WEBVTT - Musk Draws Ire of Ukraine and Tesla Drops 0:00:02.279 --> 0:00:05.640 From the heart of where innovation, money and power collive 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.639 Emily Jay. I'm Emily Chang in San Francisco, and this 0:00:27.680 --> 0:00:30.200 is Bloomberg Technology. Coming up in the next hour. Elon 0:00:30.280 --> 0:00:33.519 Musk suggests a path to peace for Russia and Ukraine 0:00:33.960 --> 0:00:38.320 and gets roasted on Twitter, including by President Zelinski himself. 0:00:38.400 --> 0:00:40.440 Will walk you through the latest in the back and forth. 0:00:40.800 --> 0:00:44.040 Plus Tesla down more than eight percent at the close, 0:00:44.120 --> 0:00:46.880 the biggest one day drop in four months, this after 0:00:46.920 --> 0:00:51.879 announcing disappointing delivery numbers. How Musk's plan to localize production 0:00:52.080 --> 0:00:56.240 may help. And Kim Kardashian gets fined by the SEC 0:00:56.440 --> 0:01:00.000 after promoting a crypto token without disclosing she was paid 0:01:00.080 --> 0:01:03.160 for it. We'll have the last. There's also this developing 0:01:03.200 --> 0:01:07.280 story Elon Musk drawing the wrath of Ukrainians all the 0:01:07.319 --> 0:01:10.160 way from President Zelinsky on down after this series of 0:01:10.200 --> 0:01:13.800 tweets urging Ukraine to seek a negotiated solution to the 0:01:13.840 --> 0:01:19.080 invasion by Russia and seed crimea for good. Um. David Kirkpatrick, 0:01:19.160 --> 0:01:21.679 founder of Techonomy, is also with us now. But and 0:01:21.800 --> 0:01:23.600 I just want you to walk us through the latest 0:01:24.000 --> 0:01:26.600 in the pack, and fourth it's started with a poll 0:01:27.160 --> 0:01:30.399 by Elon Musk. Yeah. So Elon Musk has sent several 0:01:30.400 --> 0:01:33.480 tweets throughout Monday. The kind of two key points on 0:01:33.560 --> 0:01:36.920 them were, first that he suggested that there should be 0:01:36.920 --> 0:01:41.120 a negotiated settlement over the war in Ukraine between Ukraine 0:01:41.440 --> 0:01:43.600 and Russia. In a separate tweet and the one you 0:01:43.640 --> 0:01:48.720 see on your screen, he implies that Crimea, which is 0:01:49.040 --> 0:01:56.360 an annexation of Russia's, should remain with Russia for good. 0:01:56.480 --> 0:01:59.000 And you know, obviously these are strong words for me, 0:01:59.160 --> 0:02:01.160 for Elon must to be be saying. What I would 0:02:01.200 --> 0:02:03.920 also say is he sent a further pole later in 0:02:03.960 --> 0:02:09.640 the day saying that the citizens of those areas of 0:02:09.840 --> 0:02:14.160 Ukrainian territory that that Russia is currently trying to annex 0:02:14.320 --> 0:02:16.760 should be whether or not they should be given their 0:02:16.800 --> 0:02:19.840 opportunity to vote on their own futures. But there's been 0:02:19.880 --> 0:02:24.160 a pretty sharp reaction from all corners of social media 0:02:24.160 --> 0:02:27.000 and diplomatically to what Elon Musk has had to say, well, 0:02:27.120 --> 0:02:31.040 including from President Zolynsky himself. Zalnsky responding with a Twitter 0:02:31.080 --> 0:02:33.920 poll of his own, which Elon Musk do you like 0:02:34.040 --> 0:02:38.800 more one who supports Ukraine or one who supports Russia. 0:02:39.480 --> 0:02:43.720 H David, what's your take on all this? It's a 0:02:43.760 --> 0:02:47.440 fairly easy one to have a take on. I must say, 0:02:47.480 --> 0:02:50.840 I think it must falls prey to a number of 0:02:51.639 --> 0:02:55.760 dangerous ideas. One is, if I'm so rich, I must 0:02:55.800 --> 0:02:59.360 be smart enough to do anything to solve anything. That's 0:02:59.680 --> 0:03:04.840 loup us um. He He also is an attention hog, 0:03:05.440 --> 0:03:09.040 and his stock drop today tremendously in relation to the market, 0:03:09.280 --> 0:03:12.680 which might not even be unrelated. It may be that 0:03:12.720 --> 0:03:14.639 he's in a bad mood because of that, and he's 0:03:14.680 --> 0:03:19.240 trying to get attention to distract himself. It's all crazy stuff. 