Market Daily

Market Daily

Tax credit rules for next year not entirely clear

Image source: PC Mag

Tax credit: Several electric vehicle models from General Motors and Tesla could qualify for tax incentives in 2023, which is just a few days away.

Some EVs weren’t qualified for tax credits worth $7,500 this year.

Although the change is positive, the eligibility can only be valid for a limited time.

The August Inflation Reduction Act’s restrictions are to blame for the continued eligibility.

This Monday, the Treasury Department announced that the Act’s limitations on newly generated tax credits would not take effect right away.

As a result, during the first few months of 2023, the rules will be temporarily more lenient and permit higher tax credits on more EVs.

The rules

The restrictions on the new tax credits have been delayed until at least March 2023, according to the US Treasury Department.

The new restrictions apply to both the manufacturing location of the battery and the places where its minerals were obtained.

It also announced proposed regulations that would carry out the requirements.

The law specifies that the tax credit reductions will begin as soon as the “proposed guidance” is issued.

Vehicles can be eligible for larger tax credits after three months have passed.

For instance, General Motors said that its electric vehicles will only be eligible for a $3,750 tax incentive if the full restrictions are in place.

For two to three years, the company’s automobiles won’t be qualified for the $7,500 tax credit.

Read also: Electric vehicles enjoy successful year


Despite the buying possibilities they would present in early 2023, the restrictions have the drawback of making the regulations unclear.

Chris Harto, a senior policy analyst at Consumer Reports, stated that he prefers more transparency over less.

“It seems like things just seem to get more confusing each time they say something,” said Harto.

To encourage manufacturers to produce their electric vehicles (and their parts) in the US or other countries with which they have trade relations, tax laws have been implemented in place.

Additionally, they ensure that wealthy Americans who purchase luxury vehicles do not receive tax credits.

Customers will surely profit from the most recent announcement because it temporarily boosts the amount of accessible tax credit money.


One of the many ambiguous parts of the Act is the tilted tax credit for early 2023.

According to updated EV tax credit standards, the Chevrolet Bolt EV and EUV are now qualified for tax credits for the next year.

They were previously ineligible despite the fact that they were built in North America.

The 200,000 electric vehicle sales cap for any firm under the previous tax credit limitations was exceeded by General Motors and Tesla.

The cap will be raised under the new regulations, which are a part of the Inflation Reduction Act.

Despite the adjustment, not all customers (or electric vehicles) will be qualified for credits.

For instance, in addition to the demand for North American output, there will be pricing restrictions.

The maximum sticker price for a car is $55,000, while the maximum price for an SUV is $80,000.

As a result, a majority of Tesla cars (including the Model X SUV, Model S sedan, and Model 3) won’t qualify for tax credits at their present prices.

Since it is produced in the US, the Mercedes EQS SUV now eligible for tax benefits would stop by 2023.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Chris Harto.

“And it makes a giant mess for consumers, and automakers, and dealers.”

Read also: Robots were influential to restaurants, but how far is the progress?


Buyers cannot flip because of the restrictions on tax credits.

This implies that the final user must be the one who buys the vehicle.

Individuals are not qualified for the tax credit if they purchase a car with the purpose of reselling it later.

Additionally, the buyer’s income is subject to limitations.

The highest “modified adjusted gross income” for purchasers is $150,000 for individuals, $300,000 for married couples filing jointly, or $225,000 for the head of household.

High-end electric vehicle buyers won’t be able to get tax credits because of the restrictions.

The best thing buyers can do, in the opinion of Andrew Koblenz, vice president of the National Automobile Dealers Association, is find out if the vehicle they are considering purchasing is eligible for the tax credit.

Because some models are made in multiple factories, similar-looking SUVs purchased from the same dealer might not be eligible for the same level of credit.

“It’s a great time to be shopping,” said Koblenz.

“It’s great that there will be more vehicles eligible now, but you’ve still got to make sure the one you’re interested in is eligible.”

“You need to ask your dealer and your manufacturer that question, and you’ve got to make sure that you qualify too.”


Tax credit confusion could create a rush for electric vehicles in early 2023

Tesla recalls model after concerns rose regarding FSD feature

Tesla Users have always found the idea of a car driving itself appealing, especially when there is traffic or a distance to travel.

It was only a concept at first, but Elon Musk and his company, Tesla, were able to make it a reality.

The response has been erratic with the adoption of the “Full Self Driving” assistance software.

Tesla’s self-driving capabilities forced it to recall a few cars last year.

This year, the business plans to recall even more automobiles.

The news

Tesla is reportedly recalling each of the 363,000 “Full Self Driving” cars in the US.

The fact that the company chose to base its decision on safety concerns is just another blow to Tesla’s main point of differentiation.

The autonomous driving capability steers, brakes, and accelerates the car while it travels on local roads using artificial intelligence.

Moreover, because the system has a propensity for making poor judgment decisions, it necessitates having a human driver on standby to take over at any time.

The problem

The National Highway Traffic Safety Administration has determined that Tesla’s FSD function poses an unreasonably high danger to motor vehicle safety due to a lack of dedication to traffic safety.

