truck

US Truck Drivers Call For Federal Action To Improve Working Conditions 

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US truck drivers are currently pushing for federal action to be taken to improve the conditions in which they’re working. Drivers are asking for higher ups to address their deteriorating working conditions, decreasing pay, and rampant fraud. 

Caleb Fernandez is a part of the movement, and has been a long-distance truck driver since 2017. He stated to the media that he will often spend hours loading and/or unloading his truck’s cargo without getting paid for the full time. 

“I think that I’ve got my schedule down and then just one customer can completely mess it up. Even if there’s an appointment, they just don’t show much that they care about wasting my time.”

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“My whole week gets wrecked because of one customer that just didn’t care about the time. It’s a chaotic life,” he said. 

May 1st of this year, 75 members of the Truckers Movement for Justice held a protest outside of the US Department of Transportation offices in Washington DC, demanding action be taken on things like wage theft, lack of overtime pay, and unpaid wait times for delivering cargo or taking on loads. 

The group met with senior officials from the Department in 2021 as a part of President Joe Biden’s trucking action plan, and set initiatives that were meant to increase the supply of truck drivers. The group has claimed that they have yet to see any improvement on the three core demands made during the meeting. 

“We’ve lost our patience. This has been going for years and has only gotten worse with the lack of federal action. We don’t need taskforces and studies,” said Fernandez, who is also the deputy secretary for Truckers Movement for Justice.

When we look at the stats and consider the impact of inflation on salary, truck drivers in the US in 1980 made about $110,000 annually, and today they make, on average, about $48,000. There are currently more than 2 million Americans working as truck drivers today. 

Ray Randall also spoke on the hours he’s worked unpaid, and other working conditions that he was not compensated for in his 20 years working as a truck driver. 

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“Drivers should be paid detention time. We believe all drivers should be paid for all hours worked, because once you come on duty, you’re working. If you come to a shipper and have to wait, I’m working. Also, after 40 hours, companies pay employees overtime but drivers don’t get any overtime and we can put in 70-plus hours a week. We can be on duty 12 hours a day and we’re not getting paid for those 12 hours,” he explained. 

William McKelvie, a truck driver for over 25 years, explained that “in addition to unpaid detention time, broker fraud and a lack of overtime pay, layover rates for overnight hauls have decreased in years, down from $500-$1,000 to $250 or less.”

“Drivers have a right to review freight bills, which provide the transaction information regarding loads to ensure all parties that no one is being ripped off. Many brokers will blackball or push drivers out for requesting to see freight bills, to avoid any pushback or criticism of how the costs are dispersed from shippers to brokers and what portion is paid out to drivers,” said McKelvie. 

“This is something that corporations and others have used their strong arms and intimidation tactics to overrule and overpower the working men and women in the industry,” he said.

“The more of our time that they waste, the more it hurts us financially, economically, and the ability to go and get our proper rest and relax for the next load,” McKelvie said.

“From back in the day we went from working 50 hours a week to 60 hours a week, to now we are at 70 hours a week, and with the extended work, that doesn’t give us any time for any real-life quality,” he said.

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Bed Bath & Beyond Files For Bankruptcy, Closing Hundreds Of Stores 

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Bed Bath & Beyond announced Sunday that it filed for bankruptcy, stating that they will be closing its remaining 360 Bed Bath & Beyond stores and 120 buybuy Baby locations. Within the past year the company has closed around 400 stores.  

Chain department stores such as TJ Maxx and HomeGoods have begun deals to take over the retail spaces, as well as gyms. The vast spaces of Bed Bath & Beyond stores offer a unique opportunity for commercial real estate. 

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“E-commerce scared a lot of people off from building retail,” said Brandon Isner, the head of retail research at CBRE, a commercial real estate firm, to CNN. 

“A lot of great real estate is going to come available into a market where there’s been no vacancies. It will not take long for retailers to occupy those spaces.”

“For us, the biggest source of new store locations comes from other retailers closing stores. So many of our most productive locations were formerly Circuit City or Toys ‘R’ Us or Sports Authority,” Burlington CEO Michael O’Sullivan said.

New commercial real estate construction has decreased vastly within the last couple of years, and retail store spaces have also been scarce, so the availability of these large building spaces could be a new opportunity for major retailers. 

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Bed Bath & Beyond has stores in all 50 states, a majority of them are in the most populated areas of the country. A majority of the stores are also located in large cities and mid-size suburbs. These are all good qualities for retailers looking to expand their spaces in a prime location. 

