Tesla Earnings Miss Despite Record Third-Quarter Sales Surge

23:56Carol Massar:What is it? Yeah, well, definitely efficiency. We think about efficiencies and how can we gain efficiency through all the chain of our fulfillment processes for sure. And you mentioned data. And data is the fuel for AI systems. Data has allowed us to bring, think of the body of being our robotics, but bring the mind to robotics, allowing it to be more adaptable, more fluid. You can almost think of this as the ability to pour our robotic systems into any size building, any scale of building to amplify what our employees are already doing. We want to give them an amazing tool set. And we see that when we do that, we're more productive, right?

24:37When you do robotics right, when you do collaborative robotics where you need both people and machines doing what they do best and they do different things better, it allows you to be more productive. And when you're more productive, that allows you to invest more in people. We've upskilled more than 700 ,000 of our employees, which is a great stat. And also in our robotics. We've expanded from the Kiva days. We've expanded from just a movement solution to now movement and mobility and sortation and storage and perception systems, packing systems that have really changed the game for our customers.

25:09That's a big deal to us. But, Ty, you know, well, you need less workers.

25:14Carol Massar:And I got to bring it up. You know, the Times had a story out. they talked about interviews and a cache of internal strategy documents that they saw that it reveals that your execs think that the company's on the cusp of its next big workplace shift. I'm reading from the Times and replacing more than half a million jobs with robots. So, you know, we know things change. I'm not in a horse and buggy anymore. I don't make things piecemeal. I get it. I don't get tons of faxes and I don't get tons of pieces of physical mail. Thank God. Things change. Having said that, is Amazon, do you guys believe that you're on the cusp of a workplace shift and that you won't need as many workers because the advancements in robotics?

25:58Well, there's no doubt that things change. I mean, and we're actually really proud of that and Amazon is that we avoid stasis at all costs. We change and we adapt and the nature of tasks definitely changes. There's no doubt about that. We are laser focused on efficiencies inside of our buildings. But when it comes to that article, that article was speculating 10 years out, right? That's a 10-year speculation. And it's hard to say what's going to happen in the next 10 years. But I can tell you what happened in the last 10 years. The last 10 years, which is when we seriously invested in robotics, that we created hundreds of thousands of new jobs and new job types.

26:38And there's been no employer in the United States that has employed more people than Amazon 10 years. I mean, that's the power of efficiencies and building your robots in a way that's applied and real that actually augments the human potential.

26:55Carol Massar:All right. My brother said I'm like a dog with a bone. So wait, so does that mean 10 years out, it could be less jobs or we just don't know, or you don't think that's the case? Well, you have to think about, I mean, there's jobs and there's tasks, right? So of course, we're changing the nature of tasks. Like I'm very bullish on eliminating every menial, mundane, and repetitive job out there. Nobody wants to do that. So we were going to change those tasks 100%. But we can, again, as history has shown, we continue to create jobs, right? With the goal of two things. Can you have it all? Can you be more productive, which means more efficiency, and can you also create a safer environment for our employees?

27:34And we're actually doing both. That's what history has shown in the last 10 years. We have better than 30 % reduction in our overall recordable injury rate over the last five years because of our robotics. And also, much more efficient. For example, our latest generation fulfillment center in Shreveport is 25 % more efficient. The order. So, you can have it all. But you have to build your robotics in the right way that empowers people. We're speaking with Ty Brady, chief technologist at Amazon Robotics. When we think about hiring for these one-off or seasonal events, like the holiday season or Amazon Prime Day, I'm wondering how you're putting pencil to paper right now and thinking about those numbers and to what extent automation has reduced Amazon's dependency on seasonal or hourly labor for holidays, for Prime Day.

28:28What does that look like or what will that look like this year or next year? Well, it's the same philosophy of empowering employees, whether they're temporary or they're full-time employees, with the world's best machines that help them do their job. It's the same philosophy. I'm really proud of the fact that this year we're going to offer more than 250 ,000 temporary jobs for our employees to come in during the holiday season. Those are good-paying jobs. I'm really happy about that, really pleased with that. And I'm really pleased with the work that our women and men have done in the robotics field, designing and pioneering these new physical AI systems that help them do their jobs better.

