Bloomberg Businessweek – Tesla’s Earnings Miss, Automation at Amazon, and Quantum Leap in Chattanooga

Episode Date: October 22, 2025
Hosts: Carol Massar, Tim Stenovec, Ed Ludlow

Episode Overview

This episode covers three big stories impacting the business and tech landscape:

1. Tesla’s third-quarter earnings miss—delving into why profits fell short despite record sales, and the persistent doubts about Full Self Driving (FSD) and the elusive robotaxi future.
2. Amazon’s robotics and automation push—Amazon Robotics' Chief Technologist, Ty Brady, unpacks the company’s latest advances in warehouse and AI-driven automation, and their real impact on jobs.
3. Chattanooga’s quantum computing revolution—the city’s mayor and a local utility executive discuss how America’s first commercial quantum network is attracting investment and innovation beyond Silicon Valley.

1. Tesla’s Earnings, FSD Controversy, and the Elusive Robotaxi

The State of Tesla (02:00–14:17)

• Tesla fell short of Wall Street profit expectations for Q3, despite a surge in EV sales.
  • Shares dropped 2% in after-hours trading.
  • Ross Gerber (Gerber Kawasaki): “We’ve cut our [Tesla] position by 60%.” (02:48)

Gerber’s Outlook on Tesla

• Current Position: Holding, not actively buying or selling.
• Clients either strongly believe in Tesla or have sold their positions.
• “We’re not recommending to buy Tesla... more likely recommending to sell Tesla for investors up at these prices because you’re getting such a premium valuation.” —Ross Gerber (02:57)

The FSD Debate: Does It Work? (03:42–09:00)

• Skepticism on Vision-Only Systems:
  • Ross doubts that Tesla’s camera-only FSD technology can deliver on full autonomy. “I don’t think Elon [Musk] gets how humans work. I think he gets how machines work. Tesla’s in a pickle if they can’t solve for full self-driving... nothing’s going to get me excited about Tesla until it drives me home.” (03:42)
• User Perspective:
  • Tim Stenovec: Daily FSD user on Model Y, but won’t trust it fully: “I would never get in the back of the car and turn it on. I also would not put my little baby boy in it either.” (07:29)
• Road to Robotaxi Is Unclear:
  • Discussion on the gap between selling advanced FSD as a consumer product and developing an Uber-like robotaxi service—“extremely difficult,” even if the tech advances (06:05, Ross Gerber).
  • “There’s already several cab services... that are all very good at what they do. Even if Tesla gets this to work, it’s still a tough business.” —Ross (06:05)

Technical Deep Dive: Vision vs. Lidar Debate (08:34–10:21)

• Tesla FSD is vision-only; competitors like Waymo use redundant sensors (lidar, radar) for higher accuracy and safety.
• Economic Argument: Tesla claims multiple sensor setups aren’t scalable for affordable vehicles, but competitors argue it’s required for safety and robustness.

Will the Robotaxi Dream Happen? (10:21–14:17)

• Ross Gerber: “Humans love to drive... I just don’t see people giving up cars anytime soon for practical reasons.” (10:58)
• Generational divide: Younger people less attached to driving, but entrenched car culture and current city infrastructure make widespread adoption hard.
• Legislation Limbo: U.S. federal legislation enabling steering wheel-free robotaxis is stuck, highlighting regulatory and real-world hurdles.

Notable Quotes

• “Elon Musk is often late on his predictions but gets there in the end.” —Tim Stenovec (13:00)
• “Unless we rejigger cities and start from scratch... I just don’t see how you implement that... millions already have their commuter lifestyle.” —Ross Gerber (11:22)

2. Inside Amazon’s Robotics Revolution

Amazon’s Robotics Announcements (17:29–29:12)

What’s New in the Warehouses? (18:35–20:09)

• Blue Jay “Manpiulation” Robot: Reduces labor needs for repetitive picks; can handle 75%+ of network inventory. Developed in just over a year using advanced AI (18:58).
  • “With Blue Jay, you can take three assembly lines and put it in the same footprint of one.” —Ty Brady (18:58)
• Collaborative Robotics Philosophy: Amazon’s robots increasingly eliminate the “menial, the mundane, and the repetitive,” freeing up workers for higher-order tasks.

Scaling for Efficiency, Not Just Cost Cutting (21:16–23:11)

• Amazon’s focus: Efficiency, throughput, worker safety—not explicitly on job cuts.
  • “When you do collaborative robotics... it allows you to be more productive and when you’re more productive, that allows you to invest more in people.” —Ty Brady (21:58)
  • Over 700,000 workers upskilled so far.
  • Modern robotics are more about movement, sortation, perception, and safety than just speeding up tasks.

Workplace Impact: Fewer Jobs? (23:11–26:03)

• Labor Concerns:
  • NY Times reported on Amazon execs seeing a shift that could replace 500,000+ jobs with robots in the next decade.
  • Brady’s Response: “The last 10 years... we created hundreds of thousands of new jobs and new job types... No employer has employed more people in the US in 10 years.”
• Job Evolution: “I’m very bullish on eliminating every menial, mundane, and repetitive job out there.” —Ty Brady (25:05)
  • Amazon claims a 30% reduction in injury rates due to robotics.

