‘Bloomberg Technology’ Full Show (07/02/2020)

published on July 17, 2020

welcome to bloomer technology I'm Emily Chang in San Francisco US stocks and carrying their gains today after a largely positive jobs report payrolls rising by five million but remember most of these are not new jobs they are just

Replacing old jobs that were lost the unemployment rate rising falling for the second straight month but there are rising concerns that researching cases of kovat 19 could jeopardize the economic recovery our Abigail Doolittle

Has been following all of this Abigail the markets up but off the highs of course jobs driving the early gains but still the concerns about new cases seem to win out there's a real tension here Emily between the good news and the bad

News so the good news of course that jobs report that you were mentioning in the sense that things will improve more quickly for the economy than some hope and hoping for not a lot to talk about a v-shaped recovery on the day but

Nonetheless a very good report they're lending some optimism on the other hand the virus data here in the US and these hot spots really worsening so at the end of the day well off the highs at the highs and Nasdaq had been up more than

One-and-a-half percent on the close up just half a percent where we did have some out performance though the Fang index and socks the socks those chip stocks but remember this year that's the new defense because those are the stocks

And the companies that are really used for the stay at home trend so strength they're almost indicating that some folks think that there's going to be some more stay at home action ahead and confirming this to some degree there was

A bit of a rally for bonds not a big one but the five-year note up just a little bit with that yield going down of course price reads inverse to yield and one stock that was notably down because most big tech stocks were higher Facebook and

Over the last nine days around some of these big companies boycotting their platform for advertising down more than 2% also down the day and of course this afternoon there was the headline that CEO Mark

Zuckerberg is going to be meeting with some of the folks behind the boycott perhaps trying to have a conversation there that will be constructive but right now Facebook over the last nine days down and down relatively to a large

Degree on a relative basis Emily because the major averages this week up about four percent Mark Zuckerberg planning to meet with those civil rights leaders on Tuesday and a source telling me that folks inside Facebook aren't planning

For this boycott to end necessarily anytime soon it's not as if it's going to be just a month they could feel the effects of this for longer meantime we are getting some new numbers out of Texas cases jumping four point seven

Percent in Texas exceeding their one-week average so you're seeing Casey's continuing to climb in certain states across the country meantime Abigail I know you've also been looking at Tesla sharply higher after delivery

Numbers for the second quarter hit it hit a pretty big number there what did you see yeah you know this is really interesting it doesn't quite make sense to me relative to the pandemic and you're talking about these worsening

Numbers and Texas and Florida you know these hot spots really taking off so this is relative to the second quarter that of course ended just a couple days ago they typically do their pre-announced on deliveries and they

Delivered almost 91 thousand vehicles in the last quarter it's sort of astonishing to me given the fact that much of the country was shut down and certainly much of it was not driving at all but apparently there was pent up

Demand of some sort for these vehicles it was two-and-a-half percent growth production was down 20 percent but what's really amazing Emily this stock on the year take a look at that chart it's out of control up 189 percent

Parabolic uptrend after parabolic uptrend another all-time high so the Elon Musk factor really seems to be behind some of the stock action of course yesterday we were talking about the fact that this company's market cap

Is now bigger than Toyota's but Toyota's sales on an annual basis simply dwarfs the sales of Tesla so a lot of folks really giving this company a much bigger valuation whether it's Elon Musk or the technology valuation right now Tesla

Long's doing really quite well in this unusual year of 2020 Emily all right Abigail thanks so much for breaking it all day meantime staying on the topic of jobs our next guest is charles cook and doll

Director of talent acquisition at play vs which is an eSports company that offers a legitimate official platform for high school and college eSports and gaming prior to recruiting at play vs he worked in various senior recruiting

Roles at Facebook Airbnb JP Morgan Charles thank you so much for joining us so digging into these jobs numbers a bit further what is the picture you're seeing across the country as we see you know some jobs coming back

But not necessarily new jobs perhaps just jobs that had already been lost thank you so much for that overview Emily from my perspective I foresee a continued decrease which is a positive of the unemployment rate being down 22

Percent I think we have to do optimistically I'm an eternal optimist so I do view that as a positive granted we're still 111 percent above the pre-pandemic numbers for all-time low so we have a lot of work to do a lot of

Companies are continuing to hire people that I know of my personal network who are unemployed in March have now started to get roles and I foresee the next quarter not continuing to decrease that said the economy is in a recession cases

