TNB Tech Minute: Tesla Profit Slumps
WSJ Tech News Briefing
Deep Dive
Shownotes Transcript
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Here's your TMB Tech Minute for Tuesday, April 22nd. I'm Katie Dayton for The Wall Street Journal. Tesla sales missed Wall Street expectations in the first quarter, with the company reporting a slide in income of 71%. The
The EV maker struggled to overcome the reputational hit of CEO Elon Musk's polarizing role in the Trump administration, as well as competitive pressure overseas. Tesla reported revenue of $19.3 billion last quarter, down 9% from a year ago. Double-digit percentage drops were seen in crucial markets, including the U.S., China, and Germany.
Facebook owner Meta could lose $7 billion in advertising revenue this year thanks to President Trump's tariffs. That's according to analysts at research firm Moffat Nathanson. He predicts that Chinese companies like Taimou and Xiyin will pull back on ad spending on the platform as the cost of doing business in the U.S. increases. Meta's become increasingly reliant on China when it comes to the growth of its advertising business,
even though it doesn't operate in the country. The company so far hasn't spoken publicly about any impact from tariffs. Its first quarter earnings are expected next week.
And speaking of tariffs, Verizon said it won't be absorbing the cost of higher import taxes on smartphones, leaving consumers to pick up the tab on any price increases. The company reported a rise in first quarter earnings and reaffirmed its full-year guidance, but it said that doesn't reflect the effects of a, quote, evolving tariff environment.
Verizon also reported a greater-than-expected loss in post-paid phone customers. For a deeper dive into what's happening in tech, check out Wednesday's Tech News Briefing podcast.