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An Alaska state flag blows in the wind at the Robert B. Atwood Building in Anchorage, Alaska.
David Ryder | Bloomberg | Getty Images

These are tough times in Skagway, Alaska, population 1,183.

“We’re in hard core survival mode,” Mayor Andrew Cremata told CNBC.

In a normal summer, the Southeast Alaska town would be teeming with tourists from the cruise ships sailing the Inside Passage. Residents could drive 15 miles up the Yukon Highway into Canada to run their basic errands, or they could hop on a state-run ferry to the next town over, Haines.

But this year, the cruise ships have just started running again. Cremata is hoping Skagway will see 100,000 passengers this year; in 2019 they had 1.1 million. The border to Canada remains closed to non-essential traffic, and the ferries, part of the Alaska Marine Highway System, are plagued by budget cuts.

“Just getting your family down to go see a dentist or doctor, when that becomes burdensome or overly expensive, there’s a point where people have just had it and move away,” Cremata said.

Multiply Skagway’s situation by thousands of communities and more than 700,000 Alaskans, and you can begin to understand why The Last Frontier finds itself in last place in CNBC’s 2021 America’s Top States for Business rankings.

It is the sixth bottom-state finish for Alaska in 14 years. The state previously achieved the dubious distinction in the first four years of the study between 2007 and 2010, hitting bottom again in 2018.

As difficult as the past year has been in this state and across the country, it presented opportunities that Alaska failed to capitalize on.

Alaska met the pandemic with the best-funded public health system in the nation, according to the United Health Foundation, spending $289 per person per year. That is more than three times the national average. Earlier this year, the state was setting the pace for Covid-19 vaccinations, even in its most remote regions.

As the national economy struggled to regain its footing, Alaska offered a generally business-friendly regulatory climate — its legal system tilts toward business, and the number of state laws and regulations is manageable. The conservative-leaning Tax Foundation ranks Alaska’s tax climate the third-best in the country.

In Skagway, Mayor Cremata said state and federal officials have been extremely helpful through the crisis.

“They are always ready and willing not only to engage us as a community, but individual people and business owners in the community. People that were struggling with problems with unemployment and all these kinds of things,” he said.

And at a time of social upheaval, Alaska offered its relatively diverse population some strong protections against discrimination.

High costs hurt Alaska

So how did Alaska manage to finish No. 50 again in 2021 despite so many advantages going in? In a word: cost.

Cost of Doing Business carries the most weight in this year’s study. As the recovery builds, states are touting low business costs more than any other factor, according to CNBC’s analysis. Alaska is an extremely expensive place to do business.

Even Alaska’s competitive tax climate, which earns points for relatively low property taxes and no personal income tax, includes a top corporate tax rate of 9.4%, among the highest in the country.

A snow covered road with power lines in Kaktovic, Alaska.
David Howells | Corbis Historical | Getty Images

Utility costs are oppressive. Alaskans paid an average of $20.20 per kilowatt hour for electricity last year, according to U.S. Department of Energy data, with even higher rates in remote areas. That was second only to Hawaii, and nearly double the national average. Wages are high thanks to the high cost of living, and office and industrial space — which are in short supply — is pricey.

Cremata said he is worried about how the price of everything seems to be creeping higher.

“Everything’s barged in,” he said. “And so, if the cost of fuel goes up, it affects the rates on the barge and that affects the price of your milk and eggs.”

Indeed, even that high rate of public health funding may be deceiving, because health care in Alaska is so expensive. An office visit to a doctor in Anchorage averaged more than $206 last year, according to the Council for Community and Economic Research, C2ER. That is more than twice the cost in Phoenix, Arizona.

Meanwhile, Alaska’s Covid-19 vaccination rate, once the envy of the nation, has fallen below the national average, according to data from the U.S. Centers for Disease Control and Prevention.