Seasonal Workforce and Automation (26:03–27:03)

• Despite automation, Amazon plans to hire over 250,000 temp workers for the holidays in 2025. “Those are good paying jobs. Really happy about that.” —Ty Brady (26:31)

International Robotics Trends (27:03–28:00)

• Ty Brady downplays robotics “hype videos” from overseas, stressing Amazon’s real-world, at-scale deployment: “Our world is about application. Our world is the reality.” (27:37)

Notable Quotes

• “History has shown, we continue to create jobs... with the goal of two things. Can you have it all? Can you be more productive... and can you also create a safer environment for our employees?” —Ty Brady (25:05)
• “You have to build your robotics in the right way, that empowers people.” —Ty Brady (25:55)

3. Chattanooga’s Quantum Leap: Building a Next-Gen City

Quantum Network Innovation (32:03–43:31)

Political Environment and City Operations (33:07–35:03)

• Mayor Tim Kelly (Chattanooga, TN): Focuses on practical city management, staying above partisanship, and making Chattanooga a hub for inclusive civic innovation.
  • “If Republicans think I’m a Democrat and Democrats think I’m a Republican, I’m probably doing a pretty good job.” —Mayor Tim Kelly (33:34)

How Chattanooga Became a Quantum Trailblazer (35:03–36:13)

• Leveraged a federal loan in the '90s to build a fast municipal fiber network.
  • Result: First U.S. city with commercially-available quantum networking (since 2022), luring talent and partnerships (IonQ, Nvidia, Oak Ridge National Lab).

Quantum + AI: Practical Benefits (36:13–41:55)

• Quantum’s killer app: optimization, especially for energy grids and logistics. Currently, in pilot partnerships to solve energy distribution and demand.
  • “Quantum computer...can solve things at a much faster rate, which uses less energy than a classical computer.” —Janet Rayberg, EPB (37:32)
• Regional energy mix: Hydro, renewables, gas, and a growing nuclear footprint via TVA.
  • “There’s no way around nuclear,” says Kelly (38:30), predicting more use alongside renewables.

Attracting Talent and Business (40:15–41:09)

• Chattanooga saw 10–12,000 new knowledge workers move in during the pandemic.
  • “If you build it, they will come mentality?... Yes, they have come.” —Mayor Tim Kelly (40:42–40:44)
• Quantum computing seen as a differentiator vs. “usual suspects” for tech cities.

Education, Equity, and the Quantum-AI Future (42:03–43:31)

• Quantum and AI will converge: “I don’t think it’s one or the other. I think it’s going to be a combination...to build algorithms more efficiently.” —Janet Rayberg (41:36)
• Mayor Kelly stresses workforce reform and inclusive growth in the age of AI and quantum: “The long game is...change the way we do education and workforce development so we don’t leave people behind.” (43:04)

Memorable Quotes & Moments

• “Nothing’s going to get me excited about Tesla until it drives me home.” —Ross Gerber (03:42)
• “I would never get in the back of the [Tesla] car and turn it on. I also would not put my little baby boy in it either.” —Tim Stenovec (07:29)
• “Our world is the reality.” —Ty Brady on Amazon robotics vs. hype (27:37)
• “You can get 25 gigs of speed at your house in Chattanooga... you can also do quantum computing on large loops of dark fiber.” —Mayor Tim Kelly (35:24)
• “If you build it, they will come mentality?... Yes, they have come.” —Mayor Tim Kelly (40:42–40:44)

Timestamps for Key Segments

• 02:00 — Tesla’s Q3 earnings, Gerber’s investment strategy
• 03:42 — FSD skepticism and value proposition
• 06:05 — The “robotaxi” business challenge
• 08:34 — Vision-only vs. lidar debate for autonomy
• 10:49 — Car culture and autonomy hurdles
• 13:00 — Tesla’s long-term prospects
• 17:29 — Amazon’s billionth robot announcement
• 18:58 — “Blue Jay” AI robot and warehouse innovation
• 21:58 — Data, efficiency, and labor in Amazon’s robotics push
• 23:58 — Automation and the future of jobs at Amazon
• 26:31 — Seasonal hiring and collaborative robotics
• 32:03 — Chattanooga’s quantum network and economic vision
• 37:32 — Quantum computing’s potential energy benefits
• 40:42 — Chattanooga’s tech boom and “if you build it” urbanism
• 43:04 — Workforce equity for a quantum/AI-powered economy

Tone and Style

The conversation is candid and occasionally skeptical, especially when discussing the practical challenges of “revolutionary” technologies like FSD and robotics. There’s measured optimism about innovation but a clear-eyed assessment of risks, regulatory delays, and labor impacts. The Chattanooga segment, in contrast, radiates pragmatic civic optimism and a belief in building opportunity from the ground up.