June 6, 2025 • 45 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the fallout between President Trump and Elon Musk, as Tesla stocks regain some of Thursday’s losses. Plus, the spat could impact U.S. space ambitions and SpaceX. The CEO of Anysphere, the maker of AI coding assistant Cursor, also explains plans for its latest funding round.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:34):
Live Prince San Francisco. This is Bloomberg Technology coming up.
Tesla in the crosshairs after the Trump Musk blow up
led to one hundred and fifty billion dollar route.
Speaker 3 (00:43):
Plus what can it mean for space x elon Musk
backpedaling after threatening to pull Dragon spacecraft from NASA missions?
Speaker 2 (00:50):
And is it the fastest growing software startup of all time?
Speaker 4 (00:54):
The company behind coding.
Speaker 2 (00:56):
Assistant Cursor cashes in on the AI frenzy with a
close to ten billion dollar valuation. The first we check
in on the stock of the moment, we were bound
some We recoup about fifty billion dollars on the day,
but over the course of the week we've lost one
hundred and forty billion dollars in market cap for Tesla
is now sub one trillion dollars. It is his worst
(01:17):
week since February of twenty twenty five, right.
Speaker 3 (01:19):
And at one point in the session, the worst week
going back to October of twenty twenty three.
Speaker 5 (01:24):
We need to talk more about what is happening.
Speaker 3 (01:26):
Let's go to DC to discuss it with Bloomberg's Balance
of Power hosts Katie Lines. The latest reporting, Kaylee, is
that in the whirlwind of the last twenty four hours,
there will not be a conversation or phone call between
Elon Musk and the President today.
Speaker 6 (01:42):
Yeah, that is what White House officials are signaling to Bloomberg.
And despite the fact that there was reporting that some
kind of call must happen, and there's been signaling from
Elon Musk that he is willing to lower the temperature here.
After someone posted on X at him yesterday that they
should call off for a few days. He said that
was good advice. And when Bill Ackman said that Trump
and must need to make peace for the good of
the country, Elon Musk responded, You're not wrong. So it
(02:05):
does seem on at least one side, there is a
willingness to lower the temperature here. It's unclear though, whether
or not President Trump feels the same way as that
same White House official that indicated no call would happen
today also said that Trump is considering selling the Tesla
that he purchased in that flashy White House event just
months ago when these two were still incredibly tight. So
if they can't fully mend fence this here, obviously, there
are some major implications we have to consider. There is
(02:27):
the political implication of whether or not Elon Musk will
continue to attack what is supposed to be President Trump's
landmark legislative accomplishment in his second term, this one big,
beautiful bill. Well, Elon Musk's criticism may not actually change
the odds of the legislation getting through Congress. At the
very least, him broadcasting his views to hundreds of millions
of people does damage Republican messaging around the deficit impact
(02:49):
of this legislation. There's also Elon Musk's money to consider.
He of course deployed some two hundred and ninety million
dollars in the twenty twenty four election cycle, a lot
of that toward the effort of getting President Trump re elected.
But Republicans have to consider whether or not Elon might
deploy that money to primary challengers. For example, if he
decides he would like to punish those who go ahead
and vote for this legislation, that will, of course, in
(03:10):
addition to raising the deficit, lead to the rollback of
ev credits that Tesla benefits from There's national security implications too,
given that Musk and those working for him in DOGE
were given access to government systems. It's unclear how far
that access winter whe whether or not access for some
of those individuals is going to be revoked. And then
you get into, of course, the business implications as to
(03:31):
whether or not government contracts, as President Trump threatened yesterday
that Elon Musk's companies from SpaceX to others could actually do,
actually benefit from need will actually go away. So there
are many different layers to this.
Speaker 4 (03:44):
And while there is.
Speaker 6 (03:45):
A signal that maybe things have cooled down for now
after what was an incredibly wild day yesterday, or this
escalated very quickly, there's really no telling where this goes
from here.
Speaker 2 (03:54):
What a thorough round up, Kaylie Lines. We appreciate it
from Washington. Let's now bring in Bluemeg's Max Afkin from
the Elon Inc. Team and Max, I just want to
get your perspective here.
Speaker 5 (04:05):
Ron.
Speaker 2 (04:05):
We know how tough the president can be when he
holds a grudge. Harvard's experienced it, universities have experienced it.
Speaker 4 (04:13):
But what about Elon.
Speaker 2 (04:14):
He's still got that vote going on on X about
whether a new political party needs to be formed. Do
we really think he's going to cool down from here?
Speaker 7 (04:21):
I think it would be in his interest to cool down.
And I think the stock chart that you showed reflects
that there is no universe that I can imagine anyway.
Speaker 5 (04:31):
Where Elon Musk maintaining this.
Speaker 7 (04:33):
Position where he's, you know, this kind of maximalist. We
should impeach Donald Trump, start a new political party, you know,
yesterday accusing Trump of being associated with Jeffrey Epstein. You know,
like this, this is a point where he's going to
start alienating MAGA aligned customers. And unfortunately for Tesla that
(04:54):
is now an important contingent of their customer base because
Elon Musk has already alienated the left leaning customers. So
you're in this situation that is difficult.
Speaker 5 (05:03):
Now. Musk has cards to play, right.
Speaker 7 (05:05):
He has the money that he can donate, as we
just heard. He also has this aerospace company, which you know,
the US Trump can threaten to cancel contracts, but you know,
as the Pentagon is construction constructed right now, and as
NASA is constructed, they are depending on SpaceX for rocket launches.
So he has cards to play, But I don't see
(05:28):
how he can kind of maintain this pose without watching
Tesla's stock decline further, without watching sales fall further. I mean,
this is the most self destructive.
Speaker 5 (05:38):
I've covered Elon Musk for a very long time.
Speaker 7 (05:40):
This is the most self destructive that I have ever
seen Elon musk Okay.
Speaker 3 (05:44):
Tesla says are up more than six percent in the session,
but we remind ourselves that the stock fell fourteen percent
as of yesterday's close. And while all of this was happening,
something you mentioned was the core story President Trump's threat
to cancel government tracks.
Speaker 5 (06:00):
And if you look at it from the Elon Inc.
Speaker 3 (06:03):
Lens Max, Tesla is the publicly traded proxy for sentiment
towards Elon wright But since two thousands, Tesla SpaceX in
aggregate have benefited from more than twenty billion dollars in grants, subsidies,
and direct contracts. Explain that landscape to us, and what's
at stake here if the President were to carry.
Speaker 5 (06:24):
Through with that threat.
Speaker 7 (06:25):
You know, That's why I'm reacting the way I'm reacting,
and why I think there are a lot of people
who still kind of expect, you know, maybe some reconciliation
because Elon Musk has over the course of his career,
as you just said, Ed, he has been really really
effective at basically getting the federal government to give him money.
And I think what we have been seeing and you
(06:47):
saw this frustration coming out a little bit in the
wake of the departure of Jared Isaacman, the person who
Musk had hoped would be the NASA noominee, as well
as the discussion around the ev tax credit, which is
part of this tax bill that the Republicans are trying
to pass. You saw a little bit of frustration I
think from Elon Musk that although he's had tremendous influence
(07:09):
and although he's begune to all the parties he's been
in Mara Lago, Trump has led him, you know, basically
it seems to do whatever he wants with DOJE, he
hasn't actually been able to get the business priorities, and
now of course is going to get harder.
Speaker 8 (07:22):
Now.
Speaker 7 (07:22):
Like I said, I don't think the government is just
going to unilaterally cancel SpaceX contracts, but the government has
leverage over Elon Musk, and Trump is signaling that he's
wanting to use it.
Speaker 3 (07:32):
What I reported with our DC colleagues is that Isaacsman's
nomination was canceled because of his relationship with Elon Musk
and a White House official called Sergio Gore who did
not like Elon Musk.
Speaker 5 (07:44):
And that's in copy on Bloomberg dot com.
Speaker 3 (07:46):
Bloomers. Max Chafickin of Elon Inc. Fantastic, Thank you very much.
I want to go to Nancy Tengler. She's CEO and
CEO of Laffer. Tengler investments about one half billion dollars
in assets, but a significant holding of Tesla Sheff Nancy.
Is what we saw in Tesla's stock yesterday Thursday, the
(08:06):
drop in fourteen percent. Is it the market betting against
Musk himself as opposed to whatever they feel about the
long term thesis of Tesla.
Speaker 8 (08:18):
I don't know, Ed, I thanks for having me. I
think part of what we saw yesterday is what we
always see in the short term, and that is that
the algorithms read the headlines, then the shorts jump in,
and this is the stock and the guy that everyone
loves to short. So I mean, I'm not saying I
think this was well advised what Elon did, but I
(08:38):
do think the fundamentals ultimately will trump this issue if
you will no pun And that's important because this might
be a great entry point we had, you know, we'd
bought in at it again to our holdings on March tenth.
And I think the stock was training about two forty
that looked really smart until yesterday. But that's a and
(09:00):
I think you do want to add it on in
the volatile periods because Musk has a habit of teetering
on the edge of destruction and then pulling himself back
in the nick of time. He has said himself he's
wired for war, and he often shoots himself in the foot,
and clearly he's not wrong about that.
Speaker 4 (09:20):
The shooting in the foot.
Speaker 2 (09:21):
How prolific could that get in terms of getting robotaxis
and a cybercab on the road and implicating that long
term thesis that so many people hold.
Speaker 8 (09:33):
Yeah, I don't think it will. I mean, Caroline, I
don't know. But because President Trump's equally unpredictable. I was
reading a story about one of his previous advisers who
had given him all the judicial nominees in his first term,
and he called him a sleezebag who hates America. So
he has a habit too of embracing people and then
(09:53):
disengaging and not only disengaging, but saying some pretty rough
things about him. So, but that said, I do think
that what the administration understands is they do need productivity
driven growth to make this tax bill work, and a
good portion of that is pointed at Elon Musk and
his efforts and initiatives, including Robotaxi. I expect that next week,
(10:17):
after the Robotaxi announcement, unless something ridiculous happens, that we
will be talking about something else as it relates to Tesla.
Speaker 2 (10:25):
What's interesting is we're talking about something else that relates
to Elon. We're going to talk more about the space
part of the equation later in the show, Nancy. But
it's interesting that there's some debt being shocked by Walgan
Stanley right now for Xai, and it went on for
sale basically yesterday. We wonder what the sentiment is like
in terms of shift. Would you want to be adding
(10:45):
at this point? You said, maybe it's smart, but would
you want to be adding exposure to all things Elon
at this moment?
Speaker 8 (10:52):
So we have a pretty full position, and there's a
reason this stock is not in our twelve Best Ideas portfolio, Caroline,
because it is inherently bald, and a lot of it
has to do with Elon, So I would say if
you don't own it. And we have some clients who
have asked us to buy positions for them today, which
we will do in their non managed accounts, but effectively,
(11:13):
I'm going to wait and if we see what we
need to see next week and the stock doesn't bounce,
then we may actually add to it, just discreetly, not
in a big way, because it's a four percent position
or it was yesterday, so call it three and a
half today, and that's about as much as we want
to own of this stock in our growth portfolio.