“There is good interest for Bed Bath & Beyond stores that are closing given desirable locations and an average size of around 30,000 square feet,” retail analysts from Telsey Advisory Group said.

“In some cases, landlords are also eager to replace old Bed Bath & Beyond leases because the company was paying below-market rent in certain locations,” Telsey Advisory Group analysts said.

“Bed Bath and Beyond sites are interesting to us, and we are exploring available opportunities with our franchisees,” a spokesperson told CNN.

bowl

Chipotle Sues Sweetgreen for Trademark Infringement Over New Menu Item

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On Wednesday morning, Sweetgreen stocks dropped by 10% after Chipotle Mexican Grill sued the company for trademark infringement over its new “Chipotle Chicken Burrito Bowl.” The lawsuit comes less than a week after the menu item was announced.

Sweetgreen is well-known for providing healthy food at scale, and the company has recently been attempting to diversify beyond its signature salads. The bowl will only be available for a limited time.

In its complaint, Chipotle claims to have sent Sweetgreen a cease and desist notice asking the company to drop “Chipotle” from the item’s name. Sweetgreen did not respond.

Chipotle alleges that it also suggested Sweetgreen alter the name to something that uses “chipotle in lower-case, in a textual sentence, to accurately describe ingredients of its menu item,” like a “chicken bowl with chipotle.”

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In a statement during the product’s release, Sweetgreen’s co-founder and chief concept officer Nicolas Jammet explained that diner suggestions prompted the addition to the menu.

“Our customers’ feedback plays a major role in the new menu items we introduce, and the Chipotle Chicken Burrito Bowl is our answer to heartier meal options that can be enjoyed any time of the day. Inspired by bold chipotle spices, this protein-heavy option balances a brand-new flavor profile for Sweetgreen with whole grains and better-for-you ingredients that our customers love.”

The lawsuit further claims that the new product’s advertisements feature the word “Chipotle” in a font very similar to the one used in Chipotle’s logo and occasionally uses a shade of red that resembles Chipotle’s trademarked Adobo Red. Chipotle also alleges that the two chains are competitors in the fast-casual dining industry.

Along with asking for an injunction against Sweetgreen using “Chipotle” in the bowl’s name, Chipotle is also asking the courts for the profits made by Sweetgreen off the menu items.

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In a statement to CNBC, Laurie Schalow, Chipotle’s chief corporate affairs officer, said that the lawsuit is a matter of protecting the company’s brand. The lawsuit states the item is “very similar and directly competitive.”

“We don’t typically comment on litigation, but we will say generally that we’re committed to protecting our valuable trademarks and intellectual property. Consistent with that, we will take appropriate actions whenever necessary to protect our rights and our brand.”

Shares of Sweetgreen have dropped 24% in 2023, reducing the company’s market value to $726 million and causing investors to worry about the company’s future.

However, despite general economic uncertainty, Chipotle has continued to enjoy robust business. During the same period, the fast food behemoth saw its stock value increase by 22% to $47 billion.

twitter

Elon Musk Implements Multiple Changes To Twitter

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April 1st marked the official deadline for verified Twitter users to pay for Twitter Blue in order to keep their blue check mark verification with their account. 

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Many celebrities and news organizations have vowed to not pay for Twitter Blue to maintain their verification. While many legacy verification accounts still have their check marks, the system has begun removing them from accounts without a subscription to the paid service. 

LeBron James, The New York Times, The Washington Post, and The White House are just a handful of verified accounts that have made public statements about their refusal to pay for the service; The New York Times has since lost its checkmark. 

No one working for Twitter had planned for a mass deletion of verifications, so removing the legacy verifications may take a while, as employees need to remove each one manually. 

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In Twitter’s new “For You” section, the platform has updated the way it ranks content within the section. Developers have begun identifying certain accounts as Democrat or Republican as a means of teaching whether algorithm changes were affecting one group disproportionately over another. 

Musk’s own Twitter account has its own special type of coding that many users have reported making it so his tweets are more widely viewed by users on the platform. 

Apart from these changes, many users have also noticed that Twitter is making content with certain words harder to see, such as “trans” or “transgender,” with users reporting that when tweets containing those words are sent to a user via direct message, the message won’t preview the tweet in the new messages section. 

