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Tesla's price cuts highlight Elon Musk's last advantage in the EV business

Matt Turner   

Tesla's price cuts highlight Elon Musk's last advantage in the EV business
Thelife4 min read

Hi, I'm Matt Turner, the editor-in-chief of business at Insider. Welcome back to Insider Today's Sunday edition, a roundup of some of our top stories.


On the agenda today:

But first: Tesla keeps slashing prices, putting investors on edge. I break down the latest below.


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Teslas are cheaper than ever

In the market for a new car? Elon Musk's hoping that recent price cuts might turn you on to a Tesla.

The EV company has dropped the prices on Tesla models six times since the start of 2023, with the Model Y now available for less than the average car once tax credits are taken into account.

That's helped Tesla drive demand, with first-quarter deliveries up 36%. But first-quarter earnings last week showed profits plummeting. Tesla's stock dropped around 10% last week.

The billionaire might just be turning to his one remaining advantage in the EV business.

Mercedes-Benz has taken a lead on autonomous driving. And while Tesla's been slow to release new models, rival carmakers have revealed flashier, more exciting EVs. But Tesla can cut prices and still deliver profits, something rival automakers struggle to do in their EV businesses.

While Tesla investors are worrying about profits, Musk's rivals have their own reasons to be concerned, Stephen Beck, founder and managing partner of consultancy cg42, told Insider.

"I'm sure most competitors are going 'oh, man, come on,'" Beck said. "This makes their road ahead a lot more difficult."

Plus, Insider's Alexa St. John and Nora Naughton report that Chinese automakers are giving US car companies a run for their money — which could force the likes of Ford and GM to make some hard decisions.


Wild world of celebrity lectures

Companies spend an estimated $2 billion a year for celebrity speakers to inspire and entertain their pandemic-weary troops. It can cost more than $500,000 for an hourlong keynote by Arnold Schwarzenegger or a Q&A with Serena Williams.

From the outside, it may seem like an easy gig: turn up, give a canned talk, and walk away with a big paycheck. But as the writer and former speech booker David Kushner reveals, the lecture circuit is much wilder. Kushner recounts stories of his time with celebrities from Spike Lee to Hunter S. Thompson and gives you all the dirty details of the Big Talk industry.

Go behind the scenes here.


Internal Amazon guidance

Amazon wants its managers to stress the "long-term" value of stock and "ownership" of work during annual employee-compensation reviews that started earlier this month. Managers should not disclose individual performance ratings or other people's pay with employees, either.

Those are among the many talking points shared in internal guidelines that list prospective questions and answers for Amazon managers to review before discussing pay with workers.

More from our scoop here.

Also read:


Crunch time for Realtors

The pandemic's homebuying craze now seems like a distant memory. The slowdown in sales has forced a brutal reckoning among real-estate agents who must decide whether the shrinking returns are worth the money and effort they're pouring into their businesses.

As rising interest rates spook both buyers and sellers, real estate agents are now fighting over a dwindling pool of listings — and many won't survive the housing crunch.

More on the Realtor washout.

Also read:


LA's startup star

Mark Suster, the managing partner of Upfront Ventures, made himself the face of Los Angeles' booming tech scene. He hosts one of the most glitzy summits in tech, with attendees like Gwyneth Paltrow and Alexis Ohanian.

But his abrasive, take-no-prisoners approach has alienated some founders and investors who say they found him aggressive, condescending, and ego-driven.

Read our full story here.


This week's quote:

"You thrust us into this situation without any support, and everything's amplified. It literally ruins lives."


More of this week's top reads:

Curated by Matt Turner. Edited by Hallam Bullock and Lisa Ryan. Sign up for more Insider newsletters here.


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