The daily business briefing: October 3, 2023

1. Tesla sales slip despite price cuts

Tesla on Monday reported summer electric-vehicle deliveries that exceeded last year's shipments by 27% but fell short of analysts' expectations. Tesla sold 435,059 vehicles from July through September, compared to 343,830 in the same period last year. Analysts had forecast 461,000 sales for the quarter, according to FactSet Research. The automaker's Model 3 and Model Y cars accounted for most of the deliveries, after the company cut prices to boost softening demand. Tesla delivered 466,140 vehicles in the second quarter of this year. CEO Elon Musk aims to increase sales by 50% annually. To hit that target, Tesla needs to sell 1.97 million this year; analysts expect full-year sales of 1.84 million. The Associated Press

2. Microsoft chief testifies about 'Google web' dominance

Microsoft CEO Satya Nadella testified Monday in a landmark antitrust trial that Google's online search dominance is so great even his giant software company has trouble competing. The internet has become the "Google web," Nadella told a crowded courtroom, according to The New York Times. The testimony of Nadella, head of a company valued at $2.4 trillion, could be key in the government's effort to prove that Google has squeezed out rivals through anticompetitive deals. The two tech giants have fought for two decades over online search, mobile computing, web browsing and cloud computing, and now the "vicious cycle" is extending to artificial intelligence, Nadella said. The New York Times

3. GM, Ford to lay off another 500 workers amid strike

General Motors and Ford said Monday they were laying off 500 more workers at four Midwestern plants due to the impact of the United Auto Workers strike, now in its third week. The UAW said it had presented GM with a new proposed contract, but the automaker said "significant gaps remain." Ford is furloughing 330 workers at plants in Chicago and Lima, Ohio. GM is laying off 164 people at facilities in Ohio and Indiana. GM, Ford, and Chrysler's Stellantis last month laid off a total of about 3,000 employees. The UAW on Friday expanded its first simultaneous strike against Detroit's Big Three automakers to include another GM plant in Lansing, Michigan, and a Ford assembly plant in Chicago. Reuters

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4. Stock futures little changed after mixed start to October trading

U.S. stock futures edged higher early Tuesday after starting October trading mixed in the wake of a last minute deal in Congress to avert a government shutdown. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% at 6:30 a.m. ET. Nasdaq futures were little changed. The Dow fell 0.2% on Monday. The S&P 500 edged higher, while the tech-heavy Nasdaq rose 0.7%. Investors are hoping for a strong October after September's losses, and will look for clues about where the economy is headed when the September jobs report comes out Friday. Earnings season starts next week, offering indications of how companies have been affected by economic slowing tied to rising interest rates. Investor's Business Daily, CNBC

5. Luxury retailers expand brick-and-mortar stores

Luxury retailers have been investing heavily in U.S. real estate as in-person shopping rebounds, The Wall Street Journal reported Monday night. Gucci is expanding, and Chanel recently reopened its Beverly Hills flagship store with twice its old footprint. Luxury retailers, many from Europe, have leased 650,000 square feet of new U.S. space in the last year, up from about 250,000 square feet a year earlier, according to real estate investment firm JLL. "Luxury was one of the first categories to see sales return to prepandemic levels," C. Ebere Anokute, manager of retail research at JLL, told the Journal. "Real estate was a big part of their strategy when it came to continued growth and expansion." The Wall Street Journal