WEBVTT - Earnings Galore: Tesla, Alphabet, More in Focus

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>This is the Bloomberg Daybreak Aisia podcast. I'm Doug Prisner.

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<v Speaker 3>Shana Sissel, Founder and President Bandery and Capital Management, Shana.

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<v Speaker 3>Perhaps as it should be with earnings, the results here

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<v Speaker 3>tend to reflect the idiosyncratic results of the particular companies involved.

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<v Speaker 3>We're not getting them all moving together. So I guess

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<v Speaker 3>this makes it a good time to be a stock

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<v Speaker 3>picker or would you rather see a kind of more

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<v Speaker 3>consistent theme.

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<v Speaker 4>No, if you're a stock picker, you want to see

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<v Speaker 4>stocks reflect earnings, and so when stocks behave as they

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<v Speaker 4>should after earnings is reported and it's based just on

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<v Speaker 4>that company, that is a good thing.

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<v Speaker 5>That's what you want to see.

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<v Speaker 4>If you don't want to see stocks moving completely not

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<v Speaker 4>in sync with their fundamentals.

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<v Speaker 2>We heard from Texas Instruments today and maybe the guidance

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<v Speaker 2>that we got for the current quarter being in line

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<v Speaker 2>with estimates was enough to alleviate concern about a downturn

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<v Speaker 2>in the chip industry. If memory serves. The last time

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<v Speaker 2>we spoke with you, you were talking about in Nvidia. Are

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<v Speaker 2>you still holding on to a position in Nvidia?

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<v Speaker 5>Oh? Yes.

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<v Speaker 4>So I think it's really important to understand the difference

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<v Speaker 4>between holding a stock for the long term and then

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<v Speaker 4>trading a stock. So I am a long term investor,

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<v Speaker 4>so I look to purchase a stock for the long term.

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<v Speaker 4>I think at the moment, Nvidia is a little pricey.

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<v Speaker 4>It's trading out a premium to its historic average and

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<v Speaker 4>to the market. It does always trade a premium, but

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<v Speaker 4>it's trading out a bigger premium than normal, and for

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<v Speaker 4>that reason, I wouldn't be adding to the stock right now.

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<v Speaker 4>But I am certainly going to continue to hold the

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<v Speaker 4>shares that I currently have, and if there was weakness

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<v Speaker 4>in the stock, I might look at that as an

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<v Speaker 4>opportunity to buy. But as a long term investor, I

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<v Speaker 4>continue to have a strong bowcase.

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<v Speaker 5>For the stock.

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<v Speaker 3>Now you're predicting a mild recession for next year, so

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<v Speaker 3>that's kind of interesting because a lot of people think

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<v Speaker 3>we're heading for a so called soft landing. What are

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<v Speaker 3>some of the driving factors that will get us to

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<v Speaker 3>that mild recession.

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<v Speaker 4>Well, I think it's important to note that a soft

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<v Speaker 4>landing is something that almost never happens. If it does,

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<v Speaker 4>it's not because the FED did something incredibly right that

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<v Speaker 4>just got lucky. It just historically, monetary policy tends to

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<v Speaker 4>overdo whatever it's trying to correct and tends to push

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<v Speaker 4>the economy either into an overheated state or into now

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<v Speaker 4>right now, the FED has managed to play this correctly,

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<v Speaker 4>but we are seeing softening in the economy. And what

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<v Speaker 4>I think is going to happen is that the FED

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<v Speaker 4>will cut rates in September, but they're going to do

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<v Speaker 4>it slowly.

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<v Speaker 5>This is not going to be a big rate cut.

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<v Speaker 4>With the economic growth and some of the other economic

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<v Speaker 4>indicators showing softness in the economy, I do think that

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<v Speaker 4>by taking it slow like that, it is likely that

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<v Speaker 4>we will see continued softness, which could result in a

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<v Speaker 4>mild recession. And it's important to note recessions are healthy things.

