00.280 Right, Yeah, and I'm interested, Jasmine in the mechanics of 0:08:00.320 --> 0:08:02.000 how they got Threads off the ground. You have to 0:08:02.000 --> 0:08:04.360 have an Instagram account, and what I did was I 0:08:04.400 --> 0:08:08.400 went through Twitter's S one back in twenty thirteen, and 0:08:08.640 --> 0:08:11.320 they hit thirty million users at the start of twenty ten, 0:08:11.840 --> 0:08:13.440 sort of four years into the. 0:08:13.360 --> 0:08:15.000 Life of the platform. 0:08:15.640 --> 0:08:18.320 This link with Instagram seems to have given them a 0:08:18.360 --> 0:08:18.960 fast start. 0:08:19.040 --> 0:08:20.120 What's your assessment of that. 0:08:20.520 --> 0:08:24.000 I think it was incredibly smart. It was really easy 0:08:24.040 --> 0:08:27.200 to sign up for Threads. You could port your Instagram account, 0:08:27.200 --> 0:08:30.520 you could port your Instagram followers directly onto Threads. I 0:08:30.560 --> 0:08:33.440 think there are some people who don't necessarily want to 0:08:33.520 --> 0:08:38.679 transport their Instagram followers their audiences over to this new 0:08:38.720 --> 0:08:42.640 app and want to keep these two separate, but overall 0:08:43.080 --> 0:08:45.800 in order to sort of supercharge the growth. I think 0:08:45.800 --> 0:08:50.000 this was a spot on move from Meta, Jasmin. 0:08:50.240 --> 0:08:53.400 What's your experience been using the platform? 0:08:53.440 --> 0:08:54.559 What do you like about it? 0:08:55.040 --> 0:08:57.800 I mean, it's been really easy to use. The user 0:08:57.880 --> 0:09:01.280 interface has been fantastic. It's been fun so far. I 0:09:01.320 --> 0:09:03.880 don't know how long that will last, but for now, 0:09:03.960 --> 0:09:06.920 it feels like in early Twitter one point zero with 0:09:07.000 --> 0:09:11.800 an Instagram twist, some more photos and visuals on the platform. 0:09:12.000 --> 0:09:14.560 I haven't left Twitter yet though, I'm still on both, 0:09:14.600 --> 0:09:17.360 which just means that there are more apps now than 0:09:17.400 --> 0:09:18.920 ever to post. 0:09:18.679 --> 0:09:22.400 On and we are kind of exhausted by it, Jasmine. 0:09:22.400 --> 0:09:25.880 To a certain extent. One group of people who aren't 0:09:25.880 --> 0:09:28.320 going to be exhausted by Threads is Europe, because it's 0:09:28.360 --> 0:09:32.000 not there yet. We understand the regulatory overhang. What do 0:09:32.040 --> 0:09:35.400 you make of that, well, delay, is it opportune for 0:09:35.480 --> 0:09:37.640 Meta to push backing as regulators in Europe? 0:09:37.880 --> 0:09:39.959 Well, it's certainly going to be a challenge for Meta. 0:09:40.000 --> 0:09:42.400 I mean, Meta needs to convert one in four Instagram 0:09:42.480 --> 0:09:45.120 users in order to make Threads as big as Twitter 0:09:45.240 --> 0:09:47.640 is worldwide at the end of this year. Europe is 0:09:47.640 --> 0:09:49.640 a really big market for them, and it's going to 0:09:49.640 --> 0:09:51.760 be a challenge. It's going to be an issue if 0:09:51.760 --> 0:09:54.120 it's not able to launch there Now, some of the 0:09:54.160 --> 0:09:57.439 reasons that you know it has delayed the launch of Threads, 0:09:57.600 --> 0:10:00.120 potentially being the DMA, are issues. 0:09:59.800 --> 0:10:02.360 That will affect all of the social apps. 0:10:02.400 --> 0:10:04.240 It's not just Threads, and it's not just Meta, but 0:10:04.280 --> 0:10:06.760 it does point to this larger picture of how difficult 0:10:06.760 --> 0:10:10.040 it is really to bring new apps and products to market. 0:10:11.200 --> 0:10:12.640 Let's go back to the technology. 0:10:12.679 --> 0:10:17.679 There is an algorithmic and machine learning powered part of 0:10:17.760 --> 0:10:20.959 each feed. What is your assessment of which is better 0:10:21.040 --> 0:10:23.520 Twitter or Threads at this point? 