#661 - 🚗 Electric Avenue

TOGETHER WITH

Maybe the only good habit worth forming is asking yourself each morning what you want to see done today, writing it down, and doing as much of it as you can.

That and walking more often, apparently.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Tea.G.I.F.

It’s always good to see companies listening to consumers. For instance, people want their cars to go further before they need us to do things for them. It's odd that anybody had to say it, but they did, and now at least some 2025 models are boasting about their longer range.

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Addressing Range Anxiety

Tesla

Tesla introduced a new Model Y Long Range RWD variant in select European countries. 

• This variant boasts the lineup's longest range at 600 km (372 miles) 

• It is priced as the second most affordable option at 48,990 euros ($52,500). 

This model outpaces other variants in the range, including the base Model Y RWD and both the Long Range and Performance AWD versions

📈 At the time of writing, Tesla Inc is up 0.15% in the market. 

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Ford

The 2024 Ford Mustang Mach-E boasts enhancements such as increased range. 

• Up to 320 miles on the extended battery

• Faster acceleration with 0 to 60mph in 3.3 seconds

• Improved charging speeds, reducing the 10 to 80% charge time by 8.8 minutes. 

These updates aim to strengthen Ford's position against EV market leader Tesla and expand its appeal in the competitive electric vehicle space.

📉 At the time of writing, Ford Motor Co is down 0.46% in the market. 

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Mercedes

The 2025 Mercedes-Benz EQS introduces a more traditional design with a new grille and standing star logo.

• Standard AMG-line front bumper. 

• Luxury upgrades like enhanced rear seating and an improved Hyperscreen. 

• New 118 kWh battery for increased range, although specific figures haven't been released. 

These updates aim to make the EQS more competitive in the luxury EV market.

📉 At the time of writing, Mercedes-Benz Group AG is down 0.36% in the market.  

Inventory Issues Subside, Insurance Issues Increases.

🦠 Out of the petri dish, into the bunsen burner. 

As US car buyers start to see relief from the high prices during the COVID-19 pandemic, they face a new challenge: soaring auto insurance rates. 

• The rise in insurance costs is linked to the expensive repairs of advanced vehicles and climate change impacts, resulting in a 22.2% increase over the past year.

• Despite lower car prices due to better supply chain conditions, Kelley Blue Book advises checking insurance rates before buying. The expected insurance cost rise is 7% in 2024.

These climbing insurance rates are a significant part of vehicle ownership costs, especially for budget-conscious consumers. 

Electrification Information

In the U.S., a recent survey run by CarMax shows the Toyota Prius winning brand loyalty. Is this a sign of the hybrid times to come? 

The survey also showed growth in all-electric adoption, but it remains to be seen where the balance will land between ICE, Hybrid, and Clean Energy Vehicles. 

In other parts of the world, China is aggressively exporting EVs. So many are buying more cargo ships. 

Data also shows EV prices are down about 20% on average.

These parallel developments signal a movement towards EV adoption, reflecting consumer preferences adjusting to affordability, infrastructure, and access developments.

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Electrification, inflation, and innovation—these are the three “ations” of the automotive nation. Will things change at the next station? With so many quotations, nobody can be sure.

Ok, that’s enough of that nonsense. Sometimes, it is hard to be so aware of the future but so far from knowing what it will be when it becomes the present. (I said enough nonsense!)

TOGETHER WITH CONSTELLATION

Shoot for the Stars

Ever feel lost in a universe of regulations and data overload?

Let Constellation be your North Star. Their AI-powered technology is the GPS for navigating the marketing space with precision and confidence. Constellation’s solution generates strategic, personalized, and co-op-compliant content at scale, creating speed to market and syndication across your website, email, paid social, paid search, and display channels. 

No black holes here; just bright, personalized content that guides customers straight to your dealership and keeps their information secure.

With Constellation, you’ll always be on the path to totality – discover how today!

