Tesla reduces prices, cites partial normalization in inflation costs / Senators request answers from Southwest

1. Tesla is reducing the pricing for the Model Y by 20% in the U.S., which the automaker attributes to a partial normalization in the cost of inflation. Since the Model Y does not weigh enough to qualify as an SUV under the Treasury Department's guidelines for the Inflation Reduction Act's EV credits, versions of the vehicle now qualify for sedan tax credits by having a price tag below $55,000.  Read more on Inside.com.  2. Fifteen senators wrote a letter to Southwest CEO Bob Jordan requesting answers to questions involving its holiday flight cancelations. Southwest canceled ~17,000 flights between Dec. 25 and Dec. 31. Read more here. 3. The China Association of Automobile Manufacturers revealed that 6.88 million new energy vehicles (including hybrids) were sold in China in 2022, comprising an increase of 93.4% YoY. Battery electric vehicle sales increased by 81.6% YoY to 5.36 million units.  4. The Federal Aviation Administration revealed that all commercial aircraft need to install 5G C-band tolerant radio altimeters or a radio frequency filter by Feb. 24, 2024. The agency estimates the switch to cost to be $26M. 5. Bosch is planning a $1B investment in China to manufacture electric vehicle parts. The company intends to build a factory in Suzhou, Jiangsu province, to supply local automakers.  6. The Netherlands plans to provide €99.4M ($107.5M) in incentives for electric vehicles in 2023. €32.4M ($35M) is allocated to used EVs.  7. Tata Group is considering building a facility to produce electric vehicle battery cells in Europe. The company is seeking to increase the proportion of EVs to comprise ~25% of its sales by 2025 from its current 8%. Nicolas is a Sr. Analyst at Inside, covering transportation and IT trends. He is an avid map maker and data nerd. Nicolas has worked in the shared-scooter space, as well as advised e-bike and moped startups.  Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. If your company would like to sponsor an Inside.com newsletter, please take a look at our sponsor page here.

We are testing a new newsletter format, where we give you one tight sentence with a couple of links, so that you can quickly move on with your day. This is different than our classic Inside.com format where we give you a half dozen bullet points and context. Please hit reply and tell us which one your prefer and why. Our mailing address is: Inside.com 767 Bryant St. #203 San Francisco, CA 94107 You received this email because you subscribed to Inside Transportation . Click here to unsubscribe from Inside Transportation list or manage your subscriptions.