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<v Speaker 4>We like them. It's a normal part of the business cycle,

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<v Speaker 4>the economic cycle. What we prefer is these mild recessions

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<v Speaker 4>that get access out of the system we get through

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<v Speaker 4>fairly quickly with minimal damage. But when we don't have

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<v Speaker 4>them for a long time, what tends to happen is

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<v Speaker 4>we end up with a really big one all of

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<v Speaker 4>a sudden because we've overdone it marketwide.

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<v Speaker 2>So do you regard some of the recent rotation that

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<v Speaker 2>we have seen into stocks that may be a little

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<v Speaker 2>bit more economically sensitive, do you regard that as a

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<v Speaker 2>little misguided right now? Giving your outlook?

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<v Speaker 5>Not necessarily.

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<v Speaker 4>I think what you're seeing is this understanding or belief

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<v Speaker 4>that the Fed is going to cut rates in September

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<v Speaker 4>will be positive for companies, however small that may be.

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<v Speaker 4>I think in the short term it will be, But

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<v Speaker 4>I don't think necessarily that it's enough to save us

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<v Speaker 4>from seeing a downturn in the overall economy. But what

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<v Speaker 4>you're seeing is them reacting to positive potential monetary policy that.

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<v Speaker 5>Is related to their businesses.

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<v Speaker 3>Shane and we heard some musing on this network earlier

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<v Speaker 3>that people tend to hate inflation more than they like

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<v Speaker 3>full employment, and hence the average person apparently in the

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<v Speaker 3>United States is unhappy. Now, why is that and how

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<v Speaker 3>do you see things moving?

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<v Speaker 5>Because I think that.

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<v Speaker 4>Generally speaking, when everybody has a job, they'd like to

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<v Speaker 4>think that they can live and afford and support their

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<v Speaker 4>live livelihood, and inflation chips away at that. It makes

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<v Speaker 4>them feel like they don't have enough, so they feel

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<v Speaker 4>under employed. It's interesting though, because I think to your

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<v Speaker 4>point is, even when unemployment rises, the number of people

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<v Speaker 4>that that actually impacts as a percentage of employed people

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<v Speaker 4>is actually small, So the overall sentiment isn't necessarily impacted

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<v Speaker 4>unless everybody is really scared that they might lose their job.

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<v Speaker 5>So I think that's what you're seeing.

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<v Speaker 2>Yeah, I was just going to mention the PCEE data

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<v Speaker 2>that we get at the end of the week, along

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<v Speaker 2>with the personal income personal spending figures, the economy from

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<v Speaker 2>a lot of the data points that we've been looking

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<v Speaker 2>at seems to be downshifting into a lower speed. Does

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<v Speaker 2>that cause you maybe to consider what's happening in other

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<v Speaker 2>parts of the world, maybe Asia, maybe Europe. Are you

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<v Speaker 2>looking at opportunities offshore?

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<v Speaker 4>So I don't generally play in the space where I'm

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<v Speaker 4>looking at things from a country level, but I do

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<v Speaker 4>think that the nations out have been a little quicker

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<v Speaker 4>to make monetary policy changes that are actually going to

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<v Speaker 4>be less negative for their economies per se.

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<v Speaker 5>So there are some opportunities I.

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<v Speaker 4>Think you can look at fundamentally, especially in Asia, that

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<v Speaker 4>could make a lot of sense right now. But generally speaking,

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<v Speaker 4>I'm not going to pretend that I spend a lot

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<v Speaker 4>of time focusing on a country level because I don't

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<v Speaker 4>and I don't know that I can necessarily give you

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<v Speaker 4>anything that's going to be like a GM of information

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<v Speaker 4>for your listeners.

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<v Speaker 3>Yeah, let's talk briefly about the strong dollar. It's hurting

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<v Speaker 3>corporate profits to a certain degree, particularly for North American firms.