The group issued a warning that FSD could be able to transgress traffic regulations at crossings before motorists can react.

The NHTSA recently posted a recall on its website, writing:

“The FSD Beta system may allow the vehicle to act unsafe around intersections, such as traveling straight through an intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution.”

Fixing the system

According to the NHTSA letter, Tesla will spend $15,000 to patch its software over the air in order to fix the FSD function.

Elon Musk, the CEO, has not yet released a statement in the media on the situation.

Throughout his tweets, he has only ever used the word “recall” to refer to an OTA software update and to note that it is unreliable and out-of-date.

But, the NHTSA statement states that manufacturers are required to start a recall for fixes, including software upgrades, that reduce an excessively high safety risk.

Government representatives claim that they are currently assessing the efficacy of recall solutions.

Read also: Ford deals with battery problems as production stops

Affected models

The issues are reported in vehicles using the most recent FSD software version, according to the notice.

The software is used by the following four Tesla models:

  • Model S
  • Model X
  • Model 3
  • Model Y

The business uncovered 18 reports of accidents between May 8, 2019, and September 12, 2022, according to the letter, which might be tied to related events.

Tesla is not aware of any incidents that have caused injuries or fatalities, according to the NHTSA.

According to federal investigators, the Tesla driving assistance technology was apparently involved in 273 accidents.

Safety data

Due to the premiums clients pay for its amenities and its ability to entice customers with its vehicles, Tesla views FSD as the cornerstone of the company’s business plan.

While still being in development, Elon Musk and the business have insisted that the FSD is safer than manual automobiles.

In January, Musk told investors that the business had data from FSD customers who had driven more than 100 million miles off of highways.

“Our published data shows that improvement in safety,” said the CEO. 

“It’s very clear. So we would not have released the FSD Beta if the safety statistics were not excellent.”

Tesla’s claims on safety, however, are rejected by safety experts.

High-profile incidents involving Tesla vehicles that used FSD and its predecessor, the “Autopilot,” have occurred.

Deaths have occurred as a result of several incidents.

The NHTSA is also looking into Autopilot.

In contrast to the “full self-driving” idea, the technology combines adaptive cruise control with lane-keeping assist to maintain the automobile in its lane.

Future autonomous driving technology is something Tesla wants to work on.

Initial enquiries are not covered by the recall, despite the fact that it is intended to address a particular set of issues.

“Accordingly, the agency’s investigation into Tesla’s Autopilot and associated vehicle system remains open and active,” said its statement.

According to Tesla’s annual financial report, the US Justice Department requested papers relating to the company’s Autopilot and FSD technologies in January.

Image source: NPR

Ford deals with battery problems as production stops

Ford There are many major companies in the US that export their goods and services to a variety of international markets.

Gas-powered cars were the primary form of mobility on the concrete roads prior to the advent of Elon Musk and Tesla.

Ford Motor Company has been established for more than a century and is one of the top American automakers.

The business has prospered in spite of the downturn in the economy and routinely releases new products on the market.

In reaction to the popularity of electric vehicles, Ford changed its business strategy and announced plans for a number of new models.

The Ford F-150 Lightning pickup truck is one of the most eagerly awaited vehicles.

Unfortunately, a recent problem has forced the business to temporarily stop manufacturing.

The news

According to a statement released by Ford Motor Company on Wednesday, production of the F-150 Lightning pickup truck is anticipated to cease until the end of the next week.

The business will then solve a potential battery problem brought on by a car battery fire.

One day after the company revealed at the beginning of last week that the much anticipated car would be delayed, the fire was finally verified.

Ford said on Wednesday that firefighters’ origin had been discovered.

The study needs to be finished by the conclusion of the subsequent week.

The business will next modify the truck’s battery manufacturing procedure, which might require a few weeks.

The fire

The battery fire was originally covered by the Detroit Free Press.

According to reports, the event happened during a holding lot quality check before delivery.

The neighboring car was then affected by the fire.

Ford acknowledged it, but a spokesperson for the business declined to give more information.

The manufacturer had to halt operations and stop shipping finished cars as a result of the fire.

Read also: Microsoft’s demos showed AI errors in event

SK On, a South Korean branch of SK Innovation, provided the batteries.

Last year, Ford and SK On formed a joint venture to build battery production facilities in the US.

The manufacturer asserted that none of the vehicles that had been delivered to consumers and dealers in the past had battery problems.

Moreover, Ford dealers are free to continue selling the stock of cars they have.

Sales pressure

Investors are closely monitoring the Ford F-150 Lightning pickup vehicle.

An important part of the observation is that the pickup truck (an electric version) was the first of its kind to hit the market.

It is regarded for being a historic Ford launch as well.

Yet Ford’s chronic “execution issues” are made worse by the battery problem.

These worries were first raised by CEO Jim Farley in early February, and he thinks they hurt the company’s fourth-quarter profitability.

Farley stressed the need for the business to increase operational efficiency on Wednesday in order to match margins with rivals and generate more revenue.

