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Tesla is lowering its prices as the automobile industry sees a decrease in consumer demand.
Meanwhile, Apple CEO Tim Cook is expected to take a 40 percent pay cut this year, bringing his salary down from $84 million to $49 million.
This is Hillicon Valley, detailing all you need to know about tech and cyber news from Capitol Hill to Silicon Valley. Send tips to The Hill’s Rebecca Klar and Ines Kagubare. Subscribe here.Why Tesla prices are down
Tesla is slashing prices amid slowing demand for cars and the introduction of new electric vehicle (EV) tax credits that come with strict price caps.
The EV giant cut the price of some of its vehicles by up to 20 percent. Tesla dropped the price of its base Model 3 car by $3,000 and slashed the price of the performance model by $9,000. The more expensive Model Y saw its price drop by roughly $13,000.
The cost of Teslas and most EVs skyrocketed throughout the pandemic as supply chain snags made it difficult for automakers to produce enough vehicles to meet demand.
But consumers are slowing down their spending, and most Americans can no longer afford EVs, which reached an average price of $66,000 last year, according to Kelley Blue Book.
Dan Ives, an analyst at Wedbush, said that Tesla’s price drop is aimed at boosting demand and taking even more market share from its competitors, which have slowly been catching up to Tesla.
“This is a clear shot across the bow at European automakers and US stalwarts (GM and Ford) that Tesla is not going to play nice in the sandbox with an EV price war now underway,” Ives said.