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<v Speaker 3>How do you see the dollar moving? If the Fed,

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<v Speaker 3>you know, moves very slowly.

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<v Speaker 4>I think we'll continue to have this issue with the

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<v Speaker 4>strong dollar. You know, Obviously, just intuitively, when you take

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<v Speaker 4>economics class, inflation should in some way affect the strength

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<v Speaker 4>of the dollar.

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<v Speaker 5>But it's much more complicated than that.

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<v Speaker 4>So even if inflation slows, it doesn't necessarily mean the

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<v Speaker 4>dollar weekends because of just the nature of the relationships

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<v Speaker 4>with other currencies and other things. I think a slower

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<v Speaker 4>rate cut cycle would be not necessarily something that is

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<v Speaker 4>going to weaken the dollar compared to the other currencies

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<v Speaker 4>that are out there.

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<v Speaker 3>Okay, Shana, thanks very much for taking out the time

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<v Speaker 3>to be with a. Shanea SISIL founder and president Banary

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<v Speaker 3>and Capital Management.

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<v Speaker 2>After the bell, we heard from Google parent Alphabet, with

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<v Speaker 2>the company reporting quarterly revenue ahead of expectations. Closer look

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<v Speaker 2>at this story. Now we'll bring in our own Julia

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<v Speaker 2>Love Bloomberg, a tech reporter who joins us from San Francisco.

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<v Speaker 2>Thanks for making time for us, aid Julia. So there

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<v Speaker 2>are two categories here when we look at the top line.

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<v Speaker 2>There is the cloud computing service and then there's the

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<v Speaker 2>ad that is tied to the Google search engine. Is

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<v Speaker 2>one beginning to dominate here or is it pretty much

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<v Speaker 2>an even split?

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<v Speaker 1>So Goodle Search still accounts for the lion's share of

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<v Speaker 1>Goodle's revenue, and I believe that will be the taste

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<v Speaker 1>for the foreseeable future. But the cloud business is growing

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<v Speaker 1>and executives and Wall Street are very heartened by that.

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<v Speaker 1>They have long wanted to see Goodle diversify its revenue streams,

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<v Speaker 1>and cloud is a strong contender.

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<v Speaker 3>I'm curious what the company said about the push into AI.

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<v Speaker 3>So the initially had a headstart that it seemed like,

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<v Speaker 3>oh WHOA is me? You know, for a while, but

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<v Speaker 3>they've they've been making a comeback here. Did they say

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<v Speaker 3>much about the progress being made on competing with Microsoft

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<v Speaker 3>and Open Ai?

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<v Speaker 1>Yes, so they delivered a bit of a progress report

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<v Speaker 1>of sorts. Google Search now includes AI overviews, which are

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<v Speaker 1>responses drafted by generative AI and assum Darpachai said that

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<v Speaker 1>those overviews are generating increased engagement and that users are

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<v Speaker 1>very satisfied with the responses. He also said that they

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<v Speaker 1>have made progress in delivering those responses faster and in

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<v Speaker 1>controlling the computing costs that it takes to serve up

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<v Speaker 1>those responses. And in addition, executives said that Google is

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<v Speaker 1>using AI to drive more sales for its cloud business,

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<v Speaker 1>although Wall Street is hungry for more specific that.

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<v Speaker 2>I thought it was interesting that Ruth pour Out, the CIO,

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<v Speaker 2>was saying that alphabet is looking for acquisition targets at

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<v Speaker 2>a time when wiz rejected the twenty three billion dollar

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<v Speaker 2>or offer that Google had made. Do we have guidance

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<v Speaker 2>on what this company is looking to build out? Is

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<v Speaker 2>it cyber security? Is that the big area of growth

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<v Speaker 2>that they that they think it's worth kind of pursuing.