Are researching across the country and if there's one thing ahead it is more uncertainty how do you think that impacts the jobs market in the short term like the next six months I would say in the next six months it is on the

Companies to be flexible and the way that we go about recruitment and hiring thinking about location strategies and the need to be in specific places around the us I think that level of flexibility and honestly changing what

It some says some degree has been very core to how businesses have operated to this point I'm shifting that strategy upfront and thinking about whether we need to increase numbers of contractors on and or full-time and just being very

Strategic and about our hiring plan over the next six months and again we could continue to attack that number I wonder what this means for contractors right now you know they seem to be feeling the uncertainty the most well I

Wouldn't say that Emily I would say contractors and all full-time employees of you look at you know what happened in March there was a number of talented individuals that lost their jobs who were full-time who thought they had 4 to

5 years of security in a role so I think that you know across the board it's a very uncertain time and whether that is contractor or full-time employees everybody's doing the best that they can to attract and retain the talent that we

Do have meantime I know you've really focused on diversity in a number of the roles that you've had and I'm curious how you think diversity will impacted at this time you know on the one hand you've got companies just trying to stay

Afloat are they thinking about the representation in their workforce but on the other hand you've got momentum behind the black lives matter movement and new commitments from CEOs to do better absolutely and I don't think that

The pandemic is any excuse at this point in time there has to be diverse focus in every organization I think the biggest problem that people often share Emily across might set careers that you know people that these senior level positions

Do not exist but that is a falsity there are a lot of diverse organizations that are out there or you that can help you build your top of funnel you partner with those I know here play versus we partner with the company called next

Play events delaying our CEO spoke there and that brought in a lot of inbound resumes but in addition to that once you do find them you need to focus behind being strategic about hiring them and most importantly Emily you have to

Retain them and then promote them that's the full cycle way on a candidate identification retention and then promotion meantime I know this has been hard on everyone but it's been really hard on working parents and as you have

These resurgence across the country it seems like there's a push for schools to reopen but we don't know if they really will that puts an additional burden on working parents especially going into the fall how are you handling

That with your working parent employees internally yes Emily I mean I'll be a walking example of I had to ask my mom to take my son outside so he doesn't run in here right now and if he did he would he would

Definitely take over but more importantly we as parents and as executives top-down have to be comfortable a with you know having those type of interruptions in trusting that you know we are while we're in

Shelter-in-place getting our jobs done be an effective having these virtual meetings and things that I nature I'm so I think just long-term are in the way to be operated prior to koban and the way that we're gonna go back on post

Is gonna change tremendously there still needs to be a work-life balance even though we're at home all day and the focus still on family like I get to spend time with my son you know after work hours and if he

Comes in and interrupts a meeting and for myself and a director level he gives people comfort who are you know more in the mid mid level that you know if that does happen it's not reflected poorly on them and I think that that is a company

Culture that we have to here play versus and every other company should have as well well let's also hope that a few little ones don't run in an interrupt on the side as well play first flavors runs a high school eSports high school and

College eSports platform and I'm curious if you could tell us a little bit about demand during the pandemic I know folks have flocked to eSports with the freeze on professional and live sports and also curious given you know so many children

Quarantined at home how that's impacted things yes we are again you know people are at home people are able to play we're gearing up for fall 2020 season and we also are allowing for people to be able to play from home so please go

To play versus calm see some of the very cool things that we're doing right now we have a number of game offerings and most importantly we're building community through this platform it's not just win or loss it's all about building

A community and that that's the focus that we have and we hope that everybody who's watching go to play bar says calm and take a look for yourself I think you might pick up a controller – all right thank you so much Charles could

Flavors thank you so much for joining us really interesting to have your perspective here today I really appreciate Emily you guys have a going thank you okay coming up deal-making talks between uber

And post mates have gotten tense so a source tells me should post mates consider selling – ooh BRR or an IPO we will discuss next in the midst of ongoing food delivery consolidation this is Bloomberg

You Post Bates is now planning to file for an IPO this according to a report from Fox Business amidst deal talks with uber a source tells me that deal-making talks

Have gotten tense and now things are up in the air this is ubers second chance at trying to revive or add to we should say it's uber eats unit and improve profitability in a consolidating industry for more I want to bring in

Take him Bloomberg opinion columnist who covers technology for us so what's your take Tay on the way this is going should uber be pursuing post waits at this point at a price of you know upwards of two and a