0:10:23.679 --> 0:10:26.920 Well, I think it certainly depends. You know, Threads is 0:10:27.040 --> 0:10:28.839 very new and I haven't had a lot of time 0:10:28.880 --> 0:10:31.920 to tinker around with it. I think what's really interesting, 0:10:32.080 --> 0:10:34.360 and what I've been thinking a lot about is how 0:10:34.400 --> 0:10:37.640 people are going to be using threads. Are they actually 0:10:37.679 --> 0:10:39.920 going to be using it for the same use cases 0:10:39.960 --> 0:10:42.400 as we were using Twitter or continue to use Twitter, 0:10:42.559 --> 0:10:45.320 meaning keeping up with news and world events. Now, News 0:10:45.360 --> 0:10:47.440 has been somewhat of a source spot for meta on 0:10:47.520 --> 0:10:51.440 its other platforms, Facebook in particular, and I'm not sure 0:10:51.520 --> 0:10:55.800 that you know the Instagram usage translates naturally into news 0:10:55.840 --> 0:10:58.320 and world events the same way that it does on Twitter. 0:10:58.559 --> 0:11:02.760 I don't necessarily think that Meta needs to be as 0:11:02.800 --> 0:11:07.040 strong a player in those arenas though, to make Threads 0:11:07.280 --> 0:11:09.040 a real threat to Twitter as it is. 0:11:10.760 --> 0:11:15.680 Insider intelligence principle analyst Jasmine Enburg. Day one of Threads done. 0:11:16.080 --> 0:11:26.920 Let's see what happens next. Let's get out to Japan. 0:11:27.240 --> 0:11:30.840 Tokyo based robotics startup tell Existence has just raised one 0:11:30.920 --> 0:11:34.480 hundred and seventy million dollars for its Series B funding round, 0:11:34.760 --> 0:11:38.040 backed by SoftBank and other big names. Joining us now 0:11:38.080 --> 0:11:41.559 for more is the co founder and CEO of Teleexistence, 0:11:41.640 --> 0:11:46.360 Jim Tomioka. In an exclusive interview, Good evening. I suppose 0:11:46.440 --> 0:11:49.839 to you, mister Tomyoka, thank you for joining us big 0:11:49.880 --> 0:11:52.360 Series B. What do you need this money for in 0:11:52.400 --> 0:11:53.200 your robotics? 0:11:55.520 --> 0:11:57.360 Brush of all, thank you for having me today. 0:11:58.880 --> 0:12:02.160 So, yeah, we raise one hundred seventy million from a 0:12:02.160 --> 0:12:04.640 source group and the fox on the other. 0:12:04.480 --> 0:12:06.920 Investors, and they mainly we're going to use. 0:12:06.800 --> 0:12:11.839 This kepto to extend to the US, the United. 0:12:11.559 --> 0:12:17.800 States folks on an investor. But I'm really interested in 0:12:17.800 --> 0:12:20.880 that relationship. Are they going to help you scale and 0:12:20.960 --> 0:12:24.240 manufacture your robotics correct. 0:12:24.400 --> 0:12:27.120 So right now in Japan, we are in the process 0:12:27.120 --> 0:12:30.319 of defoying the three hundred robots to the convenience clods 0:12:31.280 --> 0:12:34.600 and we see the strong demand in Japan because you. 0:12:34.520 --> 0:12:38.400 Know, we are facing the aging issue, labor shortage, so 0:12:38.840 --> 0:12:43.240 we we aim to increase our manufacturing capacity to result 0:12:44.040 --> 0:12:47.040 next to you, and in order for us to do that, 0:12:47.200 --> 0:12:49.000 we think you. 0:12:48.960 --> 0:12:51.680 Know best to work with the Fox from the manufacturer 0:12:51.679 --> 0:12:53.680 Globbo outside Japan Jin. 0:12:53.920 --> 0:12:58.320 What's interesting is demographics an issue in Japan. Here in 0:12:58.360 --> 0:13:01.640 the US, the labor data show there's a real tightness 0:13:01.640 --> 0:13:03.800 here too. Are you looking at coming to the United 0:13:03.840 --> 0:13:05.960 States to alleviate the labor issues here too? 0:13:07.280 --> 0:13:12.079 Yes, so we don't we're not We're not intend to 0:13:12.120 --> 0:13:15.559 take a job from people. But as you said, even 0:13:15.640 --> 0:13:18.680 with the different context, you know, we see there's a 0:13:18.720 --> 0:13:23.880 big gap between the labors necessary and labors. 