Ford’s lower profitability when compared to its well-established competitors, in the CEO’s estimation, is the result of a $7 billion to $8 billion cost disadvantage.

Jim Farley made a compelling case for action at a Wolfe Research Conference by stating:

“We can cut the cost, we can cut people, we can do that really quickly and we’ll do whatever we need to.”

“The reality is that if you don’t change the efficiency of engineering, supply chain and manufacturing, the basic work statement, the way people work, the efficiency of that it’ll grow back.”

“This is really about redesigning what we do in the 120-year-old part of the company.”

Similar problems

Typically, automakers handle recalls and car problems.

Yet, battery issues are unusual given the massive sums of money automakers spend creating vehicles.

The electric Chevy Bolt from General Motors has a big and recent problem of comparable significance.

Due to fire problems, GM was compelled to recall the Bolt EV in 2021.

The business recalled each electric car it delivered in 2016 due to manufacturing errors that resulted in 13 bolts burning spontaneously.

Image source: Detroit Free Press

Tesla pushes for unconventional price cut in US and UK

Image source: The Japan Times

Tesla: The economic crisis has had an implication on every business industry and has prompted large companies to make critical decisions.

Tesla is taking a different path than that of other firms, which have been firing workers to save expenses.

Instead, the manufacturer of electric cars is lowering costs of its vehicles in the US and Europe.

The news

Tesla is a company renowned for its ability to create solar panels, energy storage technology, and electric vehicles.

The company was created in 2003 by Elon Musk.

Tesla electric vehicles are renowned for their effectiveness, extensive range, and distinctive aesthetics.

The Model S, Model 3, Model X, and Model Y are a few of the best-known Tesla vehicles.

Along with producing commercial cars, Tesla also sells components and systems for electric drivetrains to other automakers.

On Thursday, a promotion was posted on the official website.


Teslas have been selling out swiftly on the market.

The firm has significantly and positively increased its earnings during the past few years.

By 2020, more than 5 million Tesla vehicles would have been sold globally.

The Model 3 has led the world market for electric automobiles since 2018.

It is also now the least expensive EV model.

Additionally, Tesla has seen tremendous sales in China and Europe.

The firm plans to increase manufacturing and sales in a variety of countries.

Sales-wise, Tesla has consistently outperformed the competition, solidifying its position as the market leader for electric vehicles.

However, cutting back on US spending would make it easier for the business to receive significant federal EV tax credits, which would boost domestic and global sales.

The Model 3 and Model Y are currently discounted in the following countries:

  • Austria
  • France
  • Germany
  • The Netherlands
  • Norway
  • Switzerland
  • The UK

Read also: Nike finds new strategy through Gen Z consumers in China

The models

According to the vehicle’s configuration, Tesla in Germany appears to have reduced the price of the Model 3 and Model Y as low as 1% to more than 17%.

The Model Y lost ground to the Model 3 in desirability in Germany in December 2022.

In Germany, Volkswagen and its well-known EV, the ID.4, lagged behind the American EV powerhouse.

An entry-level electric vehicle equivalent to the Model 3 at a lower cost is the Volkswagen ID.3.

According to TroyTeslike, an independent EV industry researcher, the cost of a brand-new Tesla Model 3 has decreased by 6% to 14% in the US.

Depending on configuration, the Model Y’s cost might drop as low as 19%.

The Model Y is Tesla’s sport utility vehicle or crossover, whereas the Model 3 is the company’s entry-level sedan.

The more costly Model S sedan and Model X SUV are now more widely accessible in the US.

Tax credits

Electric cars may be eligible for tax incentives in the US depending on its form factor, classification, economy, driving range, and manufacturer’s suggested retail price.

To give manufacturers the chance to qualify for a $7,500 clean car tax credit, the US government postponed until March the launch of new rules limiting the sale of raw materials and battery components.

As a result, EV manufacturers may buy the components and supplies they require from foreign suppliers and still be eligible for financial incentives from the government.

The current interim regulations exempt from the need for final EV automobile assembly those who are eligible for government subsidies.


The latest tax decrease will provide both immediate and long-term tax benefits for EV manufacturers.

Customers who made financial commitments to buy new Tesla automobiles by the end of 2022 have encountered problems.

After promising to accept deliveries at higher costs until the end of 2022, Tesla infuriated many Chinese customers by significantly reducing the prices of the Model 3 and Model Y.

According to Reuters, a large number of clients reportedly complained and requested refunds.

Meanwhile, Tesla is stubborn.

The company last month announced a $7,500 discount on the Model 3 and Model Y in an effort to get buyers to accept delivery of their vehicles before the end of the fourth quarter.

The manufacturers also offered free Supercharging at their charging stations for 10,000 miles if US customers cooperated.


Even with the incentives, the company stated that 439,701 autos were manufactured and 405,278 were delivered in the fourth quarter.

Analysts expected vehicle deliveries to increase by 50% annually, but neither they nor the annual targets were met in the fourth quarter.

In Fremont, California, Tesla is now running its first assembly facility in the US.

