#711 - 🚗 Brewing Battle

TOGETHER WITH

We triple-checked; it is indeed Friday.

A day for deciding who we want to be next week and choosing what tiny steps we will take over the weekend to be them.

Obviously, many of us work on Saturdays and Sundays, but weekends are a state of mind, not a bit of the calendar.

So feel free to decide who you want to be on any random Tuesday if that works better for you.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

News: A Brewing Battle?

All the car brands are looking for their next pot of gold in EVs right now.

While some are going all-in, others are waiting for the right moment to strike.

But, here in the U.S., the story often feels like Tesla vs. everybody else.

Among the contenders, Ford is frequently making headlines. So, today we gave Ford and Tesla a look.

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Ford Expands EV Sales, Staff, and Reach

Ford must have read our emails. Or, maybe Jim Farley saw your LinkedIn posts. The auto brand is ditching its plan to set a minimum investment-based buy-in to sell Ford EVs.

Quick, while they're saying yes, let's ask them to bring back the foot switch headlight dimmer!

What does it all mean?

• Broader Access: Over 90% of Americans will now live within 25 miles of a Ford dealership capable of selling and servicing EVs.

• Program Phase-Out: The Model e Dealership Program is being phased out due to slower-than-expected market growth and feedback from dealers.

• Streamlined Sales: Ford aims to simplify the EV buying process and boost sales by expanding its dealership network.

Do people even want to buy Ford EVs? Ford seems to think so, and the data agrees.

• Sales Surge: Ford's EV sales jumped 65% in May, with the F-150 Lightning leading the market.

• F-150 Lightning: The 2024 model offers a range of up to 320 miles and remains a top choice among electric trucks.

Industry Poaching?

To continue upgrading its presence in the sustainable market, Ford has expanded its EV team by hiring top talent from companies like Tesla, Rivian, and Apple to enhance its electric vehicle lineup.

Tesla to Make Musk Rich(er)

Tesla shareholders have approved Elon Musk's $56B pay package, which dates back to 2018. The salary package is the largest in U.S. history.

Voting Details:

• Preliminary results indicate strong support for the pay package and moving Tesla's legal home to Texas.

• Final results will be announced at Tesla's Texas headquarters.

Market Reaction:

• Tesla shares rose 3.6% following the voting news.

• Major proxy firms and large investors had opposed the package, citing dilution concerns.

But NOW, he has to convince a judge.

Judge Kathaleen McCormick of Delaware's Court of Chancery criticized Tesla's board for being "beholden" to Musk and failing to properly inform shareholders in 2018. A legal resolution could take years, with appeals likely.

Economic Influence:

The Cybertruck's price ($108,667) has increased the average U.S. EV price by a noticeable 3.1%. If we remove Tesla from the data, overall EV prices have decreased, indicating a competitive market. It's like that one smart kid ruining the grading curve.

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What do you think?

Are Ford and Tesla fighting for the heart of the U.S. automotive industry?

Are they just two companies trying to do right by their shareholders?

Or, are they Tradition v. Futurism, ready to take one another to the top rope of history and be the true champ?

Grab the talking stick, and let us know your thoughts! 

TOGETHER WITH AUTO GENIUS

The Experience Begins Online

Data and anecdotal evidence totally agree: Slow websites kill experiences.

The Auto Genius community takes efficient digital marketing personally. (that includes websites with some MOVE)

Their platform brings together automotive marketing professionals who share proven strategies for optimizing website performance. As a member of Auto Genius, you will have access to resources capable of improving your digital operations and customer engagement.

Join their network of industry leaders now and ensure your dealership’s website operates at peak efficiency, your customers receive a great experience, and you don't miss another opportunity to engage with your shoppers.

DATA & INSIGHT

Class is in Session

The economy showed more signs of cooling off this week, which is actually good news for our inflation woes.

• Growth Rate — Until just this year, Gross Domestic Product has grown consistently above 2% for the past six quarters. GDP was recently adjusted down to 1.3% from 1.6%.

• Interest Rate — Federal Reserve officials penciled in just one interest-rate cut this year and forecast more cuts for 2025.

• Gas Rate — The average price per gallon of regular gas has fallen to $3.52 (almost a quarter since late April). That’s an improvement from a year ago when it was $3.57/gallon, and two years ago when it was at its peak of $4.88/gallon (aka The Great Gas Gloom).

The economy is indicating a stabilization across several metrics. Let’s take a look at the numbers:

• CPI Report: The U.S. inflation rate for the year as measured by the consumer price index ticked down to 3.3% in May from 3.4% in April.

• Job Gains: May brought a surprise 272K new jobs, far exceeding the 180K that was anticipated.

•  Unemployment Ticks Up: Despite the availability of jobs, it seems there may not be enough workers to fill all those positions as we saw the unemployment rate rise to 4% (the highest in over two years).

Auto dealers are consistently worried about the same big issues, but political concerns are on the rise as we approach the November presidential election. Tbh, who isn’t concerned tho?

• Top 3 Concerns — Interest Rates, the Economy, and Market Conditions remain primary challenges.

• Red or Blue — The political climate is hot on the heels of #3 on this list as 36% of dealers, especially franchised ones, highlight its impact.

👉 Check out the full article on our website here. 👀

AROUND THE ASOTU-VERSE

CULTURE

Planet Ford of Humble Should be Proud

The team at Planet Ford in Humble, along with their GM Mark Kolon, truly exemplifies the motto "Love People More Than You Love Cars," and we dig it!

Recently, three talented students from Kingwood Park, Humble, and Kingwood High Schools were each presented with $2,000 Automotive Technicians of the Future Scholarships. These scholarships will support these bright seniors as they pursue further education and prepare to embark on exciting careers in the automotive industry.

Additionally, Planet Ford and Mark Kolon proudly supported the Michael Wagener Scholarships, awarding five scholarships (one recipient not pictured) to outstanding 2024 seniors from Humble ISD. This generous initiative underscores the dealership's dedication to giving back and nurturing the next generation of automotive professionals.

Special thanks to Charles McCann for hitting us up with this great story on LinkedIn. If loving people doesn't include honoring the kindness they show others, our love is just enjoying people who make us feel good. 

Quick Hits

• Porsche partnered with ChargePoint to open access to over 20K chargers for its drivers in Canada. 🍁 

• Threads, Facebook’s Twitter (X), is adding live MLB scores to its platform after NBA scores were a hit with users. ⚾️ 

• Mortgage rates dip to 6.95% from 6.99% a week ago. 🏡 

History

• 1775: American Revolutionary War: the Continental Army is established by the Continental Congress, marking the birth of the United States Armed Forces. 🪖 

• 1954: The words “Under God” are added to the U.S. Pledge of Allegiance. 🇺🇸 

• 1959: The Disneyland monorail opens. 🚝 

Thanks for reading, friend! We know you have work to do, folks to meet, worlds to conquer, but don’t forget to mark the progress along the way. You’re a year closer to everything you want than you were a year ago.