0:03:19.560 --> 0:03:23.040 He should not be involved in this issue, and talked 0:03:23.040 --> 0:03:24.520 to us a little bit more about the reaction that 0:03:24.520 --> 0:03:28.399 we're seeing here. Obviously, we've heard from President Selinsky, We've 0:03:28.400 --> 0:03:33.440 heard from Tavor Kirkpatrick. Now, we've heard from analysts who 0:03:33.480 --> 0:03:38.120 cover Tesla, who cover Elon Musk's companies. What else are 0:03:38.120 --> 0:03:42.360 people saying? Yeah, we've heard from Ukraine's ambassador to Germany, 0:03:42.440 --> 0:03:46.760 Andrew Melanik. I won't show or say what he said 0:03:46.760 --> 0:03:49.120 in his tweet due to the coarse language that he 0:03:49.280 --> 0:03:53.600 used but he essentially implied that no Ukrainian or I'm 0:03:53.640 --> 0:03:58.080 paraphrasing no Ukrainian would now buy a Tesla product in 0:03:58.120 --> 0:04:01.200 the future based on what Musk had said. That was 0:04:01.440 --> 0:04:05.800 Andrew Melnik, the Ukrainian ambassador to Germany. This is slightly anecdotal, 0:04:05.880 --> 0:04:10.480 but many kind of well followed Tesla fans, Tesla vehicle 0:04:10.520 --> 0:04:14.080 owners and shareholders who have a presence on Twitter did 0:04:14.160 --> 0:04:16.360 come out and say, you know, this is not something 0:04:16.400 --> 0:04:18.360 that Elon must should be doing that. You know, many 0:04:18.440 --> 0:04:21.040 labeled it as a mistake as well. So it has 0:04:21.080 --> 0:04:24.200 invoked a pretty broad and sharp reaction, including from some 0:04:24.279 --> 0:04:27.440 of those that are fans and supporters of both Tesland 0:04:27.440 --> 0:04:31.800 of Elon Musk personally. This, of course, as the takeover 0:04:33.200 --> 0:04:38.360 discovery process, the Twitter takeover discovery process continues. Kind of 0:04:38.400 --> 0:04:40.560 a difficult week from us last week, I imagine, with 0:04:40.600 --> 0:04:44.599 that delusion of text um being made public David. Also 0:04:44.720 --> 0:04:48.240 today in San Francisco, the CEO of Twitter, Parague Aggrawall, 0:04:48.520 --> 0:04:51.680 was just deposed in a closed door session. We're not 0:04:51.720 --> 0:04:55.039 sure exactly what happened inside that session. Yeah, but but 0:04:55.120 --> 0:04:58.560 what do you make of all of this happening for 0:04:58.680 --> 0:05:02.920 Elon Musk and be of Elon Musk really at once. Okay, 0:05:02.960 --> 0:05:07.479 maybe you think I'm a bad armchair psychologist, but even 0:05:07.560 --> 0:05:11.680 before this development today about Ukraine, it was occurring to 0:05:11.760 --> 0:05:15.080 me that it might be that this whole folder all 0:05:15.240 --> 0:05:17.960 about Twitter buying it, not wanting to buy it, being 0:05:18.000 --> 0:05:22.320 sued suing, was a bid for attention it. You know, 0:05:23.000 --> 0:05:25.680 it's hard to explain why he would have tried so 0:05:25.760 --> 0:05:28.159 hard to buy Twitter and then tried so hard to 0:05:28.160 --> 0:05:31.359 get out of it without any real fundamental changes in 0:05:31.440 --> 0:05:36.839 the business landscape. My dog just it is bold because 0:05:36.839 --> 0:05:43.680 he has to have attention, just like Elon Musk. Um. 0:05:43.760 --> 0:05:45.880 And you know, of course we're we're still waiting for 0:05:45.920 --> 0:05:49.359 headlines to come out of this deposition of Parague. But 0:05:49.400 --> 0:05:52.560 it should be said that Elon Musk's companies actually have 0:05:52.720 --> 0:05:57.400 had some involvement in the war on Ukraine, especially Starlink. Yes, 0:05:57.440 --> 0:06:00.200 the SpaceX of which Elon Musk is a found under 0:06:00.240 --> 0:06:04.479 and the chief executive officer had for quite some time 0:06:04.520 --> 0:06:08.120 throughout the duration of the war in Ukraine been sending 0:06:08.720 --> 0:06:14.880 Starlink equipment to essentially keep the country connected during a 0:06:14.960 --> 0:06:17.320 time of war. You know, this fantastic reporting on the 0:06:17.320 --> 0:06:20.000 Bloomberg Terminal and Bloomberg dot Com about some of the 0:06:20.000 --> 0:06:24.200 background of how that came about in coordination with the US. 0:06:24.360 --> 0:06:27.160 But you know, they are providing that service, They are 0:06:27.200 --> 0:06:31.400 providing that hardware, and and Musk had tweeted earlier on 0:06:31.520 --> 0:06:35.800 in the war about SpaceX's efforts to get that equipment 0:06:35.800 --> 0:06:38.120 into the country and how that they how they had 0:06:38.120 --> 0:06:42.640 been involved in keeping the Ukrainian people online essentially during 0:06:42.680 --> 0:06:46.440 this war. All right, well, certainly this one is still developing. 