It also has a brand-new facility in Gruenheide, Germany, a production facility abroad in Shanghai, and a production line in Austin, Texas.


Tesla cuts prices in the US and Europe to stoke sales after lackluster year-end deliveries

Electric vehicles enjoy successful year

Image source: WBTW

Electric vehicles: Electric vehicle sales are higher than ever, and manufacturers outside Tesla are becoming more well-known.

Matt Degen, an editor at Cox Automotive, a website and company specializing in autos, aptly described the situation.

“It’s not your eyes tricking you,” highlighted Degen.

“For the longest time, the majority of the EVs on the road were Teslas, and they still get the lion’s share of sales.”

“But they’re now hardly the only game in town.”

The numbers

5.6% of the cars sold in 2021, according to Kelley Blue Book, were electric cars.

Two years ago, only 1.4% of electric vehicles were sold.

Norway was mentioned by BloombergNEF analyst Corey Cantor in reference to the success within the global markets.

The 5% market share represented a crucial turning point for greater acceptance.

Similar trends, according to BloombergNEF, also took place in markets like China and Europe.

Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-powered cars still provide the majority.

A norm

5% may not seem like much, but it may be the beginning of something universal.

For instance, according to Cox Automotive, Hyundai’s entire US market share and market shares for electric vehicles are alike.

Both purchasing a Hyundai and an electric car don’t feel out of the ordinary.

But the main obstacle to buying an electric vehicle is the convenience.

“I think now the demand is definitely there,” said Cantor.

“It’s just been more a supply side of automakers not being able to ship enough.”

Read also: TikTok popularity makes US ban challenging

Supply & demand

The distribution of parts has been a challenge for the global auto industry since the beginning of 2022, which has hindered the manufacture of several vehicles.

The rapid success of a few electric vehicle models caught the manufacturers off guard.

For instance, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.

Since then, Ford has had trouble meeting the demand.

According to Darren Palmer, vice president of Ford’s electric vehicle projects, every Mach-Es produced by the company was manufactured according to a specific client order.

“We could sell it out at least two or three times over,” said Palmer.

“We have held back from launching more global markets because we’re completely sold out.”

The F-150 Lightning is a later model of Ford’s F-series pickup truck.

Additionally, the company is updating the Michigan factory where the Lightning is produced.


Additionally, there are now a wider variety of electric automobiles on the market.

Eleven electric vehicle models sold more than 1,000 units in 2019, according to Kelley Blue Book.

In 2022, there were 26 different models produced.

Hyundai and Kia released new models of the Hyundai Ioniq 5 and the Kia EV6 although they already sold electric cars.

Rivian also unveiled its R1S SUV and R1T pickup truck.

Meanwhile, General Motors saw a rise in sales after the Bolt EV and Bolt EUC were put on sale as a result of a battery fire recall.

Currently, the top manufacturers listed below are selling electric automobiles on the market:

  • Audi
  • BMW
  • Genesis
  • Mercedes
  • Volvo

“There’s different segments, there’s different price levels,” said Matt Degen.

“It’s not just having to spend $50,000 or $100,000 on an EV anymore.”

Tony Quiroga, the editor-in-chief of Car and Driver, claims that longer driving ranges and faster charging periods have enhanced the appeal of less expensive electric vehicles.

Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting Price).

“It’ll go from 10% to 80% on a fast charger in 18 minutes,” said Tony Quiroga. “Which is something that only the luxury brands were doing.”

Read also: Rent on the rise, but it’s moving at a steady pace

Inflation Reduction Act

Although there is a wider range of electric vehicles available, it is expected that when production problems are resolved, EV sales will climb.

However, there are still a great deal of open issues.

The rise in interest in electric vehicles earlier this year, according to Jessica Caldwell, an industry analyst for, may have been driven by rising gas prices.

People may decide against purchasing electric vehicles in the upcoming year given the recent dramatic fall in gas prices.

Meanwhile, the consequences of the Inflation Reduction Act are still undetermined.

This year’s bill changed the circumstances under which electric vehicles can be eligible for consumer tax credits.

Furthermore, it establishes a limit on the car’s price based on the buyer’s income.

A few factors also favor domestic production of electric car batteries.

The question isn’t how many electric vehicles will be eligible, says Corey Cantor, but rather which ones.

“So, if a Tesla Model 3 and the Chevy Bolt, and the Tesla Model Y, and a Ford Mach-E and an F-150 Lightning all qualify, those are high volume vehicles,” said Cantor.

Due to their popularity and high sales, incentives can lead to an increase in the sale of electric vehicles.


Electric vehicle sales hit a tipping point in 2022

The Federal Reserve impact on stock market; Thursday market updates

Image source: Investopedia

The Federal Reserve: After more than a century of existence, the Federal Reserve has long established itself as the dominating factor in the stock market.

Large-scale asset purchases and forward guidance were two unconventional policy measures used by the central bank in the 2000s that contributed to the organization’s rise in reputation.

The policy tools

The Federal Reserve’s emergency purchases of government debt and mortgage-backed securities are large-scale asset acquisitions.