29:03Carol Massar:I got to say one thing that I've been thinking a lot about is what's going on overseas, whether it's China, whether it's Japan. Bloomberg has done some reporting about service industries in Japan because they have a labor shortage that they are leading increasingly on robotics. Have you been over there and looking at what they're doing? And I'm just curious if you're seeing some things that are pretty impressive and that the U.S. as a creator of things or its role in the robotics industry has to keep a watch on what's going on in other countries. Yeah, I think it's easy, especially in robotics, to get distracted about what other people are doing.

29:44I think anybody can make a YouTube video. I think anybody can kind of pop in and overflate something. but if you come into our world, our world is all about application. Our world is the reality.

30:00Carol Massar:All right, we were talking with Ty Brady, chief technologist, robotics at Amazon. Of course, our shot froze. That's the world of technology. We're talking a lot about technology. Stuff happens, and we're hoping we can get Ty back just to finish up this conversation. Maybe the robots are using all the Wi-Fi. Or robots are like, I don't like what he is. That is a connectivity thing, though. Well, it feeds into the power, right? It's all a question about resources. You got to charge these puppies, right? Can't just plug them in, right? If they're, I don't know. Hey, we need recharging too, okay? Yeah, it's called food and sleep.

30:33Carol Massar:For Tim, it's called food, food, food, and sleep. You know, I will say - Do we have Ty back? Can we grab him for 20 seconds? Ty, 20 seconds. Forgive us. Final thoughts here. Sorry about that. No, it's okay. Okay, let it go. I'm ready for you. Okay, 20 seconds. Just final thoughts for our audience, because we've got to run. So final thoughts is that robotics, when done the right way, when you reframe your relationship with machines, you can enable more productivity, create greater efficiencies, and create a more safer environment for employees. And this collaborative mindset that we've had, that we've done for the last 10 years, really does make the day.

31:12Carol Massar:Ty Brady over at Amazon. So appreciate it. Stay with us. More from Bloomberg Businessweek Daily coming up after this.

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32:33Carol Massar:Let's talk about healthcare for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a healthcare company linking patient care and pharmacy services and using data and technology to drive the whole system so care is connected, not complicated, for patients and providers. Things like making it easier to get care that looks at the whole person, from primary care doctors to mental health support and even in-home care, and then using technology to make sure they all work together.

33:11Carol Massar:Technology designed to help doctors spend less Less time on busy work and more time with their patients. And those prescriptions? Optum is working to bring costs down, save patients money, and make it easier to get refills. Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optum.com to see how. When you own your own business, you own every decision. Now own the card that rewards you for it. The Chase Sapphire Reserve for Business card brings the best Sapphire Reserve benefits to business owners who expect hardworking rewards. Designed to meet the needs of business owners at scale, this pay-in-full card elevates your travel experience and offers premium benefits and value toward business services that will take your business to the next level.

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34:31Carol Massar:Restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank N.A., member FDIC. Go on, get a little out there. into the big heart of Nevada, where you can go off-road and off the map, on two lakes or on horseback. Dip into hot springs and dive into deserts. Climb a mountain or make your best effort. See thousands of stars in some of the darkest skies. Stake out haunted hotels. Can you make it to sunrise? There's always something new to see because we've got plenty of space to just be. Plan your trip at TravelNevada.com. You're listening to the Bloomberg Business Week Daily Podcast.

35:12Carol Massar:Catch us live weekday afternoons from 2 to 5 Eastern. Listen on Apple CarPlay and Android Auto with the Bloomberg Business app. Or watch us live on YouTube. We love talking to mayors. We do. We do. We also love talking quantum computing. And there is some news in quantum computing today. Google running an algorithm on its Willow quantum computing chip that can be repeated on a similar platform and outperformed classical computers. We spoke a little bit about this with Ed Ludlow earlier. The folks in Chattanooga, Tennessee, have been thinking a lot about quantum computing for years. The first commercially available quantum network in the U.S.