Speaker 5 (11:33):
Let's go back to Robotaxi.
Speaker 3 (11:35):
This is the thesis from Bloomberg Intelligence, our in house
analysts about what the events of the last twenty four
hours mean, and they argue specifically that it will result
in a protracted rollout of Robotaxi, because the whole trade
was based on the idea that Musk's proximity to the
(11:55):
President would result in favorable legislation or federal level policy
that would help Robotaxi.
Speaker 5 (12:03):
Where do you stand on that, Nancy.
Speaker 8 (12:05):
Yeah, And I think that's that's that's the risk, and
that's that's one of the reasons that we're not jumping
in here the regulatory environment. But I would also point out,
you know, all the tech CEOs sort of did their
homage to the administration and to the President in particular,
and it hasn't really resulted in much good news from
(12:26):
a regulatory standpoint. In fact, you could argue it's resultant
in none Apple Google Meta. So I think that I'm
hopeful that cooler heads will prevail, that the technology will
be seen for what it is. And you know, if
you look out that the Robotaxi would be the lowest
(12:47):
cost per mile provider, there's only two way MO and
it comes in significantly below And so I think there's
a lot of reasons to support this technology. But you
know that these are two unique individuals.
Speaker 3 (13:03):
I think it's important to pull out point out that
actually Musk was quite consistent over a number.
Speaker 5 (13:07):
Of months that he would be fine if EV subsidies
were killed or cut.
Speaker 3 (13:12):
He said it in July, he said it in December,
he said it more recently, and Trump said it at
March's Cabinet meeting. Does that factor in for you his
position on that, Yeah, yes.
Speaker 8 (13:25):
I mean I thought that was disingenuous of the President
yesterday to say that he saw that the ev mandates
were gone, and that's what drove him crazy. I think
that was the direct quote. He has been consistent. I
agree with his position on that it supports the weaker manufacturers.
It doesn't necessarily support the industry leader. The Tesla buyer
(13:47):
is really not influenced by the mandate, and most don't
qualify because of the income limitation. So I think Elon
is a smart businessman, and what really frustrated him was
the fact that the government is not run like a business.
So you make the logical, you have the logical discussions,
and then the government goes on this giant snowball rolling
(14:10):
down a hill. So I'm hopeful that we will see
things settle down and that next week I'm hoping we'll
be talking about Robotaxi and how amazing it is. I
live in Weymo Land. It's pretty exciting what's going on
and what Amazon is doing with robots delivering packages. They
could be getting out of a robotaxi for all I know.
Speaker 2 (14:32):
Let's just go to sentiment on buying a Tesla though, Nancy,
because this I think is what's caught many off guard.
Europeans are incredibly angry about some of the political leanings
that Elil Musk has had, and it's affected sales.
Speaker 4 (14:47):
It would seem it hasn't.
Speaker 2 (14:48):
Just been the production hole and the wait for a
new model. Why missing that borne out in may numbers.
So will this implicate who buys Tesla's going forward?
Speaker 8 (14:57):
That's a great question, Caroline. You know it's interesting is
that by D has been taken to task by the
Communist Party for lowering prices because they're in an inflationary environment,
and so I find that super interesting. Will that open
up some space for Tesla again in China? It could.
I mean they've called it rat race competition at the
(15:19):
Communist Party, calling out the CEO. So we may see another,
you know, another instance where the public market is invaded
by the Communist Party, and that may help. But I
don't think people are going to get over this soon.
I think they will eventually get over it. But he
needs to dial down the rhetoric and the drama and
get back to the business of you know, optimists and
(15:41):
robotaxi and full self driving. That is what people own
the stock for, and for his brilliance and genius, of course,
but not for the historyonics.
Speaker 2 (15:52):
And therefore, do you think you're going to get enough
of his attention, particularly on the humanoid robot side of
the equation.
Speaker 8 (15:59):
I mean, what Tesla has said is that they're going
to have thousands in their factories coming up. That would
be a good thing, Caroline, because you know, we have
fought as much as the President talks about bringing manufacturing
back to America, we have five hundred thousand manufacturing jobs
that have gone unfilled. It's hard to turn that one
around when for years we were shrinking the manufacturing base.
(16:20):
The solution is robots, not across the board, but in
a good instance, and they are a very productive way
of producing things. So just as AI is writing AI code,
I think the robots will build the robots, and we'll
see manufacturing plants use more and more robotics. That's a
good thing, and I think Tesla will be at the
(16:41):
center of that, as well as energy storage.
Speaker 3 (16:45):
If anything's come out of the events of the last
twenty four hours, it's to remind us of the deficit.
Nancy listened to this.
Speaker 4 (16:52):
We can debate.
Speaker 9 (16:54):
He didn't get his trillion, he or probably one hundred
billion or so in terms of cuts, but he worked.
He was part of Doorge. It was right after the inauguration.
Speaker 4 (17:04):
We had do it.
Speaker 9 (17:05):
So I think I think some of this is as
he's looking at this one big beautiful bill seeing that
really the tax cuts are temporary. So is Musk trying
to highlight the deficit issue again.
Speaker 3 (17:18):
Remember this was all about the big beautiful bill, That's
where it started. Is Musk putting the emphasis back on
the deficit helpful?
Speaker 5 (17:25):
Nancy?
Speaker 8 (17:26):
I actually think it is. I think a lot of
what he's done has changed the narrative, whether you support
dose or not. It's shine a light on the profligate
spending in Washington. And I think what most Americans took away,
And just like if you just start with Harvard, why
is the government giving an educational or institution that has
(17:48):
a endowment sorry of fourteen billion dollars, whatever it is,
Why are we giving them hundreds and millions of dollars
every year? Those are good debates to have, and there
may be a very good reason, But I don't think
most people think that the government is efficient with their
tax dollars, and so to change to start that debate,
then to see it, you know, do the work, see
(18:10):
it unwound. Really with this tax bill which is long,
un spending, I don't like it either. I don't think
it's a very good bill. I think that they could
have done better. They obviously don't think they could have.
I'm not there, but I think that's that's really what
he's focusing on, and that's important. Thirty seven trillion dollars
is debt is nothing short of suicidal in my view.
Speaker 2 (18:34):
Last sort of posts from you know Musco are about
a slim, beautiful bill and Nancy Tangl We appreciate it.
CEO and CIO of Leffetengra Investments, Happy weekend to you.
Speaker 4 (18:45):
Now coming up Anisphere.
Speaker 2 (18:46):
It's the maker of the popular AI coding assistant Cursor.
Speaker 4 (18:50):
You've got to have heard of it. You might have
used it.
Speaker 2 (18:52):
It's got a new valuation a nine point nine billion
dollars to swing with the CEO Michael Truell. Next, this
is a blue Bow Technology.
Speaker 3 (19:09):
The company behind the popular AI coding assistant Cursor has
a new valuation nine point nine billion, just three years
after it was launched and says it's bringing in five
hundred million dollars in annualized revenue. Michael Truel is any
Sphe's CEO, and he joins us. Now your name comes
up a lot all the time, not just here in Silicon.
Speaker 5 (19:29):
Valley, everywhere.
Speaker 3 (19:31):
The growth that you've seen in the platform has been rapid.
Speaker 5 (19:36):
This is a finance story, you know.
Speaker 3 (19:38):
It's a funding, it's a access to capital. But what
I want to ask you is what the true motivation
behind it was. Did you need the money or was
it just because of the interest.
Speaker 5 (19:47):
In you from the outside.
Speaker 10 (19:50):
Well, the goal for us with building Cursor is to
invent a very new way to build software, right and
I think that the product that we built today is
just the very start of that. I think that over
the next five years we have a chance to invent
a style of programming that looks very different from how
you build software today, one that's much higher level and
more productive. And it's just still down to defining what
(20:12):
you want to show up on the computer and how
you want the.
Speaker 5 (20:14):
Software to work.
Speaker 10 (20:15):
And we have a long way to go there, and
there's a lot of research and development to do to
get there. And so we took on this capital to
invest in frontier AI coding research.
Speaker 3 (20:26):
What is unique about Cursor, how it was written relative
to what Claude is offering with their similar tool, Windsurf
and other similar platforms.
Speaker 10 (20:36):
Well, the EPI models created by folks like Anthropic and
Gemini and open Ai are fantastic and our big parts
of Cursor and the power the technology under the hood,
alongside custom models that we developed to that are specifically
very good at parts of programming. And so at this point,
(20:57):
Cursor is powered by an ensemble of models. Some of
them are API, a lot of them are custom, and
we do over half a billion model claus per day
on our customer models.
Speaker 5 (21:08):
And it's that ensemble of models.
Speaker 10 (21:09):
Under the hood that separates a useful AI product from
one that's just a demo. And it's that ensemble of
models that gives you the speed, instability and performance that
you need to be really useful vibe coding.
Speaker 4 (21:25):
That is something that's come into our lexicon.
Speaker 2 (21:28):
I just want to be shining a light on who's
been using Cursor for that very reason.
Speaker 4 (21:33):
So no a pitchy.
Speaker 2 (21:34):
Just take a listen to what you said a couple
of days ago at the Blombag Tech Summit.
Speaker 10 (21:39):
I wish I could, I could do more, but you know,
I've just been messing around beat either with cursor or you.
Speaker 5 (21:46):
Know, I wipe coded with replet.
Speaker 10 (21:49):
Compared to the early days of coding, things have come
a long way.
Speaker 2 (21:55):
How's it feel that the CEO of Alphabet is using
what you've made and only the last few years.
Speaker 10 (22:00):
Well, it means a lot, and we're honored, and we're
big fans of the technology and the company that you know,
he and the people working with him have created.
Speaker 4 (22:11):
I will say that.
Speaker 10 (22:12):
Our target market, the person we're really building for, are
folks who build software for a living, professional software developers,
and our goal is to raise the ceiling. But by
doing that you do raise the floor too, I mean
lower the floor. And it's been awesome to see folks
that are less technical executives, designers, product folks also experimenting
(22:33):
with building software and to end and.
Speaker 4 (22:35):
The money is through subscriptions.
Speaker 2 (22:37):
It's made you many would claim to be the fastest
growing software startup ever.
Speaker 4 (22:42):
And I'm interested.
Speaker 2 (22:43):
Is the pivot to enterprise really what drives your growth
from here? Because you have been about individuals, but you're
selling forty dollars subscriptions for the business is.
Speaker 4 (22:49):
That the growth trajectory.
Speaker 5 (22:51):
We have a very healthy upmarket motion.