On the other hand, forward guidance describes the Federal Reserve’s public statements regarding the direction its monetary policies will follow.

The guidance also includes the estimate for the federal funds interest rate goal before a policy change.

Inflation and economic landscape

In 2022, central bankers cautioned the people to prepare for more challenging economic times as it fights inflation.

The attempts, according to experts, contributed to the S&P 500’s prices declining for several months.

Former Federal Reserve economist and Notre Dame University economics professor Jeffrey Campbell said the following:

“I think they know they gambled and lost, and that they have to do something serious in order to get inflation back under control.”

“I fear that they took a gamble that inflation wasn’t too real a thing at the beginning of 2021.”

In 2022, the Federal Reserve raised interest rates seven times in response to stronger inflation than predicted.

The effects of higher rates may be felt by publicly traded corporations, particularly growth shares in the technology industry.

Cautious warnings

Since April 2022, the Federal Reserve’s asset portfolio has decreased by more than $336 billion.

According to experts, the overall cumulative impact of the economic tightening remains uncertain.

Thus, many people on Wall Street are hopeful that the central bank will rethink its strategy and cut interest rates.

At the same time, many financial experts are advising caution.

Victoria Green, founding partner and chief investment officer of G Squared Wealth Management, stated the following:

“If you have somebody that has a thumb on the scale or has a decided advantage about what’s going to happen, whether we think good things or bad things are going to happen, it’s best not to fight that policy.”

Experts claim that central bank policy is just one piece of the puzzle.

Investor sentiment and black swan events also greatly influence the market’s trajectory.

John Weinberg, a retired policy advisor from the research department of the Federal Reserve Bank of Richmond, stated:

“Sure, don’t fight the Fed, but… don’t believe too much that the Fed is all powerful.”

Stock movement

On Thursday, during the lunch hour of trading, several companies generated headlines with their stock movement.


Airlines’ shares fell on Thursday due to the announcement of multiple flight cancellations.

Due to a harsh winter storm, the US American and United stocks fell 3.6% and 1.9%, respectively.

Both Delta and Southwest had drops of 2% and 3%.

AMC Entertainment

The company’s shares dropped 7.4% after it proposed a reverse stock split to lower its debt and announced a new $110 million capital raise.

Meanwhile, shares of its preferred stock increased by more than 75%.

Read also: Rent on the rise, but it’s moving at a steady pace


Following the most recent quarter’s earnings, the vehicle retailer saw a 3.7% decline in the value of its stock, and revenue missed Wall Street projections.

CarMax produced 24 cents per share on $6.51 billion in revenue as opposed to the analysts’ forecast of 70 cents per share on $7.29 billion in revenue.

Micron Technology

The semiconductor company’s poor quarterly earnings and revenue caused the stock to drop by 3.4%.

The revenue was attributed to the decrease in demand, which is expected to remain through 2023.

Also announced by Micron was a 10% staff reduction for the following year.

Other semiconductor stocks experienced a 7% and 5.6% decline, respectively, for Advanced Micro Devices and Nvidia.

Marvell Technology lost more than 4%.


After reporting earnings and revenue that surpassed expectations for the second quarter of fiscal 2023, MillerKnoll saw a gain of more than 14%.

The company claims that it reduced annualized expenses by $30 to $35 million.

Although slightly in the third quarter, these savings would be realized in the fourth quarter.

Mirati Therapeutics

Shares of the pharmaceutical company increased by more than 5% after the Food and Drug Administration named its colorectal cancer treatment a “breakthrough therapy.”


On Thursday, the company’s stock fell by roughly 9%.

According to the Tesla website, a $7,500 discount was offered on the Model 3 and Model Y cars that were delivered in the US by year’s end.

Additionally, the models include a free supercharge good for 10,000 miles.


TuSimple announced it would let go of 25% of its workforce after the stock dropped by more than 11%.

The decision would impact over 350 employees at the self-driving truck startup.

Tyson Foods

The company’s shares ended unchanged after The Wall Street Journal reported that the meat and poultry manufacturer plans to dismiss hundreds of employees next year.

Tyson Foods’ corporate offices will merge next year.

Read also: Heavy Recession One of the Solutions to Combat Inflation, According to Analysts

Under Armour

On Thursday, shares of the athlete apparel company dropped by more than 2.3%.

Additionally, the company revealed that Stephanie Linnartz of Marriott International would become CEO the following year.


How the Federal Reserve affected 2022’s stock market

Stocks making the biggest moves midday: AMC Entertainment, Tesla, Micron, Under Armour and more

Twitter Blue charged $3 extra for iPhone users

Image source: 9 to 5 Mac

Twitter and Elon Musk have been collaborating to alter the company’s commercial strategy with a strong emphasis on the Twitter Blue subscription service.

The social networking site formally debuted an improved version of Twitter Blue on Monday.

Elon Musk halted and postponed the launch last month, which resulted in the upgrade.

Apple service

For web users, Twitter Blue is $8 per month; however, Apple customers are in for a shock since the subscription costs them $11.