0:06:46.480 --> 0:06:49.400 We're going to continue to watch the tweets um al 0:06:49.560 --> 0:06:53.799 though our ownered blow Thank you so much, David Kirkpatrick 0:06:53.960 --> 0:06:56.479 to Economy founder David. You're gonna stick with us and 0:06:56.520 --> 0:07:09.400 talk about the next story as well. A big challenge 0:07:09.440 --> 0:07:11.960 is coming to court for social media companies. The U. S. 0:07:11.960 --> 0:07:15.320 Supreme Court taking up two cases where they'll decide whether 0:07:15.360 --> 0:07:19.160 social media companies can be sued for hosting and recommending 0:07:19.320 --> 0:07:22.760 terrorist content. And it's a big test of an old 0:07:22.880 --> 0:07:26.480 law Section to thirty. Let's break it down with Bloomberg's 0:07:26.760 --> 0:07:31.440 Supreme Court reporter Greg Store and Economy founder David Kirkpatrick. So, Greg, 0:07:31.680 --> 0:07:33.640 talk to us about how you're expecting this to play 0:07:33.680 --> 0:07:35.800 out in core and whether this is something that could 0:07:35.840 --> 0:07:41.160 divide the Court on ideological lines. Yeah, there's certainly reasons 0:07:41.160 --> 0:07:44.160 to think it could. This Section to thirty, which is 0:07:44.200 --> 0:07:46.480 the big issue, it's the issue that's involved in the 0:07:46.520 --> 0:07:50.240 Google case. It's the law that generally provides very broad 0:07:50.240 --> 0:07:53.480 immunity to social media companies for things that their users 0:07:53.520 --> 0:07:57.480 post um that has come under fire from conservatives, including 0:07:57.520 --> 0:08:00.480 Donald Trump, uh and at the Supreme Court. The one 0:08:00.560 --> 0:08:03.040 Justice who has said something about Section two thirty is 0:08:03.120 --> 0:08:06.200 Justice Clarence Thomas, who is one of the most conservative justices. 0:08:06.880 --> 0:08:10.240 He has expressed concern that it gives social media companies 0:08:10.280 --> 0:08:12.720 too much liability, and he's been calling on the Supreme 0:08:12.760 --> 0:08:16.560 Court to get involved for years. Section two thirty, of course, 0:08:16.600 --> 0:08:20.120 is the Communications Decency Act, which for so many years, 0:08:20.160 --> 0:08:24.480 decades in fact, David has protected and shielded these companies 0:08:24.520 --> 0:08:27.560 from responsibility for a lot of the content hosted on 0:08:27.640 --> 0:08:30.520 their platform. David, what do you think is the most 0:08:30.640 --> 0:08:34.760 likely outcome here? Well, I'm not a Supreme Court expert, 0:08:34.840 --> 0:08:38.080 so it's hard to know what the I think it 0:08:38.280 --> 0:08:42.040 is possible that the Supreme Court is taking this these 0:08:42.080 --> 0:08:48.160 cases for ideological reasons. Um. But the bottom line. Long 0:08:48.280 --> 0:08:51.280 term outcome, in my opinion is we do need a 0:08:51.320 --> 0:08:56.560 different regulatory regime for social media and internet content. Section 0:08:56.600 --> 0:09:00.360 two thirty, for whatever pluses and minuses it might add 0:09:00.400 --> 0:09:04.679 to the dialogue is not doing what it ought to do, 0:09:05.320 --> 0:09:10.000 and Um, content that shouldn't be up there is up there. 0:09:10.040 --> 0:09:13.720 The companies are behaving irresponsibly and don't have an incentive 0:09:13.760 --> 0:09:17.000 to do the right thing. We need change. Absolutely. Greg 0:09:17.000 --> 0:09:19.800 give us the bigger picture on these two particular cases 0:09:19.840 --> 0:09:25.200 and how significant they are how we might deal with 0:09:25.280 --> 0:09:28.080 social media in the future. Yeah, well, let me separate 0:09:28.080 --> 0:09:31.439 the two out. So the Twitter case that the court 0:09:31.480 --> 0:09:34.040 has is kind of terrorism specific. It has to do 0:09:34.080 --> 0:09:37.720 with the law called the Anti Terrorism Act, and the 0:09:37.840 --> 0:09:42.640 question is