0:13:23.960 --> 0:13:26.680 Who intends to go back to the market. 0:13:27.200 --> 0:13:29.400 So we want to feel that get to solve the 0:13:29.880 --> 0:13:34.080 labor shortages, especially in retail and logistic using our robots. 0:13:34.520 --> 0:13:37.800 Already your partnership with Family March. For example, in Japan, 0:13:38.320 --> 0:13:42.120 across thousands of convenience stores, there are hundreds of thousands 0:13:42.160 --> 0:13:44.280 of convenience stores in the US. I'm sure you can 0:13:44.320 --> 0:13:49.239 deploy it. How has the art offgital intelligence mania affected 0:13:49.559 --> 0:13:52.400 the appetite to invest in you? Because these robots are 0:13:52.600 --> 0:13:54.520 powered by AI? 0:13:58.120 --> 0:14:02.720 Yes, so you see a fever is a learning control 0:14:02.760 --> 0:14:10.320 the Globo. So the current recent a trim obviously you know. 0:14:11.800 --> 0:14:15.719 Supported us to raise the firm and do think know 0:14:15.880 --> 0:14:18.560 that AI is pushing. 0:14:18.280 --> 0:14:23.480 The boundaries of the Lobo food work only the human. 0:14:23.280 --> 0:14:26.520 Months or every the people's life, so we want to 0:14:26.560 --> 0:14:27.920 do that industry. 0:14:29.760 --> 0:14:32.120 Jin, where did this round value your company? 0:14:32.240 --> 0:14:33.160 What was the valuation? 0:14:36.280 --> 0:14:39.680 It's a bit hard to disclose, but I think while 0:14:39.760 --> 0:14:43.120 or two step before Unicorn. 0:14:44.000 --> 0:14:47.600 A unicorn status around. Well, congratulations to you on that. 0:14:48.160 --> 0:14:51.880 What is your point of differentiation? What is it technologically 0:14:52.000 --> 0:14:55.640 that you do differently from the other robotics makers. Caroline 0:14:55.760 --> 0:14:58.960 was talking about AI. Do you have a deep foundation 0:14:59.080 --> 0:14:59.880 in machine learning? 0:15:01.920 --> 0:15:04.320 Yes, so you know we use the AI machine learning 0:15:04.440 --> 0:15:07.120 to detect every different shape of. 0:15:07.200 --> 0:15:10.920 The products sold in the inconvenience so that we can 0:15:12.280 --> 0:15:16.440 find the optimal grasping point of every different product and 0:15:16.600 --> 0:15:18.560 the taking post on. 0:15:18.680 --> 0:15:22.160 Top of that, because the current AI is pretty linked. 0:15:22.720 --> 0:15:25.800 So our company's goal is to bring bring the robo 0:15:25.880 --> 0:15:28.400 outside practice and try to control. 0:15:28.040 --> 0:15:30.920 Them in people's everyday life. 0:15:30.960 --> 0:15:34.400 For me, in the we try to control able in 0:15:34.480 --> 0:15:38.000 more dynamic environment and the current AI cannot really adapt 0:15:38.040 --> 0:15:41.600 to the environment. So one feature we have really combine 0:15:41.640 --> 0:15:44.720 the air machine learning will be more control mean before 0:15:44.880 --> 0:15:47.800 using the internet to control the level and fix the 0:15:48.960 --> 0:15:52.000 issue if we face. So that that's the combination of 0:15:52.160 --> 0:15:54.440 air and remote controls one feature we have. 0:15:55.240 --> 0:15:57.400 Jen, it's great talking to you. Thank you for bringing 0:15:57.440 --> 0:16:00.080 us the story exclusively. Fascinating to see the robotics in 0:16:00.120 --> 0:16:05.600 the background as well, Tamioko of course tell existence CEO Meanwhile, Ed, well, 0:16:05.680 --> 0:16:07.800 you had some big interviews as well exclusively yesterday. 