There is an additional $3 fee for iOS customers who purchase the subscription through the Apple App Store.

The increased cost reflects Elon Musk, the new owner, who recently voiced his displeasure with the tech giant’s 30% cut in digital sales generated by applications.

The cut

Musk began criticizing Apple in November for its decreased Twitter ad expenditure and its 30% cut in digital sales generated by applications.

The Tesla CEO also said that Apple has threatened to delist Twitter from its App Store.

Musk implied that he was “going to war” in a deleted tweet.

Additionally, he mentioned that he would design and build his own line of smartphones.

Apple’s reactions

Despite numerous provocations, Tim Cook, the CEO of Apple, remained silent regarding Musk’s antics.

From a commercial standpoint, Twitter is just another app, and the tech giants don’t make much money from in-app sales.

Read also: Mortgage application shows positive movement amid falling interest rates

Government intervention

Republicans Ohio Senator-elect JD Vance and Governor of Florida Ron DeSantis offered Musk advice on how to pressure Apple.

DeSantis asserted that Congress should investigate Apple’s monopoly power if it carried out its threat to remove Twitter.

“You also hear reports Apple is threatening to remove Twitter from the App Store because Elon Musk is actually opening it up for free speech,” said DeSantis.

“And [Musk] is restoring a lot of accounts that were unfairly and illegitimately suspended for putting out accurate information about Covid.”

“If Apple responds to that by nuking them from the app store, I think that would be a huge, huge mistake, and it would be a really raw exercise of monopolistic power.”

JD Vance, meanwhile, expressed similar views and said:

“This would be the most raw exercise of monopoly power in a century, and no civilized country should allow it.”

Previous pullouts

Apple will likely discontinue the Twitter app if it eliminates platform fees for the tech giants.

To reduce Apple’s usual 30% share of sales, Fortnite introduced a feature in the iPhone app in 2020 that allowed players to purchase in-game currency directly from Epic Games.

Apple took Fortnite out of the App Store on the same day.

Later, Apple prevailed against the other party in a court battle.

But an appeal is currently pending.

Musk hopes to increase revenue through Twitter subscriptions as opposed to advertising.

The Apple decrease presents a considerable challenge for Twitter, which is cutting costs while carrying a substantial debt load.

The subscription

When an account is evaluated and approved, Twitter announced on Saturday that users with verified phone numbers would see a blue checkmark.

Users of the Blue plan will have access to exclusive features and services like editing tweets.

Twitter also promised users the following:

  • Fewer ads on their timeline
  • The option to post longer videos
  • Priority in replies and mentions

The relaunch features a function that allows companies to get a gold checkmark.

Governments will have a gray checkmark in the meantime to stop impersonations.

Users can modify their username, display name, and profile photo, according to Twitter.

But doing so would result in them losing their blue check until their account was looked at again.

Elon Musk also disclosed that there would be other functionalities.

Early launch

Twitter Blue had a sneak preview launch in November.

Musk swiftly removed the service, though, as some users took advantage of the new feature by mimicking corporations, politicians, and celebrities.

One account tweeted that insulin was free while posing as the pharmaceutical company Eli Lily.

As a result, following the false announcement, the company’s stock price fell significantly.

The pharmaceutical firm AbbVie was also impersonated and experienced the same issue.

Although Musk promised a November 29 relaunch, the service was once again delayed.

Read also: Uber takes issue and files lawsuit against TLC to block driver wage hike


The CEO of Tesla and SpaceX purchased the social media network for $44 billion in October.

Since assuming charge, he has concentrated on Twitter Blue as a substitute for advertising earnings.

The “huge lever” and people’s power would be provided by the new verification mechanism, according to Musk.

Prior to his acquisition, Musk was a vociferous opponent of Twitter’s prior verification policy since it favored users like:

  • Politicians
  • Executives
  • Members of the press
  • Organizations

Other social media platforms, like Meta’s Facebook and Instagram, employ similar authentication processes.

Users who were verified under Twitter’s previous approach are now classified as legacy verified accounts that “may not be notable” with the advent of the new service.

Elon Musk stated on Monday that all legacy blue checks would be eliminated soon.

“The way in which they were given out was corrupt and nonsensical,” said Musk.


Twitter Blue relaunches, now costs $11 per month if you subscribe from an iPhone

Elon Musk may be luring Apple into a fight with Republicans

Elon Musk addresses Tesla shares decline, cites other factors

Image source: CNBC

Elon Musk: Electric vehicle manufacturer Tesla saw its shares fall 8% on Tuesday, hitting a new 52-week low.

Elon Musk, the CEO, attributed the decline to macroeconomic factors.

The news

Tuesday’s market performance was mixed, as Tesla shares fell to a 52-week low, closing at about $138 per share, down 8%.

Elon Musk made an effort to assign blame to macroeconomic factors.

Ross Gerber, a longtime backer of Tesla, tweeted:

“Tesla stock price now reflects the value of having no CEO. Great job tesla BOD – time for a shake up. $tsla.”

Gerber launched an informal campaign to convince Tesla’s stockholders to support his election to the board of directors.