whether, um, the allegation that social media companies 0:09:42.720 --> 0:09:45.280 is actually not just Twitter but also Google and Facebook, 0:09:45.800 --> 0:09:48.000 the allegation that they didn't do enough to take down 0:09:48.160 --> 0:09:52.120 identify and takedown post by isis whether that's enough to 0:09:52.200 --> 0:09:55.800 go forward in court. The other case, the Google case, 0:09:56.080 --> 0:10:00.960 is the broader one that applies beyond terrorists. It has 0:10:01.000 --> 0:10:06.719 to do with claims that by making recommendations. This is 0:10:06.880 --> 0:10:10.600 a YouTube case that by making recommendations about videos to 0:10:10.640 --> 0:10:14.640 look at uh, YouTube encourage terrorism, and the question is 0:10:14.679 --> 0:10:18.240 whether that is covered by the immunity. Immunity conferred on 0:10:18.280 --> 0:10:21.880 your Section to thirty that says you can't be held 0:10:21.880 --> 0:10:23.920 liable for what you do as a publisher for just 0:10:24.000 --> 0:10:27.240 posting content. But the question is what about these targeted 0:10:27.280 --> 0:10:31.280 recommendations that are based on users viewing history and are 0:10:31.520 --> 0:10:35.400 done by algorithms, David. If the Supreme Court erode Section 0:10:35.480 --> 0:10:40.480 to thirty immunity, how dramatic would that be for companies 0:10:40.559 --> 0:10:45.120 like Meta and Twitter and YouTube. It depends on how 0:10:45.160 --> 0:10:47.920 they were to do it. It's easy to imagine a 0:10:47.960 --> 0:10:53.640 scenario in which it could cause serious chaos in the marketplace. 0:10:54.440 --> 0:10:57.439 UM So, I don't think we could. If I were 0:10:57.480 --> 0:11:00.400 at the company's I would be very concerned. They claim 0:11:00.480 --> 0:11:04.800 to want a rewrite of Section to thirty, but it's 0:11:04.880 --> 0:11:07.240 not clear how this is going to play out in 0:11:07.559 --> 0:11:10.960 a good way for them. Um I would say quickly. 0:11:11.040 --> 0:11:13.480 On this YouTube case, I think there is a good 0:11:13.600 --> 0:11:17.320 argument that since Section to thirty was implemented in order 0:11:17.360 --> 0:11:22.160 to indemnify companies against excesses of speech by people they 0:11:22.200 --> 0:11:26.360 couldn't control, that is logical. But once they apply their 0:11:26.400 --> 0:11:30.040 algorithms to that content. I don't see section to thirty 0:11:30.160 --> 0:11:33.920 being a very good defense for their behavior. Now across 0:11:34.000 --> 0:11:37.439 upon in Europe, Greg, you've got social media companies being 0:11:37.520 --> 0:11:41.720 questioned with the British ruling that social media was to 0:11:41.840 --> 0:11:46.080 blame for the death of a teenage girl. Um, you know, 0:11:46.480 --> 0:11:51.440 what's your take on how that case could potentially impact 0:11:51.480 --> 0:11:55.520 these Yeah, you know, the Supreme Court justices here uh 0:11:55.840 --> 0:12:00.760 tend to ignore what's happening overseas. They look at US law, 0:12:00.840 --> 0:12:04.520 and they, particularly conservatives, are very proud of not paying 0:12:04.559 --> 0:12:08.240 attention to what's happening with foreign lass. I wouldn't expect 0:12:08.280 --> 0:12:12.640 a direct impact that being said, you know, these justices 0:12:12.679 --> 0:12:18.160 do read. They understand that social media is controversial, that 0:12:18.200 --> 0:12:20.000 there are a lot of folks who blame it for 0:12:20.040 --> 0:12:22.960 a lot of society's ills, and they may feel that 0:12:23.040 --> 0:12:25.880 way themselves. And we'll we'll have to see when when 0:12:25.920 --> 0:12:29.000 they get to get to hear arguments, probably early next year, 0:12:29.440 --> 0:12:33.520 whether some of that uh sort of skepticism towards social 0:12:33.520 --> 0:12:37.520 media comes out from some of the conservative justices. All right, Well, 0:12:37.600 --> 0:12:40.520 two cases here that will certainly be following Blueberg's Greg Store, 0:12:40.520 --> 0:12:44.240 who covers the Supreme Court and economies, David Kirkpatrick, thank 0:12:44.280 --> 0:12:46.960 you both. Coming up, we're gonna hear from the pay 0:12:47.000 --> 0:12:51.160 equity startups Cyndio talking