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Tesla Cuts Prices in China, other Asian Markets, to Boost Sales

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In a new move to increase sales, leading electric vehicle maker Tesla, has reduced the cost of some of its car models in Asia.

Reuters reports, citing a person with direct knowledge of the matter, that the decision cuts prices for Tesla Model Y and Model 3, and in addition to China, covers Japan, South Korea and Australia.

This is the second time in three months Tesla is cutting prices in China amid weakening demand that is impacting sales in the world’s largest autos market.

China’s Shanghai hosts Tesla’s single largest production hub. But the Chinese market is a host to several domestic electric vehicle companies like Nio, giving Tesla a run for its money. The person with the knowledge of the matter said cutting prices was part of an effort to help boost demand for output from Tesla’s Shanghai factory.

Tesla shares crumbled more than 70 percent in 2022, a development that was largely attributed to CEO Elon Musk’s romance with Twitter. With investors’ patience wearing out, Musk continues to spend more time on Twitter, the company is harping on price reduction to boost sales.

Reuters’ calculations, as reported below, explains why cutting the prices is significant for the automaker:

The shift is the first major move by Tesla since appointing its lead executive for China and Asia, Tom Zhu, to oversee global output and deliveries that have been at the heart of the company’s recent challenges after falling short of its 2022 delivery target.

Tesla shares closed up 2.5% at $113.06 on Friday. However, the stock has lost 70% of its value in the last year.

Automakers have long turned to incentives to control inventory, but, until late last year, Tesla had been able to keep prices steady or even raise them due to strong orders.

But last month CEO Elon Musk said “radical interest rate changes” had affected the affordability of all cars, new and used, and that Tesla could cut prices to sustain volume growth.

The latest cut in China, along with another in October and recent incentives for Chinese buyers, mean a 13% to 24% reduction in Tesla’s prices from September in its second-largest market after the United States, Reuters calculations showed.

Tesla slashed prices for all its Model 3 and Model Y cars in China by between 6% to 13.5%, according to Reuters calculations based on the website prices. The starting price for the Model 3 was cut to 229,900 yuan ($33,427), from 265,900 yuan. Those models are now priced 24% to 32% lower than those in the United States, Tesla’s largest market, Reuters calculations showed, reflecting several factors including material and labour costs.

Grace Tao, Tesla’s vice president in charge of external communications in China, said on Weibo that the price cuts in China reflected engineering innovation and answered Beijing’s call to encourage economic development and consumption.

Deliveries of Tesla’s China-made cars hit their lowest in five months in December. Tesla’s Shanghai plant, which was expanded last year, also exports vehicles to Europe.

So far, there has been no sign of Tesla cutting prices in Europe, where sales jumped 93% in November year-on-year, according to sales data from research group JATO Dynamics, and the Model Y was the top-selling car for the second time in 2022.

Tesla also saw its share of Europe’s battery electric vehicle (BEV) market jump to 18.9% in November, from 12.3% in the same month a year earlier.

The Netflix’s Salary Range of $150k – $900k for Data Engineer (L5) Games

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This is the new normal in California: disclosure of salary ranges. We can see that Apple program managers make between $121,000 and $230,000, while Facebook’s parent company (Meta) workers make $253,000-$327,000 as directors of software engineering.

Salary transparency has arrived in Silicon Valley, under a new law that has come into effect requiring companies in California to disclose job salaries. Companies with over 15 employees must share salary range on job listings of all types. The pay transparency rule aims to address gender and racial pay gaps, and increase labor market competition for those groups. It also means tech outsiders can get an insight into what top tech companies pay their staff. According to some job listings posted this week, an Apple program manager in the augmented reality group is on $121,000-$230,000, while a director of software engineering at Meta gets $253,000-$327,000.

But the most revealing is Netflix with a salary range of $150k to $900k for Data Engineer (L5) – Games. With that range, I do not see how the disclosure helps.

  • 7+ years of software/data engineering experience working with video game analytics (i.e you are familiar with how key metrics such as DAU, MAU and retention rates are computed in an ETL).
  • Passionate about building intuitive data models and an expert in distributed data processing patterns.
  • Highly proficient in at least one of these programming languages: Java, Python, or Scala.
  • Comfortable with complex SQL.
  • Expert in engineering data pipelines using big data technologies (Hive, Presto, Spark, Flink) on large-scale data sets demonstrated through years of experience.
  • Conceptually familiar with AWS cloud resources (S3, EC2, RDS etc).
  • Excel at taking vague requirements and crystallizing them into scalable data solutions.
  • Excited about operating independently, demonstrating excellence, and learning new technologies and frameworks.

[ ]

At Netflix, we carefully consider a wide range of compensation factors to determine your personal top of market. We rely on market indicators to determine compensation and consider your specific job family, background, skills, and experience to get it right. These considerations can cause your compensation to vary and will also be dependent on your location.
The overall market range for roles in this area of Netflix is typically $150,000 – $900,000.