0:16:08.280 --> 0:16:10.080 Yeah, it's been a busy week so far. 0:16:10.240 --> 0:16:14.080 Coming up, Rivian ready to take on more commercial partners 0:16:14.400 --> 0:16:17.320 beyond Amazon. That's after, of course a recent bout of 0:16:17.440 --> 0:16:20.160 production success. We'll get to my exclusive interview. There we 0:16:20.240 --> 0:16:39.640 are with the CEO. Next, this is Bloomberg Technology electric 0:16:39.720 --> 0:16:42.920 vehicle maker. Rivian's had a bit of a rebound of late. 0:16:43.040 --> 0:16:46.400 The technology fix on its EV pickup and suv helped 0:16:46.440 --> 0:16:48.680 Rivian beat on production in the second quarter, and the 0:16:48.760 --> 0:16:53.880 companies started shipping delivery vans to Europe for its biggest investor, Amazon. 0:16:54.160 --> 0:16:57.520 I traveled to the company's HQ in southern California sit 0:16:57.600 --> 0:17:01.360 down for an exclusive conversation with the founder and CEO, RJ. 0:17:01.520 --> 0:17:01.960 Scarrange. 0:17:03.800 --> 0:17:05.560 We have a quad motor set up in our R 0:17:05.640 --> 0:17:08.080 one vehicles. It's two motors per axil, so four motors 0:17:08.119 --> 0:17:10.760 per vehicle, and we've just launched a dual motor setup 0:17:11.280 --> 0:17:13.560 which leverages a new motor family, which we call the 0:17:13.680 --> 0:17:17.560 Enduro motor family. And that Enduro is completely built in house, 0:17:17.600 --> 0:17:19.800 the rotor, the stator. Of course, just like on the 0:17:20.040 --> 0:17:22.760 launch configuration, we build the inverter in house, the yearboxing house. 0:17:23.359 --> 0:17:27.000 But when we sourced the power semis for the inverter 0:17:27.280 --> 0:17:29.560 in Enduro, we sourced in a really thoughtful way that 0:17:29.640 --> 0:17:32.159 gave us enough capacity and much more confidence around that 0:17:32.200 --> 0:17:35.080 supply chain than some of the challenges we've had on 0:17:35.200 --> 0:17:36.080 the launch configuration. 0:17:36.800 --> 0:17:38.280 And so that not only. 0:17:38.200 --> 0:17:43.080 Provides a high confidence production capacity on the Enduro, but 0:17:43.160 --> 0:17:46.840 it also provides risk mitigation on any shortcomings in terms 0:17:46.880 --> 0:17:48.280 of supply on the quad motor. 0:17:48.640 --> 0:17:48.800 Yeah. 0:17:48.840 --> 0:17:51.040 The big news of the last five days is that 0:17:51.160 --> 0:17:54.080 you have you're out of the United States. Yeah, a 0:17:54.160 --> 0:17:58.320 small number of Amazon EDVS electric delivery vans are being 0:17:58.400 --> 0:18:01.720 shipped to Europe Germany in the instance, Why was that 0:18:01.800 --> 0:18:03.000 a significant milestone? 0:18:03.800 --> 0:18:07.000 Well, you know, it's important to get those vehicles are 0:18:07.000 --> 0:18:09.960 Amazon has a lot of business in Europe. But it 0:18:10.040 --> 0:18:12.879 also represents not just turning on production of vehicles that 0:18:12.920 --> 0:18:16.000 get shipped overseas, but all the supporting infrastructure. So we 0:18:16.040 --> 0:18:19.960 have parts distribution capabilities, we have service capabilities, and the 0:18:20.200 --> 0:18:23.399 EDED program is really a wonderful way for us to 0:18:23.560 --> 0:18:27.080 open those markets with highly predictable and planned service intervals 0:18:27.080 --> 0:18:30.000 and deliver intervals. So it's the beginnings of us opening 0:18:30.080 --> 0:18:31.600 up the European market for our products. 0:18:32.280 --> 0:18:35.399 As you know, I always ask Twitter, what would you 0:18:35.600 --> 0:18:38.160 ask in this case RJ Scaringe. Lots of people want 0:18:38.200 --> 0:18:41.800 to know about the Amazon relationship. You don't break down 0:18:41.920 --> 0:18:45.080 production by product type are one to and S or eDV, 0:18:45.600 --> 0:18:47.480 but a lot of people want a sense of how 0:18:47.600 --> 0:18:51.160 many bans you're building proportionately to your consumer products. 0:18:51.359 --> 0:18:54.840 What is the main part of the business over if 0:18:54.880 --> 0:18:55.240 you think. 