Tech's earnings bonanza this week shines spotlight on growing troubles at Tesla, Google

Key Facts

• The troubling news comes alongside a generative AI gold rush, as tech giants race the technology into their vast portfolios of products and features to ensure they don’t fall behind in a market that’s predicted to top $1 trillion in revenue within a decade.
• Elon Musk’s EV company is expected to report a decline in sales of about 5%, which would be the first year-over-year revenue drop since 2020, when the Covid pandemic disrupted operations.
• “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote in a memo announcing the layoffs.
• Pichai has struggled to quell employee discontent on a host of matters since the pandemic, as the company has been forced to reckon with slower growth than in years past and an investor base that’s become increasingly concerned with costs.

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