Tesla kicked off Magnificent Seven earnings season with a disappointing thud, missing Wall Street's EPS expectations despite revenue growth. Meanwhile, Meta cut around 600 AI roles in what sources described as trimming a bloated division. The moves signal shifting priorities as tech giants navigate an uncertain market landscape heading into Q4.
Tesla just delivered a reality check to investors expecting another Magnificent Seven earnings blowout. The electric vehicle pioneer became the first of the tech titans to report Q3 results, and the numbers weren't pretty - earnings per share came in below Wall Street's expectations despite snapping two consecutive quarters of revenue declines.
The market's reaction was swift and unforgiving. Tesla shares tumbled more than 3% in premarket trading as investors digested the mixed results. What's particularly concerning is that rising capital expenditures are eating into profitability just as the company faces intensifying competition in the EV space.
But CEO Elon Musk seemed more interested in talking about everything except cars during yesterday's earnings call. Instead of addressing core automotive business concerns, Musk pivoted hard toward Tesla's robotaxi ambitions and Optimus humanoid robots. "If we build this robot army, do I have at least a strong influence over that robot army?" Musk asked investors, in what might be the most dystopian earnings call quote of 2025. "I don't feel comfortable building that robot army if I don't have at least a strong influence."
The timing couldn't be more awkward. Just as Tesla reported disappointing results, a coalition of unions and watchdogs launched the "Take Back Tesla" campaign to oppose Musk's controversial compensation package. The plan would potentially net the billionaire entrepreneur nearly $1 trillion in stock - a figure that looks increasingly disconnected from operational reality. Musk's response was characteristically combative, calling proxy advisors who oppose the package "corporate terrorists."
Meanwhile, across Silicon Valley, Meta was making its own headlines with a different kind of corporate restructuring. The Facebook parent company quietly eliminated around 600 roles from its AI business yesterday, with sources telling CNBC the division had become "bloated." But here's the interesting part - TBD Labs, the division that houses many of Meta's marquee AI hires from this summer, remained untouched.
This selective culling suggests isn't retreating from AI ambitions so much as refining them. While competitors like and race to hire every available AI researcher, Meta appears to be taking a more surgical approach to talent management. The layoffs come as the industry grapples with whether massive AI investments will actually translate to revenue growth.