How Much Tech Firms Pay

The tech firms are using range to mask the actual pay but that also provides a clue on how much the techies earn: “The rollout of new salary transparency laws in New York and California is making it much easier to find out how much Big Tech companies pay. Comprehensive.io — a new website created by the brains behind the redundancy-tracker layoffs.fyi — aggregates salary ranges for jobs listed by 700 tech firms and startups in the two states, which are home to many technology giants. The pay ranges listed can be quite broad: A senior software engineer at Tesla, for example, can make anywhere from $83,000 to $418,000 a year, according to Comprehensive.io.”

NYC Dept of Education Bans ChapGPT Over Concern it Will Hamper Learning

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The NYC Department of Education has banned the use of ChatGPT by students and teachers in New York City schools due to concerns that the AI tool can hamper learning and lead to misinformation.

Students in New York are no longer allowed to access the ChatGPT following the ban, according to Chalkbeat.

A spokesperson for the education department said the decision was made due to the possibility that the tool could have “negative impacts on student learning,” and also “concerns regarding the safety and accuracy of content.”

The decision of the New York City Department of Education, the US’ largest school system, could inspire other districts to adopt similar rules.

The arrival of ChatPGT, which has the dynamic ability to add context to queries, is causing a stir across the internet and fields. It uses GPT-3.5, a large language model released last year, to generate answers and authentic-looking responses to queries about all topics. ChatGPT helps users to accomplish tasks such as creating poems, composing college essays and writing code.

Amid concern that the program could encourage cheating and plagiarism, schools around the world are yet to find the perfect response to the AI-powered chatbot.

“Due to concerns about negative impacts on student learning, and concerns regarding the safety and accuracy of content, access to ChatGPT is restricted on New York City Public Schools’ networks and devices,” said education department spokesperson Jenna Lyle. “While the tool may be able to provide quick and easy answers to questions, it does not build critical-thinking and problem-solving skills, which are essential for academic and lifelong success.”

The education department’s ban does not entirely cut off access to the chatbot. Both teachers and students can still get on the site on non-education department devices or internet networks, per the report.

Individual schools can still request access to the site if they’re planning to study the technology behind the chatbot, a department spokesperson said.

Educators are concerned that ChatGPT will hinder critical thinking skills in students, curtailing their ability to handle assignments independently.

The tool is spreading like wildfire, with major players in the web search business already working to accommodate it. Microsoft is reportedly planning to integrate ChatGPT into Bing to give its search engine an edge over competitors like Google Search.

It is not clear if other schools will follow the steps of the NYC Department of Education. The body’s decision has been met with criticism.

Chalkbeat quoted Adam Stevens, a longtime New York City history teacher who started his career at Paul Robeson High School in Brooklyn and now teaches at Brooklyn Tech, criticizing the decision as counterproductive. Stevens compares the current reaction to those meted to Google in its early days.

“People said the same thing about Google 15 or 20 years ago when students could ‘find answers online,’” he said.

In his argument, Stevens said the best way to discourage students from using ChatGPT and building up their critical writing skills is by “assigning them work that is inviting them to explore things worth knowing,” and moving away from teaching formulaic writing based on strict rubrics.

“We’ve trained a whole generation of kids to pursue rubric points and not knowledge,” he added, “and of course, if what matters is the point at the end of the semester, then ChatGPT is a threat.”

However, while there’s been more people supporting the NYC Department of Education’s decision than those criticizing it, there is a growing call for students to be allowed to explore and see how ChatGPT can benefit them.

Bleepingcomputer reported on a recent experiment conducted by Professor Scott Graham at the University of Texas, which proves that AI writing can play a beneficial pedagogical role, helping students craft their genre awareness, content revision, and writing style skills.

Atiku, Obi, Tinubu – Show Respect As Campaigns Heat Up

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People, remember: make your point and do not insult Atiku, Obi, Tinubu, etc on our feed. They deserve our respect because at least they offered themselves to be evaluated for service. I block those who insult these men, mindlessly. There is no problem if you have your candidate; feel free to make the case for him. But no insults. At the end, only one will win – and I expect everyone to come together to support that person. That is how it works.

Politics drives the economy and no matter how placed you are, it affects you. So, my postulation is simple: do not disconnect. If you do, you do not advance the nation. Yes, at least #vote. Just vote; no need to do anything more where you cannot.

As the nation moves into the injury time before the elections, show civility. If the system becomes more civil, many will be attracted into the fray. I enjoyed my campaign while a student in FUTO when I campaigned and won, becoming the Director of Research, SEEES. So far, President Buhari has done a decent job by providing a largely level playing ground. The old demons of harassment have not been common. We hope he keeps that momentum so that at the end, Nigerians will elect a new leader.

Obi. Atiku. Tinubu. #Respect because one will be sworn in come May! It is #open . Vote NOT fight.

The Pundits: Peter Obi and Rabiu Kwankwaso do not have nationwide political structures like their APC (Tinubu) and PDP (Atiku) counterparts.