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<v Speaker 1>Yes, cyber certainly seems like a strong candidate. They acquired

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<v Speaker 1>Mandian a few years ago, which was one of their

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<v Speaker 1>biggest acquisitions to date, and they seem to be interested

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<v Speaker 1>in buying up more companies in that space. You know,

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<v Speaker 1>in the cloud market, they are number three, so that's

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<v Speaker 1>seen as a space where perhaps they could do an

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<v Speaker 1>acquisition without triggering anti trust scrutiny, although certainly there are

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<v Speaker 1>still anti trust concerns that they'd have to face there

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<v Speaker 1>as well.

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<v Speaker 3>Google suffers from the same sort of malady that the

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<v Speaker 3>broader market suffers from. When you're at all time highs,

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<v Speaker 3>you know, there's a lot of pressure on the earnings

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<v Speaker 3>to to get you to go even higher, they have

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<v Speaker 3>to be almost fallless. And we didn't see a flawless

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<v Speaker 3>report because we had YouTube missing estimates there. Well, what's

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<v Speaker 3>the latest with YouTube in terms of its progress.

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<v Speaker 1>Yes, it's been you know, I think a bumby a

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<v Speaker 1>few years for YouTube. They've had a strain of disappointing

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<v Speaker 1>quarters and I think, you know, YouTube is ultimately a

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<v Speaker 1>social media company, and it's and like Facebook and and

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<v Speaker 1>X and tit talk, it's much more vulnerable to these

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<v Speaker 1>swings in advertiser spending. And I think that that's what

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<v Speaker 1>we saw with this report.

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<v Speaker 2>Obviously, we're in an election season. I think the Federal

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<v Speaker 2>Trade Commission, led by Lena Kahan, has been thorn in

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<v Speaker 2>the side of Alphabet to some extent. Did they talk

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<v Speaker 2>about regulatory risk at all on the call with analyst?

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<v Speaker 1>Not on this call, But that is certainly a question

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<v Speaker 1>that has been just looming over Google and is kind

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<v Speaker 1>of instapable. We are waiting for a verdict in an

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<v Speaker 1>antitrust trial about their search business, and another trial will

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<v Speaker 1>get underway in just a few months about their dominance

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<v Speaker 1>in the digital ad market. So lots of anti trust headaches.

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<v Speaker 3>And I'm kind of curious about Ruth Porat and what

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<v Speaker 3>comes next. Doug mentioned her she's going to be president

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<v Speaker 3>and chief investment Officer and no longer the CFO. That'll

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<v Speaker 3>go to an Ashkenazi coming in from Eli Lilly. What

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<v Speaker 3>is the push there, what's the main thrust of that hire?

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<v Speaker 1>Yes, well, Ruth Porat was Alphabet's longest serving chief financcial office.

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<v Speaker 1>Her Wall Street is a huge fan of hers. She's

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<v Speaker 1>had a lot of success in instituting more financial discipline

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<v Speaker 1>at the company, and it seems like she was ready

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<v Speaker 1>for a new challenge. She'll be turning more attention to

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<v Speaker 1>the portfolio of other bets way Mow. This help driving

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<v Speaker 1>car company, you know, seems poised for for fortor splash,

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<v Speaker 1>and she'll be spending time there. As for the new

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<v Speaker 1>CFO and not asht Nazi. I think that her hiring

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<v Speaker 1>signals that Alphabet is perhaps going to make a bitter

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<v Speaker 1>push in in health Verily their life sciences company has

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<v Speaker 1>is maturing, and we may see her spend We may

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<v Speaker 1>see her not spending more time with that part of

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<v Speaker 1>the business than than Ruth has.

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<v Speaker 2>Best far, Julia, good stuff. Thank you so much for

0:13:54.080 --> 0:13:56.360
<v Speaker 2>making time to chat with us. Julia love their. Bloomberg

0:13:56.400 --> 0:13:57.360
<v Speaker 2>Tech reporter.