Half billion dollars I think so I think they don't really have a choice they really need to get a deal done they tried to get GrubHub last month and they lost a bidding war with dusty takeaway and since it's a European acquire it

Doesn't fix the problem of there's too many players in the US food delivery space so they really need to get a deal done the food delivery industry has a whole the last few years has pursued this growth at all cost strategies with

Lavish promotions and discounts and the problem is that results in massive losses for everyone in aggregate and ubereats which is losing like 300 million a quarter for the last two quarters they can't continue this

Massive cash burn and there needs to be consolidation so uber in really needs to get to steal done but pose mates is also burning cash and critics say that post mates would only expand ubers footprint in one geography is it worth it I do

Still think so I mean they need to they'll be able to consolidate the operating expenses and marketing sales but also just promotion wise that they really need to get that down from four players to three and I think eventually

This market will turn out like the ride-hailing market where you had all these different startups and now it's down to two players where they're both that can be profitable on either da bases so this market really needs to

Consolidate I do think it's worth it take away buying grub you've got door – the juggernaut here in the United States what is post mates best option though if food delivery is taking off you know because we're in the middle of a

Pandemic maybe their business suddenly looks better and do they pursue an IPO instead it totally depends on what they think they can put out in the market with the bankers and also what uber is going to pay for but even for postmates

That they do an IPO it doesn't fix the problem if there's still too many players in the market and even though like the whole delivery mark is taking off right now as a big beneficiary of a pandemic Morgan Stanley says that it's

Going to be up four percentage points in terms of online penetration the us escrow market it's still the cost structure still out of whack and everyone's still doing just doing all these promotions and losing money so no

Matter what some consolidation has to happen at certain point and everyone can't be losing hundreds and millions of dollars every quarter it's just it's not sustainable all right take him Bloomberg opinion appreciate your

Analysis there thank you so much for stopping by we'll continue to follow the deal talks all right coming up drug makers rushing to develop a Kovach 19 vaccine as cases top 10 million globally where do we stand more ahead with dr

Seth later man chair and CEO of tonics pharmaceuticals which is working on its own vaccine candidate next this is Bloomberg what's happening welcome back to

Bloomberg technology I'm Emily Chang in San Francisco turning now to the race to fight Cove in nineteen Lawrence our of johns hopkins at university joined us earlier to talk about the surge in cases of kovat 19 across the country

Take a listen I think the most important thing we can do today is continue to encourage the public to social to physically get sense in to wear masks a lot of the research that's coming out is showing that that is working and so we

Have to be vigilant I think we all want to move towards reopening but looking at the growing case counts looking at the cases burning across the United States I think it's absolutely critical to maintain those basic public health

Interventions Lauren it is July 1st get out the calendar back-to-school shopping begins in 42 days are we going to go back to school what does the pandemic do to the classroom of elementary schools middle schools and those disease-ridden

Seniors and juniors in high school everybody wants kids to go back to school probably parents the most but I think you know we have to take a cautious approach opening we have a lot more

Research to do on how kids are affected and how kids transmit the virus and and so there's a few in the planning understanding how you can keep kids safe in the classroom how you can get them back safely and also how you can teach

Keep the families of the kids and the teachers and the teachers families safe I mean these are adults who may some of them may be and so you have to figure out ways that you can keep them as safe as possible and that may mean increased

Testing of kids who are going back to school better access to testing more broadly for their families for teachers for you know administrators in the school everyone involved in the process what do you think will be the process

When somebody in chemistry class in the tenth grade gets the virus or their father gets the virus how are we gonna do that yeah it's gonna be really hard I mean I think access to testing remains so critical to

All of these reopening strategies and you know what schools aren't immune to that just because it seems like kids get less sick or transmit less there's still a risk and so if you have someone back at a school who starts to be symptomatic

Or who has a symptomatic family member then you you backtrack right so you do the things that we know work you identify that kid isolate them from school or pull them out of school do contact tracing and symptom monitoring

On the people who came into contact with that person it's hard work and it's it's the the only option we have right now those basic public health interventions Lauren Sarah how do we encourage people or even maybe force people to wear masks

Wearing a mask is politically quite divisive right now and it's really challenging and it's it's something we've been doing a lot of work on it is a basic intervention it is safe we're seeing data that it works in in the