AROUND THE ASOTU-VERSE

ASOTU CON 2024

You already know that ASOTU CON 2024 in Baltimore next month is full of opportunities to collaborate, innovate, and network with like-minded, diversly-skilled, and open-hearted pros from across the retail automotive community.

But why gather dealers unless we are going to be like the dealers? So we invited our friends, Vehicles for Change, to partner with us again this year, and they are giving away a car at the show!

It’s easy to recognize the changing impact the gift of stable transportation has on people or families in need, so to realize the joy of participating in this moment, we will open time and the trunk of the gifted car for donations from the whole community.

Grab your ticket now and get ready to see lives, this industry, and the world change for the better.

DATA & INSIGHT

Pulse Check on the Market

The markets kicked off a jittery start to the week and the new quarter, wrestling with strong economic signals and looming questions about Federal Reserve policy moves:

Early Volatility — The markets experienced initial unease as robust economic data sparked debates about the timing of potential Federal Reserve rate cuts, leaving investors guessing about the next moves in monetary policy.

Market Recovery and Outlook — Despite early uncertainties, markets rallied at week's end, buoyed by the positive job figures that reassured investors of continued economic and corporate earnings growth. The broader sentiment remains cautiously optimistic, anchored by expectations of continued support for a bullish stock market trajectory.

March brought a breath of fresh air to the auto credit landscape, according to Cox's latest insights, highlighting nuanced shifts across the board:

Credit Landscape Broadens — The Dealertrack Credit Availability Index showed an uptick to 94.0 in March, marking a 1.1% month-over-month improvement in auto credit access (though it's still 1.5% down from the previous year). This loosening spanned all channels and lender types, with auto finance companies leading the charge.

Mixed Credit Factors — Despite overall loosening, some factors constrained consumer credit access: yield spreads widened, and term lengths contracted. Positively, the subprime share of loans and approval rates both increased, signaling mixed impacts on consumer credit availability. Notably, down payment shares remained high, unchanged but at record levels.

Lending and Borrowing Dynamics — Auto loan conditions tightened from a year-over-year perspective across most channels, with used loans from independent dealers seeing the least improvement. However, certified pre-owned loans benefited from the most significant easing.

Q1 2024 has uncovered a surprising dip for electric vehicle stocks, diverging sharply from broader market's success:

Market Overview — Despite the S&P 500's impressive 10% gain in the first quarter of 2024, the EV sector largely didn't share in the upswing, with most purist EV companies—those focusing solely on electric vehicles—seeing their stocks plummet by double digits.

Notable Exceptions — Nikola and Fisker stood out dramatically from their peers, with Nikola surging by 24.9% thanks to positive developments in its hydrogen fuel cell truck business, including the launch of its first hydrogen refueling station. In stark contrast, Fisker faced a steep decline of 98.7%, culminating in its delisting from the NYSE, amid customer cancellations and product issues.

👉 Keep reading here for more weekly market updates. 👀

Quick Hits

• Fans say the show Fallout is “radiating” good vibes (its a nuke joke, people who like the series will get it). ☢️

• Meta will start blurring IG messages with nudity to protect teens. Which like, if you can blur them, can’t you block them? 🙈

• When people say you can get everything at Costco, they mean it. Apparently, the retail giant is selling around $200M in solid gold bars per month. We will stick with our $1.50 hotdog, thanks. 🌭

History

• 1954: Bill Haley and the Comets record "Rock Around the Clock." 🕰

• 1955: The polio vaccine, developed by Dr. Jonas Salk, is declared safe and effective. 💉

• 1992: The Euro Disney Resort officially opens with its theme park Euro Disneyland. The resort and its park's name are subsequently changed to Disneyland Paris. 🐭

Thanks for reading, friend! Don’t let anybody try to fool you; an idea never made anybody great, but acting on one did. If ideas made you great, we would be great for our idea to make t-shirts that cure the flu.