This type of “shadow banning” for certain words are causing users to speak out against the changes, stating they’ve been put in place to limit just how much free speech users are actually allowed to have on the platform. 

jetblue

Justice Department Files Lawsuit to Block JetBlue’s Acquisition of Spirit Airlines

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The United States Department of Justice has filed a lawsuit to halt JetBlue’s $3.8 billion bid to acquire Spirit Airlines. It has been over 20 years since the government last intervened to prevent a merger between US airlines.

Attorney General Merrick Garland announced the lawsuit on Tuesday. President Joe Biden’s administration has long advocated for increased competition among businesses, particularly in the airline industry, to protect consumers and reduce prices

Spirit Airlines is well-known for providing customers with affordable flight options and is the country’s largest ultra-low-cost competitor to major carriers. Garland is concerned that the merger will negatively impact customers who rely on the company’s affordable fares.

“If not blocked, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country. The Justice Department is suing to prevent that from happening. Companies in every industry should understand by now that this Justice Department will not hesitate to enforce antitrust laws and protect American consumers.”

Within the last 22 years, five airline mergers have been allowed by the Justice Department, resulting in the consolidation of nine major airlines into four national carriers in the United States (American Airlines, Delta Airlines, United Airlines and Southwest Airlines). Currently, around 80% of all domestic flights in the U.S. are serviced by just four airlines.

JetBlue argues that the new merger would create a stronger competitor to those four major airlines, causing fares to fall rather than rise. According to JetBlue, due to the four airlines dominating the U.S. market, JetBlue and Spirit can only compete with each other rather than larger carriers.

However, according to the lawsuit, average fares on routes have fallen by 17% once Spirit began to serve them.

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To foster healthy competition, the company has proposed forfeiting landing and takeoff slots and gates at overcrowded airports to other low-cost airlines.

“The combination of JetBlue and Spirit plus the rapid growth of ultra-low-cost carriers will assure increased competition and low fares,” JetBlue said in a statement.

“JetBlue’s combination with Spirit allows it to create a compelling national challenger to these dominant airlines while also ensuring ultra-low-cost carrier options remain available in overlap markets. While JetBlue, with its highly unique combination of low fares and great service, will be able to expand with new national breadth as a result of the transaction, it will remain a significantly smaller player than each of the Big Four airlines. According to the data, a combined JetBlue and Spirit will have only about 9% market share, compared to about 16-24% for each of the four largest airlines, but the added scale and ability to further grow will result in meaningful competition on more routes to more destinations and greater opportunities for Crewmembers and Team Members of both airlines.”

JetBlue plans to close its deal with Spirit by the year’s end and hopes to get the lawsuit dismissed by then. The merger would form the fifth-largest airline in the U.S.. JetBlue has also spent the past 18 months defending itself against a separate lawsuit brought forward by the Justice Department alleging its Northeast alliance with American Airlines is predatory.

The Justice Department claims that the two airlines conspired to increase prices and limit options for travelers flying to and from major Northeastern cities in the United States. The companies traded information on flight schedules, pilot rosters, and aircraft sizes to use for each flight. They also shared revenues earned at these airports and pooled their gates and takeoff/landing authorizations.

“Approximately 75% of JetBlue’s total capacity is tied up in the Northeast Alliance,” the Justice Department stated in the recent lawsuit.

“That means JetBlue today coordinates its capacity decisions and shares its revenues with American Airlines on the vast majority of its flights. In other words, JetBlue no longer competes with American Airlines on those flights — and if this acquisition happens, Spirit won’t either.”

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Initially, Spirit Airlines was opposed to the merger with JetBlue on the grounds that it would increase fares and therefore present too many obstacles for regulatory approval. Instead, it planned to merge with Frontier Airlines—another ultra-low-cost airline carrier. However, it has now abandoned that plan since JetBlue outbid Frontier Airlines.

In his statement, Garland referenced the Spirit Airlines board’s statement back when they opposed the merger with JetBlue.

“A court will be very concerned that a JetBlue-Spirit combination will result in a higher cost, higher fare airline that would eliminate a lower cost, lower fare airline and eliminate about half of lower cost capacity in the United States.”

“We agree,” Garland added after reading the quote.

Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division stated, “This transaction occurs against the backdrop of years of airline consolidation in the United States.”

“JetBlue’s proposed acquisition of Spirit eliminates a disruptive, low-cost option for millions of Americans. Whether they fly Spirit or not, travelers throughout the United States benefit from an independent Spirit because where Spirit competes, other airlines – including JetBlue – are forced to compete more vigorously by lowering fares, offering greater innovations and delivering more consumer choice.”