35:45was established there back in 2022. Back with us is Mayor Tim Kelly. He's an independent. He's the mayor of Chattanooga, Tennessee. Also with us is Janet Rayberg. She's the president and CEO-elect of EPB, formerly known as the Electric Power Board of Chattanooga. It provides energy, internet, phone, and more in and around the Chattanooga area. They both join us here in the Bloomberg Interactive Brokers Studio. We should note that last year, Bloomberg Philanthropies named Chattanooga, one of 25 cities selected for its American Sustainable Cities program. Bloomberg Philanthropies is founded and supported by Michael R.

36:16Bloomberg, the founder and majority owner of Bloomberg LP. And Chattanooga's Sustainable Cities program is still ongoing. Chattanooga, also part of the Bloomberg Harvard Leading City Procurement Reform Program.

36:27Carol Massar:We're big believers in full disclosure. Great to have both of you here in studio with Tim and me. Um, Mayor Kelly, I just have to first ask you a broad question, because we do want to talk a lot about quantum computing and energy in general, like, because there's just so much going on. Um, the environment today, how is it in terms of running your city, being a mayor in a political environment? That's a tough one. An economic environment that may be tough. Yeah, it's tough. But, you know, running cities is an eminently practical exercise. And I will say, you know, our mayor's races are nonpartisan.

37:03They always have been. And I stayed in that lane. Again, I mean, I'm not here to catalog my political beliefs. They're pretty confusing to most people anyway. I'd say, you know, Republicans think I'm a Democrat and Democrats think I'm a Republican. I'm probably doing a pretty good job. So, you know, look, that has served me well in this environment. Because, again, I believe, as does a lot of folks at Bloomberg, as do rather, but that cities are really the foundation of our economy. That's where 90 % of the GDP is generated. It's where all the innovation is generated. So I'm focused on whatever is best for Chattanooga.

37:35So I can work and have managed to work with people on both sides of the aisle and, you know, in the best interest of my city. Do you find yourself getting pulled into the social issues that seem to define our era right now? The stuff that does dominate cable news, whether you're talking about the right or the left? Yeah. I mean, I find myself, you know, I find people attempting to pull me into those, but I think I've gotten pretty good at wrestling my way out of them and trying to just translate back into simple terms. You know, is this what's best for the city? You know, does it work or does it not work?

38:09I mean, sometimes you can't avoid those polemical issues. It's not as though, you know, I don't have my own beliefs. use but again i think you just as a mayor have to take a a thoroughly practical approach to what's

38:21Carol Massar:going to work best for the city all right so when you think about what's best for the city let's talk about that because you are on the ground talking to people what they need what you need to make sure you have a good economy strong economy not just today but in the future that quantum computing bet you made it back in 2022 tell us about kind of give us an update or for someone who didn't hear the conversation when you were last on with this kind of where you guys are with this? So I'll give you the cliff notes version, which is that, you know, we took advantage of a large federal low interest loan way back when during Clinton and Gore to put in a giant municipal fiber network.

38:58And that gave us the first and fastest municipal fiber network in the country. We had a lot of folks move in during COVID because, you know, you can get one gig of symmetrical speed for 67 bucks a month.

39:08Carol Massar:Yeah. Pretty great. You can get 25 gigs of speed at your house in Chattanooga. But it turns out that you can also do quantum computing on large loops of dark fiber. One particular type that uses photons and trapped ions, which is where IonQ began to become interested in Chattanooga. So we opened, and Janet can talk more about it, the first commercially available quantum network. And it is starting to attract a lot of investment and attention. So Janet, come on in here, because one thing that we're trying to understand is what the practical applications of quantum technology are. We spoke with Ed Ludlow, the co-host of our Bloomberg Tech program a little earlier.

