Hello, and welcome to FutureStack — the tech newsletter that will be keeping you up to date on all things Tech and AI.
In today’s issue:
🧵 Google debuts Stitch, an AI app UI builder
📱 iPhone 17 Air leak: thin, light, small battery
🤖 GitHub’s Copilot agent now tackles dev tasks
🧵 Google launches Stitch — an AI tool for designing app UIs
At I/O 2025, Google introduced Stitch, a new AI-powered design assistant for building web and mobile app front ends. Users can prompt Stitch with a few words or even an image, and it generates full UI layouts with HTML and CSS. The tool is powered by either Gemini 2.5 Pro or Gemini 2.5 Flash, offering flexibility based on speed vs. capability.
Stitch isn’t aiming to replace full design platforms like Figma or Adobe XD — but it does integrate with Figma for exports, and it lets users fine-tune elements or dive directly into the code. A feature rolling out soon will allow users to tweak UI designs simply by annotating screenshots.
The launch aligns with the rise of “vibe coding” — a growing space of tools focused on AI-generated software. While Stitch is more constrained than alternatives like Cursor or Copilot, it’s positioned as a fast way to get from idea to working prototype.
🚗 Tesla’s Revenues Rebound as Buyers Rush to Beat Expiring Tax Credit
Tesla posted a surprisingly strong Q3 as US consumers rushed to buy its EVs before a key $7,500 federal tax credit expired — but analysts warn the boost may be short-lived.
What happened:
Tesla earned $1.4 billion in net income on $28.1 billion in revenue, beating Wall Street’s $26.24B estimate.
Revenue rose 12% year-over-year, but profits fell 37%, down from $2.2B in Q3 2024.
Tesla sold a record 497,099 vehicles, 7.4% more than last year, helping clear excess inventory.
Gross margins improved slightly to 18%, but remain below last year’s 19.8%.
Tesla’s cash reserves grew 24% to $41.6B, with $3.9B in free cash flow.
Why it matters:
Much of Tesla’s Q3 success came from a temporary sales surge tied to the tax credit deadline.
With the credit now gone, experts expect a sharp US sales drop and continued market pressure from new EV competitors.
Tesla’s dependence on regulatory credit sales ($417M) is waning after Trump’s budget removed emissions penalties.
The bigger picture:
Tesla’s strong quarter may be a rare bright spot in a tough year. The company faces an aging lineup, brand challenges, and backlash over Elon Musk’s political ties.
Musk is betting on an AI-driven future — including robotaxis and humanoid robots — and has proposed a new pay package that could make him the world’s first trillionaire if Tesla hits aggressive milestones.
But for now, Tesla’s future depends on whether it can weather several “rough quarters” ahead without the cushion of federal incentives or fresh products.
🎮 Microsoft Hints Next Xbox Will Be a PC–Console Hybrid
Microsoft appears to be teasing that its next-generation Xbox will blur the line between a console and a PC.
What’s happening:
Xbox president Sarah Bond hinted in an interview with Mashable that the next Xbox will deliver a “very premium, very high-end curated experience,” similar in philosophy to Microsoft’s new Xbox Ally X handheld.
The device is expected to run on Windows, use an AMD chip, and stay compatible with existing Xbox titles.
Bond’s comments align with Microsoft’s push toward an “Xbox experience not locked to a single store or tied to one device.”
Why it matters:
Microsoft seems to be positioning Xbox as part of a broader Windows-based ecosystem, rather than a standalone console line.
The rumored design could allow third-party manufacturers to produce Xbox-branded devices, all running Windows.
A premium $1,000 handheld like the Xbox Ally X might be testing whether players are ready for a unified Xbox–PC experience.
The bigger picture:
If the hints are accurate, the next Xbox could represent the biggest technical and strategic leap in Microsoft’s gaming history — potentially redefining what “console gaming” means by merging it fully with PC hardware and software.
AI Quick Bites 🤖
Google’s NotebookLM is getting video overviews
Google Meet is getting real-time speech translation
OpenAI’s Codex is now part of a new cohort of agentic AI coding tools
Did You Know? ⁉
The first computer bug was literally a bug—in 1947, Grace Hopper found a moth trapped in a Harvard Mark II computer, coining the term "debugging" in the process.
Thanks for reading the first issue. Naturally this newsletter will likely be changing a lot over the next few months, so please respond with any feedback and ideas on what you’d like to see in your roundup of Tech and AI.