Speaker 10 (22:53):
A lot of our growth comes from serving larger and
larger companies, and we're happy to announce as part of
the funding that we're serving over half the Fortune five
hundred and companies like in Nvidia and Adobia and uper
and we're very happy to be serving those folks missions.
Speaker 3 (23:10):
The question is posed all the time if a larger
entity will try and acquire you, has a larger entity
tried to acquire you? And when I say a larger entity,
I mean a company that is of open AI scale,
XAI scale and thropic scale.
Speaker 10 (23:28):
Well, we can't comment on anything like that here.
Speaker 5 (23:30):
Actually we just stay in age. You can go ahead.
Speaker 10 (23:35):
I will say that we would like to build an
independent company.
Speaker 5 (23:40):
You know, the founding team and I.
Speaker 10 (23:41):
Feel like we were bid for this opportunity and we're
really energized by the product Jurney that we have had
of us, and we would like to do that.
Speaker 2 (23:48):
Tocandal one Michael Trull, CEO of Anisphere, of course, maker Cursor,
it's a joy.
Speaker 5 (23:54):
Take you for grabbing me. Thank you.
Speaker 2 (23:55):
Now we've got some breaking news regarding rare Earth and
supply chain. Let's just take a look how China is
granting rare earth permits to some US auto suppliers.
Speaker 4 (24:04):
This is currently, of course being.
Speaker 2 (24:06):
Discussed by Reuters as we stand reported by Reuters up
three tens percent on General Motors.
Speaker 4 (24:12):
The other well auto.
Speaker 2 (24:14):
Companies have been training higher in the session. China granting
rare Earth's permits to some US auto suppliers.
Speaker 4 (24:20):
According to router s.
Speaker 3 (24:21):
Ed Okay, coming up on the show, the feud between
President Trump and Elon must maybe calling off, and the
future of US space has some thing to do with it.
Speaker 5 (24:30):
We're going to talk.
Speaker 3 (24:31):
About the rocket man and the President of the United States.
Next from San Francisco, this is Bloomberg Technology.
Speaker 4 (24:48):
Welcome back to Bloomberg Technology.
Speaker 2 (24:49):
I'm Karen Hyde right here in San Francisco.
Speaker 5 (24:51):
Yeah, for the final day this week, and I'm ed Lovelow.
What are you looking at.
Speaker 2 (24:54):
Let's get a check on these market said, because actually
despite the sell off in one particular name that we've
seen a couple of days, then as at one hundred
has had a nice week.
Speaker 4 (25:03):
We're up almost two percent.
Speaker 2 (25:05):
As it stands now, we're currently seeing what the best
week since all of last week, but it's two straight
weeks of games. We're up two percentage points. If you're
looking at points contributors on the day in videos up
there Apples there, Amazon's there, so too is Tesla. Let's
look at Tesla though over the last five days. Yes,
it claws back some of its market capitalization erosion that
we saw yesterday hard and fast.
Speaker 4 (25:25):
But over the course of the.
Speaker 2 (25:26):
Week we are down by one hundred and forty billion
dollars in terms of market cap. All of this as
Elon goes versus well the most powerful person in politics,
President Trump.
Speaker 3 (25:38):
Let's recap from romance to breakup and now maybe a truce.
It's started with Musk slamming Trump's tax bill. Trump's response, disappointment.
Speaker 8 (25:50):
I've always liked Dylan and as times we very surprised.
Speaker 11 (25:53):
You saw the words he had for me, the words,
and yes, I said, any thing about me that's bad,
I'd rather have been printed serves me than the bill,
because the bill is incredible.
Speaker 3 (26:04):
Trump claimed that Musk was mad about ev incentive cuts,
must denied it, noted he's long opposed to subsidies.
Speaker 5 (26:11):
Then it turned personal.
Speaker 3 (26:13):
Trump called Musk crazy and claimed he kicked him out
of the administration.
Speaker 5 (26:17):
Musk fired back. Tesla shares dropped.
Speaker 3 (26:20):
Investors had hoped must ties to Trump might fast track
ROBOTAXI rules. Then Trump threatened to end Musk's federal contracts,
a direct hit to SpaceX. Musk said he'd pulled Dragon
spacecraft from national missions and then he walked it back.
So what happens now for space policy? And Musk Blooma's
(26:41):
Lauren Grush joins us, Now we're focused on Dragon, which
is the capsule that sits atop the SpaceX rocket that
takes humans and cargo to and from the.
Speaker 5 (26:50):
International Space Station.
Speaker 3 (26:52):
Musk said that he would decommission the program and then
walked it back.
Speaker 5 (26:55):
Explain why that was so important.
Speaker 12 (26:58):
Yeah, it's hard to over state just how dependent NASA
has become.
Speaker 8 (27:02):
On SpaceX and the Dragon spacecraft.
Speaker 12 (27:05):
It is kind of the It is the primary way
that the NASA sends humans to.
Speaker 8 (27:11):
The International Space Station, and it.
Speaker 12 (27:13):
Is probably the biggest supplier of food and supplies to
the ISS. So without it, we can't stall have the
space station very well, and we can't send.
Speaker 8 (27:24):
Food there for the astronauts to eat.
Speaker 12 (27:26):
So we do have some other options, but none are
as prolific as the Falcon nine and the Dragon combo,
so it really would bring the operations at the ISS
to a standstill.
Speaker 2 (27:40):
That's the pain point for NASA for astronauts, But what
about the pain point for SpaceX? How dependent is it
on the United States.
Speaker 12 (27:51):
Right, So it's no secret that in order for SpaceX
to become this behemoth company that it has become, it
has really lever NASA and government contracts to get help
develop its Falcon nine rocket, to develop the.
Speaker 8 (28:06):
Dragon capsule, which it uses.
Speaker 12 (28:08):
For commercial purposes. It's not just a government spacecraft. They
have used it to send tourists into orbit and for
private citizens to visit the International Space Station, so they
have actually used it for services outside of the government.
Speaker 8 (28:23):
Of course, you know, SpaceX does have a diversified revenue stream.
Speaker 12 (28:27):
A lot of that comes from Starlink now, which is
it uses to you know, provide broadband coverage to Earth
and to customers. So that has definitely supplemented a lot
of their incoming revenue. But NASA and the Defense Department
are very big customers and it would definitely be a
major hit to their incoming you know, money if they
(28:49):
were to just cancel all of their government contracts without explanation.
Speaker 2 (28:56):
And gosh, a great roundup, thank you so much on
old sides of SpaceX, but for more on the broad
impact of this feud. In indeed, it has cooled down.
Anna Rathman's with US Global Market Strategists. Anna, your perspective
on yesterday's market moves on the back of what seemed
to be online warfare between Trump and Musk.
Speaker 13 (29:18):
Yeah, it was an unfortunate and very unnecessary spat between
two very powerful individuals who have the potential to move markets.
And we really saw that and felt that yesterday. At
the end of the day, the question really was like
who holds more power because that seemed to be the
trajectory of the spat. Where we settled for the time
(29:39):
being is that mister Trump seems to have won it.
And you really saw that because of the potential impact
for cash flow. If SpaceX had been a publicly traded company,
you might have seen something similar for that particular name
as well.
Speaker 8 (29:54):
But frankly, they need each.
Speaker 13 (29:56):
Other and so I'm really glad to see them toning
down rhetoric and taking a little pause to cool down,
because the government needs that public private partnership in order
to make this country great.
Speaker 8 (30:11):
And also, you know, TESLA needs.
Speaker 13 (30:14):
Better regulations or friendly regulations, and space X needs the
government as well, so they're going to have to work together,
whether they like it or not.
Speaker 3 (30:24):
We focused a lot on Elon Musk, and the Elon
Musk proportion of what's been happening. Is there still an
element of headwind risk uncertainty for the technology investor in
the market from the president.
Speaker 4 (30:40):
You know.
Speaker 13 (30:40):
So this takes us to the tariff question, right And
just recently you were just reporting about rare earth minerals
from China and making it available to automakers, and that's
really great news. And after at the heels of the
she Trump conversation yesterday, which was a step in the
right direction, I think this is an olive branch to
(31:03):
take the conversation further. We may expect to see maybe
mister Trump going to China or Cgpin coming into the
United States, and that would be a huge step. But
we do need to make headway because we are at
a daktant.
Speaker 8 (31:16):
I do think that.
Speaker 13 (31:17):
The Trump administration has undermined the difficulty of negotiating with
people who may not just respond to threats. You know,
they call their bluff one hundred and forty five percent tariffs,
and they didn't blink right. In fact, they told us
they wouldn't respond at all. So I think it's going
to take a lot more nuanced negotiations, and I would
(31:39):
look at this rare earth mineral's news as an opening
for a good faith negotiation.
Speaker 3 (31:46):
There are people I've spoken to who would say, I
look at the rare earth situation and wonder what the
United States can do in the context of a trade negotiation.
One idea is a quid pro quo where rare earth
access on favorable terms would be exchanged for semiconductor act
access that's codified in the AI context. That sounds messy,
(32:10):
doesn't it.
Speaker 13 (32:12):
It sounds very messy, and I'm very skeptical. So the
question is who holds the cards. China certainly holds the
cards on rare earths, but in many ways that is
the only thing that they have the cards on where
we absolutely need it. We hold the cards on the
massive consumer base and also influence on other countries as well,
(32:34):
as we've seen through all of this negotiation process.
Speaker 5 (32:38):
So even though Jensen Wang.
Speaker 13 (32:39):
Would love for US to lower the export controls on AI, chips.
I just don't see that happening, because if we make
it available to them, it still doesn't guarantee that China
isn't going to be making a strides and creating their
own chips and designing them. So I don't see us
giving up on it, And that takes.
Speaker 4 (32:58):
Me to one.
Speaker 13 (33:00):
May the solution actually.
Speaker 8 (33:01):
Look like at the end?
Speaker 13 (33:03):
Well, if we're at a daytime and China is a
national security issue, then what.
Speaker 8 (33:08):
Are we willing to compromise?
Speaker 4 (33:10):
Probably not much, in.
Speaker 13 (33:12):
Which case we may actually end up in a similar
place where we started, where nobody is giving up on anything.
And that's to borrow Shakespeare's words, much ado about nothing
for all of this drama.
Speaker 2 (33:25):
All of this drama involves other people than President Trump
and Il Musk, and there are some very focused technology
experts advising the White House.
Speaker 4 (33:35):
One of them is David Sachs.
Speaker 2 (33:36):
There was a lot of concern about what the ripple
effects of this feud might have on him. But thus
far AI policy, crypto policy more broadly hasn't been in
the right direction from your perspective.
Speaker 13 (33:48):
I think in the right direction in terms of doing
that much about it. Yes, I do think that on
the hardware side, yeah, there's going to be some questions
about making certain ships available, but on the software side,
we have to be continuing to develop because at the
end of the day, that's where the race is right now.