Early times of the outbreak there was a lot of mixed messaging because we didn't have enough masks for healthcare workers we didn't know if people could use them safely we hadn't educated the public on how to wear them and a lot of people

Myself included were skeptical on their utility and I think we've seen a lot of data come out to know that they are effective not just in keeping ourselves safe but in keeping other people safe so the message is really that my mask is

For you and your mask is for me and if we all wear masks we can get through this a lot more safely with a lot fewer infections fewer deaths turning now to the race for a vaccine we've got dr Seth Laderman CEO and chair of tonics

Pharmaceuticals which is working to Ex manufacture a vaccine for clinical trials supply Seth thank you so much for joining us we've only got a couple minutes here talk to us about the latest in

Your quest for a vaccine where do things stand against the broader backdrop thank you for having me on Emily we're all in a rush we are pushing forward with our vaccine which is on a relatively unique platform and we are headed towards

Animal studies later this year and hopefully to have a vaccine to test in humans next year when do you think we'll have a vaccine that mainstream Americans can access well that's an excellent question I think there will likely be

One or maybe more vaccines in 2021 but the first and fastest isn't necessarily the best so the availability of a vaccine will take who will take a while to figure out what people really want to take and some of the early vaccines may

Protect people for a short time it may be temporary immunity and there may be some other benefits but long term we want a vaccine that provides a durable immunity and ultimately prevents what's called forward transmission which is how

Contagious someone is if they do get infected meantime you've got so many different companies racing to a potential finish line here what is the value of a pharmaceutical horse race there's a lot of value because we don't

Really know which vaccine will be best there's a lot of uncharted territory with this virus so this unprecedented effort and the diversity of approaches is really welcomed because everyone is learning very quickly about the virus

And we by having a diversity of vaccines I think we have the best opportunity to effective viruses one of the other aspects is that there may be a situation where certain vaccines are better for some people and others are better for

Others so I think that that's another important aspect of this diversity in the vaccines that are being developed interesting all right doctor stuff later man CEO and chair of tonics pharmaceuticals thank you so much for

Stopping by I do hope you're right and we get these vaccines that quickly all right coming up Silicon Valley success stories include a myriad of immigrant venture capitalists CEOs and entrepreneurs how will the recent White

House ban on skilled worker visas in the us impact the tech economy we'll discuss next welcome back to bloomer technology I'm Emily Chang in San Francisco the latest

Research has found that almost 400,000 temporary visa holders and green card applicants have been affected by President Trump's latest executive order barring them from entering the country until next year a majority of these are

Tech employees in Silicon Valley who don't know when they can even return to see their families in the United States joining us now for more on how this affects the US tech industry are F John Muhammad a partner at Lightspeed Venture

Partners our thank you so much for joining us you are an immigrant yourself and I know you have some strong feelings about this how do you think that this will impact the tech economy yeah first off Emily thank you for having me here

It's such a pleasure I'll start by saying that this is actually deeply personal to me I am actually an immigrant myself I came to the United States 20 years ago from Canada my family is also immigrants they

Moved to Canada from East Africa and and for that my ancestors moved to East Africa from India so immigration has been a part of our lifeblood and fabric but 20 years here in the United States I've been on almost every single visa

That that you can imagine been an engineer in a product manager and now an investor and on a personal note my wife and I actually became US citizens a couple of weeks ago so it's very troubling to see what happened to

400,000 people who were immediately affected and then perhaps the millions of people who will be affected later on I should note that Lightspeed Venture Partners which is a global firm with with offices around the world in India

In Israel in in China and also here in Silicon Valley a lot of us are also immigrant either children of immigrants or immigrants ourselves hailing from places around the world like India and China United Kingdom Australia etc so

For us this is this strikes at the heart of what we do and lightspeed has over the years over the last two decades we've we've got a strong track record of having back many immigrants who came to the us either as

As part of their studies are either searching for a new job worth that companies like Oracle like Microsoft like the school over the years and then started their own company and those companies across life beats

Portfolio have created 35,000 jobs or more here in the United States and many more of multiples of that around the world and so I believe that this this policy is short-sighted it it unfortunately will stifle innovation

Here in the United States it will hurt us on a global stage long term and if you look at some of the track records of company of people who we affect over the years people like Dheeraj Pandey who came here from India's and immigrants

Worked at Oracle started a new tannic a five billion dollar enterprise infrastructure company Mac selection who came to the United States as child started a firm and before that PayPal Ajit Singh who started two unicorns