39:42And Carol agreed. I mean, you thought healthcare first. He said healthcare also. This is one area of application, but it's still kind of the world where we're thinking about what this tech can do, not necessarily seeing what it can do. Have we seen any material things be developed as a result of this technology and what you're doing in Chattanooga?

40:00Carol Massar:Yeah. So INQ has been working on a lot of different type of application with different industry. And so we were interested because we're an electric company. And so we have all the data for them to help us optimize our grid. So we're doing a partnership actually with INQ, NVIDIA and Oak Ridge National Lab as a four-way partnership to help do, use hybrid computing until quantum computing can get to where it needs to be to help us with some grid optimization problem that we can't solve today. In terms of energy demands, tell us about that. That is like what you are seeing front and center. We, you know, the AI conversation narrative has moved from the spend and chips and so on and so forth like to basically, all right, do we have enough power to do all of this?

40:38Carol Massar:and there is certainly a power scramble among the big hyperscalers. What are you seeing on that front? Yeah. And I think that's a nationwide issue with the energy problem. And as AI gets better. It is an energy problem, right? Yeah. I mean, as AI gets better and better, the more energy that it's going to need. And so that's where quantum comes in very important to the part of that solution, is that quantum computer, once it gets to the phase that it needs to be, is it can solve things at a much faster rate, which uses less energy. than a classical computer because it can do things in parallel versus sequential as a classical computer today where do you get the energy that you sell to people in and around chattanooga yeah so we buy it from uh tva tennessee valley authority and so they generate the power and we distribute it to our customers how do they generate it they they have a diverse mix of portfolio from hydro different types of renewables to natural gas um and so you know they they're continuing to look at other options do you see that mixed go go ahead no i was just going to say they're also very much on the front foot in terms of advanced nuclear.

41:40Do you see that mix? This is to either of you. Do you see that mix changing and focusing less on renewables, more on nuclear as a result of the changes out of Washington? I think you're going to see that, you know, and again, regardless of your political affiliation, if you just kind of look at the math, there's no way around nuclear, right? I do think they are giving us or EPB more latitude to generate some of our own power because of the anticipated demands. And I think we still have a lot of headway on solar. So I mean, I think we'll continue and we've got a lot of things we can do with hydro.

42:13We're going to actually start using biogas at our wastewater treatment plant to generate electricity. So we're looking at any and all ways that we can generate.

42:21Carol Massar:Because my understanding when we talk about SMRs, the small modular reactors, it's 10, 15 years. Will Wade reminds us who covers this here at Bloomberg News that we are not there right now. It's a while. We are not, but we have a pretty significant nuclear footprint with TVA already in the Tennessee Valley. Well, what would you tell people who are still kind of nervous when it comes to the nuclear footprint that you guys have? You know what you know. I do know. Fine. People do it. Okay, do it across the country or do it in another country, but you know the feeling here in the United States. I mean, I grew up next to a nuclear power plant.

42:51You did. I'm fine, right? I'm a little weird. I'm a little weird. A little weird. What would you say about that? Well, I mean, the technology has come a long, long way. Yeah. That's what I would say. I'd say, go do your research, do your homework. They're not, I mean, that's why we have these discussions. That's why we have the fears. But there's just not, absent fusion, I will say, the state and the University of Tennessee is also working very, very hard on fusion technology. Absent that breakthrough, there's really not a way around it. That's what I'm waiting for. We're talking about quantum today and we're talking about Google.

43:21We're talking about Silicon Valley. How do you get people to think about Chattanooga, Tennessee and not Silicon Valley, not New York City, not Austin, Texas, when they're thinking about where they want to live to have a job in technology? Coming on Bloomberg is a great first step. No, I mean, look, we talk about this all the time. It's a midsize southern city with kind of a funny name. And there's a bit of cognitive dissonance there. So, you know, look, we are out telling the story. I mean, I was just in Detroit last week at a sustainable mobility conference. We were at the Quantum World Congress.