about progress closing gaps across tech 0:12:51.280 --> 0:12:54.319 and business as a new law is about to shine 0:12:54.360 --> 0:13:14.199 a light on salaries across California. This is Bloomberg ready 0:13:14.320 --> 0:13:16.720 or not? What your job pays is about to get 0:13:16.960 --> 0:13:20.040 a lot less private. California has become the latest state 0:13:20.080 --> 0:13:25.200 to join a quickly growing nationwide salary transparency movement, which 0:13:25.200 --> 0:13:28.520 means companies like Alphabet, Meta, even Disney will have to 0:13:28.600 --> 0:13:32.880 comply and share pay expectations for open roles on demand 0:13:33.360 --> 0:13:37.720 by January. To break it all down with Cyndio CEO 0:13:37.960 --> 0:13:42.120 Maria Cola Curcio, Cindio out with a new report that 0:13:42.200 --> 0:13:45.960 shows that well, most employers aren't ready. So Maria, let's 0:13:45.960 --> 0:13:49.600 start with this new transparency law. What what exactly will 0:13:49.640 --> 0:13:52.520 this do and what will companies have to do as 0:13:52.520 --> 0:13:55.839 a result? Yeah, great question. So Governor Newsom signed the 0:13:55.880 --> 0:14:00.720 law sp last week September. And as we all know, 0:14:00.800 --> 0:14:03.760 California is the fifth largest economy in the world, so 0:14:03.800 --> 0:14:07.080 this is going to have tremendous impact because it's any 0:14:07.160 --> 0:14:10.520 company with fifteen or more employees with even one employee 0:14:10.520 --> 0:14:14.559 in California. So that has a huge, huge dramification on tech. 0:14:15.080 --> 0:14:17.720 And so what it actually does is it requires companies 0:14:17.720 --> 0:14:21.200 to include pay ranges on job postings, as you said, 0:14:21.240 --> 0:14:26.360 starting January and report median and mean pay gaps and 0:14:26.440 --> 0:14:31.600 contractor pay to the state starting March. So you're out 0:14:31.600 --> 0:14:35.160 with a new report that shows employers they're not ready. Yeah, 0:14:35.320 --> 0:14:39.280 how's not ready? Are they? Maybe at least this report today, 0:14:39.360 --> 0:14:41.800 So it's pretty fresh. And what we found is two 0:14:41.880 --> 0:14:45.920 thirds of companies are saying that they are completely unprepared 0:14:45.960 --> 0:14:48.440 to post salary ranges. And I think a big part 0:14:48.440 --> 0:14:52.400 of that is because companies don't yet understand why they 0:14:52.440 --> 0:14:54.400 pay what they pay. And if you don't know that, 0:14:54.400 --> 0:14:57.240 that's obviously the first question and employee is going to 0:14:57.320 --> 0:15:00.280 come to you asking once they see those ranges. Blick. 0:15:00.520 --> 0:15:03.600 Why is that so tricky for companies to know why 0:15:03.640 --> 0:15:06.120 they pay what they pay and even what they pay 0:15:06.200 --> 0:15:09.480 and where there are gaps. Yeah, it's tricky because of 0:15:09.520 --> 0:15:12.479 the old way of doing pay equity analyses. So obviously 0:15:12.520 --> 0:15:14.840 this is what we do. We're innovating this with tech, 0:15:14.920 --> 0:15:17.160 but the old ways to outsource it to a law firm, 0:15:17.600 --> 0:15:19.680 You get back a report once a year that just 0:15:19.760 --> 0:15:23.080 tells you your remediation or what you need to pay 0:15:23.120 --> 0:15:25.640 people to get out of the woods, and you learn 0:15:25.720 --> 0:15:29.800 nothing about the underlying policies or programs that are driving pay. 0:15:29.880 --> 0:15:33.160 So companies really need to start using analytics to figure 0:15:33.200 --> 0:15:36.640 out are there pay policies and programs actually working as 0:15:36.680 --> 0:15:40.000 intended If they say they pay for performance for example, 0:15:40.040 --> 0:15:42.520 which a lot of companies say that, but very few 0:15:42.720 --> 0:15:47.000 actually do. So let's take alphabet and meta for example, 0:15:47.600 --> 0:15:50.520 what would this mean for companies like them, which you know, 0:15:50.640 --> 0:15:54.920 compete with each other for talent um historically, you know, 0:15:54.960 --> 0:15:58.920 are known for paying folks quite well. But like all 0:15:59.280 --> 0:16:02.560 most companies probably have pretty big pay gaps. Yeah, so 