Including Nutanix and thought spot which between them employ over 7,000 people around the world 3,000 people here in the United States or even folks like Arielle Cohen and Elon twig who came from Israel started trip actions a

Corporate travel unicorn and employ hundreds of people here in the United States it's just it's just devastating to see what will happen over the long term there's a lot of studies that show that people who come here have have a

Higher propensity to start companies and those companies eventually end up employing a lot of Americans the list is long let's be wrong indeed business goes on business goes on and I know that you've been focused on advising

Companies about how to deal with so much uncertainty uncertainty ahead you know we were just talking about post meets earlier in the show do they go public at this time or or do they sell tuber you've got a company's facing some

Pretty critical you know long-term decisions here how do you think companies should be approaching this there's there's a lot that's happening in the world right now one is co vid second is immigration third is a

Potential economic downturn I think companies should be thinking long-term not short-term but also really thinking about how they could manage their or term cash needs and balanced that against coming out of the out of the you

Know a potential downturn much stronger and for us from our portfolio perspectives we've been spending a lot of time with our portfolio founders really thinking about how to maximize cash runway how to make sure that they

Have enough cash for the next at least two years how they're thinking logically about hiring how they're thinking logically about growths over the next few quarters and the next year and then how they invest in in technology so that

When they be when we do come out of some of this uncertainty they're stronger they're more much more efficient and much better capitalized to take advantage of the eventual recovery when it does happen meantime talk to us about

Where you are most optimistic about seeing growth obviously like speed has both a large enterprise and consumer portfolio I know you're an investor in Cameo for example has taken off in the pandemic we just had the CEO on last

Week but you worried that some of these companies that are benefiting right now when people go back to work eventually when what life returns to some sort of new normal then trends change again so what do you think what

Are you putting your bets on for the long term yeah right now we're definitely seeing some areas that are seeing very very strong traction as a result of CO vid but we also believe that in both enterprise and consumer it

Takes on average about 21 days for users behavior to change and so once behaviors change it's hard to unchanged that behavior and so you're right cameo is a great manufacturer of what's happening with people sitting at home and looking

To communicate socially to celebrate milestones to celebrate anniversaries wedding birthdays by by sending a cameo from a celebrity that's definitely one one company that has seen that seen a strong uptick we're also seeing in in

Other companies like daily harvest you know a strong behavior change around ordering organic smoothies and organic food and really just changing behavior on the enterprise side where I spend most of my time actually all of my time

We're seeing things that will structurally different over the next three years as a result of kovat for one if you think about what Satya Nadella CEO of Microsoft said a few weeks ago three years of digital transformation

Has actually happened in three months and what this means in layman's terms is that the shift to the clouds the shift to suffer as a service has accelerated and you can see some of that in the public markets really really pushing up

The prices of some SAS companies but for us we look at where that actually creates new opportunities and the first derivative of any application changes security and one area where we're seeing a huge amount of tailwind as a result in

Koba's is it's certainly security one of our companies netskope built the security cloud which is a globally secure network that is now trusted by 25 percent of Fortune 500 they're seeing increased demand in the past few months

We're also looking into areas like online education my kids are on an out school right now which is a video delivered I'm schooling I mean we're seeing a lot of barriers that we can actually invest in and lastly of course

Remote works where there's a lot of you know we run zoom right here right and I'll note this without immigration Eric yuan would not have come to the United States join WebEx and started zoom I mean that's a great example of an

Immigrant who's created a seventy five billion dollar company but if you look at how we're changing the way that we collaborate whether it's over video or whether it's over chat like slack and Microsoft teams there's also new

Opportunities that pop up around those new platforms so we've got a company called move works which is built around chat and AI to resolve employees help desk and service desk issues can you reset by a VPN password can you get me

Access to zoom hey I'm having problems logging into Salesforce comm typically that would be done over the phone or that would be potentially done in person at a Genius Bar but move works which sits on top of black and Microsoft teams

Is is is actually resolving those issues over chat for employees in 30 seconds in a few days right so much has changed our if we're gonna have to leave it there and by the way you mentioned two more companies slack and Microsoft that are

Run by immigrants as well or if John Muhammad partner at Lightspeed Venture Partners thank you so much for joining us and giving your views on the few ahead all right coming up an economic

