Tesla's recent price cuts in the U.S. are reverberating throughout the car business
in the U.S. are reverberating through the car business, pressuring rivals and affecting purchase decisions for new- and used-car buyers.
The Elon Musk-led car maker’s most recent cut—slashing as much as 20% from the price of some versions of its top-selling Model Y earlier this month—shocked Stanly Tran. The 32-year-old California psychotherapist had been on the waiting list for a Ford Mustang Mach-E electric SUV, but quickly ditched his reservation and purchased a Model Y after a friend alerted him to the price drop.
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Research: How Price Changes Influence Consumers’ Buying DecisionsWhether on retailers’ own platforms or through third-party price tracking services, today’s consumers often have access to detailed information regarding changes in a product’s price over time. But how does this visibility influence their purchasing decisions? Through a series of studies, the authors found that buyers are more likely to buy now if they see a single large price decrease or a series of smaller price increases, because they’ll assume that the price will go up if they wait. Conversely, they’re more likely to hold off on buying if they see a single large price increase or a series of smaller decreases, because they’ll assume the price will fall. As such, they argue that sellers should consider this effect when pricing their products, while buyers should recognize and question this natural tendency — to expect price streaks to continue and single large changes to reverse — before acting on it.
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Tesla stock could rally 35% as price cuts have been a huge success in ChinaTesla stock could rally 35% as recent price cuts have already been a huge success in China, Wedbush's Dan Ives says
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Google axes 12,000 jobs, layoffs spread across tech sectorGoogle is laying off 12,000 workers, or about 6% of its workforce, becoming the latest tech company to trim staff as the economic boom that the industry rode during the COVID-19 pandemic ebbed.
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Vox Media lays off 7% of staff amid economic uncertaintyVox Media is laying off 7% of its staff, according to a memo sent internally from CEO Jim Bankoff. Roughly 2,000 people work at the company, which means around 140 roles will be impacted.
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Tech industry job cuts come rapidly and in big numbersIn just the past month there have been about 50,000 job cuts across the technology sector.
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More details come out on which departments saw layoffs at Google, Microsoft, and AmazonTeams behind everything from Prime Air to Halo saw cuts.
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