It's not just then the chips. The chips were very
(34:10):
excited about, data centers were very excited about, but it's
really the going beyond the proof of concepts and making
it more productive for not only American citizens but global
citizens around the world. Taking that step is the race,
and I think they just need to be left alone
in some ways so that they can continue to innovate.
(34:31):
And also that innovation will come with being able to
protect from the bad actors because ultimately that rounds out
the national security issue.
Speaker 3 (34:41):
And a wrapan global market strategists, thank you very much.
Now coming up will break down one of the splashiest
public debuts in years that have stable coin firm Circle
This next, this is Bloomberg Technology.
Speaker 11 (35:03):
We really do think that major technology firms, major financial institutions,
major commerce firms are going to go to the stable
point route, and we think that they're going to look
to partner with the leading platforms and the leading infrastructure
that can bring the technology the scale, the network effects,
and really the broad regulatory footprint like Circle has provided.
Speaker 2 (35:25):
That was Circle CEO Jeremy Lair. Following the stable coin
Firms IPO. That was yesterday's Circle shows are still surging
after the company and its shareholders raised nearly one point
one billion dollars in an upsized offering. Stock was holded
several times of volatility on the first day. Let's bring
in Matt Ugu's Venture Science founding partner and a Circle investor.
Speaker 4 (35:45):
Look, I have to ask the.
Speaker 2 (35:46):
Question, was too much money left on the table? It's
now trading a one hundred and nine. Did the bankers
get the price just too low?
Speaker 5 (35:52):
Here?
Speaker 14 (35:53):
Well, thank you for having me, but look, nobody knows
how some of these stocks will play out after the bell.
So the important thing was for the IPO to be
sold essentially the night before, and I think it was
significantly oversubscribe, maybe twenty five times oversubscribed. So the companies
(36:15):
do get paid ahead of time, and that's all locked
in and after the bell rings.
Speaker 4 (36:19):
Where the direction takes.
Speaker 14 (36:20):
Obviously, this much of an increase is a pleasant surprise
to all of us involved, but that's kind of how
it happened.
Speaker 5 (36:26):
Let's go back a few years. Why did you first
get into Circle.
Speaker 14 (36:30):
Yeah, that's a great question. I remember, I think about
seven or eight years ago here and here not too
far from these offices here where our offices are actually,
I attended a dinner with a number of people from
the regulatory side, people from I think some crypto experts,
even from the Federal Reserve. And during that dinner, anytime
(36:53):
Circle's name came up, the sentiment was quite positive. So,
you know, obviously cryptocurrency, blocked chain, these subjects carry a
certain nuance with them. But one of the things that
we noticed was essentially Circle was sort of the grown
up in the room and being on the positive side
of you know, regulatory things and compliance. Obviously a US
(37:17):
based company now, that was quite positive. But not to
mention the technology that they're developing. Circle has some of
the best blockchain cryptocurrency engineers in the world, along with
some you know, maybe I have to mention Ripple as well,
because we're Ripple shareholder also, but these are best the
best engineers in the world working on amazing cutting edge technology.
(37:41):
And so the two things combined, along with of course
we're a quant driven firm. A number of other factors
that we considered led us to that decision.
Speaker 2 (37:49):
And now it feels as though that grown up in
the room is bearing dividends when you're looking at the
Genius act coming into play, when you're thinking about the
finally some support for stable coins written large when it
comes from a government perspective, that must have helped the
moon music for Yuipo.
Speaker 14 (38:04):
Now and that absolutely absolutely you're right. And of course,
you know, all the positive signs that I mentioned before
were really the writing on the wall.
Speaker 8 (38:13):
Now.
Speaker 14 (38:13):
Of course, nobody knew how the numbers would exactly play out.
And again this is a pleasant surprise, and the stock's
doing very well today.
Speaker 5 (38:21):
This is liquidity event for you.
Speaker 3 (38:22):
This is a great moment to celebrate a return for
you and shareholders, or you keep holding, we keep holding.
Speaker 14 (38:28):
We're a different firm. We participate both in the equity
capital markets offerings as well as the private positions that
we carry, and so we're holding on to both for now.
Speaker 3 (38:37):
Matt Agus Venture Science founding partner, thank you very much.
Peloton CEO Peter Stern says he has no interest in
selling the business while he works on its turnaround. He
made those comments at the Bloomberg Tech Summit in San
Francisco yesterday, where Stern outlined his vision for reviving the
fitness giant. Here he is alongside Bloomberg's Mark German.
Speaker 15 (38:57):
My predecessor took a lot of the really hard step
to right size the company and set us up so
that now we can execute on the strategy of empowering
people to live fit, strong, long and happy. And we're
doing that for six million members in multiple countries. We're
in a really good place now to build on that
really strong foundation that was established by my predecessors.
Speaker 5 (39:20):
So what is the strategy?
Speaker 16 (39:21):
What is Peter Stern's strategy for Peloton? Are you going
to keep it a hardware software services company? Have you
thought about spinning out the hardware and focusing just on
the app.
Speaker 15 (39:32):
Yes, we're an equipment company plus amazing software plus human
coaching with community.
Speaker 4 (39:38):
We are not Our future.
Speaker 15 (39:39):
Is not to try to scale the app at the
expense of that equipment business. We have reignited the innovation
engine for us as a company, and so focusing on
the products and the experiences that we're going to offer
over the next few months is absolutely my number one.
Another one that I think is really important that We're
(40:00):
focused on is how we use AI to deliver personal
experiences for our members. That that is another one that
I'm spending an enormous amount of time on, so huge
priority for us.
Speaker 16 (40:11):
Last question for you, Peloton standalone business for years to come?
Is it potentially an acquisition target for a larger company?
Speaker 5 (40:20):
What do you see as the you know?
Speaker 15 (40:22):
I mean, I was not hired to sell this company.
I was hired to bring this company back to growth,
to reinvigorate it, and it is happening.
Speaker 4 (40:30):
So there is we are.
Speaker 15 (40:33):
We are a standalone company for years to come.
Speaker 2 (40:35):
Allison ceop to stand there alongside Bloomberg's Mark gum And
at the tech summit coming up. The Nintendo Switch to
It has finally been released. We can be breaking down
what the biggest consumer tech product release of the year
really means. This is Bloomberg Technology.
Speaker 17 (41:00):
Hard to overstate how important the switch is for Nintendo.
Almost all of its revenue comes from this one product
or the exclusive games the company develops for it. Its
popularity since twenty seventeen has driven Nintendo's share price to
an all time high, and everything's riding on the switch
to keeping that trend going.
Speaker 4 (41:21):
The stakes were very high.
Speaker 2 (41:23):
Nintendo is us the most successful point in its history.
Speaker 17 (41:28):
And here's why. The Nintendo DS one hundred and fifty
four million sold, the follow up three DS seventy six million,
the Wei one hundred and two million sold, the follow
up We You, Oh Dear, and the Nintendo Switch almost
the best selling console of all time one hundred and
(41:49):
fifty two million sold.
Speaker 9 (41:51):
No pressure then, Switch one created a very high hurdle
for the future consoles to serve us.
Speaker 17 (41:57):
So Nintendo's breaking new ground with some subtle shovels.
Speaker 7 (42:01):
It's the first console on Nintendo's history that is kind
of the same thing, but just.
Speaker 4 (42:06):
A little bit bigger and a little bit better.
Speaker 17 (42:08):
That strategy belies decades of corporate lessons learned sometimes the
hardest way. But this time the stakes are just too
high for history to repeat itself.
Speaker 4 (42:20):
It's a cool.
Speaker 2 (42:23):
And now it is here Legions and Gamment is now
unboxing trying the new four hundred and fifty dollars gaming
console for the very first time, removes Cecilia Denistasio joins us,
now does it live up to the hype?
Speaker 18 (42:35):
The console definitely lives up to the hype. It is bigger,
It's got better graphics. It's launching with a game, Mario
Kart World that everybody is so excited for. Gamers were
lined up around blocks and blocks outside of the Game
Stop stores in Manhattan and Nintendo New York.
Speaker 5 (42:51):
So in San Francisco, Cara, I forgot to tell you this.
Speaker 3 (42:54):
So I was driving to our event Wednesday night in
June fourth, the night before June fifth, and in Union Square,
San Francisco, Cecilia, people were lining up and I was thinking,
like they got the date wrong. But I guess it's
like one of those iPhone moments where people, I guess
are holding their spot.
Speaker 5 (43:09):
In line overnight. Or is that the level of enthusiasm
we're talking.
Speaker 4 (43:13):
About, not just overnight.
Speaker 18 (43:15):
I talked to one customer who was waiting outside of
the Nintendo New York store since April. He had people
holding his spots wait was bringing him pizza. Yeah, shout
out to Chicken Dog. He got the first switch to
at the Nintendo New York store, given to him by
Nintendo of America president Doug Bowser.
Speaker 2 (43:33):
I hope he got some accolades for standing in line
for that time.
Speaker 4 (43:37):
That's an extraordinary story and therefore the rewards to chicken
dog who stood there for how many days and months?
Speaker 2 (43:44):
Is how high fidelity were talking how much we likely
to see the games come into their own because we
saw a lot of Mario Kart just then, But there's
plenty of other zeldas that you can be getting the
action on.
Speaker 18 (43:54):
Yeah, so the Switch Too launched with a lot of
sort of refreshed versions of very popular games from the
original Switch console. There are a couple of games that
people are really excited about going forward, including a new
Donkey Kong game. But people I spoke to, while they
are very excited about Mario Kart, some people feel a
little bit disappointed with the launch slate of games. It's
not quite so big. Nintendo should be filling that out
(44:16):
over the next year or so.
Speaker 3 (44:19):
Sceire, I think it's important for you to explain to
audience that this is like a completely different console to
the original Switch. I have a Switch and I'm always
remarking on like its performance or lack of performance. But
inside Switch Too is a really important GPU.
Speaker 18 (44:34):
That's right, So there's a custom and video chip inside
of the new Switch Too. I'm not sure I would
say it's a completely different console. I think the form
factor is very similar. It's capitalizing on the switches innovation,
being you know, both portable and having a Doctor TV mode.
It has these detachable controllers called joy cons. You know,
it's not quite as big a leap as past console
generations were for Nintendo. A lot of people think it's
(44:56):
playing pretty safe right now, which is a good bet.
And so the games industry has been having a lot
of difficulties for the last couple of years.
Speaker 3 (45:03):
Okay, go check on that guy that was in line
since April and we'll make sure he's okay. Bloomberg, Cecilia Dianastasio,
thank you very much. That does it for this edition
of Bloomberg Technology Real quick. Tesla Right, there was some
buoyancy in Friday session, Caro, but the main point is
that on the week, this was the worst week for
Tesla since February, and in aggregate this is a huge story.
Speaker 2 (45:25):
Yeah, and this one that's going to play out over
the course of the weekend. Watch for shots fired or
Not and pulled back on social media of your choice.