The Justice Department and two other federal agencies—the Department of Transportation and the Federal Communications Commission—will need to approve the deal before it can be finalized. However, the decision ultimately rests with the federal courts that will hear the case.

recession

US Consumer Confidence Declines for Second Month Amid Recession Fears

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Consumer confidence in the U.S. economy fell in February as rising interest rates and fears of a recession weighed on the minds of Americans, according to the latest survey data released by The Conference Board on Tuesday.

The Conference Board’s Consumer Confidence Index gauges attitudes about the strength of the economy, “prevailing business conditions and likely developments for the months ahead.” The widely followed metric measured at 102.9 in February, falling from the downwardly revised 106.0 in January, marking a decrease for the second month in a row.

“Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.

The U.S. economy added 517,000 jobs in January as the unemployment rate fell to 3.4%, the lowest since May 1969. According to the survey report, an increase in the Present Situation Index shows consumers are optimistic about the current labor market. Still, they remain wary of the future direction of the economy.

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“The proportion of consumers saying jobs are ‘plentiful’ climbed to 52.0%—back to levels seen in the spring of last year. However, the outlook appears considerably more pessimistic when looking ahead. Expectations for where jobs, incomes, and business conditions are headed over the next six months all fell sharply in February.”

The Expectations Index, which gauges consumers’ short-term outlook for income, business and labor market conditions, fell to 69.7 from a downwardly revised 76.0 in January.

“Notably, the Expectations Index has now fallen well below 80—the level which often signals a recession within the next year. It has been below this level for 11 of the last 12 months.”

The newest reading is the lowest since July 2022, when gas prices hit an all-time national high. While 12-month inflation expectations improved, down from 6.7% to 6.3%, consumers are showing signs of reducing their spending due to high prices and rising interest rates.

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“Fewer consumers are planning to purchase homes or autos, and they also appear to be scaling back plans to buy major appliances. Vacation intentions also declined in February.”

FwdBonds Chief Economist Chris Rupkey told CNN, “If consumers drive the economy, the outlook for 2023 is bleak, as the consumers expect that the worst is yet to come.”

“Coming on the heels of a gigantic 517,000 new payroll jobs report in January, current conditions, especially in the labor market, look great, but the future path of the economy is very much in doubt.”

The other leading gauge of consumer confidence, the University of Michigan’s Consumer Sentiment Index, increased in February from 64.9 to 66.4.

Both indexes tend to move in tandem with one another over time. However, the Michigan Sentiment Index is swayed more by household finances and inflation impact, while the Consumer Confidence Index is more influenced by employment and labor market conditions.

“The strong jobs market continues to boost consumers’ spirits, but they see trouble ahead in categories that affect them most: jobs and incomes,” Robert Frick, an economist with Navy Federal Credit Union, told CBS News. “Confidence is now strongly linked to high inflation, and if inflation falls this year as most forecasts suspect, we could see a commensurate rise in confidence.”

insurance

The Cost Of Car Insurance Is Continuing To Rise 

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While inflation has begun to ease throughout the nation, car insurance prices are continuing to rise, as premiums are projected to go up throughout the year. 

According to Bankrate’s annual True Cost of Auto Insurance Report, released this Monday, the average cost of full coverage auto insurance is about $2,014 a year in America. 

Cat Deventer, Bankrate’s insurance analyst, told CNN that “car insurance rates are reactionary,” and currently feeling the lasting impact of high inflation rates from throughout the last two years; which also led to labor and auto part shortages. 

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These shortages, as a result, caused the cost of insurance claims on car repairs to increase, along with other related auto costs. 

“If inflation keeps cooling we could see insurers file for rate decreases in future years.” 

If you get into an accident, receive a speeding ticket, have a teenager as a driver under your policy, and credit score decreases are all factors that could lead to one having to pay an increased premium. 

Where you live can also have a major impact on how much you pay for auto insurance. According to Deventer: “Each geographic area has different risks and costs of living, so the cost for car insurance varies across the nation.”

Bankrate reported that Orlando, Florida saw the biggest rise in premium costs throughout 2023 so far, with an increase of 23% to average a $3,078 annual cost. 