0:14:03.120 --> 0:14:07.080
<v Speaker 3>Danny Lee Bloomberg Asia Transport reporter Danny let me just

0:14:07.160 --> 0:14:09.720
<v Speaker 3>sort of set the tone here for listeners that are

0:14:09.760 --> 0:14:13.960
<v Speaker 3>just joining us. Tesla had disappointing profits that he announced.

0:14:14.320 --> 0:14:17.960
<v Speaker 3>It also announced no Robotaxi until October, and that will

0:14:18.000 --> 0:14:20.920
<v Speaker 3>only be a prototype. Also, the low cost car is

0:14:20.960 --> 0:14:24.040
<v Speaker 3>being delayed, The plan factory in Mexico is on pause

0:14:24.080 --> 0:14:27.760
<v Speaker 3>at least until after the election, and a humanoid robot

0:14:27.880 --> 0:14:32.080
<v Speaker 3>that Musk claims will send Tesla's valuation, soaring won't be

0:14:32.120 --> 0:14:36.880
<v Speaker 3>ready anytime soon either, So this was a round of disappointments.

0:14:37.360 --> 0:14:39.200
<v Speaker 6>Yeah, where's the good news in order this? Yeah, and

0:14:39.240 --> 0:14:41.920
<v Speaker 6>the earnings. The future, I mean the future clearly is

0:14:41.960 --> 0:14:46.160
<v Speaker 6>important and investors wanted to hear more concrete detail about

0:14:46.520 --> 0:14:50.400
<v Speaker 6>future projects, future projects which will define Tesla in future

0:14:50.440 --> 0:14:53.360
<v Speaker 6>to be more like an AI stock rather than just

0:14:53.400 --> 0:14:56.400
<v Speaker 6>an EV company. So clearly there's a lot of detail

0:14:56.480 --> 0:14:59.680
<v Speaker 6>that investors were looking for, but it doesn't seem more

0:14:59.680 --> 0:15:03.280
<v Speaker 6>too given we are only a few more quarters away

0:15:03.320 --> 0:15:07.240
<v Speaker 6>from having an affordable car, having more detail on the

0:15:07.320 --> 0:15:10.960
<v Speaker 6>robotaxi for example. But clearly the here and now and

0:15:11.000 --> 0:15:12.600
<v Speaker 6>what was always going to be a difficult year for

0:15:12.640 --> 0:15:16.920
<v Speaker 6>Tesla is weaker deliveries and an impact on earnings in

0:15:16.920 --> 0:15:17.800
<v Speaker 6>its core business.

0:15:17.920 --> 0:15:20.760
<v Speaker 2>So, Danny, how is business in China for this company?

0:15:21.760 --> 0:15:25.960
<v Speaker 6>For China Tesla, it's been a tough one given the

0:15:26.200 --> 0:15:30.000
<v Speaker 6>competition is getting even more intense from Chinese players who

0:15:30.000 --> 0:15:33.440
<v Speaker 6>are becoming more aggressive on price. They're being more in

0:15:33.560 --> 0:15:37.400
<v Speaker 6>bolden with their war chest to take on Tesla head on,

0:15:37.440 --> 0:15:40.720
<v Speaker 6>and Tesla has seen that impact in the impact on

0:15:40.840 --> 0:15:44.440
<v Speaker 6>its China deliveries. So it's inevitable that it has to

0:15:44.760 --> 0:15:48.200
<v Speaker 6>look further afield for more growth, but clearly that has

0:15:48.240 --> 0:15:51.160
<v Speaker 6>been tough where on all sides, whether it be in

0:15:51.200 --> 0:15:55.440
<v Speaker 6>Europe in the US, there are challenges which are hinting

0:15:55.760 --> 0:15:58.800
<v Speaker 6>or hindering its ability to sell, whether it be high

0:15:58.800 --> 0:16:03.320
<v Speaker 6>interest rates or with even more competition. So clearly the

0:16:03.400 --> 0:16:06.800
<v Speaker 6>challenge for MSCER is to look at or talk up

0:16:06.920 --> 0:16:09.680
<v Speaker 6>rather the future, which you know, for the stock which

0:16:09.720 --> 0:16:11.920
<v Speaker 6>had been down as much as forty percent earlier this year,

0:16:12.280 --> 0:16:14.240
<v Speaker 6>it's still largely trading flat.

