The Automotive Troublemakers: The First Auto Ad

Its the last day of the month, and we’re wishing all of you a successful day! Today, we’re flashing back to the very first automotive ad, then bringing it back to the present state of Carvana’s continued rise, an awkward recall involving Tesla hoods and Mazda’s new logo.

On July 30th in 1898, the weekly journal Scientific American introduced the world's first car ad, courtesy of Cleveland’s Winton Motor Carriage Company.

• The ad boldly proclaimed, “Dispense with a horse and save the expense, care, and anxiety of keeping it. To run a motor carriage costs about ½ cent a mile.”

• This pitch marked a shift from horse-drawn carriages to the dawn of automotive travel. Alexander Winton’s brainchild promised a future of motoring convenience and ignited public curiosity, leading to a surge in orders and ultimately reshaping transportation history.

Online used-vehicle retailer Carvana is expected to report a significant year-over-year increase in sales for the second quarter, with results anticipated post-market close on July 31.

• Carvana sold 91,878 used vehicles in Q1 2024, up 16% year-over-year.

• Analysts predict Q2 sales will surpass last year’s 76,530 vehicles, with a potential 3% quarter-over-quarter growth, with William Blair analyst Sharon Zackfia adjusting her Q2 sales estimate to 98,900 vehicles.

• Increased inventory (+15%) and site traffic (+16%) are positive indicators.

• BTIG analyst Marvin Fong praises Carvana’s business model, setting a share price target at $155.

• “While there's no way around the fact Carvana trades at a premium to most e-commerce and auto-related stocks, we believe [Carvana's] vertically integrated and in-sourced business model is simply a better mousetrap in an enormous automotive retail market that shouldn't be overlooked,” Fong noted.

Tesla is recalling approximately 1,849,638 vehicles due to a software glitch affecting the hood latch assembly, impacting the 2021-2024 Model 3, Model S, Model X, and 2020-2024 Model Y.

• NHTSA warns the software may fail to detect an unlatched hood, potentially causing it to open and obstruct the driver’s view, increasing crash risk.

• Tesla has issued a free OTA software update to fix the issue without requiring physical visits to service centers.

Mazda appears to be the latest brand to flatten its logo, removing its previous texture and identity, as indicated by a recent trademark filing in Japan, which shows a new, streamlined design.

• The new logo retains the familiar shape and downward "M" within a circular emblem, used since 1997.

• The simplified logo was previously seen on the Arata SUV concept at Auto China 2024, and its uncertain if the new logo will appear on future Mazda models in the US.

• Many competitors, including BMW, Audi, Buick, Cadillac and Jaguar Land Rover have also simplified their logos.

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