Don't forget to check out our podcast recap on the
feud that was. You can check it out online on Apple, Spotify,
and iHeart this is Bloomberg Technology
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:34):
Live Prince San Francisco. This is Bloomberg Technology coming up.
Tesla in the crosshairs after the Trump Musk blow up
led to one hundred and fifty billion dollar route.
Speaker 3 (00:43):
Plus what can it mean for space x elon Musk
backpedaling after threatening to pull Dragon spacecraft from NASA missions?
Speaker 2 (00:50):
And is it the fastest growing software startup of all time?
Speaker 4 (00:54):
The company behind coding.
Speaker 2 (00:56):
Assistant Cursor cashes in on the AI frenzy with a
close to ten billion dollar valuation. The first we check
in on the stock of the moment, we were bound
some We recoup about fifty billion dollars on the day,
but over the course of the week we've lost one
hundred and forty billion dollars in market cap for Tesla
is now sub one trillion dollars. It is his worst
(01:17):
week since February of twenty twenty five, right.
Speaker 3 (01:19):
And at one point in the session, the worst week
going back to October of twenty twenty three.
Speaker 5 (01:24):
We need to talk more about what is happening.
Speaker 3 (01:26):
Let's go to DC to discuss it with Bloomberg's Balance
of Power hosts Katie Lines. The latest reporting, Kaylee, is
that in the whirlwind of the last twenty four hours,
there will not be a conversation or phone call between
Elon Musk and the President today.
Speaker 6 (01:42):
Yeah, that is what White House officials are signaling to Bloomberg.
And despite the fact that there was reporting that some
kind of call must happen, and there's been signaling from
Elon Musk that he is willing to lower the temperature here.
After someone posted on X at him yesterday that they
should call off for a few days. He said that
was good advice. And when Bill Ackman said that Trump
and must need to make peace for the good of
the country, Elon Musk responded, You're not wrong. So it
(02:05):
does seem on at least one side, there is a
willingness to lower the temperature here. It's unclear though, whether
or not President Trump feels the same way as that
same White House official that indicated no call would happen
today also said that Trump is considering selling the Tesla
that he purchased in that flashy White House event just
months ago when these two were still incredibly tight. So
if they can't fully mend fence this here, obviously, there
are some major implications we have to consider. There is
(02:27):
the political implication of whether or not Elon Musk will
continue to attack what is supposed to be President Trump's
landmark legislative accomplishment in his second term, this one big,
beautiful bill. Well, Elon Musk's criticism may not actually change
the odds of the legislation getting through Congress. At the
very least, him broadcasting his views to hundreds of millions
of people does damage Republican messaging around the deficit impact
(02:49):
of this legislation. There's also Elon Musk's money to consider.
He of course deployed some two hundred and ninety million
dollars in the twenty twenty four election cycle, a lot
of that toward the effort of getting President Trump re elected.
But Republicans have to consider whether or not Elon might
deploy that money to primary challengers. For example, if he
decides he would like to punish those who go ahead
and vote for this legislation, that will, of course, in
(03:10):
addition to raising the deficit, lead to the rollback of
ev credits that Tesla benefits from There's national security implications too,
given that Musk and those working for him in DOGE
were given access to government systems. It's unclear how far
that access winter whe whether or not access for some
of those individuals is going to be revoked. And then
you get into, of course, the business implications as to
(03:31):
whether or not government contracts, as President Trump threatened yesterday
that Elon Musk's companies from SpaceX to others could actually do,
actually benefit from need will actually go away. So there
are many different layers to this.
Speaker 4 (03:44):
And while there is.
Speaker 6 (03:45):
A signal that maybe things have cooled down for now
after what was an incredibly wild day yesterday, or this
escalated very quickly, there's really no telling where this goes
from here.
Speaker 2 (03:54):
What a thorough round up, Kaylie Lines. We appreciate it
from Washington. Let's now bring in Bluemeg's Max Afkin from
the Elon Inc. Team and Max, I just want to
get your perspective here.
Speaker 5 (04:05):
Ron.
Speaker 2 (04:05):
We know how tough the president can be when he
holds a grudge. Harvard's experienced it, universities have experienced it.
Speaker 4 (04:13):
But what about Elon.
Speaker 2 (04:14):
He's still got that vote going on on X about
whether a new political party needs to be formed. Do
we really think he's going to cool down from here?
Speaker 7 (04:21):
I think it would be in his interest to cool down.
And I think the stock chart that you showed reflects
that there is no universe that I can imagine anyway.
Speaker 5 (04:31):
Where Elon Musk maintaining this.
Speaker 7 (04:33):
Position where he's, you know, this kind of maximalist. We
should impeach Donald Trump, start a new political party, you know,
yesterday accusing Trump of being associated with Jeffrey Epstein. You know,
like this, this is a point where he's going to
start alienating MAGA aligned customers. And unfortunately for Tesla that
(04:54):
is now an important contingent of their customer base because
Elon Musk has already alienated the left leaning customers. So
you're in this situation that is difficult.
Speaker 5 (05:03):
Now. Musk has cards to play, right.
Speaker 7 (05:05):
He has the money that he can donate, as we
just heard. He also has this aerospace company, which you know,
the US Trump can threaten to cancel contracts, but you know,
as the Pentagon is construction constructed right now, and as
NASA is constructed, they are depending on SpaceX for rocket launches.
So he has cards to play, But I don't see
(05:28):
how he can kind of maintain this pose without watching
Tesla's stock decline further, without watching sales fall further. I mean,
this is the most self destructive.
Speaker 5 (05:38):
I've covered Elon Musk for a very long time.
Speaker 7 (05:40):
This is the most self destructive that I have ever
seen Elon musk Okay.
Speaker 3 (05:44):
Tesla says are up more than six percent in the session,
but we remind ourselves that the stock fell fourteen percent
as of yesterday's close. And while all of this was happening,
something you mentioned was the core story President Trump's threat
to cancel government tracks.
Speaker 5 (06:00):
And if you look at it from the Elon Inc.
Speaker 3 (06:03):
Lens Max, Tesla is the publicly traded proxy for sentiment
towards Elon wright But since two thousands, Tesla SpaceX in
aggregate have benefited from more than twenty billion dollars in grants, subsidies,
and direct contracts. Explain that landscape to us, and what's
at stake here if the President were to carry.
Speaker 5 (06:24):
Through with that threat.
Speaker 7 (06:25):
You know, That's why I'm reacting the way I'm reacting,
and why I think there are a lot of people
who still kind of expect, you know, maybe some reconciliation
because Elon Musk has over the course of his career,
as you just said, Ed, he has been really really
effective at basically getting the federal government to give him money.
And I think what we have been seeing and you
(06:47):
saw this frustration coming out a little bit in the
wake of the departure of Jared Isaacman, the person who
Musk had hoped would be the NASA noominee, as well
as the discussion around the ev tax credit, which is
part of this tax bill that the Republicans are trying
to pass. You saw a little bit of frustration I
think from Elon Musk that although he's had tremendous influence
(07:09):
and although he's begune to all the parties he's been
in Mara Lago, Trump has led him, you know, basically
it seems to do whatever he wants with DOJE, he
hasn't actually been able to get the business priorities, and
now of course is going to get harder.
Speaker 8 (07:22):
Now.
Speaker 7 (07:22):
Like I said, I don't think the government is just
going to unilaterally cancel SpaceX contracts, but the government has
leverage over Elon Musk, and Trump is signaling that he's
wanting to use it.
Speaker 3 (07:32):
What I reported with our DC colleagues is that Isaacsman's
nomination was canceled because of his relationship with Elon Musk
and a White House official called Sergio Gore who did
not like Elon Musk.
Speaker 5 (07:44):
And that's in copy on Bloomberg dot com.
Speaker 3 (07:46):
Bloomers. Max Chafickin of Elon Inc. Fantastic, Thank you very much.
I want to go to Nancy Tengler. She's CEO and
CEO of Laffer. Tengler investments about one half billion dollars
in assets, but a significant holding of Tesla Sheff Nancy.
Is what we saw in Tesla's stock yesterday Thursday, the
(08:06):
drop in fourteen percent. Is it the market betting against
Musk himself as opposed to whatever they feel about the
long term thesis of Tesla.
Speaker 8 (08:18):
I don't know, Ed, I thanks for having me. I
think part of what we saw yesterday is what we
always see in the short term, and that is that
the algorithms read the headlines, then the shorts jump in,
and this is the stock and the guy that everyone
loves to short. So I mean, I'm not saying I
think this was well advised what Elon did, but I
(08:38):
do think the fundamentals ultimately will trump this issue if
you will no pun And that's important because this might
be a great entry point we had, you know, we'd
bought in at it again to our holdings on March tenth.
And I think the stock was training about two forty
that looked really smart until yesterday. But that's a and
(09:00):
I think you do want to add it on in
the volatile periods because Musk has a habit of teetering
on the edge of destruction and then pulling himself back
in the nick of time. He has said himself he's
wired for war, and he often shoots himself in the foot,
and clearly he's not wrong about that.
Speaker 4 (09:20):
The shooting in the foot.
Speaker 2 (09:21):
How prolific could that get in terms of getting robotaxis
and a cybercab on the road and implicating that long
term thesis that so many people hold.
Speaker 8 (09:33):
Yeah, I don't think it will. I mean, Caroline, I
don't know. But because President Trump's equally unpredictable. I was
reading a story about one of his previous advisers who
had given him all the judicial nominees in his first term,
and he called him a sleezebag who hates America. So
he has a habit too of embracing people and then
(09:53):
disengaging and not only disengaging, but saying some pretty rough
things about him. So, but that said, I do think
that what the administration understands is they do need productivity
driven growth to make this tax bill work, and a
good portion of that is pointed at Elon Musk and
his efforts and initiatives, including Robotaxi. I expect that next week,
(10:17):
after the Robotaxi announcement, unless something ridiculous happens, that we
will be talking about something else as it relates to Tesla.
Speaker 2 (10:25):
What's interesting is we're talking about something else that relates
to Elon. We're going to talk more about the space
part of the equation later in the show, Nancy. But
it's interesting that there's some debt being shocked by Walgan
Stanley right now for Xai, and it went on for
sale basically yesterday. We wonder what the sentiment is like
in terms of shift. Would you want to be adding
(10:45):
at this point? You said, maybe it's smart, but would
you want to be adding exposure to all things Elon
at this moment?
Speaker 8 (10:52):
So we have a pretty full position, and there's a
reason this stock is not in our twelve Best Ideas portfolio, Caroline,
because it is inherently bald, and a lot of it
has to do with Elon, So I would say if
you don't own it. And we have some clients who
have asked us to buy positions for them today, which
we will do in their non managed accounts, but effectively,
(11:13):
I'm going to wait and if we see what we
need to see next week and the stock doesn't bounce,
then we may actually add to it, just discreetly, not
in a big way, because it's a four percent position
or it was yesterday, so call it three and a
half today, and that's about as much as we want
to own of this stock in our growth portfolio.