0:16:14.840 --> 0:16:18.080
<v Speaker 3>I think we always knew that tougher competition was coming,

0:16:18.160 --> 0:16:21.080
<v Speaker 3>and as a kind of microcosm, China shows that when

0:16:21.120 --> 0:16:23.720
<v Speaker 3>there's a lot of competition, the going can get pretty rough.

0:16:24.000 --> 0:16:27.600
<v Speaker 3>And we've also had this development from General Motors saying no,

0:16:27.760 --> 0:16:30.760
<v Speaker 3>it would not hit its target of a million shares

0:16:30.800 --> 0:16:33.000
<v Speaker 3>this year, So that kind of shows you that demand

0:16:33.560 --> 0:16:35.600
<v Speaker 3>is not so strong either. It doesn't seem like a

0:16:35.600 --> 0:16:37.000
<v Speaker 3>good combination for Tesla.

0:16:37.560 --> 0:16:42.080
<v Speaker 6>I think for Tesla, if anybody can can double down

0:16:42.120 --> 0:16:46.080
<v Speaker 6>and focus on specific items or specific targets, it will

0:16:46.120 --> 0:16:48.600
<v Speaker 6>be them. You know, el Musk is very determined and

0:16:49.040 --> 0:16:52.560
<v Speaker 6>even if they do miss on expectations, typically they're not

0:16:52.760 --> 0:16:55.240
<v Speaker 6>necessarily by much. And so when you look at some

0:16:55.320 --> 0:16:58.640
<v Speaker 6>of the legacy players who have less experience, they've just

0:16:58.720 --> 0:17:02.400
<v Speaker 6>thrown money good after ad at certain things such as

0:17:02.440 --> 0:17:05.879
<v Speaker 6>like what GM has. Clearly for them it's more of

0:17:05.920 --> 0:17:08.600
<v Speaker 6>a struggle. But for Tesla, you know, working around the clock,

0:17:08.640 --> 0:17:11.960
<v Speaker 6>and you know Elil Musk is notorious for his work ethic.

0:17:13.200 --> 0:17:16.040
<v Speaker 6>I think for Musk he can probably get things done

0:17:16.680 --> 0:17:18.439
<v Speaker 6>given his will and his determination.

0:17:18.960 --> 0:17:20.960
<v Speaker 2>You were talking a moment ago about the ev price

0:17:21.000 --> 0:17:23.240
<v Speaker 2>wars in China, and I find it's interesting that Tesla

0:17:23.359 --> 0:17:26.280
<v Speaker 2>is going to be again manufacturing a newer, low cost

0:17:26.359 --> 0:17:30.240
<v Speaker 2>card in Austin, Texas. I mean, I've always associated Tesla

0:17:30.280 --> 0:17:32.919
<v Speaker 2>as being, you know, somewhat of a premium brand in

0:17:32.920 --> 0:17:36.520
<v Speaker 2>a way that Apple is. And here you have maybe

0:17:36.560 --> 0:17:38.720
<v Speaker 2>a move to go a little bit down market. But

0:17:38.760 --> 0:17:42.400
<v Speaker 2>perhaps that's what's required given the competition globally, right.

