Tesla Once Again Slashes The Prices of Its Vehicles in The U.S
Electric Vehicle automaker Tesla has once again slashed the prices of its vehicles in the U.S., making it the sixth time it has done so.
Tesla which is set to report its first-quarter results today, lowered the prices of its Model Y “long-range” and performance vehicles, in the face of rising interest rates that may affect consumer demand.
In the U.S., the prices of its Model Y AWD, Long Range, and Performance Vehicle have been slashed with a $3,000 discount. The Model Y AWD was slashed from $49,990 to $46,990. The long-range went from $52,990 and is now pegged at $49,990, while performance was slashed from $56,990 to $53,990.
On the prices of its Model 3, the standard range RWD was slashed from $41,990 to $39,990. While some Model 3 variants are still eligible for the $7,500 federal tax credit, with several others reduced to $3,750 following the U.S. treasury’s updated battery sourcing guidance for EV tax credits.
Tesla has additionally slashed the price of its base Model 3 by 11% in the U.S., its biggest market, since the beginning of the year, with a 20% drop on its base Model Y.
The EV giant’s recent slash of its vehicle models in the U.S. is coming after it announced price cuts for its vehicles in European markets which include Germany and France while also cutting prices in Singapore and Israel.
These cuts came after Tesla revealed its deliveries had only increased by 4% in the first quarter compared to Q4 2022 despite significant price reductions across all of its major markets, including the United States and China.
Investors King understands that Tesla’s incessant price cuts are occurring after its CEO Elon Musk confirmed that prices would continue to drop to increase demand. The recent price cuts reflect a structural cost advantage that will enable it to pressure rivals as it seeks to capture consumers and dominate the EV market.
It is interesting to note that ever since April 2022, Tesla has consistently built more cars than it delivered to customers, causing inventories of its increasingly aging vehicles to swell just as more competitors are hitting the streets.
However, these price cuts have raised investors’ concerns about the company’s industry-leading profit margins. Investors have begun to question if the company grew too quickly.
Also, they are worried that consistently cutting prices can be a risky endeavor, noting that if customers start to expect a carmaker will continue to lower its asking price, it can spur them to hold off on their purchase.
However, these investors are keen on Tesla’s first-quarter results, which will reveal whether the company’s cost-cutting culture has found a way to comfortably absorb the competition, without endangering profitability.
Merger and Acquisition
Seplat Energy and ExxonMobil Extend Share Sale Agreement Amid Legal Proceedings
Seplat Energy and ExxonMobil have announced the extension of their Share Sale and Purchase Agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU).
The extension comes as both companies navigate ongoing legal proceedings and seek to secure regulatory approvals necessary for the transaction.
Seplat Energy, a prominent Nigerian independent oil and gas company, has been actively pursuing the acquisition of ExxonMobil’s share capital of MPNU, with the aim of strengthening its position in the industry. However, while the extended agreement is a testament to Seplat Energy’s determination to acquire ExxonMobil’s share unit, the legal challenges surrounding the deal remain complex.
Therefore, the extension of the SSPA will allow both Seplat Energy and ExxonMobil to preserve the transaction until the resolution of the ongoing legal matter with the Nigerian government.
The extended agreement also affords the opportunity for further negotiations and discussions between the two companies. It allows them to explore potential modifications to the original terms, ensuring that the finalized agreement aligns with their mutual interests and objectives.
Bolt Opens First Physical Office in Kenya to Enhance Driver’s Welfare And Engagement
Ride-hailing mobility company Bolt has opened its first physical office in Kenya to enhance drivers’ welfare and engagement.
The newly launched facility which is located in the Nairobi Westlands area, will be open to drivers to address their complaints and solve their challenges.
Bolt drivers can schedule appointments to visit the center, as the company has assured that it will offer them effective communication channels, community building, issue resolution, drivers appreciation, and positive branding, amongst others.
Speaking on the launch of its first physical facility in Kenya, Bolt Country Manager Linda Ndungu said,
“The launch of this center is a testament that we are strongly committed to enhancing our driver welfare and engagement, which will ultimately contribute to the success and growth of our business and the ride-hailing industry at large.
“We shall continue to collaboratively work with all our key stakeholders so as to continue offering affordable, safe, and convenient ride-hailing services in Kenya; and creating entrepreneurial opportunities that enable more people to earn a sustainable living”.
Investors King understands that while Bolt opened a new Africa head office in Nairobi, Kenya in 2022, which was a regional hub for the 7 African countries, it did not have a physical office where drivers could go to issue complaints and get assistance.
Through this newly launched facility, Bolt looks forward to strengthening its relationship with drivers to foster enhanced operations in the East African country.
Notably, Bolt has described Kenya as its strategic location in the African region, and its infrastructure in the country has enabled the company to grow tremendously in the East African market.
Despite operating in 7 African countries for years, Bolt’s chose to operate a centralized African office in Kenya, a move which saw it join the growing list of global technology firms that have set up offices hubs, and labs in Kenya, as they race to tap into the larger African market.
Aliko Dangote’s Resilience Transforms Nigeria’s Refinery Industry
Africa’s richest man, Aliko Dangote, has shared the story of his journey in the Nigerian refinery industry. Speaking at the commissioning of the world’s largest single-train refinery, Dangote Refinery and Petrochemicals, in Lagos, Dangote recounted a pivotal moment in his career.
Back in 2006, Dangote had set his sights on acquiring Brownfield Refineries under the Federal Government’s Privatization Programme. The ambitious entrepreneur had high hopes for this venture, but fate had a different plan in store for him. The privatization policy was abruptly reversed by the government, leading to the return of Dangote’s payment for the brownfield refineries.
Rather than allowing this setback to deter him, Dangote chose to use it as fuel for his ambition. This unexpected turn of events motivated him to reevaluate his market-entry strategy and business model. Undeterred, he made a bold decision to embark on a new path—one that would revolutionize the industry in Nigeria and Africa as a whole.
With a resilient spirit and unwavering determination, Dangote set his sights on establishing a greenfield refinery that would be a “game-changer” in both the African and global markets. He envisioned a plant designed with state-of-the-art technology and a scale of capacity that would transform the industry.
Years of meticulous planning, strategic partnerships, and tireless efforts culminated in the commissioning of the Dangote Refinery and Petrochemicals. This monumental achievement stands as a testament to Dangote’s unwavering commitment to realizing his vision and bringing about substantial change to Nigeria’s refinery landscape.
The Dangote Refinery and Petrochemicals is an awe-inspiring project, not only for its sheer scale but also for the positive impact it promises to have on the Nigerian economy. Once fully operational, the refinery will have the capacity to refine 650,000 barrels of crude oil per day, meeting Nigeria’s domestic demand and creating surplus for export.
Furthermore, this ambitious project will contribute significantly to job creation, both directly and indirectly. The refinery is expected to generate thousands of employment opportunities, fostering economic growth and development in the region.
Aliko Dangote’s resilience and unwavering determination serve as an inspiration to aspiring entrepreneurs and business leaders across Africa. Despite facing obstacles and setbacks, Dangote’s ability to adapt, rethink his strategies, and ultimately succeed showcases the power of perseverance and visionary thinking.
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