Speaker 5 (11:33):
Let's go back to Robotaxi.
Speaker 3 (11:35):
This is the thesis from Bloomberg Intelligence, our in house
analysts about what the events of the last twenty four
hours mean, and they argue specifically that it will result
in a protracted rollout of Robotaxi, because the whole trade
was based on the idea that Musk's proximity to the
(11:55):
President would result in favorable legislation or federal level policy
that would help Robotaxi.
Speaker 5 (12:03):
Where do you stand on that, Nancy.
Speaker 8 (12:05):
Yeah, And I think that's that's that's the risk, and
that's that's one of the reasons that we're not jumping
in here the regulatory environment. But I would also point out,
you know, all the tech CEOs sort of did their
homage to the administration and to the President in particular,
and it hasn't really resulted in much good news from
(12:26):
a regulatory standpoint. In fact, you could argue it's resultant
in none Apple Google Meta. So I think that I'm
hopeful that cooler heads will prevail, that the technology will
be seen for what it is. And you know, if
you look out that the Robotaxi would be the lowest
(12:47):
cost per mile provider, there's only two way MO and
it comes in significantly below And so I think there's
a lot of reasons to support this technology. But you
know that these are two unique individuals.
Speaker 3 (13:03):
I think it's important to pull out point out that
actually Musk was quite consistent over a number.
Speaker 5 (13:07):
Of months that he would be fine if EV subsidies
were killed or cut.
Speaker 3 (13:12):
He said it in July, he said it in December,
he said it more recently, and Trump said it at
March's Cabinet meeting. Does that factor in for you his
position on that, Yeah, yes.
Speaker 8 (13:25):
I mean I thought that was disingenuous of the President
yesterday to say that he saw that the ev mandates
were gone, and that's what drove him crazy. I think
that was the direct quote. He has been consistent. I
agree with his position on that it supports the weaker manufacturers.
It doesn't necessarily support the industry leader. The Tesla buyer
(13:47):
is really not influenced by the mandate, and most don't
qualify because of the income limitation. So I think Elon
is a smart businessman, and what really frustrated him was
the fact that the government is not run like a business.
So you make the logical, you have the logical discussions,
and then the government goes on this giant snowball rolling
(14:10):
down a hill. So I'm hopeful that we will see
things settle down and that next week I'm hoping we'll
be talking about Robotaxi and how amazing it is. I
live in Weymo Land. It's pretty exciting what's going on
and what Amazon is doing with robots delivering packages. They
could be getting out of a robotaxi for all I know.
Speaker 2 (14:32):
Let's just go to sentiment on buying a Tesla though, Nancy,
because this I think is what's caught many off guard.
Europeans are incredibly angry about some of the political leanings
that Elil Musk has had, and it's affected sales.
Speaker 4 (14:47):
It would seem it hasn't.
Speaker 2 (14:48):
Just been the production hole and the wait for a
new model. Why missing that borne out in may numbers.
So will this implicate who buys Tesla's going forward?
Speaker 8 (14:57):
That's a great question, Caroline. You know it's interesting is
that by D has been taken to task by the
Communist Party for lowering prices because they're in an inflationary environment,
and so I find that super interesting. Will that open
up some space for Tesla again in China? It could.
I mean they've called it rat race competition at the
(15:19):
Communist Party, calling out the CEO. So we may see another,
you know, another instance where the public market is invaded
by the Communist Party, and that may help. But I
don't think people are going to get over this soon.
I think they will eventually get over it. But he
needs to dial down the rhetoric and the drama and
get back to the business of you know, optimists and
(15:41):
robotaxi and full self driving. That is what people own
the stock for, and for his brilliance and genius, of course,
but not for the historyonics.
Speaker 2 (15:52):
And therefore, do you think you're going to get enough
of his attention, particularly on the humanoid robot side of
the equation.
Speaker 8 (15:59):
I mean, what Tesla has said is that they're going
to have thousands in their factories coming up. That would
be a good thing, Caroline, because you know, we have
fought as much as the President talks about bringing manufacturing
back to America, we have five hundred thousand manufacturing jobs
that have gone unfilled. It's hard to turn that one
around when for years we were shrinking the manufacturing base.
(16:20):
The solution is robots, not across the board, but in
a good instance, and they are a very productive way
of producing things. So just as AI is writing AI code,
I think the robots will build the robots, and we'll
see manufacturing plants use more and more robotics. That's a
good thing, and I think Tesla will be at the
(16:41):
center of that, as well as energy storage.
Speaker 3 (16:45):
If anything's come out of the events of the last
twenty four hours, it's to remind us of the deficit.
Nancy listened to this.
Speaker 4 (16:52):
We can debate.
Speaker 9 (16:54):
He didn't get his trillion, he or probably one hundred
billion or so in terms of cuts, but he worked.
He was part of Doorge. It was right after the inauguration.
Speaker 4 (17:04):
We had do it.
Speaker 9 (17:05):
So I think I think some of this is as
he's looking at this one big beautiful bill seeing that
really the tax cuts are temporary. So is Musk trying
to highlight the deficit issue again.
Speaker 3 (17:18):
Remember this was all about the big beautiful bill, That's
where it started. Is Musk putting the emphasis back on
the deficit helpful?
Speaker 5 (17:25):
Nancy?
Speaker 8 (17:26):
I actually think it is. I think a lot of
what he's done has changed the narrative, whether you support
dose or not. It's shine a light on the profligate
spending in Washington. And I think what most Americans took away,
And just like if you just start with Harvard, why
is the government giving an educational or institution that has
(17:48):
a endowment sorry of fourteen billion dollars, whatever it is,
Why are we giving them hundreds and millions of dollars
every year? Those are good debates to have, and there
may be a very good reason, But I don't think
most people think that the government is efficient with their
tax dollars, and so to change to start that debate,
then to see it, you know, do the work, see
(18:10):
it unwound. Really with this tax bill which is long,
un spending, I don't like it either. I don't think
it's a very good bill. I think that they could
have done better. They obviously don't think they could have.
I'm not there, but I think that's that's really what
he's focusing on, and that's important. Thirty seven trillion dollars
is debt is nothing short of suicidal in my view.
Speaker 2 (18:34):
Last sort of posts from you know Musco are about
a slim, beautiful bill and Nancy Tangl We appreciate it.
CEO and CIO of Leffetengra Investments, Happy weekend to you.
Speaker 4 (18:45):
Now coming up Anisphere.
Speaker 2 (18:46):
It's the maker of the popular AI coding assistant Cursor.
Speaker 4 (18:50):
You've got to have heard of it. You might have
used it.
Speaker 2 (18:52):
It's got a new valuation a nine point nine billion
dollars to swing with the CEO Michael Truell. Next, this
is a blue Bow Technology.
Speaker 3 (19:09):
The company behind the popular AI coding assistant Cursor has
a new valuation nine point nine billion, just three years
after it was launched and says it's bringing in five
hundred million dollars in annualized revenue. Michael Truel is any
Sphe's CEO, and he joins us. Now your name comes
up a lot all the time, not just here in Silicon.
Speaker 5 (19:29):
Valley, everywhere.
Speaker 3 (19:31):
The growth that you've seen in the platform has been rapid.
Speaker 5 (19:36):
This is a finance story, you know.
Speaker 3 (19:38):
It's a funding, it's a access to capital. But what
I want to ask you is what the true motivation
behind it was. Did you need the money or was
it just because of the interest.
Speaker 5 (19:47):
In you from the outside.
Speaker 10 (19:50):
Well, the goal for us with building Cursor is to
invent a very new way to build software, right and
I think that the product that we built today is
just the very start of that. I think that over
the next five years we have a chance to invent
a style of programming that looks very different from how
you build software today, one that's much higher level and
more productive. And it's just still down to defining what
(20:12):
you want to show up on the computer and how
you want the.
Speaker 5 (20:14):
Software to work.
Speaker 10 (20:15):
And we have a long way to go there, and
there's a lot of research and development to do to
get there. And so we took on this capital to
invest in frontier AI coding research.
Speaker 3 (20:26):
What is unique about Cursor, how it was written relative
to what Claude is offering with their similar tool, Windsurf
and other similar platforms.
Speaker 10 (20:36):
Well, the EPI models created by folks like Anthropic and
Gemini and open Ai are fantastic and our big parts
of Cursor and the power the technology under the hood,
alongside custom models that we developed to that are specifically
very good at parts of programming. And so at this point,
(20:57):
Cursor is powered by an ensemble of models. Some of
them are API, a lot of them are custom, and
we do over half a billion model claus per day
on our customer models.
Speaker 5 (21:08):
And it's that ensemble of models.
Speaker 10 (21:09):
Under the hood that separates a useful AI product from
one that's just a demo. And it's that ensemble of
models that gives you the speed, instability and performance that
you need to be really useful vibe coding.
Speaker 4 (21:25):
That is something that's come into our lexicon.
Speaker 2 (21:28):
I just want to be shining a light on who's
been using Cursor for that very reason.
Speaker 4 (21:33):
So no a pitchy.
Speaker 2 (21:34):
Just take a listen to what you said a couple
of days ago at the Blombag Tech Summit.
Speaker 10 (21:39):
I wish I could, I could do more, but you know,
I've just been messing around beat either with cursor or you.
Speaker 5 (21:46):
Know, I wipe coded with replet.
Speaker 10 (21:49):
Compared to the early days of coding, things have come
a long way.
Speaker 2 (21:55):
How's it feel that the CEO of Alphabet is using
what you've made and only the last few years.
Speaker 10 (22:00):
Well, it means a lot, and we're honored, and we're
big fans of the technology and the company that you know,
he and the people working with him have created.
Speaker 4 (22:11):
I will say that.
Speaker 10 (22:12):
Our target market, the person we're really building for, are
folks who build software for a living, professional software developers,
and our goal is to raise the ceiling. But by
doing that you do raise the floor too, I mean
lower the floor. And it's been awesome to see folks
that are less technical executives, designers, product folks also experimenting
(22:33):
with building software and to end and.
Speaker 4 (22:35):
The money is through subscriptions.
Speaker 2 (22:37):
It's made you many would claim to be the fastest
growing software startup ever.
Speaker 4 (22:42):
And I'm interested.
Speaker 2 (22:43):
Is the pivot to enterprise really what drives your growth
from here? Because you have been about individuals, but you're
selling forty dollars subscriptions for the business is.
Speaker 4 (22:49):
That the growth trajectory.
Speaker 5 (22:51):
We have a very healthy upmarket motion.
Speaker 10 (22:53):
A lot of our growth comes from serving larger and
larger companies, and we're happy to announce as part of
the funding that we're serving over half the Fortune five
hundred and companies like in Nvidia and Adobia and uper
and we're very happy to be serving those folks missions.
