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Despite Tesla and Ford’s price cuts, GM says it won’t lower EV prices for now

The Cadillac LYRIQ, which has been dubbed “crypt-quiet” and “the quietest car I can remember driving” by the press, sports an electric AC compressor mounting bracket made of Vydyne AVS, which effectively helps damp that component’s vibrations at the source while also providing structural support. Credit: APM

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While competitors such as Tesla and Ford have initiated price cuts on their most popular all-electric vehicles, veteran automaker General Motors (GM) has noted that it intends to keep its EVs’ prices at their current level. 

Earlier this month, US electric vehicle leader Tesla initiated a round of aggressive price cuts to its entire vehicle lineup. Its two most popular cars, the Model Y crossover and the Model 3 sedan, received substantial adjustments, with some variants receiving as much as 20% off their previous price. Tesla CEO Elon Musk noted during the Q4 and FY 2022 earnings call that the company saw “orders at almost twice the rate of production” following the price adjustments. 

Ford, on the other hand, announced earlier this week that it was also cutting the prices of its popular Mustang Mach-E all-electric crossover. While the reductions in the Mach-E’s prices were not as drastic as of of the Model 3 and the Model Y, the adjustments were still quite notable, ranging from $600 to $5,900. Ford also highlighted that it was significantly increasing its production of the Mustang Mach-E.

It was then no surprise that during a call with analysts, GM CEO Mary Barra was asked about the price cuts of its two main competitors in the United States EV sector. The CEO noted that for now, there doesn’t seem to be a need to adjust the prices of GM’s lineup of electric cars. 

“When we look at our strong product portfolio and the interest that we have at the prices that we’ve already announced, we feel that we’re well positioned. We think right now we’re priced where we need to be,” Barra said

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That being said, the CEO also highlighted that GM is seeing “very strong” customer interest in its cars in January. Barra also noted that GM would be monitoring the price situation to ensure that the automaker remains competitive in the United States auto market. GM also noted that it was the leader in sales in the US auto industry and it saw the largest year-over-year increase in market share among car manufacturers. The automaker attributed this success to the “strong demand for their products and improved supply chain conditions.”

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla states Giga Berlin workforce is stable, rejects media report

As per the electric vehicle maker, production and employment levels at the facility remain stable.

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Credit: Tesla

Tesla Germany has denied recent reports alleging that it has significantly reduced staffing at Gigafactory Berlin. As per the electric vehicle maker, production and employment levels at the facility remain stable.

Tesla denies Giga Berlin job cuts report

On Wednesday, German publication Handelsblatt reported that Tesla’s workforce in Gigafactory Berlin had been reduced by about 1,700 since 2024, a 14% drop. The publication cited internal documents as its source for its report. 

In a statement to Reuters, Tesla Germany stated that there has been no significant reduction in permanent staff at its Gigafactory in Grünheide compared with 2024, and that there are no plans to curb production or cut jobs at the facility. 

“Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans. Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans,” Tesla noted in an emailed statement. 

Tesla Germany also noted that it’s “completely normal” for a facility like Giga Berlin to see fluctuations in its headcount.

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A likely explanation

There might be a pretty good reason why Giga Berlin reduced its headcount in 2024. As highlighted by industry watcher Alex Voigt, in April of that year, Elon Musk reduced Tesla’s global workforce by more than 10% as part of an effort to lower costs and improve productivity. At the time, several notable executives departed the company, and the Supercharger team was culled.

As with Tesla’s other factories worldwide, Giga Berlin adjusted staffing during that period as well. This could suggest that a substantial number of the 1,700 employees reported by Handelsblatt were likely part of the workers who were let go by Elon Musk during Tesla’s last major workforce reduction.

In contrast to claims of contraction, Tesla has repeatedly signaled plans to expand production capacity in Germany. Giga Berlin factory manager André Thierig has stated on several occasions that the site is expected to increase output in 2026, reinforcing the idea that the facility’s long-term trajectory remains growth-oriented.

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Elon Musk gets brash response from Ryanair CEO, who thanks him for booking increase

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ARLINGTON, Va., May 9, 2023 – Boeing [NYSE: BA] and Ryanair announced Europe’s leading low-cost airline has selected the largest 737 MAX model to power its future growth with an order for up to 300 airplanes. The purchase agreement is the biggest in Ryanair’s history and includes a firm order for 150 737-10 jets and options for 150 more. Image credit: Boeing

Elon Musk got a brash response from Ryanair CEO Michael O’Leary, who said in a press conference on Wednesday afternoon that the Tesla frontman’s criticism of the airline not equipping Starlink has increased bookings for the next few months.

The two have had a continuing feud over the past several weeks after Musk criticized the airline for not using Starlink for its flights, which would enable fast, free, and reliable Wi-Fi on its aircraft.

Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes

Musk said earlier this week that he was entertaining the idea of purchasing Ryanair and putting someone named Ryan in charge, which would oust O’Leary from his position.

However, the barbs continued today, as O’Leary held a press conference, aiming to dispel any beliefs about Starlink and its use case for Ryanair flights, which are typically short in length.

O’Leary said in the press conference today:

“The Starlink people believe that 90% of our passengers would happily pay for wifi access. Our experience tells us less than 10% would pay; He (Elon) called me a retar*ed twat. He would have to join the back of a very, very long queue of people that already think I’m a retar*ed twat, including my four teenage children.”

He then went on to say that, due to Musk’s publicity, bookings for Ryanair flights have increased over the past few days, up 2 to 3 percent:

“But we do want to thank him for the wonderful boost in publicity. Our bookings are up 2-3% in the last few days. So thank you to Mr. Musk, but he’s wrong on the fuel drag. Non-European citizens cannot own a majority of European airlines, but if he wants to invest in Ryanair, we think it would be a very good investment.”

O’Leary didn’t end there, as he called Musk’s social media platform X a “cesspit,” and said he has no concern over becoming a member of it. However, Ryanair has been very active on X for several years, gaining notoriety for being comical and lighthearted.

The public spat between the two has definitely benefited Ryanair, and many are calling for it to end, especially those who support Musk, as they see it as a distraction.

Nevertheless, it is likely going to end with no real movement either way, and is more than likely just a bit of hilarity between the two parties that will end in the coming days.

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Tesla CEO Elon Musk outlines expectations for Cybercab production

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

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Credit: Tesla

Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.

Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.

Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised

This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.

However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.

With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.

The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.

Musk said back in October 2024:

“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”

When April comes, we will find out exactly how things will move forward with Cybercab production.

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