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Phoenix, Arizona experienced the second highest rise in cost with a 17% increase to $2,164. Philadelphia and New York City both experienced the biggest decrease in rates. Philadelphia costs decreased around 22% to a $1,872 average, while NYC had a 14% decrease to a $2,649 average. 

“While you can’t control the effects of inflation or location on your premium, there are other things you can do to keep your costs to a minimum,” Deventer explained. 

She recommended looking for as many discounts as your insurer offers and taking advantage of them. For instance, taking a defensive driving course can decrease one’s premiums in many areas. 

“Or if the teenager on your policy goes away to boarding school or college and can’t drive your car, your insurer may offer a “student away” discount. And if they aren’t away, but attend school full-time and get good grades through age 24, that may save you a few bucks, too,” Deventer said.

“Every company uses a different algorithm to determine rates,” Deventor continued, so take the time to shop around for different providers in your area to receive the best possible coverage at the lowest price.

netflix

Netflix Will Start Charging Users for Password Sharing in March

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Netflix will stop subscribers from sharing passwords with members living outside their homes as early as March this year. The streaming giant claims that the widespread sharing of passwords affects its ability to evolve the platform.

In a letter to shareholders late last week, the company said it would “roll out paid sharing more broadly” late in the first quarter of 2023.

“Today’s widespread account sharing (100 million + households) undermines our long-term ability to invest in and improve Netflix and build our business. While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their accounts more broadly. So we’ve worked hard to build additional new features that improve the Netflix experience.”

Members will still “have the option to pay extra if they want to share Netflix with people they don’t live with.” Otherwise, subscribers can transfer an existing user profile to a new account, allowing viewing history, recommendations, the “my list” feature and other data to be copied over.

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Netflix previously hinted at discontinuing its password-sharing feature back in July 2022. The company described last year as “tough.” In the first quarter, it suffered its first subscriber loss in over a decade, losing 200,000 users.

The company has not disclosed the fee it will charge for password sharing nor stated how they plan to enforce the new pricing structure. Currently, Netflix can tell when users log in outside their primary household based on their IP address, device IDs, and other information.

In March 2022, Netflix rolled out paid sharing in Costa Rica, Chile, and Peru, charging users a fee to add two “subaccounts” to a primary account. Users found the policy confusing, and many could still share their passwords without repercussions. 

An anonymous Netflix customer service representative told Rest of World that “she was instructed that if a subscriber called arguing that someone from their household was just using the account from another location, she should inquire further and tell the subscriber that they could use their account without extra charge via a verification code.” Many of the representatives still needed more clarification about the policy.

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Other users in those countries canceled their subscriptions after receiving news of the oncoming fee. The shareholder letter stated that Netflix expects engagement to fall in the short term but will pick back up soon after.

“As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near-term engagement, as measured by third parties like Nielsen’s The Gauge, could be negatively impacted. However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign-up for their own accounts.”

The anticipated sharing fee comes on the heels of a new subscription tier that Netflix started offering in November, which provides customers with a cheaper “Basic With Ads” subscription option. In exchange for $3 off a monthly subscription, viewers are served up to five ads an hour. Netflix claims that rolling out the new option led to member growth.

“Engagement, which is consistent with members on comparable ad-free plans, is better than what we had expected, and we believe the lower price point is driving incremental membership growth. Also, as expected, we’ve seen very little switching from other plans. Overall the reaction to this launch from both consumers and advertisers has confirmed our belief that our ad-supported plan has strong unit economics (at minimum, in-line with or better than the comparable ad-free plan) and will generate incremental revenue and profit, though the impact on 2023 will be modest given that this will build slowly over time.”

Tweet

Elon Musk Among Witnesses Expected to Take the Stand This Week in Tesla Tweet Trial

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Elon Musk is among the expected witnesses to appear this week in the ongoing federal trial accusing him of deceptively driving up the price of Tesla stock by tweeting about taking the company private, which never happened.

The August 2018 tweet in question stated that Musk had “secured” funding to take Tesla private at $420 per share. The company’s stock was slumping at the time due to production problems.

Tesla shareholders filed a class-action lawsuit suing Musk for billions of dollars in damages for money investors say they lost after the tweet inflated share price. The trial, taking place in San Francisco, is expected to last for three weeks. 

Investor Glen Littleton from Kansas City, Missouri, is seeking damages on behalf of shareholders who traded the company’s stock in the days after Musk’s tweet. 