Speaker 3 (23:10):
The question is posed all the time if a larger
entity will try and acquire you, has a larger entity
tried to acquire you? And when I say a larger entity,
I mean a company that is of open AI scale,
XAI scale and thropic scale.
Speaker 10 (23:28):
Well, we can't comment on anything like that here.
Speaker 5 (23:30):
Actually we just stay in age. You can go ahead.
Speaker 10 (23:35):
I will say that we would like to build an
independent company.
Speaker 5 (23:40):
You know, the founding team and I.
Speaker 10 (23:41):
Feel like we were bid for this opportunity and we're
really energized by the product Jurney that we have had
of us, and we would like to do that.
Speaker 2 (23:48):
Tocandal one Michael Trull, CEO of Anisphere, of course, maker Cursor,
it's a joy.
Speaker 5 (23:54):
Take you for grabbing me. Thank you.
Speaker 2 (23:55):
Now we've got some breaking news regarding rare Earth and
supply chain. Let's just take a look how China is
granting rare earth permits to some US auto suppliers.
Speaker 4 (24:04):
This is currently, of course being.
Speaker 2 (24:06):
Discussed by Reuters as we stand reported by Reuters up
three tens percent on General Motors.
Speaker 4 (24:12):
The other well auto.
Speaker 2 (24:14):
Companies have been training higher in the session. China granting
rare Earth's permits to some US auto suppliers.
Speaker 4 (24:20):
According to router s.
Speaker 3 (24:21):
Ed Okay, coming up on the show, the feud between
President Trump and Elon must maybe calling off, and the
future of US space has some thing to do with it.
Speaker 5 (24:30):
We're going to talk.
Speaker 3 (24:31):
About the rocket man and the President of the United States.
Next from San Francisco, this is Bloomberg Technology.
Speaker 4 (24:48):
Welcome back to Bloomberg Technology.
Speaker 2 (24:49):
I'm Karen Hyde right here in San Francisco.
Speaker 5 (24:51):
Yeah, for the final day this week, and I'm ed Lovelow.
What are you looking at.
Speaker 2 (24:54):
Let's get a check on these market said, because actually
despite the sell off in one particular name that we've
seen a couple of days, then as at one hundred
has had a nice week.
Speaker 4 (25:03):
We're up almost two percent.
Speaker 2 (25:05):
As it stands now, we're currently seeing what the best
week since all of last week, but it's two straight
weeks of games. We're up two percentage points. If you're
looking at points contributors on the day in videos up
there Apples there, Amazon's there, so too is Tesla. Let's
look at Tesla though over the last five days. Yes,
it claws back some of its market capitalization erosion that
we saw yesterday hard and fast.
Speaker 4 (25:25):
But over the course of the.
Speaker 2 (25:26):
Week we are down by one hundred and forty billion
dollars in terms of market cap. All of this as
Elon goes versus well the most powerful person in politics,
President Trump.
Speaker 3 (25:38):
Let's recap from romance to breakup and now maybe a truce.
It's started with Musk slamming Trump's tax bill. Trump's response, disappointment.
Speaker 8 (25:50):
I've always liked Dylan and as times we very surprised.
Speaker 11 (25:53):
You saw the words he had for me, the words,
and yes, I said, any thing about me that's bad,
I'd rather have been printed serves me than the bill,
because the bill is incredible.
Speaker 3 (26:04):
Trump claimed that Musk was mad about ev incentive cuts,
must denied it, noted he's long opposed to subsidies.
Speaker 5 (26:11):
Then it turned personal.
Speaker 3 (26:13):
Trump called Musk crazy and claimed he kicked him out
of the administration.
Speaker 5 (26:17):
Musk fired back. Tesla shares dropped.
Speaker 3 (26:20):
Investors had hoped must ties to Trump might fast track
ROBOTAXI rules. Then Trump threatened to end Musk's federal contracts,
a direct hit to SpaceX. Musk said he'd pulled Dragon
spacecraft from national missions and then he walked it back.
So what happens now for space policy? And Musk Blooma's
(26:41):
Lauren Grush joins us, Now we're focused on Dragon, which
is the capsule that sits atop the SpaceX rocket that
takes humans and cargo to and from the.
Speaker 5 (26:50):
International Space Station.
Speaker 3 (26:52):
Musk said that he would decommission the program and then
walked it back.
Speaker 5 (26:55):
Explain why that was so important.
Speaker 12 (26:58):
Yeah, it's hard to over state just how dependent NASA
has become.
Speaker 8 (27:02):
On SpaceX and the Dragon spacecraft.
Speaker 12 (27:05):
It is kind of the It is the primary way
that the NASA sends humans to.
Speaker 8 (27:11):
The International Space Station, and it.
Speaker 12 (27:13):
Is probably the biggest supplier of food and supplies to
the ISS. So without it, we can't stall have the
space station very well, and we can't send.
Speaker 8 (27:24):
Food there for the astronauts to eat.
Speaker 12 (27:26):
So we do have some other options, but none are
as prolific as the Falcon nine and the Dragon combo,
so it really would bring the operations at the ISS
to a standstill.
Speaker 2 (27:40):
That's the pain point for NASA for astronauts, But what
about the pain point for SpaceX? How dependent is it
on the United States.
Speaker 12 (27:51):
Right, So it's no secret that in order for SpaceX
to become this behemoth company that it has become, it
has really lever NASA and government contracts to get help
develop its Falcon nine rocket, to develop the.
Speaker 8 (28:06):
Dragon capsule, which it uses.
Speaker 12 (28:08):
For commercial purposes. It's not just a government spacecraft. They
have used it to send tourists into orbit and for
private citizens to visit the International Space Station, so they
have actually used it for services outside of the government.
Speaker 8 (28:23):
Of course, you know, SpaceX does have a diversified revenue stream.
Speaker 12 (28:27):
A lot of that comes from Starlink now, which is
it uses to you know, provide broadband coverage to Earth
and to customers. So that has definitely supplemented a lot
of their incoming revenue. But NASA and the Defense Department
are very big customers and it would definitely be a
major hit to their incoming you know, money if they
(28:49):
were to just cancel all of their government contracts without explanation.
Speaker 2 (28:56):
And gosh, a great roundup, thank you so much on
old sides of SpaceX, but for more on the broad
impact of this feud. In indeed, it has cooled down.
Anna Rathman's with US Global Market Strategists. Anna, your perspective
on yesterday's market moves on the back of what seemed
to be online warfare between Trump and Musk.
Speaker 13 (29:18):
Yeah, it was an unfortunate and very unnecessary spat between
two very powerful individuals who have the potential to move markets.
And we really saw that and felt that yesterday. At
the end of the day, the question really was like
who holds more power because that seemed to be the
trajectory of the spat. Where we settled for the time
(29:39):
being is that mister Trump seems to have won it.
And you really saw that because of the potential impact
for cash flow. If SpaceX had been a publicly traded company,
you might have seen something similar for that particular name
as well.
Speaker 8 (29:54):
But frankly, they need each.
Speaker 13 (29:56):
Other and so I'm really glad to see them toning
down rhetoric and taking a little pause to cool down,
because the government needs that public private partnership in order
to make this country great.
Speaker 8 (30:11):
And also, you know, TESLA needs.
Speaker 13 (30:14):
Better regulations or friendly regulations, and space X needs the
government as well, so they're going to have to work together,
whether they like it or not.
Speaker 3 (30:24):
We focused a lot on Elon Musk, and the Elon
Musk proportion of what's been happening. Is there still an
element of headwind risk uncertainty for the technology investor in
the market from the president.
Speaker 4 (30:40):
You know.
Speaker 13 (30:40):
So this takes us to the tariff question, right And
just recently you were just reporting about rare earth minerals
from China and making it available to automakers, and that's
really great news. And after at the heels of the
she Trump conversation yesterday, which was a step in the
right direction, I think this is an olive branch to
(31:03):
take the conversation further. We may expect to see maybe
mister Trump going to China or Cgpin coming into the
United States, and that would be a huge step. But
we do need to make headway because we are at
a daktant.
Speaker 8 (31:16):
I do think that.
Speaker 13 (31:17):
The Trump administration has undermined the difficulty of negotiating with
people who may not just respond to threats. You know,
they call their bluff one hundred and forty five percent tariffs,
and they didn't blink right. In fact, they told us
they wouldn't respond at all. So I think it's going
to take a lot more nuanced negotiations, and I would
(31:39):
look at this rare earth mineral's news as an opening
for a good faith negotiation.
Speaker 3 (31:46):
There are people I've spoken to who would say, I
look at the rare earth situation and wonder what the
United States can do in the context of a trade negotiation.
One idea is a quid pro quo where rare earth
access on favorable terms would be exchanged for semiconductor act
access that's codified in the AI context. That sounds messy,
(32:10):
doesn't it.
Speaker 13 (32:12):
It sounds very messy, and I'm very skeptical. So the
question is who holds the cards. China certainly holds the
cards on rare earths, but in many ways that is
the only thing that they have the cards on where
we absolutely need it. We hold the cards on the
massive consumer base and also influence on other countries as well,
(32:34):
as we've seen through all of this negotiation process.
Speaker 5 (32:38):
So even though Jensen Wang.
Speaker 13 (32:39):
Would love for US to lower the export controls on AI, chips.
I just don't see that happening, because if we make
it available to them, it still doesn't guarantee that China
isn't going to be making a strides and creating their
own chips and designing them. So I don't see us
giving up on it, And that takes.
Speaker 4 (32:58):
Me to one.
Speaker 13 (33:00):
May the solution actually.
Speaker 8 (33:01):
Look like at the end?
Speaker 13 (33:03):
Well, if we're at a daytime and China is a
national security issue, then what.
Speaker 8 (33:08):
Are we willing to compromise?
Speaker 4 (33:10):
Probably not much, in.
Speaker 13 (33:12):
Which case we may actually end up in a similar
place where we started, where nobody is giving up on anything.
And that's to borrow Shakespeare's words, much ado about nothing
for all of this drama.
Speaker 2 (33:25):
All of this drama involves other people than President Trump
and Il Musk, and there are some very focused technology
experts advising the White House.
Speaker 4 (33:35):
One of them is David Sachs.
Speaker 2 (33:36):
There was a lot of concern about what the ripple
effects of this feud might have on him. But thus
far AI policy, crypto policy more broadly hasn't been in
the right direction from your perspective.
Speaker 13 (33:48):
I think in the right direction in terms of doing
that much about it. Yes, I do think that on
the hardware side, yeah, there's going to be some questions
about making certain ships available, but on the software side,
we have to be continuing to develop because at the
end of the day, that's where the race is right now.
It's not just then the chips. The chips were very
(34:10):
excited about, data centers were very excited about, but it's
really the going beyond the proof of concepts and making
it more productive for not only American citizens but global
citizens around the world. Taking that step is the race,
and I think they just need to be left alone
in some ways so that they can continue to innovate.
