Tesla’s pivotal earnings call yesterday had the vibes of an undergrad at office hours begging for extra credit after failing every assignment all semester. The automaker whiffed on revenue targets, even after tempering expectations.

Yikes…for the first time since 2020, the EV-maker’s quarterly revenue dropped, falling to $21.3 billion, compared with $23.3 billion from the same period a year ago (analysts were expecting about $22b). Tesla’s profits sunk to a six-year low. The company said earlier this month that it only delivered 386,810 cars in the first quarter, down 8.5% from the same time in 2023.

Tesla’s fast fall

In late 2021, Tesla hit a $1 trillion valuation and CEO Elon Musk was the toast of Wall Street. But with its stock now lingering near a 52-week low and after its market cap shed roughly $350 billion during the quarter, the carmaker has become investors’ trendy but emotionally draining friend. Some of its most hyped projects have about as much steam as a hotel iron.

• The company has only delivered about 4,000 Cybertrucks, nearly all of which were recalled last week due to issues with the vehicle’s accelerator pedal.
• The troubles forced Tesla to slash prices faster than a discount furniture store. It announced layoffs for more than 10% of its workforce earlier this month.

Tesla also said it would focus on developing a fully autonomous robotaxi, which would likely require massive tech advancements and regulatory approval.

On the bright side...despite the earnings miss, Tesla’s stock went up in after-hours trading, likely because the company vowed to accelerate the launch of more affordable models. It announced it was working on integrating ride-hailing technology into its app in a bid to take on Uber, and that the growth of its energy storage business is set to outpace that of its auto business this year.—MM

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TikTok “ban” heads to Biden’s desk. The Senate passed a long-awaited $95 billion foreign aid package that would send military assistance to Ukraine and other American allies. The bill also forces a sale of TikTok by its Chinese owner ByteDance or else face a ban in the US within 270 days. TikTok promised to do all it can to fight the bill, with its head of public policy for the Americas declaring, “This is the beginning, not the end of this long process.” President Biden said he plans to sign the bill into law today and give an address to the American public.

Spotify made a lot of money in Q1. The streaming music giant grew its revenue last quarter by 20% to $3.8 billion on a record $180 million in profit, it announced yesterday. The smash report comes after Spotify cut costs last year, which included laying off more than a quarter of its workforce. The company also raised prices in 2023 for the first time in a decade as it further expanded beyond music into audiobooks and other categories. Spotify shares soared ~11% following the news.

X is pivoting to video. The artist formerly known as Twitter launched a video app that is compatible with most smart TVs, the company revealed yesterday. The app will not include ads at launch but could introduce them in the future, X reportedly told its corporate partners in a note. It includes a YouTube-esque trending algorithm and the ability for users to upload their own videos. The move is part of owner Elon Musk’s push to turn X into an “everything app” as advertisers flee the platform.

Been stuck in a job you hate because you know too much about your company? Here’s some relief: The FTC created a rule yesterday to ban noncompete clauses—a huge win for workers.

Why ban noncompetes? The FTC says that noncompetes limit worker mobility, suppress pay, and undermine competition by preventing workers from seeking other jobs. Noncompetes used to be only for highly paid execs to stop them from taking insider secrets to another company, but in recent years, they’ve been used in lower-paying jobs, too. Before yesterday, 1-in-5 employees, including C-suite execs, fast-food workers, and yoga instructors, fell under these agreements.

Why keep them? Business groups like the US Chamber of Commerce argue that noncompetes help companies, well, compete by 1) protecting their confidential internal info and 2) encouraging them to invest in their workforces, knowing that their employees won’t pack up and leave.

In swift recourse…the Chamber of Commerce vowed to sue the FTC to block the rule, claiming that the agency doesn’t have the authority to regulate competition and that the rule “opens up a Pandora’s box” for the FTC to meddle with other aspects of the economy.—CC

Brothers solve a $100b problem…for their mother. Forbes 30 Under 30 winners founded Aura to help solve issues in mental well-being, a $100b problem affecting their mom and countless others. Aura quickly grew to 8m+ users and 100k+ paying subscribers, attracting investments from legendary Silicon Valley VCs and executives from Spotify, Facebook, and Apple. The best part? You can invest in Aura before the opportunity ends soon in five days.

Someone’s trying to slide into your DMs, but it’s not a rando you barely remember chatting up last night—it’s Meta AI. Facebook, Instagram, WhatsApp, and Messenger users are noticing that those apps’ search bars now double as AI chatbot prompt windows.

Meta AI, the eager-to-chat AI assistant, also appears among DMs and under Facebook posts, and can be accessed via a separate site. Powered by the Meta Llama 3 large language model that launched last week, the assistant can pull info from the web, create a trip itinerary, or draft corny captions for your stories. Meta is pushing to stay ahead in the AI race and give users another reason to hang around on its platforms.

But…some people are about as pleased to see AI in their search bar as they are by a pic of their thriving ex in their feed. Social media is flooded with posts from Meta users who don’t want to be prompted to interact with AI while searching up reels or other human-generated content.

Can it be turned off? Meta says you can’t disable AI in search, but you can hide the AI button in WhatsApp by going to Settings → Chats → Show Meta AI button, per WaPo.—SK

Quote: “Incompetent.”

That’s how the city of Baltimore describes the crew of the Dali container ship in a new lawsuit against the owner of the vessel, which crashed into and destroyed the Francis Scott Key Bridge last month. The city alleged that the crew decided to leave port despite knowing that the Dali wasn’t fit to sail after a power supply alarm went off. Baltimore also accused the owner, Grace Ocean Private Ltd, of supplying “unseaworthy equipment, systems, and appurtenances.” Baltimore wants payment for replacing the bridge and expenses tied to the cleanup and ongoing transportation disruptions.

Stat: Everyone, look at the newsletter reader to your left. Chances are either you or that person had sensitive health information stolen in the massive ransomware attack on UnitedHealth subsidiary Change Healthcare earlier this year. According to UnitedHealth, the info taken could “cover a substantial proportion of people in America.” Change Healthcare, which handles billing at thousands of medical practices across the country, houses data on roughly half of Americans, TechCrunch reported. UnitedHealth said it would take months before it knows exactly what was stolen, but there isn’t evidence the hackers accessed full medical histories. The ordeal has cost the insurance giant $870 million.

Read: What rights do workers really have to speak out on the job? (Wall Street Journal)