0:17:42.880 --> 0:17:46.200
<v Speaker 6>Tesla was always going to go more downmarket. What they

0:17:46.280 --> 0:17:48.840
<v Speaker 6>wanted was at the beginning to price high to be

0:17:48.880 --> 0:17:51.880
<v Speaker 6>able to afford all the investments it wanted to make,

0:17:51.920 --> 0:17:55.280
<v Speaker 6>and then slowly trickle down so it could be a

0:17:55.359 --> 0:17:59.520
<v Speaker 6>more affordable kind of driving experience for everybody. So with

0:17:59.680 --> 0:18:03.680
<v Speaker 6>this about time. Frankly, this this new affordable, lower cost

0:18:03.720 --> 0:18:07.200
<v Speaker 6>TV will be more I'm sure for strict back kind

0:18:07.240 --> 0:18:10.560
<v Speaker 6>of Tesla offering. It is something that should in theory

0:18:10.680 --> 0:18:14.639
<v Speaker 6>help it spur demand and growth once again without having

0:18:14.640 --> 0:18:18.159
<v Speaker 6>to compromise on the prices it's having to do in

0:18:18.240 --> 0:18:20.040
<v Speaker 6>the near term and has been doing.

0:18:21.000 --> 0:18:23.760
<v Speaker 3>It's kind of interesting too that Musk has come in

0:18:23.800 --> 0:18:27.320
<v Speaker 3>with such full support for Donald Trump, and if the

0:18:27.359 --> 0:18:31.399
<v Speaker 3>Republicans get in, that probably means the subsidies will be

0:18:31.440 --> 0:18:37.120
<v Speaker 3>heading heading out the door, right, So I'm kind of curious, how, Delegate,

0:18:37.160 --> 0:18:39.480
<v Speaker 3>how what is the nuanced handling of this for Elon

0:18:39.600 --> 0:18:43.480
<v Speaker 3>Musk that makes him happy to support Donald Trump.

0:18:43.840 --> 0:18:48.040
<v Speaker 6>It's really a fascinating position because once we saw, you

0:18:48.040 --> 0:18:51.200
<v Speaker 6>know clearly that the views of what Donald Trump wants

0:18:51.200 --> 0:18:54.520
<v Speaker 6>to do with the with taffs, with the EV sector

0:18:54.920 --> 0:18:57.920
<v Speaker 6>buy and large, it doesn't necessarily sound very good for

0:18:58.480 --> 0:19:02.240
<v Speaker 6>us someone like Tesla, for Elon Musk, but with with

0:19:02.680 --> 0:19:07.040
<v Speaker 6>his full support for Trump and clearly very interesting how

0:19:07.040 --> 0:19:09.640
<v Speaker 6>it affects his business and you know, the views on

0:19:10.040 --> 0:19:13.720
<v Speaker 6>the board or on Mexico. How Tesla has announced that

0:19:13.800 --> 0:19:17.840
<v Speaker 6>it's going to slow down its plans on making decision

0:19:17.960 --> 0:19:22.000
<v Speaker 6>or taking action on its Mexico factory until after the election.

0:19:22.720 --> 0:19:24.960
<v Speaker 6>All of these things for whether it be Tesla or

0:19:25.000 --> 0:19:29.560
<v Speaker 6>for other businesses who have invested billions in building battery

0:19:29.560 --> 0:19:33.760
<v Speaker 6>factories in parts of America. Clearly there's a lot of

0:19:33.800 --> 0:19:37.000
<v Speaker 6>what happens next if Donald Trump becomes the next US president.

0:19:37.359 --> 0:19:40.800
<v Speaker 2>Yeah, well, battery factories. And I'm curious about the situation

0:19:41.040 --> 0:19:44.760
<v Speaker 2>in China where batteries are being in very much in

0:19:44.840 --> 0:19:47.520
<v Speaker 2>high demand. Now, given the explosion that's happening in the

0:19:47.520 --> 0:19:50.520
<v Speaker 2>ev industry, what is is Tesla doing to try to

0:19:50.560 --> 0:19:53.560
<v Speaker 2>make sure that it has adequate supply of batteries in

0:19:54.000 --> 0:19:55.880
<v Speaker 2>the Shanghai production line.