0:16:02.600 --> 0:16:04.560 the first thing they're gonna have to do is get 0:16:04.600 --> 0:16:07.600 on top of their pay gaps. Because starting pay is 0:16:07.600 --> 0:16:10.680 the biggest factor in any pay equity analysis. So if 0:16:10.680 --> 0:16:13.080 you have issues or as a company, if you have 0:16:13.120 --> 0:16:17.000 a philosophy of start low, stay low, or pay top 0:16:17.040 --> 0:16:20.280 dollar to the best negotiator, that's going to very quickly 0:16:20.320 --> 0:16:22.960 catch up with you. From a pay equity and meeting 0:16:23.080 --> 0:16:25.960 pay gap perspective, You're going to start to have disparities 0:16:26.200 --> 0:16:29.000 that you can't rule out are because of something like gender, race, 0:16:29.080 --> 0:16:31.640 or ethnicity. So the way they would address this as 0:16:31.640 --> 0:16:34.280 a Google or a Meta or an Apple is to 0:16:34.440 --> 0:16:37.200 make sure you're not doing pay equity analyses just once 0:16:37.240 --> 0:16:40.440 a year, but you're looking at this constantly as you hire, 0:16:40.960 --> 0:16:43.680 as you you know, God forbid, have to lay people off. 0:16:43.760 --> 0:16:48.160 Are you having adverse impact? Are you letting bias creep in? 0:16:48.320 --> 0:16:52.280 Because bias requires discretion. It's oxygen, and there's so much 0:16:52.320 --> 0:16:55.200 discretion in these decisions, and the only way to avoid 0:16:55.240 --> 0:16:57.520 that is to really use data and analytics to make 0:16:57.560 --> 0:17:01.160 sure you're informing those and guiding the decisions. Well do 0:17:01.160 --> 0:17:03.680 you think this is going to impact the labor market 0:17:03.720 --> 0:17:06.560 and if so, how, especially given that we are, you know, 0:17:06.600 --> 0:17:09.640 potentially heading into a recession. I think the interesting thing 0:17:09.760 --> 0:17:13.520 will be to see how this impacts competitiveness in tech talent. 0:17:13.920 --> 0:17:18.280 So one of the maybe unintended benefits of what's happening 0:17:18.440 --> 0:17:20.240 with the market right now is we're going to see 0:17:20.240 --> 0:17:22.880 a little bit of loosening as it relates to that 0:17:23.320 --> 0:17:26.960 fierce competition for engineers in tech, and so with pay 0:17:27.040 --> 0:17:30.200 transparency on top of that, now you're going to see 0:17:30.240 --> 0:17:32.640 sort of that competitive nature of everyone trying to one 0:17:32.720 --> 0:17:35.639 up each other on the salary and the packages. Maybe 0:17:35.640 --> 0:17:38.600 that will have a bit because there will be transparency 0:17:38.640 --> 0:17:41.959 and so folks will understand exactly what their opportunities and 0:17:42.000 --> 0:17:44.879 offers are and will be, so it might make the 0:17:45.040 --> 0:17:49.280 talent race a little bit easier to manage. Last quick question, 0:17:49.280 --> 0:17:51.320 I'm just curious what you're seeing in the labor market 0:17:51.400 --> 0:17:55.040 right now. We've heard about, you know, um, the Great Resignation, 0:17:55.440 --> 0:17:57.879 and then we also heard that kind of been on pause. 0:17:58.240 --> 0:18:02.439 You know, job employees aren't necessarily moving around right now 0:18:02.440 --> 0:18:05.240 because there aren't so many choices out there. How would 0:18:05.240 --> 0:18:08.359 you describe the state of play right now? Yeah, I 0:18:08.400 --> 0:18:11.320 think we keep sort of groping around for a term 0:18:11.400 --> 0:18:13.640 that gets at the essence of what's happening, whether it's 0:18:13.680 --> 0:18:17.520 the Great Resignation, the Great reshuffle, quiet quitting, all of 0:18:17.560 --> 0:18:20.400 it to me is just a massive reflection that we've 0:18:20.440 --> 0:18:24.840 seen a total fracturing of trust between employees and employers, 0:18:25.240 --> 0:18:27.240 and so the way to fix that is to really 0:18:27.280 --> 0:18:30.880 take workplace equity and the title wave of pay transparency 0:18:30.880 --> 0:18:33.800 that's coming at employers through some of these laws and 0:18:33.880 --> 0:18:36.400 dive right into it, because that is really the way 0:18:36.440 --> 0:18:41.040 to rebuild the trust that has broken. All right, Maria Colcuccio, 0:18:41.200 --> 