Littleton had purchased Tesla investments with hopes that the automaker’s stock would eventually be worth far more than $420. Upon seeing Musk’s tweet, he felt compelled to sell his Tesla stock options since he knew the completed deal would have rendered them worthless. 

He stated he sold off most of his Tesla positions to try and limit his losses, but even after doing so, the value of his Tesla portfolio plunged by 75%.

“The damage was done. I was in a state of shock.”

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The case’s outcome may depend on whether Musk knowingly raised Tesla’s stock price by tweeting that he had secured money for a $72 billion takeover of the business. The stock plummeted in value when it became apparent that he lacked the funding to complete the deal a week later. 

On Wednesday, Nicholas Porritt, lead attorney for the investors, told the trial’s jury of nine that “millions of dollars were lost when his lies were exposed.” 

“Why are we here? We are here because Elon Musk, chairman and chief executive of Tesla, lied. His lies caused regular people like Glen Littleton to lose millions and millions of dollars.” 

Porritt also pointed out that not only did Musk’s tweet cause investors to lose money, but it also affected pension funds and other organizations that owned Tesla stock.

The trial’s presiding judge, U.S. District Judge Edward Chen, has already ruled that Musk’s tweet was false and reckless. 

Porritt took advantage of the judge’s verdict and told the jury they should presume Musk’s tweet was false, which the judge permitted.

“When the CEO of a public company like Tesla lies about his company and hurts investors, it’s critical that he is held accountable for that harm that he causes.”

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In his opening statements, Musk’s attorney Alex Spiro insisted that Musk was “serious” about the buyout when he tweeted about securing funding.

“You will come to learn very soon that this was not fraud, not even close.”

Spiro argued that the rise in Tesla’s stock price after the tweet was due to investors’ faith in Musk’s capabilities and reputation as a visionary.

“Mr. Musk tries to do things that have never been done before. Everyone knows that.”

According to Spiro, Musk and representatives from the Public Investment Fund of Saudi Arabia had already discussed taking Tesla private.

“He didn’t plan to tweet this. It was a split-second decision.”

Spiro said Musk used the “wrong words” in a rush to be transparent about the potential deal with the Saudi fund.

Musk is on the witness list for both sides of the case. Porritt told The Associated Press that Musk is expected to take the stand when the trial resumes on Friday, if time permits, or on Monday.

tesla

Tesla Vehicles Are Becoming Cheaper, What This Means For The Company 

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Tesla has recently cut their prices on some of their top-selling models, including the Model Y SUV and Model 3, by up to 20% across the US and Europe. The changes were revealed on Tesla’s website last Thursday. 

While the vehicles are still relatively expensive, the drop is significant when compared to its previous premium pricing. Many are speculating that these decreases are a sign of Tesla backing away from the months they spend gradually raising the prices of the electric vehicles. 

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Tesla has also experienced the impact of the economy in recent months, missing market estimates for sales last year, shifting its market capitalization from $1 trillion to less than $400 billion, according to reports from Business Insider.

Company owner Elon Musk has recently bought and taken over the popular social media platform Twitter, where he’s made it clear that rising interest rates in general have been taking a toll on the electric vehicle company. 

“Fed needs to cut interest rates immediately, they are massively maplifting the probability of a severe recession,” Musk tweeted in November. 

Interest rate increases have had a major impact on the costs of financing Tesla vehicles, making it even more difficult for consumers to become a Tesla owner. 

Dan Ives, senior equity research analyst at Wedbush Securities, said “it’s no secret that demand for Tesla is starting to see some cracks as a global slowdown of the economy that started in 2022 continues into 2023.”

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“A softening demand for the global EV market is a bigger driver of price cuts than interest rate hikes. When it comes to demand, backlog orders have come down significantly for Tesla, making price cuts is a good way to increase the immediate- and medium-term sales pipeline,” said Simon Moores, CEO of Benchmark Mineral Intelligence, a price reporting agency for the EV supply chain, to Insider. 

Traditional automakers have also entered the electric vehicle market, providing cheaper alternatives to Tesla, which has dominated the EV market since its launch. 

According to data from an Experian report, from January to September 2022, Tesla accounted for 65.4% of new electric vehicle registrations in the US. This percentage marks a significant decrease from the two previous years: 68.2% in 2021 and 79.4% in 2020. 

The cuts to Tesla pricing will likely welcome more consumers to purchase the vehicles. Ives stated that he estimated the price cuts could definitely increase demand by around 12-15% globally in 2023. 

“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,” he said.