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.
Cook expected to take pay cut
Apple CEO Tim Cook plans to take a 40 percent pay cut in 2023 compared to his total compensation from last year.
- The company said in a filing with the Securities and Exchange Commission (SEC) on Thursday that Cook’s total target compensation for this year will be $49 million, down from the $84 million total target compensation he had in 2022.
- Cook’s total compensation for 2023 is based on a $3 million base salary, a $6 million cash incentive and $40 million in equity awards, the filing states.
Apple’s compensation committee makes decisions about compensation before the start of each fiscal year and sought to balance feedback from shareholders, the company’s “exceptional” performance and Cook’s own recommendation that his pay be adjusted as a result of the feedback.
MORE STATES BAN TIKTOK ON GOVERNMENT DEVICES
Wisconsin and North Carolina became the latest states to ban TikTok from government devices on Thursday, as concerns grow over potential cybersecurity risks posed by the Chinese-owned social media platform.
“It’s important for us to protect state information technology from foreign countries that have actively participated in cyberattacks against the United States,” North Carolina Gov. Roy Cooper (D) said in a statement. “Protecting North Carolina from cyber threats is vital to ensuring the safety, security, privacy, and success of our state and its people.”
North Carolina also banned WeChat, a messaging platform owned by a Chinese technology company, and left the door open to banning other applications that pose an “unacceptable cybersecurity risk.”
Gov. Tony Evers (D-Wis.) similarly directed a division within the Wisconsin state government to continue evaluating and identifying other platforms and vendors that could pose a threat to cybersecurity, beyond TikTok.
BITS & PIECES
An op-ed to chew on: Grounded: Aviation alert system failure should be a wake-up call
Notable links from around the web:
Inside Facebook’s high-stakes debate to reinstate Trump after a two-year ban
Microsoft Bets Big on the Creator of ChatGPT in Race to Dominate A.I. (The New York Times / Cade Metz and Karen Weise)
Even electric self-driving cars may have a climate change problem (The Washington Post / Pranshu Verma)
🏄🏻♂️ Lighter click: The Hill’s Photos of the Week
One more thing: Republicans launch crypto panel
House Republicans on Thursday unveiled a new panel focused on cryptocurrency, following the collapse of the prominent crypto exchange FTX late last year.
Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial Services Committee, announced the new Subcommittee on Digital Assets, Financial Technology and Inclusion on Thursday, alongside other subcommittee assignments.
The subcommittee, which will be chaired by Rep. French Hill (R-Ark.), aims to provide clear rules for federal regulators in the “digital asset ecosystem,” according to a committee press release. It also seeks to develop policies that promote financial technology in underserved communities and increase diversity and inclusion in the field.
That’s it for today, thanks for reading. Check out The Hill’s Technology and Cybersecurity pages for the latest news and coverage.
Programming note: We’ll be off Monday for MLK Day. See you next week!