Medical Assistant Julia Naea administers the Pfizer Covid-19 vaccine at the Blood Bank of Alaska in Anchorage on March 19, 2021.
Frederic J. Brown | AFP | Getty Images

In March, Alaska became the first state in the nation to make vaccines available to everyone aged 16 and older. Officials theorize that meant those who wanted to be vaccinated were quick to get their shots, leaving vaccine-hesitant residents — many in rural or remote areas — who have proven difficult to convince.

Vaccination rates are a metric in the Top States’ Life, Health and Inclusion category, where Alaska finishes No. 19 this year.

Internet access remains a challenge

In addition to its cost issues, Alaska ranks No. 49 in the Top States’ Infrastructure category, above only Maine. It is yet another lost opportunity. Alaska might have been able to use the nation’s move toward remote work to partly offset its inherent infrastructure disadvantages, which include its distance from the rest of the country and its vast size.

This year’s Top States study introduced broadband connectivity as an infrastructure metric. But broadband in Alaska is the worst in the nation, according to BroadbandNow Research.

In Skagway, Cremata said internet service is cumbersome and expensive.

“You have to actually have a landline in your house for it to work,” he said. “So, the internet has a pretty substantial price to it, but then you also have a $30 charge because you need a landline for the broadband to work.”

According to BroadbandNow, fewer than 61% of Alaskans have access to broadband at all, and none have access to a low-priced plan, which the organization defines as costing less than $60 per month. The average speed is a paltry 58.6 Mbps, or one-third the speed in the top-ranked state, New Jersey.

Cremata said that early in the pandemic, when he and other local leaders worried the cruise ships could disappear for five years, they convened a task force to consider ways to reinvent the economy. One of the ideas was to make Skagway an internet hub, but it went nowhere.

“You’d have to have really fast internet, obviously, because you probably want to have all of your communications done in the cloud, which is pretty much impossible right now in Skagway,” he said.

Alaska Gov. Mike Dunleavy, while speaking at a dedication ceremony for a hydroelectric turbine generator in Igiugig, Alaska, on Tuesday, July 16, 2019.
Luis Sinco | Los Angeles Times | Getty Images

In May, Gov. Mike Dunleavy created a task force to recommend ways to improve connectivity in the state.

“On the heels of a global pandemic, now more than ever do we see the critical role that the internet plays in nearly every part of life and the importance of good connectivity for every Alaskan,” Dunleavy said in a statement.

But it is Alaska’s third broadband task force in the last decade, with little to show for the efforts. It is also unclear whether the state can muster the funding needed to bring its service up to date.

In his statement announcing the task force, Dunleavy, a Republican, emphasized the use of federal pandemic relief money to pay for the expansion. And while his administrative order creating the task force also contemplates using state funds, Dunleavy and the state legislature are already locked in a titanic struggle over the budget.

This month, Dunleavy vetoed more than $200 million in state spending approved by the legislature, with cuts aimed at everything from tourism marketing to mental health services.

Dunleavy also vetoed $8.5 million in funding for Alaska’s ferry system known as the Alaska Marine Highway System, a link to the outside world for communities like Skagway. 

And he relentlessly slashed the University of Alaska’s budget, with cuts totaling $70 million over three years. That hurts the state’s ranking in Education, where it finishes No. 47.

Crude oil rebound hasn’t helped Alaska

Hanging over all of Alaska’s business and financial woes is the price of oil, the state’s economic lifeblood. Oil revenues typically account for more than one-third of the state’s budget.

A part of the Trans Alaska Pipeline System is seen on September 17, 2019 in Fairbanks, Alaska.
Joe Raedle | Getty Images

Last year, as weak demand during the pandemic pushed oil prices to historic lows, oil production in Alaska fell to its lowest level in more than 40 years, according to the Energy Department.

This year, prices have rebounded, but production in Alaska has not. Alaska oil producers face much lower cost competition in the lower 48, as well as an intensifying tug-of-war over federal oil leases. Production through April was down nearly 5% from a year ago.

State budget forecasters expect oil production tax revenue will be around $311 million in the 2021 fiscal year that ended on July 1. That would be a 9% increase from 2020, but a 36% decline from the year before.

Those kinds of numbers could make it even harder for Alaska to climb out of the cellar next year.

