Shares of Tesla (TSLA) and Alphabet (GOOG, GOOGL) are sinking in Wednesday's pre-market trading — and into regular trading hours after the market open — after investors were left unsatisfied with their respective earnings reports.

Pras Subramanian and Dan Howley join Morning Brief to give their key takeaways from the two Magnificent Seven members' earnings calls.

Tesla CEO Elon Musk announced that the company will reveal its robotaxis on October 10 after previously delaying the event. Tesla also announced that affordable EVs will start being produced in the first half of 2025. Finally, Subramanian notes that Musk was low-energy on the earnings call, making investors rather uneasy especially when he claimed he's not concerned about regulatory self-driving scrutiny.

Howley notes that Alphabet shares are down because, despite beating on most metrics, YouTube ad revenue surprisingly fell short of estimates. The Google parent company spent $2.2 billion building AI models, up from $1.1 billion last year. This spending concerned some investors who are skeptical about whether these AI initiatives will be able to generate revenue. Finally, Howley notes that the cloud business is gaining steam while topping the $1 billion mark for operating profit for the first time.

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This post was written by Melanie Riehl