Tech Giants Lean on AI Promises Amid Flat Revenues and Legal Costs
AI-generated image · Bay Street Wire
Tesla and Meta face investor scrutiny as they pivot toward humanoid robots and new share classes to fuel AI ambitions.
Big Tech's latest earnings reports reveal a gap between ambitious AI projections and current financial realities. According to reporting from The Verge, Tesla's Q3 revenues remained flat, failing to be lifted even by flying Roadsters. While the company is producing Optimus humanoid robots, The Verge notes that Tesla is still determining how to make the machines durable, reliable, and useful for customers.
Tesla CEO Elon Musk has also indicated that the company is discussing a potential merger with SpaceX. Meanwhile, SpaceX reported a revenue increase driven by significant AI growth. Tesla further announced that customers may be able to add their own vehicles to a robotaxi fleet starting next year.
Meta is similarly leaning into AI, with CFO Susan Li stating during a third-quarter earnings call that "everyone is just going to have to adapt" to Meta's version of the future. To support this AI push, The Verge reports that Meta intends to create a new class of shares. The company also disclosed that it would have earned over $22 billion more if it had not been required to pay a child safety settlement.