Crisis can't stop companies as we were just discussing even unprofitable companies from going public our conversation with the CEO of lemonade which went public today shares soaring more than 100 percent CEO is with us

Next you in the midst of a pandemic and an economic crisis the online home insurer

Lemonade raise 319 million dollars in an IPO today shares soaring closing the day almost a hundred and forty percent above the initial price I spoke with lemonade co-founder and CEO Daniel Shriver from the four of the New York Stock Exchange

Take a listen the performance of lemonade over the course the last few months has been little impacted by the pandemic much to our surprise so that the business has proven itself to be more resilient than you might have

Imagined or we might have feared and a lot of the key performance indicators that we've been tracking for a while that where we're on an upwards trajectory continue to despite the pandemic so the health of the business

Has proven strong and resilient and that's allowed us to go public shares trading up now almost a hundred forty percent above the initial price that's great in terms of positive momentum but are you concerned at all that maybe you

Under priced or were too conservative given the money left on the table honestly where our young company would be in a market less than four years and we see ourselves as having a journey of twenty years of growth ahead of us which

Is why we went public now we thought the public markets are really the place on which to build an enduring iconic company we're not gonna look at what I chairs do in a number of hours or minutes we're really going to look at

Building value for years and hopefully decades to come and we'll measure against ourselves ourselves against that rather than against a few hours of share performance however exhilarating those have been so speaking of the long term

One of lemonade selling points is just how quickly you deliver quotes how quickly you pay claims that said you're still not profitable what is the timeline for profitability so we do feel that this is the time to make bold

Investments that there is a window of opportunity now that may be the cheapest time in the next 100 years to build the reincarnation the 21st century incarnation if you like of what a modern digital insurance company can be and

Given the size of the prize making bold invest now makes sense that said we already see a path to profitability our losses per every dollar sold have been shrinking pretty rapidly so we lost about two

Point four dollars and 2018 for every dollar and that dropped to one point four in 2019 and to 70 cents in the first quarter of this year all the while our marketing efficiencies have doubled over the last 12 months so

I do think there are indicators to suggest that the investments that we're making will over the long term produce real returns I wonder though we've seen so many tech companies invest a lot of money for the long term and given the

Environment we're facing right now we've seen a lot of companies have to pull back Airbnb uber lyft you know massive layoffs and more uncertainty ahead so I wonder if conserving cash right now is something that you're also considering

You know when the pandemic hit and the lock dam began we did that we took our foot off the pedal and waited to see what would happen and when we compared the 30 days of April of this year which was really the height of the pandemic

And the lockdown to the 30 days during the same period last year we spent a third fewer dollars even though our business was twice the size in terms of marketing but those marketing efficiencies were so great that we

Produce 130 percent more sales so actually we continued to grow even as we took the pedal of the metal and that embolden us to go back into a more of a growth mode in fact we've increased our headcount by about 20 percent during the

Lockdown so as I say I know that the pandemic has affected many businesses in a very tough way has been helpful to some businesses for lemonade we've really seen a continued up into the right progression which began before the

Pandemic has continued during it and we hope that signifies that it will be able to continue after the pandemic as well Softbank owns a 20-plus percent stake in the company given all the struggles they've

Had over the last year what's it been like working with them and through this IPO process Softbank have been just the dream investor fast they really have now I know that they've taken a lot of hits and other companies and in public

Perception but if it wasn't for reading the papers just looking at what we know of our relationship with them they've been stalwart supporters they supported us throughout this IPO they supported us beforehand

And we're really proud to have them as shareholders at lemonade meantime insurance claims are down to record levels given the pandemic you've got folks out there who can't even make rent let alone pay renter's insurance

Whom who maybe aren't moving right now how do you see growth playing out over the short term as you know economy start to reopen but in fits and starts and we're seeing a resurgence of the virus around the world yeah absolutely and we

Try to help out in a variety of ways so as I say that the core business has been resilient notwithstanding that and we've done a lot of things in terms of allowing our customers to delay payments etc really tried to make every

Accommodation needed for our customer base during these rough times what we also do lemonade is unusual because a portion of our profits go to nonprofits we are a public benefit corporation we're certified be called and once again

It's actually right now in July we have a giveback day where residual premiums are given to causes of our customers choosing and while when the pandemic hit we wrote to all of our customers and asked them if they'd like to channel

Those monies towards kovat relief and tens of thousands of them did that so we're really glad to say both in terms of taking care of our customers and our customers being able to take care of their communities we're trying to do our