0:18:45.199 CEO of Cyndio, thank you for shining all light on 0:18:45.320 --> 0:18:49.720 that for us here today. Meantime, Elizabeth Holmes prison sentencing 0:18:49.760 --> 0:18:53.080 has been delayed. The judge overseeing the Sinist fraud case 0:18:53.200 --> 0:18:56.919 is looking into whether a key government witness gave truthful 0:18:57.000 --> 0:19:00.399 testimony at trial after her lawyers said he voiced mixed 0:19:00.520 --> 0:19:03.840 givings during a visit to her home. She was found 0:19:03.840 --> 0:19:07.080 guilty in January of defrauding investors in conspiracy for her 0:19:07.200 --> 0:19:09.000 role in the collapse of the blood testing startups she 0:19:09.040 --> 0:19:13.200 founded that reached a peak valuation of nine billion dollars. 0:19:22.040 --> 0:19:24.560 Welcome back to Bloomberg Technology and Emily Chain in San Francisco. 0:19:24.960 --> 0:19:27.840 Let's get back to the markets now. Shares of Tesla 0:19:28.359 --> 0:19:31.400 following the most since June after third quarter deliveries came 0:19:31.400 --> 0:19:35.399 in below expectations. Even so, there was another record setting 0:19:35.400 --> 0:19:38.200 period from Musk and Co. Dan, i'ves of wet Bush 0:19:38.240 --> 0:19:41.120 Securities joining us now to discuss. So, Dan, how alarming 0:19:41.520 --> 0:19:44.560 is this delivery situation to you? Well, I think at 0:19:44.640 --> 0:19:47.879 first glance, clearly the streets going to be disappointed. You 0:19:47.880 --> 0:19:50.440 saw that in the stock. But I believe it's more 0:19:50.600 --> 0:19:55.400 logistical rather than demand rin and that's our view, especially 0:19:55.480 --> 0:19:58.040 coming at China. A lot of balls in the air, 0:19:58.560 --> 0:20:01.200 but I do not believe this is men driven. Ultimately, 0:20:01.280 --> 0:20:03.879 that's really going to be the narrative now between the 0:20:03.920 --> 0:20:06.280 bulls and the barras. So the narrative from Elon Musk 0:20:06.480 --> 0:20:09.639 is this, uh, he tweeted, smoothing out crazy end of 0:20:09.720 --> 0:20:14.199 quarter delivery wave to reduce expedite costs and relieve stress 0:20:14.200 --> 0:20:18.320 on Tesla team aiming for steadier deliveries intra quarter. What's 0:20:18.320 --> 0:20:21.679 your expectation that that will happen. Well, that's really the 0:20:21.720 --> 0:20:24.160 balancing act because if you look, I mean, they've had 0:20:24.160 --> 0:20:27.480 a pay significant dollar then the quarters and some of 0:20:27.520 --> 0:20:30.439 the logistical challenges they've had in the US and Europe 0:20:30.480 --> 0:20:33.280 as well as in China. Clearly they put a line 0:20:33.280 --> 0:20:36.120 in the sand this quarter. But obviously investors they're gonna 0:20:36.119 --> 0:20:39.240 be focused on that Q four delivery can be four 0:20:39.359 --> 0:20:43.320 sevent k you know, or higher, because ultimately that's really 0:20:43.320 --> 0:20:45.879 the focus. I mean, you really need to see this 0:20:46.000 --> 0:20:48.639 smooth out, but we you know, to really stress we 0:20:48.720 --> 0:20:51.160 do not believe it's demand driven. I do believe it's 0:20:51.240 --> 0:20:55.960 logistical rather than anything other. And look, and that's gonna 0:20:55.960 --> 0:20:59.440 be guilty till proven is in situation until we hear 0:20:59.560 --> 0:21:02.119 god in and the call in a few weeks. So 0:21:02.160 --> 0:21:06.240 our investor is going to be convinced by this narrative. 0:21:06.280 --> 0:21:10.199 And you're you're seeing a pretty strong reaction here at 0:21:10.280 --> 0:21:13.919 least today. Look in a white knuckle market and TESTA 0:21:14.040 --> 0:21:17.440 is held to a higher standard, especially with a higher multiple. 0:21:17.520 --> 0:21:19.560 It's it's not when investors want to see. I mean, 0:21:19.560 --> 0:21:22.639 there's nothing right home about you can't sugarcoat it. And 0:21:22.680 --> 0:21:24.439 now it's going to be approved me it's gonna be 0:21:24.440 --> 0:21:27.560 in the penalty box until we go into Q four. 0:21:28.000 --> 0:21:30.240 But I believe, as we've seen before, this is a 0:21:30.280 --> 0:21:33.760 back against the wall moment from Musk and Tests and 0:21:33.920 --> 0:21:37.359 nothing more. Meantime, you've got Ellen with a lot of 0:21:37.400 --> 0:21:41.320 things going on, this big Twitter takeover trials set to 0:21:41.359 --> 0:21:43.879 start in just a couple of weeks. How worried do 0:21:43.960 --> 0:21:48.920 you think investors are about all of these other potential distractions. 