“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed,” Musk replied.

“People will increasingly move their money out of stocks into cash, thus causing stocks to drop.”


Since Musk stated earlier this year that he would be buying Twitter, Tesla’s stock has fallen more than those of other well-known manufacturers.

Tesla shares are down 59% since April compared to 26% and 12% falls at Ford and GM, respectively.

Meanwhile, the S&P 500 is down 14%.


Elon Musk, according to Ross Gerber, has repeatedly been distracted.

He made mention of the issues the powerful social media platform Twitter’s new CEO and owner had been creating.

Late in October, Musk used a leveraged buyout to acquire Twitter.

Additionally, he splits his time overseeing a big defense contractor and acting as CEO of SpaceX.

Read also: Elon Musk recently sold a portion of Tesla’s shares

Twitter acquisition

Elon Musk sold his Tesla holdings for billions of dollars, including a $3.6 billion transaction earlier in December, to pay for the purchase of Twitter.

In an effort to “save” the business, he cut more than half of the workers last month after selling his Tesla for billions of shares.

Then he made a number of adjustments to both products and policies, which he later reversed.

Musk called an all-hands meeting in November following layoffs to motivate the remaining Twitter employees.

He sold Tesla stock, estimated to be worth $3.95 billion, at the start of November.

He sold 19.5 million more Tesla shares, according to a filing with the Securities and Exchange Commission.

In April, Musk sold Tesla shares worth over $8 billion, and in August, he sold stock worth over $7 billion.

On Twitter, the Tesla CEO and other companies he co-founded solicited autopilot engineers, friends, backers, and deputies to join the team.

Tesla’s challenges

Since late October, Elon Musk has been focusing on his “Chief Twit” role.

Tesla has been offering discounts and incentives to sell automobiles in China, where the company has a sizable manufacturing base in Shanghai.

The company has also battled to raise the productivity of recently built facilities in Austin, Texas, and Brandenburg, Germany.

In addition, Tesla continues to have supply chain problems in the auto industry despite Europe’s increasing energy prices.

The situation in Europe may reduce drivers’ interest in electric vehicles.

Price targets

Due to the issues, the firm is now dealing with, Mizuho Securities and Evercore ISI reduced their Tesla price expectations on Tuesday.

Analysts at Mizuho Securities warned of “potential weakness in Tesla sales as macro headwinds and a weaker consumer could drive lower demand for higher-priced EVs.”

The company is nevertheless enthusiastic about Tesla in the long run and cites the following factors as possible sources of rising domestic demand:

  • New Tesla factories could provide a competitive advantage
  • New electric vehicle tax credits in the United States

Early in 2023, China’s EV credits start to run out.

As a result, the organization has a buy rating and a $285 price goal on Tesla’s stock.

Read also: Twitter Blue charged $3 extra for iPhone users

Tesla shares

Joshua White, an assistant professor at Vanderbilt University and a former economist for the US Securities and Exchange Commission, said:

“Only some of the drop in Tesla’s value can be blamed on interest rates. Twitter overhanging is one important component. China is another huge component.”

“We still don’t know if China will be open all the way, and we see there is supply and demand pressure here in light of the increase in Covid cases and disruption.”

According to White, Elon Musk undoubtedly lost the confidence of shareholders in April when he said he didn’t sell any extra Tesla shares.

Musk persisted, however, and made billion-dollar sales of more shares.

“He seems to sell equity in really large blocks, say ‘I’m done and I’m not selling anymore.’ But talk is cheap,” continued White.

“He says that and then sells more shares. So the more you say that and investors think he’s probably not done? The less confident they will be that the price is going to bounce back.”


Elon Musk tries to explain why Tesla shares are tanking

Elon Musk tells Twitter staff he sold Tesla stock to save the social network

Elon Musk nearly lost ‘wealthiest man’ title

Image source: Bloomberg

Elon Musk made a name for himself as the richest man in the world with Tesla, SpaceX and most recently, Twitter.

However, his prestigious title could be transferred to another person, as was the case recently.

The metric

On Wednesday, Elon Musk briefly slipped to second place on Forbes’ list of “real-time billionaires.”

The CEO of Twitter and Tesla sat just behind Bernard Arnault for a moment.

Arnault is as wealthy as Musk, running as the CEO of the French luxury brand LVMH.

He is also the creator of Hennessy cognac and luxury products from Louis Vuitton.

However, Forbes now estimates Elon Musk’s net worth stands at $184.9 billion, which is higher than Arnault’s $184.7 billion.

“The two men’s fortunes are nearly the same – separated by just $200 million,” Forbes noted.

“So it won’t be surprising if they continue to flip flop in Forbes’ rankings of the world’s wealthiest.”

Read also: Amazon runs into checkout page traffic Wednesday

The drop

Forbes explained that thanks to LVMH’s flat stock, Bernard Arnault climbed the rankings.

Meanwhile, Elon Musk has seen a dramatic drop in Tesla’s stock price, which fell 56% in 2022.