(34:31):
And also that innovation will come with being able to
protect from the bad actors because ultimately that rounds out
the national security issue.
Speaker 3 (34:41):
And a wrapan global market strategists, thank you very much.
Now coming up will break down one of the splashiest
public debuts in years that have stable coin firm Circle
This next, this is Bloomberg Technology.
Speaker 11 (35:03):
We really do think that major technology firms, major financial institutions,
major commerce firms are going to go to the stable
point route, and we think that they're going to look
to partner with the leading platforms and the leading infrastructure
that can bring the technology the scale, the network effects,
and really the broad regulatory footprint like Circle has provided.
Speaker 2 (35:25):
That was Circle CEO Jeremy Lair. Following the stable coin
Firms IPO. That was yesterday's Circle shows are still surging
after the company and its shareholders raised nearly one point
one billion dollars in an upsized offering. Stock was holded
several times of volatility on the first day. Let's bring
in Matt Ugu's Venture Science founding partner and a Circle investor.
Speaker 4 (35:45):
Look, I have to ask the.
Speaker 2 (35:46):
Question, was too much money left on the table? It's
now trading a one hundred and nine. Did the bankers
get the price just too low?
Speaker 5 (35:52):
Here?
Speaker 14 (35:53):
Well, thank you for having me, but look, nobody knows
how some of these stocks will play out after the bell.
So the important thing was for the IPO to be
sold essentially the night before, and I think it was
significantly oversubscribe, maybe twenty five times oversubscribed. So the companies
(36:15):
do get paid ahead of time, and that's all locked
in and after the bell rings.
Speaker 4 (36:19):
Where the direction takes.
Speaker 14 (36:20):
Obviously, this much of an increase is a pleasant surprise
to all of us involved, but that's kind of how
it happened.
Speaker 5 (36:26):
Let's go back a few years. Why did you first
get into Circle.
Speaker 14 (36:30):
Yeah, that's a great question. I remember, I think about
seven or eight years ago here and here not too
far from these offices here where our offices are actually,
I attended a dinner with a number of people from
the regulatory side, people from I think some crypto experts,
even from the Federal Reserve. And during that dinner, anytime
(36:53):
Circle's name came up, the sentiment was quite positive. So,
you know, obviously cryptocurrency, blocked chain, these subjects carry a
certain nuance with them. But one of the things that
we noticed was essentially Circle was sort of the grown
up in the room and being on the positive side
of you know, regulatory things and compliance. Obviously a US
(37:17):
based company now, that was quite positive. But not to
mention the technology that they're developing. Circle has some of
the best blockchain cryptocurrency engineers in the world, along with
some you know, maybe I have to mention Ripple as well,
because we're Ripple shareholder also, but these are best the
best engineers in the world working on amazing cutting edge technology.
(37:41):
And so the two things combined, along with of course
we're a quant driven firm. A number of other factors
that we considered led us to that decision.
Speaker 2 (37:49):
And now it feels as though that grown up in
the room is bearing dividends when you're looking at the
Genius act coming into play, when you're thinking about the
finally some support for stable coins written large when it
comes from a government perspective, that must have helped the
moon music for Yuipo.
Speaker 14 (38:04):
Now and that absolutely absolutely you're right. And of course,
you know, all the positive signs that I mentioned before
were really the writing on the wall.
Speaker 8 (38:13):
Now.
Speaker 14 (38:13):
Of course, nobody knew how the numbers would exactly play out.
And again this is a pleasant surprise, and the stock's
doing very well today.
Speaker 5 (38:21):
This is liquidity event for you.
Speaker 3 (38:22):
This is a great moment to celebrate a return for
you and shareholders, or you keep holding, we keep holding.
Speaker 14 (38:28):
We're a different firm. We participate both in the equity
capital markets offerings as well as the private positions that
we carry, and so we're holding on to both for now.
Speaker 3 (38:37):
Matt Agus Venture Science founding partner, thank you very much.
Peloton CEO Peter Stern says he has no interest in
selling the business while he works on its turnaround. He
made those comments at the Bloomberg Tech Summit in San
Francisco yesterday, where Stern outlined his vision for reviving the
fitness giant. Here he is alongside Bloomberg's Mark German.
Speaker 15 (38:57):
My predecessor took a lot of the really hard step
to right size the company and set us up so
that now we can execute on the strategy of empowering
people to live fit, strong, long and happy. And we're
doing that for six million members in multiple countries. We're
in a really good place now to build on that
really strong foundation that was established by my predecessors.
Speaker 5 (39:20):
So what is the strategy?
Speaker 16 (39:21):
What is Peter Stern's strategy for Peloton? Are you going
to keep it a hardware software services company? Have you
thought about spinning out the hardware and focusing just on
the app.
Speaker 15 (39:32):
Yes, we're an equipment company plus amazing software plus human
coaching with community.
Speaker 4 (39:38):
We are not Our future.
Speaker 15 (39:39):
Is not to try to scale the app at the
expense of that equipment business. We have reignited the innovation
engine for us as a company, and so focusing on
the products and the experiences that we're going to offer
over the next few months is absolutely my number one.
Another one that I think is really important that We're
(40:00):
focused on is how we use AI to deliver personal
experiences for our members. That that is another one that
I'm spending an enormous amount of time on, so huge
priority for us.
Speaker 16 (40:11):
Last question for you, Peloton standalone business for years to come?
Is it potentially an acquisition target for a larger company?
Speaker 5 (40:20):
What do you see as the you know?
Speaker 15 (40:22):
I mean, I was not hired to sell this company.
I was hired to bring this company back to growth,
to reinvigorate it, and it is happening.
Speaker 4 (40:30):
So there is we are.
Speaker 15 (40:33):
We are a standalone company for years to come.
Speaker 2 (40:35):
Allison ceop to stand there alongside Bloomberg's Mark gum And
at the tech summit coming up. The Nintendo Switch to
It has finally been released. We can be breaking down
what the biggest consumer tech product release of the year
really means. This is Bloomberg Technology.
Speaker 17 (41:00):
Hard to overstate how important the switch is for Nintendo.
Almost all of its revenue comes from this one product
or the exclusive games the company develops for it. Its
popularity since twenty seventeen has driven Nintendo's share price to
an all time high, and everything's riding on the switch
to keeping that trend going.
Speaker 4 (41:21):
The stakes were very high.
Speaker 2 (41:23):
Nintendo is us the most successful point in its history.
Speaker 17 (41:28):
And here's why. The Nintendo DS one hundred and fifty
four million sold, the follow up three DS seventy six million,
the Wei one hundred and two million sold, the follow
up We You, Oh Dear, and the Nintendo Switch almost
the best selling console of all time one hundred and
(41:49):
fifty two million sold.
Speaker 9 (41:51):
No pressure then, Switch one created a very high hurdle
for the future consoles to serve us.
Speaker 17 (41:57):
So Nintendo's breaking new ground with some subtle shovels.
Speaker 7 (42:01):
It's the first console on Nintendo's history that is kind
of the same thing, but just.
Speaker 4 (42:06):
A little bit bigger and a little bit better.
Speaker 17 (42:08):
That strategy belies decades of corporate lessons learned sometimes the
hardest way. But this time the stakes are just too
high for history to repeat itself.
Speaker 4 (42:20):
It's a cool.
Speaker 2 (42:23):
And now it is here Legions and Gamment is now
unboxing trying the new four hundred and fifty dollars gaming
console for the very first time, removes Cecilia Denistasio joins us,
now does it live up to the hype?
Speaker 18 (42:35):
The console definitely lives up to the hype. It is bigger,
It's got better graphics. It's launching with a game, Mario
Kart World that everybody is so excited for. Gamers were
lined up around blocks and blocks outside of the Game
Stop stores in Manhattan and Nintendo New York.
Speaker 5 (42:51):
So in San Francisco, Cara, I forgot to tell you this.
Speaker 3 (42:54):
So I was driving to our event Wednesday night in
June fourth, the night before June fifth, and in Union Square,
San Francisco, Cecilia, people were lining up and I was thinking,
like they got the date wrong. But I guess it's
like one of those iPhone moments where people, I guess
are holding their spot.
Speaker 5 (43:09):
In line overnight. Or is that the level of enthusiasm
we're talking.
Speaker 4 (43:13):
About, not just overnight.
Speaker 18 (43:15):
I talked to one customer who was waiting outside of
the Nintendo New York store since April. He had people
holding his spots wait was bringing him pizza. Yeah, shout
out to Chicken Dog. He got the first switch to
at the Nintendo New York store, given to him by
Nintendo of America president Doug Bowser.
Speaker 2 (43:33):
I hope he got some accolades for standing in line
for that time.
Speaker 4 (43:37):
That's an extraordinary story and therefore the rewards to chicken
dog who stood there for how many days and months?
Speaker 2 (43:44):
Is how high fidelity were talking how much we likely
to see the games come into their own because we
saw a lot of Mario Kart just then, But there's
plenty of other zeldas that you can be getting the
action on.
Speaker 18 (43:54):
Yeah, so the Switch Too launched with a lot of
sort of refreshed versions of very popular games from the
original Switch console. There are a couple of games that
people are really excited about going forward, including a new
Donkey Kong game. But people I spoke to, while they
are very excited about Mario Kart, some people feel a
little bit disappointed with the launch slate of games. It's
not quite so big. Nintendo should be filling that out
(44:16):
over the next year or so.
Speaker 3 (44:19):
Sceire, I think it's important for you to explain to
audience that this is like a completely different console to
the original Switch. I have a Switch and I'm always
remarking on like its performance or lack of performance. But
inside Switch Too is a really important GPU.
Speaker 18 (44:34):
That's right, So there's a custom and video chip inside
of the new Switch Too. I'm not sure I would
say it's a completely different console. I think the form
factor is very similar. It's capitalizing on the switches innovation,
being you know, both portable and having a Doctor TV mode.
It has these detachable controllers called joy cons. You know,
it's not quite as big a leap as past console
generations were for Nintendo. A lot of people think it's
(44:56):
playing pretty safe right now, which is a good bet.
And so the games industry has been having a lot
of difficulties for the last couple of years.
Speaker 3 (45:03):
Okay, go check on that guy that was in line
since April and we'll make sure he's okay. Bloomberg, Cecilia Dianastasio,
thank you very much. That does it for this edition
of Bloomberg Technology Real quick. Tesla Right, there was some
buoyancy in Friday session, Caro, but the main point is
that on the week, this was the worst week for
Tesla since February, and in aggregate this is a huge story.
Speaker 2 (45:25):
Yeah, and this one that's going to play out over
the course of the weekend. Watch for shots fired or
Not and pulled back on social media of your choice.
Don't forget to check out our podcast recap on the
feud that was. You can check it out online on Apple, Spotify,
and iHeart this is Bloomberg Technology
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