tv Bloomberg West Bloomberg October 30, 2015 7:30pm-8:01pm EDT
we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> shares of solar city collapsed 20%. what happened? explain the sunburn, next. ♪ corey: i am cory johnson. businessmen left and right are talking about who came out on top. hp is hoping to is better than one. separate intoll two as they compete with the new
way of looking at the world. a new company is taking on cooper. right now, shares plunged today as much as 25%. the biggest fall since 2012. one of the reasons for solar flow. fall is the cash they deemphasized earlier goals of signing up one million customers by 2018. another companies think 13% -- sank 13%. we're glad to have you.
let me start with you. shows that the stock was only down. i don't care about the stock. i want to talk to you. is this different than what happened to the rest of solar? forcing prices fall across the industry. -- i we seeing the same thing across the industry? year,the end of next solar city will have a tax credit, which will be beneficial for the bottom line. cory: the tax break makes all the difference. >> it can make a big difference. it can also make it a big difference how much the people on the grid. utilities are pushing back against solar companies -- how much electricity it is putting on the grid. utilities are pushing back against solar companies.
the fee can make a big difference when the difference between profit and loss is very high. cory: utilities are trying to raise fees on solar cust omers. i am just wondering, i might as --l ask it a hard question, ask you the hard question, if i were an investor, and i gave you the money, and you say the stock and it gets75%, worse every quarter, you're sticking by the buy rating, and the company comes out and says what they said before is not going to happen, they will not get to a million customers, what happened that you didn't expect? >> sure.
the million customer marking is not the relevant thing. will install city more than every company in the united states combined as recently as five years ago. this is hardly an end to the world when it is growing 40%. that is lower than 70% or 80%, and there will be a shareholder rotation from the hyper fast money crowd momentum players to the more subtle investors. cory: you're calling this a shareholder rotation. i'm thinking about the business. it sounds like what the company has decided is if they lose money on every sale, they may not make it up in volume. is anything different today than six months ago? cory>> multiple has compressed.
value ofresent contracts they have already booked is in the back. any growth in the future, those that's on top, of that. the share has a chance of going of 2016.us by the end when the tax credit goes down, the volume should flatten out, maybe grow a little bit. $45 in the bag by the end of 2016 does not depend on government policy. cory: it does depend on the duration of the panels. the company suggesting that
there is more than 20 years. they suggest you will not just get the first 20 years of performance, but an extra 10. how long do you think the average duration of the solar panel will continue to crank out as much energy as it does on youear one or year five? >> there off the shelf. we do not manufacture them -- they are off the shelf. solar city does not manufacture them. they're under warranty. standard.s is the china -- are made in china. those installed in japan and germany were installed in the 80's and work today. cory: with significantly decrea
sed capacity. yearsea they can run 40 from now, is that realistic? question, important especially when the technology is improving in performance on panel to the next. cory: but the panels on your roof are degrading. >> it varies on who you talk to. most people expect the capacity to degrade. maybe it'll be 20 years, maybe 30 years. the last thing i want to bring up as natural gas. cory: you cover all energy. that is important component. the value of solar is great when compared to cold or natural -- to expensive coal or expensive natural gas.
but natural gas is not expensive anymore. it is down 36%. >> known expects the price to bounce up anytime soon -- no one expects the price to bounce up any time soon. efinitely putting downward pressure on prices. be hard to going to sell the green promise. raymond james from bloomberg news, thank you, we appreciate it. more twists and turns than stan hill road. microsemi has had a deal to buy pmc.
the offer was raised to $11.60 per share. $11.78. at there have been $90 million in deals in chip companies this year. let's talk about hp. the company split because of its officials over this weekend. two copies will traded separately. printers.lls pcs and hpe, willise, or trade separately. fund downgraded hp.