0:18:55.160 --> 0:18:58.520 About over the full year we've guided to roughly twenty 0:18:58.600 --> 0:19:03.760 percent of our production is the commercial vans. You know, 0:19:03.840 --> 0:19:05.720 as we think about the business going forward, the consumer 0:19:05.800 --> 0:19:09.280 side of the business will grow disproportionately relative to the 0:19:09.320 --> 0:19:13.240 commercial side, especially as we bring in our next generation products, 0:19:13.240 --> 0:19:16.000 with the R two and the R two platform representing 0:19:16.280 --> 0:19:18.760 a significant stuff up and volume and a much lower 0:19:18.800 --> 0:19:22.399 price point, much larger adjustble market with that with that product. 0:19:22.760 --> 0:19:25.480 What is the status of the relationship with Amazon? They 0:19:25.520 --> 0:19:29.040 have exclusivity, but you would like to sell vans others 0:19:29.119 --> 0:19:29.719 in the future. 0:19:30.200 --> 0:19:33.960 I mean, the relationship with Amazon is outstanding. The van 0:19:34.080 --> 0:19:37.000 is loved by the drivers. There's lots of content all 0:19:37.040 --> 0:19:39.720 over the web on just the creature comforts who built 0:19:39.760 --> 0:19:43.040 in the ease of use. The operators of the vehicles 0:19:43.080 --> 0:19:45.520 are feeling it, you know, with with the increased efficiency. 0:19:46.560 --> 0:19:49.960 So we've we've we've done i think a really nice 0:19:50.040 --> 0:19:51.800 job of capturing that feedback as we went through the 0:19:51.840 --> 0:19:54.520 development process to make sure the van delivered. We're now 0:19:54.600 --> 0:19:58.760 in the final hopeful stages of negotiating allowing us to 0:19:58.840 --> 0:20:01.760 sell the vehicle outside of the Amazon relationship to other 0:20:01.920 --> 0:20:04.399 so that the exclusivity provisions that originally built into the 0:20:04.440 --> 0:20:07.600 contract are accelerating. When we opened that up to Bill 0:20:07.600 --> 0:20:08.880 will sell to not on Amazon. 0:20:09.080 --> 0:20:12.600 My interview Caroline with the Rivian CORJ Scaringe and the company, 0:20:12.720 --> 0:20:15.400 the stock, the factory has a bit of a momentum 0:20:15.440 --> 0:20:16.000 behind it right now. 0:20:16.119 --> 0:20:17.680 Yeah, I'm sure if it's a smile on his face. 0:20:17.720 --> 0:20:19.679 Does the one question you were going to ask him 0:20:19.680 --> 0:20:22.320 when we talked about it yesterday is whether he's enjoying himself? 0:20:22.400 --> 0:20:24.880 And I mean is he amid some of the turbulence 0:20:24.920 --> 0:20:25.600 he's experienced. 0:20:26.160 --> 0:20:27.919 Yeah, and I did ask him. I mean, it's been 0:20:27.960 --> 0:20:30.080 a really long road for him. He founded the company 0:20:30.119 --> 0:20:32.680 in two thousand and nine. But what was astonishing is 0:20:32.800 --> 0:20:36.800 they kept in stealth mode till twenty nineteen without any leaks. 0:20:37.480 --> 0:20:41.119 Huge IPO twenty twenty one, the biggest since Facebook, and 0:20:41.240 --> 0:20:43.800 then everything kind of went downhill. And he said, with 0:20:43.920 --> 0:20:46.600 a right smile, Yeah, I'm having fun, but it's tough. 0:20:47.359 --> 0:20:49.680 Expectedly tough was the phrase. 0:20:49.400 --> 0:20:49.960 That he used. 0:20:50.119 --> 0:20:53.280 Yeah, And as you pointed out, of course founder CEOs, 0:20:53.760 --> 0:20:55.760 there are few and far between that managed to ride 0:20:55.800 --> 0:20:57.520 out the IPO successfully in that way. 0:20:58.240 --> 0:20:59.320 The future, the. 0:20:59.359 --> 0:21:02.920 Guidance the area in which now analysts can continue to 0:21:03.000 --> 0:21:04.600 think that there's opportunities in the stock. 0:21:04.640 --> 0:21:07.560 What did you think they didn't restate guidance I asked 0:21:07.640 --> 0:21:09.760 him why they didn't upgrade it, but he said, our 0:21:09.840 --> 0:21:12.760 aim is to outperform our own goals, and you look 0:21:12.800 --> 0:21:15.040