0:21:49.560 --> 0:21:51.840 It's created a bit of a perfect storm. I mean, 0:21:51.840 --> 0:21:54.560 if you look, you know you have a soft delivery number. 0:21:54.560 --> 0:21:58.040 You've got the Twitter trial come up October seventeenth, and 0:21:58.080 --> 0:22:01.240 then just an overall risk off mar get. I think 0:22:01.240 --> 0:22:03.359 going to Twitter trial that there's a lot of questions. 0:22:03.440 --> 0:22:06.280 Is there a settlement before the trial begins. If not, 0:22:06.840 --> 0:22:09.639 you know, then it starts to ultimately be a cascade 0:22:09.640 --> 0:22:12.919 where you could see musk. You know, still what I 0:22:12.960 --> 0:22:17.200 believe is owning Twitter at twenty we we've a settlement 0:22:17.400 --> 0:22:21.840 likely could happen before in the high forties fifty range, 0:22:21.840 --> 0:22:25.399 but once he steps in the court, it's likely easither 0:22:25.520 --> 0:22:27.960 going to own Twitter have to pay a five billion 0:22:27.960 --> 0:22:31.240 dollars settlement. And that's definitely been a bit of what 0:22:31.280 --> 0:22:34.359 I'll say that. You know, it's another cloud over the 0:22:34.400 --> 0:22:37.360 Tesla story. Well, and you know, I don't know if 0:22:37.359 --> 0:22:41.880 the perfect storm could get even more perfect or more stormy. 0:22:41.960 --> 0:22:44.919 But you have Ellen setting off an uproar with a 0:22:45.000 --> 0:22:51.400 series of tweets suggesting uh negotiation between Ukraine and Russia. UM, 0:22:51.440 --> 0:22:55.720 a lot of folks commenting on this, analyst commenting on 0:22:55.760 --> 0:22:59.040 this all the way up to the President of Ukraine himself, 0:22:59.040 --> 0:23:04.359 Altamir Zelinsky clapping back with a poll of his own. UM, 0:23:04.400 --> 0:23:07.000 you know, as somebody who follows twist Tesla and Musk 0:23:07.680 --> 0:23:10.160 so closely. You know what's your what's your take on 0:23:10.160 --> 0:23:12.760 this and and and you know the potential impact it 0:23:12.840 --> 0:23:15.359 can have on real world companies and real world investors 0:23:15.359 --> 0:23:19.120 who put who put their money behind Elon Musk look 0:23:19.200 --> 0:23:22.720 their black eye moments from Musk because it goes back 0:23:22.800 --> 0:23:25.720 instead of staying in his own swim ling, and you know, 0:23:25.880 --> 0:23:28.800 he just adds more and more controversy. And obviously Twitter, 0:23:29.359 --> 0:23:32.320 as we've seen that, that's sort of had a cascade effect. 0:23:32.359 --> 0:23:36.280 And ironically he could own Twitter as a platform, right, 0:23:36.320 --> 0:23:39.159 so that just creates more worries. And I think this 0:23:39.240 --> 0:23:42.240 has just been a broader what I'll call really a 0:23:42.359 --> 0:23:46.800 night marriage. Nine months you know four Musk none decided 0:23:46.840 --> 0:23:50.800 for Tesla, and it's something where investors, patients is wearing 0:23:50.880 --> 0:23:53.440 thin in this type of mark is the last thing 0:23:53.480 --> 0:23:55.840 you want to see. And it speaks to some of 0:23:55.840 --> 0:23:57.680 the frustration that you're seeing, because I think today was 0:23:57.720 --> 0:24:00.600 a lot of frustration selling. You do an AI day 0:24:00.640 --> 0:24:03.920 on Friday and then you have a soft delivery Sunday morning. 0:24:04.000 --> 0:24:06.440 It's not good walk yeah, and then you have frustration 0:24:06.520 --> 0:24:09.719 from some of Musk's biggest supporters in his own Tesla 0:24:09.800 --> 0:24:13.879 fans Um about this latest series of tweets Um. Of course, 0:24:14.240 --> 0:24:16.160 the next couple of weeks are going to be very 0:24:16.200 --> 0:24:18.960 interesting as we head into that Twitter trial. Dan Ives 0:24:18.960 --> 0:24:20.800 of Wedbush Security is always good to have you here. 0:24:20.960 --> 0:24:23.080 Thank you. Meantime, I want to talk a little bit 0:24:23.080 --> 0:24:25.640