0:19:56.440 --> 0:20:00.000
<v Speaker 6>Well, Tesla has always had very good supply, and namely

0:20:00.119 --> 0:20:03.159
<v Speaker 6>from one very key supply in c at l c

0:20:03.320 --> 0:20:06.560
<v Speaker 6>ATL is the world's biggest batory maker and Tesla is

0:20:06.600 --> 0:20:11.640
<v Speaker 6>its most important customers, so there's no shortage of supply there.

0:20:11.640 --> 0:20:14.280
<v Speaker 6>And it's just a question of where someone like Tesla

0:20:14.359 --> 0:20:18.080
<v Speaker 6>finds demand, not just in China, but for where it

0:20:18.119 --> 0:20:21.639
<v Speaker 6>exports out of China to other parts of the world.

0:20:21.680 --> 0:20:25.320
<v Speaker 6>And clearly, when things have been slowing down in sales,

0:20:25.760 --> 0:20:27.679
<v Speaker 6>it takes a bit of an effort to try and

0:20:27.720 --> 0:20:31.120
<v Speaker 6>stoke up that demand again. So whether we see Shanghai,

0:20:31.200 --> 0:20:35.159
<v Speaker 6>for example, becoming a useful tool in building the more

0:20:35.160 --> 0:20:38.280
<v Speaker 6>affordable taxi later on down the line. You know, they've

0:20:38.280 --> 0:20:42.960
<v Speaker 6>been very efficient and very proactive in building cars for

0:20:43.000 --> 0:20:46.399
<v Speaker 6>Tesla at a phenomenal rate. So it's a watcher space

0:20:46.440 --> 0:20:49.480
<v Speaker 6>to see how someone like Shanghai becomes a key part

0:20:49.600 --> 0:20:51.520
<v Speaker 6>for the future of Tesla once again.

0:20:51.800 --> 0:20:54.440
<v Speaker 3>And if there is less regulation, for instance, if the

0:20:54.560 --> 0:20:57.440
<v Speaker 3>Republicans win, is there chance that that could actually help

0:20:57.480 --> 0:21:01.280
<v Speaker 3>Tesla because the the other car made might suffer more

0:21:01.320 --> 0:21:02.760
<v Speaker 3>than Tesla in that environment.

0:21:03.560 --> 0:21:08.000
<v Speaker 6>It's an interesting one because Tesla giving it all in

0:21:08.119 --> 0:21:14.320
<v Speaker 6>on electric vehicles. The summation is, well, does the rules

0:21:14.400 --> 0:21:18.440
<v Speaker 6>or the policies of the future benefit more the ice

0:21:18.520 --> 0:21:20.919
<v Speaker 6>makers such as your general motors such as your forts.

0:21:21.320 --> 0:21:24.520
<v Speaker 6>So it's interesting to see what happens in terms of

0:21:24.600 --> 0:21:27.439
<v Speaker 6>future policies just to see where Tesla ends up.

0:21:28.440 --> 0:21:30.600
<v Speaker 3>Danny Lee is with us. He's a big man. He's

0:21:30.600 --> 0:21:33.800
<v Speaker 3>a sort of hulking guy with a big voice on transport.

0:21:33.880 --> 0:21:35.840
<v Speaker 3>He's our Asia Transport reporter.

0:21:38.119 --> 0:21:41.040
<v Speaker 2>This has been the Bloomberg Daybreak Asia podcast, bringing you

0:21:41.119 --> 0:21:44.240
<v Speaker 2>the stories making news and moving markets in the Asia Pacific.

0:21:44.720 --> 0:21:47.840
<v Speaker 2>Visit the Bloomberg Podcast channel on YouTube to get more

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<v Speaker 2>episodes of this and other shows from Bloomberg. Subscribe to

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0:21:58.520 --> 0:21:59.600
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0:22:01.440 --> 0:22:01.640
<v Speaker 1>Two