Musk’s strategy of playing friendly right-wing influencers on Twitter could also influence Tesla stocks.

According to Forbes, the Tesla CEO’s net worth peaked last November at $320 billion.

Stocks and shares

Elon Musk recently sold more than $4 billion worth of Tesla stock to fund his $44 billion Twitter buyout.

The social media company faces issues like layoffs, and advertisers have become wary of Twitter’s management.

Additionally, Musk sold $14.5 billion worth of blocks of Tesla stock earlier this year when he announced his deal to buy the social media platform.

Estimating Elon Musk’s net worth can be challenging.

The majority of his money is tied to his private businesses, including:

  • Rocket and internet firm SpaceX
  • Tunneling outfit The Boring Company
  • Neuralink is a company dedicated to installing computer chips in people’s brains

Read also: Meta plans to pull news content out if bill pushes


Despite his losses, Elon Musk is still miles ahead of the rest on the Forbes list.

Indian billionaire Gautam Adani took third place with a net worth of $134.8 billion.

Meanwhile, Amazon founder Jeff Bezos is now estimated to be worth around $111.3 billion.

Elon Musk comfortably tops the Bloomberg Billionaires Index with a $179 billion net worth.

Bernard Arnault follows with 165 billion dollars.

However, according to Bloomberg calculations, Musk has already lost $13 billion.

The list is updated daily after the market close.


Elon Musk is on the verge of losing his world’s richest person title

Elon Musk recently sold a portion of Tesla’s shares

Image source: Inside EVs

Elon Musk is known for many things, but his position as CEO of the famed electric car company Tesla is what most people know him for.

Recently, Musk raised roughly $3.6 billion by selling more than 22 million company shares.

The information was made accessible to the public on Wednesday night in a financial document.

According to documents provided to the Securities and Exchange Commission, the transactions took place this week between Monday and Wednesday.


Elon Musk had a lot going on before acquiring control of the popular social media platform Twitter, including Tesla and SpaceX.

To inform his followers of any changes to the electric vehicle manufacturer’s stock, he tweeted the following on April 29:

“No further TSLA sales planned after today.”

A business that conducts financial analysis, VerityData, claims that Musk has already sold 94,202,321 shares in 2022.

The average share price was $234.46, and pre-tax earnings totaled around $22.93 billion.


Ben Silverman, VerityData’s research director, said:

“Musk’s prior sales going back to November 2021 were expertly timed, so Tesla shareholders need to pay attention to Musk’s actions and not his words – or lack thereof when it comes to his recent selling.”

However, Elon Musk persisted in his efforts to unload part of his Tesla assets.

The CEO decided to sell a sizable percentage of his shares after paying $44 billion for Twitter.

Late October saw Musk purchase Twitter.

Read also: NetChoice to sue California for new law


Elon Musk’s position as the wealthiest person in the world was challenged this week.

According to Forbes and Bloomberg, Bernard Arnault, the CEO of the luxury goods company LVMH, has surpassed Musk in wealth.

He still has the most significant stake in Tesla, Refinitiv, a provider of financial market statistics and reports, with a 13.4% holding.

Only days after assuming control of Twitter, Musk claimed in November to have sold 19.5 million Tesla shares for a total of $3.95 billion.

The Tesla CEO’s net worth increased to $174 billion, while Arnault’s net worth jumped to nearly $191 billion.


Tesla’s stock performance in 2022 was among the worst among the most prestigious automakers and IT businesses, despite having a well-known brand in the industry.

Investors are concerned that Musk’s purchase of Twitter has monopolized most of his attention.

Tesla’s shares, which trade on the New York Nasdaq Index, closed under $500 million on Wednesday.

The last time the shares fell by this amount was in 2020.

Tesla’s value exceeded $1 trillion last year but has since fallen in recent months.


In October, Elon Musk took control of Twitter.

Now, only social media platforms are the focus of his attention and efforts.

Musk raised billions of dollars to purchase Twitter by selling Tesla stock.

The transactions caused a drop in the shares.

After considerable back and forth between the company and the CEO of Tesla, the Twitter agreement was eventually completed.

Musk tried to back out of the deal at the time before selling his company’s shares.

Some argue that the takeover’s diversion caused Tesla’s stock price to decline.

Investors also worry that the sluggish economy may result in reduced demand for the company’s electric vehicles.

Customers and other businesses have been deterred from expanding their lineups of electric vehicles by rising loan prices.

Tesla has encountered concerns with its model autopilot, regulatory inquiries into crashes, and recalls in addition to the issues already mentioned.

Read also: Twitter Blue charged $3 extra for iPhone users

Other notes

Tesla stock has fallen during the entire of 2022.

However, after Elon Musk became Twitter’s CEO, things substantially changed.

Tesla stock fell 2.6% on Wednesday to settle at $156.80.

The company’s market capitalization decreased as a result to $495 billion.

The price of Tesla stock has reduced by 55% year to date as of Wednesday’s close.


Elon Musk sells another huge chunk of Tesla shares

Elon Musk sells $3.6 bn of shares in electric car maker Tesla