43:52I mean, at some point, it's, you know, the evidence is mounting. We are it's not just smoke. We are doing the work and it's working. Is it if you build it, they will come mentality? I think so. Have they come? Yes, they have come. I mean, again, we had, you know, we now have independent verification that, you know, 10, 12 ,000 people moved to Chattanooga during the pandemic. Very, you know, degreed, talented people that could work remotely. And I think, again, our job, my job as mayor is to help break that glass ceiling so that we have the level of business investment and, again, can build up our academic horsepower to be able to sustain those knowledge economy jobs.

44:28Carol Massar:Janet, you know, when we think about quantum computing, we spend so much time just talking about, you know, large language models and generative AI and kind of where that's going, agentic AI. You just talked about the power aspect or the use of less power when it comes to quantum computing. But I mean, should our conversation be shifting in terms of what we are having for an investing audience when we talk just so much about AI generally versus quantum? Well, I think that with quantum computer, when it gets to the level it needs to be, you can team it up with AI and get even more powerful algorithm that comes out of it to be able to solve more complex problems.

45:06Carol Massar:So I don't think it's one or the other. I think it's going to be a combined of how do you combine that and use less energy and be able to build algorithm more efficiently. So help me, because when we talk about the data center build out, so does that go hand in hand with the build out of quantum computing? Is that part of it? And so right now it's, you know, we're building a quantum computer to kind of learn more and be able to help accelerate and advance that technology with companies like IonQ. And I think once it gets to where it needs to be, then we can team it up with AI. Okay. Yeah. And many of the implications with quantum.

45:39Carol Massar:I'm asking basic questions because I feel like we spent so much time talking about the AI, but this is something that increasingly is coming into the dialogue. Yeah. Now, I'm just going to say the logistics is a huge vertical in Chattanooga as well. And I think the implications for quantum for logistics have huge implications for lower power demand and a lower carbon footprint, right? Because you're going to waste a lot less time getting stuff from A to B with root optimization. We're going to have to do it because we talk about like the power drag or the power demand and the cost. Mayor Kelly, I'd be remiss not to ask you.

46:10Carol Massar:You are trying to build a city where everyone has an opportunity to thrive and prosper. We talk so much about the K-shaped economy. There's a lot of people who aren't thriving and prospering. in this environment. 35 seconds. What's a message to send to everybody? Well, we are working very hard to reform our workforce development system so that we don't leave folks behind. And I think we have some significant opportunities to do that. And we are in the midst of doing that. Again, it's tough out there. And I think it's going to fall more to the state government and to philanthropy, frankly, to kind of take up the slack in the meantime.

46:42But I mean, we have to play the long game. And the long game is we need some significant change to the way that we do education and workforce development in this country so that we don't leave people behind.

46:51Carol Massar:Yeah, it does feel like in terms of education, we're starting to think about that. Come back soon. I'd love to kind of continue this conversation, if we may. Mayor Tim Kelly of Chattanooga, Tennessee, and Janet Rayburg, she's the president and CEO, elect of EPB, joining us right here in our Bloomberg Interactive Broker Studio. This is the Bloomberg Businessweek Daily Podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live weekday afternoons from 2 to 5 p.m. Eastern on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg Terminal.

47:38Carol Massar:Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. Go on. Get a little out there into the big heart of Nevada, where you can go off-road and off the map on two lakes or on horseback.

48:18Carol Massar:Dip into hot springs and dive into deserts. Climb a mountain or make your best effort. See thousands of stars in some of the darkest skies. Stake out haunted hotels. Can you make it to sunrise? There's always something new to see because we've got plenty of space to just be. Plan your trip at TravelNevada.com. Paramount Plus is now the home of all your BET favorites. What? Yes! With all new episodes of Tyler Perry's Divorce Sisters. You've always liked a little drama. Plus a whole new world of movies like Gladiator 2. Now I will control an empire. Original series like The Chi. Just make sure we protect each other.

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