we are now joined on this historic moment in texatech history. hp has been shedding and adding parts. it is possible there is no more important company in silicon valley than hewlett-packard. >> this is a huge deal. we're talking about tens of thousands of dollars. tens of thousands of employees. everything was about to go poof oin sunday. you have a paypal thing. you have the restructuring of google. this is a big step. it is not as crazy as you might think at first glance. cory: this is a strange split. and announced right before, both companies would instantly going to restructuring after the
split. i compare that to building a new house and saying the first thing you will do is remodel the kitchen. layoffs,p to 82,000 and they say it could go on and on and on. folks on wall street are tired of them cutting more and more. they need growth. they need actual revenue growth. arguments are all right. cory: but she's just the ceo of enterprises. >> she says being smaller and being them live makes them able to compete better. that is something she is betting on. dell is not. cory: we will see if either has any growth. the predictions they will both shrink after the split. >> there are challenges of the
cory: anyone who has used uber knows about the companies surge prices. they say they put more drivers on the road. a new study says not so much. researchers at northeastern university spent a month hailing the cabs and say the number of available rights goes down during search pricing, with the exception that drivers stay away knowing to get your customers -- get fewer customers. uber says it works when you pay more, just get used to it. ten-month-old startup, some theg up with world's biggest taxi companies.
iny have 10,000 yellow cabs new york city. joining us is karhoo's ceo. i warn you and my viewers that i am biased as a recovering cabdriver. the mets are in the world series, but it is a different world out there. thank you for having me today. it is a pleasure to be here. karhoo is a game changer. hire,ng together private, that's private hire and licensed ace to givee pl consumers the widest choice possible. cory: how does it work? daniel: we allow consumers to taxis between licensed and private hire cars.
you to choose and set the -- and for the companies to set the price as they need to. changed. laws have the notion of taxes having information about where the passengers are in the passengers having information where the taxis are is not such a new thing after all. ishag: what we have been able to do this to connect -- do is connect right into the dispatch computers. we give an unparalleled consumer experience, empowering consumers with choice. we have analytics on the back end. we enable them to see where the jobs are, whether it is over historical periods of time or in real-time.
it empowers the incumbent marketplace. we feel good about what we are doing. will some drivers do both, driver over and your service? and yourfor uber service? ishag: we work with the fleet operators directly. we have 28,000 vehicles on day one in new york. cory: it will be interesting to see how that works. ishag, thank you very much. g to a phones comin near you. it is making the leap from console to ios and android.
they have only given 7 million to candidates so far. ellison gave $3 million of those $7 million so far to marco rubio. research shows there is no tech candidate this year. fundraisers for hillary clinton will be in sacramento and napa valley next week. we turn now to aviation, specifically private jet aviation. i take my carsay to work everyday. vistajet says american flights are up 159%. joining me now is chairman th omas floor.
it is an interesting business. it is growing. the economy is going. why is a growing -- why is it growing? >> when people feel rich, they buy an airplane. we have 56 airplanes around the world. if they buy an airplane, they might have it here in san francisco, but executives flying anywhere in the world still need a flight right away. are the big three out there when you look at the biggest companies in the private aviation world? mr. flohr: it is a global business. you have to be everywhere in the world. in mainland china. we have to be in the us. we own all the airplanes. they'll have to be identical.
whether you get on board in the bay or in london or anywhere, you have to have the same product. how me planes did you have a year ago? flohr: we had 44. now we have 57. .here's a rapid growth0 the tech area flies a lot to asia. companies shy away from the capital commitment. us,-- cory: interesting. when you look at this business, if you are having a different kind of plane for this business, obviously, the plane that takes you from chicago to new
york is not the one you want from san francisco to singapore. mr. flohr: we have two different airplanes for different flights. always use the right plane for the mission. cory: how old are the planes? mr. flohr: 1.8 years. we're planning to use them only five years before selling them. we buy brand-new airplanes. cory: what makes tech people different in what they want them airplanes -- what they want from the planes? flohr: they love the consistency of the product. whennk they are more savvy
it comes to a new business model , which they embrace in the valley. just think about the hours they need. that is what we are offering. cory: i know how you are getting home. i appreciate it. that's it for this edition of bloomberg west. starting monday, it will be one .our-long hearing at 6:00 next week, we will see you on bloomberg west on monday. ♪