WSJ Tech News Briefing: Tesla Profit Drops 37% Despite Jump in Sales

Date: October 22, 2025
Host: Julie Chang

Episode Overview

In today’s TNB Tech Minute, host Julie Chang delivers a concise roundup of key stories in the technology sector. The main focus is Tesla’s sharp profit decline in the third quarter, despite strong vehicle sales driven by a federal tax credit deadline. The episode also covers developments in the OpenAI lawsuit regarding user safety, and significant AI-related job cuts at Meta.

Key Discussion Points & Insights

1. Tesla’s Profit Plunge Amid Sales Growth

• Tesla’s Q3 Results:

  • Net income fell by 37%, dropping from $2.2 billion to $1.4 billion year-over-year.
  • Revenue grew 12% due to a surge in electric vehicle sales, as buyers rushed before the expiration of a $7,500 federal tax credit.

• Upcoming Shareholder Vote:

  • Tesla’s annual meeting on November 6 will include a critical vote on Elon Musk’s proposed pay package, potentially valued at $1 trillion over 10 years.

  "Tesla has reported a drop in profit for the third quarter. Net income fell 37% even as shoppers rushed to buy electric vehicles before a $7,500 federal tax credit expired last month."
  — Julie Chang [00:20]

2. OpenAI Lawsuit Over ChatGPT and User Safety

• New Claims in the Lawsuit:

  • The parents of a 16-year-old who died by suicide after using ChatGPT are intensifying their legal complaint.
  • The amended lawsuit alleges that OpenAI twice relaxed ChatGPT’s suicide discussion restrictions, potentially lowering protections for vulnerable users.

• OpenAI’s Response:

  • The company maintains that protecting minors is a top priority, highlighting measures such as:
    • Crisis hotline surfacing
    • Rerouting sensitive conversations to safer models
    • Nudging users to take breaks during extended sessions

  "OpenAI said strong protections for minors is a top priority... surface crisis hotlines, reroute sensitive conversations to safer models and nudge for breaks during long sessions."
  — Julie Chang [01:00]

• Disclosure of Relationships:

  • News Corp., parent of WSJ, has a content licensing partnership with OpenAI.

3. Meta’s AI Division Job Cuts

• Details:

  • Meta is laying off approximately 600 employees in its artificial intelligence division.
  • Cuts hit teams working on AI products, infrastructure, and long-term research.
  • The TBD Lab, consisting of Mark Zuckerberg’s high-profile multimillion-dollar AI hires, remains unaffected.
  • Most laid-off staff will be offered other roles within Meta due to their AI expertise.

  "Meta is cutting about 600 jobs in its AI division... most of the affected employees will be redeployed to other jobs at the company where their AI expertise could be valuable."
  — Julie Chang [01:45]

Notable Quotes & Memorable Moments

• Tesla’s Financial Dilemma:
  "Tesla's total revenue grew 12% after the burst in sales, but it reported a net income of $1.4 billion, down from $2.2 billion a year earlier."
  — Julie Chang [00:30]

• OpenAI Safeguards:
  "Strong protections for minors is a top priority... surfacing crisis hotlines, rerouting sensitive conversations to safer models and nudging for breaks during long sessions."
  — Julie Chang [01:10]

• Meta’s Job Cut Strategy:
  "Meta's chief AI officer said most of the affected employees will be redeployed to other jobs at the company where their AI expertise could be valuable."
  — Julie Chang [01:55]

Important Timestamps

• Tesla financial report and shareholder agenda: [00:15–00:40]
• Details on OpenAI lawsuit and company response: [00:50–01:20]
• Meta AI layoffs and internal reorganization: [01:35–02:00]

Summary

This TNB Tech Minute delivers a snapshot of major movements in the tech world: Tesla’s paradox of booming sales but slumping profits ahead of a pivotal shareholder meeting, the evolving legal case against OpenAI over user safety concerns related to ChatGPT, and Meta’s significant restructure of its AI workforce. The tone remains factual, sharply focused, and concise—typical of the WSJ Tech Briefing’s rapid-fire updates.