Part so last quick question we've got about 30 seconds left what's your global plan I know you're also in Germany and in the Netherlands yeah so the fabulous thing about insurance is that it generates

Companies that can last a hundred plus years and do tens of billions if not over a hundred billion dollars a year certainly a price worth fighting for we're in the early innings we're four years old we've got a lot of work ahead

Of us but we do want to continue to expand so globally we are now in Europe we launched Germany we launched the Netherlands during the lockdown we're expanding throughout the United States and we hope to expand into new customers

New geographies and new products in the months years and decades ahead lemonade CEO Daniel Schreiber there on the day of their IPO coming up we're gonna be talking about Tesla six shares surging today after

Big delivery number for the second quarter we will discuss next this is Bloomberg

you shares of Tesla surging today after the company reported a sequential game in quarterly deliveries that seemed

Improbable just a few weeks ago for more I want to bring in Craig Trudel our bloomberg automotive reporter so Craig put this delivery number for us in context yeah sure I like that you put the emphasis on sequential because

Year-over-year this is a little bit down the number that they put up today was ninety thousand six hundred and fifty cars that was more than 83,000 that analysts were looking for in a survey that we did this week some were calling

For in the ninety thousand to a hundred thousand range so you know it was it was up there with you know sort of the highest expectations that we were hearing from Wall Street analysts but you know year-over-year you do have to

Sort of take into account this is a company that has a new plant in China that it didn't have a year ago and it has a new product that it didn't have a year ago in the model why so you have a little bit you know kind of the bear

Argument of well yes they were able to you know basically keep sales you know roughly flat where they've been the last I would say four or five quarters but you know this is also we can't forget you know a quarter that everybody

Thought was going to just be absolutely decimated by the virus and they managed to put up a pretty significant number for them in historical context now this is a company that you know the main factory was shut down for weeks early on

In the pandemic you've got an economy in a recession people losing their jobs who can't necessarily afford a new vehicle and people not even commuting to work right now in many places across the country so who's buying these cars and

Why well I think with Tesla we're always kind of talking about people who do have you know a solid amount of income because these cars are not cheap the model 3 you know there was a lot of you know talk years ago about this is

Going to be a $35,000 car it generally the average transaction price on it is more like $50,000 so you know they're they're definitely in the higher income brackets you know it is a you know company that has had some success really

Sort of building cachet with younger consumers but they really haven't gotten to the point where they've driven prices down to where you know we're talking about you know more like a Honda Civic or something like that so you know we

Generally actually see luxury cars tend to perform really well in downturns and you know you would sort of expect that you know people would have less ability to go out and purchase expensive cars but those are the folks who tend to be

You know a little bit more insulated from downturns and you know that that may be what we see play out in this you know recession as well so what is the outlook over the next six months given that people who do have to commute maybe

Don't want to take public transportation maybe think they they need that car right now yeah we we definitely are hearing a lot from from auto executives about the idea that you know that that factor will play a significant role

Actually in helping the industry the idea that you know people that were maybe commuting with public transit maybe won't feel so safe the CEO of Ford recently referred to you know the the personally owned car as the ultimate PPE

So you know this is going to be something to watch I think the auto industry has been surprised by you know sales being as buoyant as they had been you know the headline numbers are really ugly but you have to kind of take into

Account that fleet numbers have been really weak we know that the rental car companies have been absolutely hammered by this crisis you know people are not traveling and so you know you do have a situation where

At the retail level the car industry is actually coming back in a big way and we're maybe seeing that as well for for so they're able to get you know cars out to people they were they were really insistent on reopening their plant and

They haven't had a serious outbreak in California to where they've been able to continue to keep production cranking and deliveries going alright well I know it's a story that you are following by the minute Craig thank you so much for

That update we'll be watching Craig Trudell for us there and that does it for this edition of Bloomberg technology be sure to catch our special program coming up later in the week Bloomberg technology Boston the road to recovery

That is tomorrow Friday July 3rd 7:00 pm Eastern time right here on little Brook television and please join Bloomberg for our annual broadcast of the Boston Pops fireworks spectacular we're carrying the orchestra's fourth of

July tradition on from the comfort of your own homes this year starting 8:00 pm Eastern Time on Bloomberg television radio and comm I'm Emily Chang that's all for me Bloomberg daybreak Australia is next

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