Cremata said he hopes the crisis will convince Alaska to think beyond its traditional economic drivers including tourism, fishing and oil.

“You can’t think backwards. You have to think forwards,” he said. “Perhaps, this is like a chaos-opportunity moment — where there’s chaos, there’s opportunity, so that people in Alaska, who maybe have been relying on things that aren’t as reliable anymore, maybe try to expand towards some different ideas.”

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BYD’s low-cost Seagull EV now starts at under $8,000 in China

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BYD's low-cost Seagull EV now starts at under ,000 in China

BYD’s cheapest EV in China just got even more affordable. After cutting prices this month, the BYD Seagull EV starts at just 56,800 yuan, or under $8,000.

BYD cuts Seagull EV price to under $8,000 in April

Despite an intensifying EV price war in China, BYD is cutting prices once again. The Chinese EV giant announced a new promotion this month across several Ocean Series models, including the Seagull.

The 2025 BYD Seagull EV is available starting at just 56,800 yuan ($7,800). The offer is for the non-Smart Driving Vitality Edition model, which usually starts at 69,800 yuan ($9,500).

After launching the new Seagull last year, BYD said the low-cost electric car officially opened “a new era of electricity being lower than oil.” Earlier this year, it upgraded most of its vehicles, including the Seagull, with its new “God’s Eye” smart driving system at no extra charge.

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BYD’s Seagull is offered in three trims in China: Vitality, Freedom, and Flying. It has two battery options, 30.1 kWh or 38.9 kWh, which is good for the 305 km (190 mi) and 405 km (252 mi) CLTC range, respectively.

BYD-seagull-EV-$8,000
BYD cuts vehicle prices in April 2025, including the Seagull EV (Source: BYD)

At just 3,780 mm long, 1,715 mm wide, and 1,540 mm tall, the Seagull is even smaller than the former Chevy Bolt EV (4,145 mm long, 1,765 mm wide, and 1,611 mm tall). It’s about the size of a Fiat 500e.

BYD-Seagull-EV-$8,000
BYD Seagull EV (Dolphin Mini) testing in Brazil (Source: BYD)

The price cut comes as BYD’s sales continue surging. With another 377,420 new energy vehicles (EVs and PHEVs) sold last month, the Chinese automaker has now sold over one million NEVs in 2025.

BYD’s EVs accounted for 416,388 while PHEV sales reached 569,710, an increase of 39% and 76% from last year, respectively.

BYD Seagull EV trim Starting Price Range
(CLTC)
Vitality Normal: $9,500 (69,800 yuan)
Now: $8,000 (56,800 yuan)
190 mi
(305 km)
Freedom $10,300 (75,800 yuan) 190 mi
(305 km)
Flying $11,700 (85,800 yuan) 252 mi
(405 km)
BYD Seagull EV prices and range by trim in China

Perhaps even more importantly, BYD sold over 206,000 vehicles overseas in 2025, more than doubling from last year. The Seagull EV is also sold in other global markets like Mexico and Brazil as the Dolphin Mini.

Later this year, it will launch in Europe as the Dolphin Surf, with expected prices starting under £20,000 ($26,000). Although it may not be the cheapest EV, BYD’s executive vice president, Stella Li, recently told Autocar it will be “the best value” when it arrives.

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Tesla already has new Model Y inventory available today in the US – demand is terrible

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Tesla already has new Model Y inventory available today in the US – demand is terrible

Tesla has new Model Y inventory available today in the US, just days after opening orders for what is supposed to be its most popular model.

This proves that demand is terrible and Tesla is trying to hide it.

On Friday, Tesla launched the new non-Launch Edition Model Y in North America.

Prior to the launch, only a fully loaded $60,000 Launch Edition Model Y was available to order since January, and had been delivered since early March.

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Now, North American buyers are able to buy a much cheaper version of the new Model Y for $49,000.

Only the Model Y Long Range AWD is available for now, but that’s Tesla’s most popular model in North America.