My Response: Mobile internet is reducing information asymmetry as more voters can bypass the filters and intermediaries to get information from the sources. The existence of information asymmetry makes market systems imperfect.  In politics, it does the same thing – imperfect electoral systems.

But in 2023, Nigeria will have the first mobile internet era election. This is the first app utility-anchored national election. I am not arguing that decades-old political  structures are not important, my point is that disintermediation (cutting out intermediaries) is evident, and general voters have access to more information about candidates now, to make decisions independently, out of the influence of political bundlers and brokers.

Comment on Feed

Comment: Being politically correct in your post. Even though I don’t support insults but then take a stand. Don’t just say Nigerians go vote. Vote who???? Is there any one of these guys you can not sincerely tell their stories. Nigerians please vote right otherwise you get yourself into another 8 years of hell here on earth. My candid advice. Prof, if we’re not careful Nigeria will keep going messy rout as long as good men like you continue to stand aloof on the fence on Nigeria’s leadership question. Peace.

My Response: When PhD students come to my lab, we do not give them answers. We provide tools to discover a future unborn. If you follow my posts, my desire is that you use the perspectives to make your personal call on events in business, commerce and politics. To write for Harvard Business Review, we have an honour and that honour is sacred because Harvard is like the bible of business which many swear on. Who I endorse is less important than helping people reach personal decisions because I am an intellectual, not a politician.

Of course, this does not mean that I cannot try to make a call on who I think may win, but that does mean an endorsement. In 2019, I wrote that Buhari will win, but I did not endorse him as my call was an intellectual outcome. I predicted that Governor Umahi of Ebonyi will win and within months leave PDP for APC; those were intellectual calls.

So, if you read that I write that Obi, Atiku, Tinubu, etc will win, do not take it as an endorsement. Seems complex….it sure does.

ChatGPT Creator, OpenAI, Blows Valuation Open – $29 billion

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This is a new category-king company: OpenAI is ascending: “OpenAI, the artificial intelligence lab behind the viral ChatGPT and Dall-E 2 tools, could soon become “one of the most valuable U.S. startups on paper,” The Wall Street Journal reports, citing anonymous sources. The company is in talks to sell existing shares in a fundraising round that would value OpenAI at about $29 billion. That’s roughly double the startup’s valuation during a 2021 tender offer. The Journal reports that Microsoft, the parent company of LinkedIn, has also been involved in talks to increase its $1 billion investment in OpenAI.”

LinkedIn userS chronicle the achievements: 

Comment A

  • Built an AI that dominated every human DotA 2 player/team (OpenAI Five)
  • Created the leading text generation model (GPT-3)
  • Created the leading text-to-image generation model (DALL-E)
  • Changed the face of programming with their renowned code generation model (Codex which powers the lauded GitHub Co-Pilot)
  • Created a model that generates 3D models (Point-E)
  • Blown the world away with a chatbot that is ushering in a generative AI renaissance (ChatGPT)
  • Revenue projections of >$200M in 2023 and >$1B in 2024

And they’ve accomplished this in a mere 7 years and believe they are still early in their journey.

Comment C

OpenAI with Stability AI are opening a new era. The era of AI as a Service.

With an Opensource approach, they have been able to get traction from a large development community but not only that.

1) OpenAI is heavily backed by #Microsoft (and even Amazon, Tencent, Alphabet) this makes it so it has enough resources to develop and grow its R&D when others have to struggle with multiple fundraising activities during a tech market collapse

2) Microsoft has taken a commanding interest within the platform and turned it into a for profit structure. This allows them to seek better commercial deals

3) Again, Microsoft has announced an integration of ChatGPT within Bing https://lnkd.in/ebxu7T-8

4) Big names like Canva have also stepped in to integrate #GPT3 into their new solutions https://lnkd.in/etPFccRe

5) This “openness” is what makes OpenAI special. It is in the name. They are ready to work with anyone and thus instantly get access to a massive pool of end users.

Comment C

Wait, there is more: ChatGPT has been the fastest platform to reach 1Million users. That is with no marketing activity at all.

Kids at school are already “cheating” and answering their homeworks with it. How long would it take to Microsoft to integrate it to its Students Office Suite package?
Probably it is already in Beta somewhere and nearing release. The future generations are already at reach.

One more thing: OpenAI isn’t just ChatGPT they have a bunch of other services and tiers/specialization within each of them. #dalle2 for images, #Whisper for voice recognition etc…

And finally just one last thing… OpenAI owns OpenAI gym, a toolkit allowing other AI developers to train various type of models. This isn’t just a standalone, it comes with advisory services on top of it.

All in all, OpenAI wins because of its modular, headless like architecture. They don’t fear being copied, they have secured the reach they need for scale up. Any other competitor will struggle getting the same traction.

The only real competition could come from #Meta or #Bytedance if they totally spin-off their AI businesses and seek some big strategic partnerships to push them. And even then, there is infinite space in the field.