At the time, we noted that this is a great demand test for Tesla in the US amid some critical brand issues due to CEO Elon Musk.

We only have a few metrics to track the demand of the new Model Y in the US:

  • Delivery timelines on new orders
  • Available inventory
  • Discounts/incentives

For most US zip codes tested by Electrek with different Model Y configurations (wheels and paint colors), Tesla quotes delivery within “1-3 weeks”.

But we also found several zip codes on both the West Coast and the East Coast where Tesla claims it can deliver the new vehicle “today”:

This would point to Tesla already having vehicles in inventory despite launching it just 4 days ago.

But Tesla is hiding the inventory.

If you search for Model Y in Tesla’s new inventory, you can’t find any in the US at the time of writing:

However, Tesla is showing some units in inventory to people configuring new Model Ys.

Some potential buyers are reporting that Tesla has a tab that pops up and directs them to some new inventory available (via TroyTeslike on Patreon):

This confirms that Tesla already has new non-Launch Edition Model Y in inventory available for sale in the US – pointing to Tesla having no backlog of demand for the new vehicle.

Electrek’s Take

This is much worse than I thought. I thought that Tesla would build a backlog of demand for the new Model Y in the US from people who didn’t want the fully loaded version, but it looks like that backlog lasted 4 days.

Of course, it’s all because of Tesla and Elon, and brand destruction.

Many people who invested in the stock market lost a lot of money over the last few weeks, and these people often happen to be people who buy new cars.

Now, the only thing left is for Tesla to start offering discounts and subsidies financing – the latter likely coming first, as it is already the case with new Model 3 orders in the US.

The good news for Tesla is that if Trump continues to crash the stock market, the Fed will likely have to reduce rates, making Tesla’s 0% financing cheaper to subsidize.

That’s a fun balancing act.

Either way, I wouldn’t be surprised to see Tesla offer incentives on the new Model Y in the US within the next 2 weeks – way ahead of schedule.

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Kia’s new EV9 and EV6 qualify for the $7,500 EV tax credit — except this one trim

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Kia's new EV9 and EV6 qualify for the ,500 EV tax credit — except this one trim

The new and improved 2026 Kia EV9 and 2025 EV6 are eligible for the $7,500 federal EV tax credit, but one trim is excluded.

Do the Kia EV6 and EV9 qualify for the federal tax credit?

Kia’s first dedicated electric vehicle, the EV6, received some pretty major upgrades for its mid-cycle update this year.

The 2025 EV6 features a bigger battery providing more range (now up to 319 miles), a stylish interior and exterior redesign, and an NACS port for charging at Tesla Superchargers.

Kia’s first three-row electric SUV, the EV9, also has a native NACS charging port and will be the first model year to offer a high-performance GT trim.

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We got a good look at the EV9 GT at the LA Auto Show last year (check it out here). The sporty electric SUV boasts 501 hp, which is quite a bit more than the current GT-Line’s 379 hp. The added power is enough for the big-body SUV to move from 0 to 60 mph in just 4.3 seconds.

Although Kia America’s vice president of sales, Eric Watson, confirmed the EV6 and EV9 are now in “full-scale production” at its plant in West Point, Georgia, not all trims will qualify for the $7,500 federal tax credit.

According to CarsDirect, Kia told dealers that the 2025 EV6 and 2026 EV9 GT trims wouldn’t be eligible for the credit. A spokesperson said the exclusion is because Kia builds the EV6 GT and EV9 GT in South Korea, while all other trims are assembled in Georgia.

If Trump’s 25% tariff on South Korea is still in effect when the GT models launch in the US, it could create a significant price gap between trims.

Despite this, you will likely still be able to take advantage of the credit through leasing. Kia, like many, is passing the $7,500 on through lease cash, which can significantly cut monthly payments.

Kia will reveal more info, including prices, closer to launch. Check back soon. We’ll keep you updated with the latest.

With the new models arriving soon, Kia is offering clearance pricing on outgoing models. Monthly leases start as low as $179. You can use our links below to find deals on the Kia EV6 and EV9 near you.

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