#734 - 🚗 Lighter Than Air

TOGETHER WITH

Thursday already?

Today, we have some Q2 news from Toyota, GM, VW, and Manheim, along with some data on U.S. hydrogen and lithium efforts.

What’s Thursday like for you and your team?

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

One: Toyota and Hydrogen

Data can only tell us about the past, but if you stack up enough clear pictures of the past, you can map a trajectory. So, here are some clear pictures of the past from data science types smarter than us mixed in with some other bits of interest. Enjoy!

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Toyota's Q2

Toyota's second-quarter results show a strong performance, driven by significant growth in its EV segment. Key stats consider:

• 621,549 vehicles sold in the U.S., a 9.2% year-over-year increase.

• 250,000 hybrid and electric models sold, a 63% rise from last year.

• 112% increase in plug-in electric car sales.

• 301% surge in all-electric car sales.

Toyota's New Charging Deal

Toyota is investing in Ionna, a North Carolina-based company, to support the deployment of a comprehensive EV charging network across North America.

Partnering with seven other automakers, Toyota's investment will provide its customers access to Ionna's network of DC fast chargers.

This initiative aligns with Toyota's broader strategy to introduce 30 battery EV models by 2030, aiming for an annual production of 3.5M units.

Toyota's Hydrogen Adventures

To boost sales of its hydrogen fuel cell vehicle, Toyota has halved the price of the 2024 Mirai by offering up to $33,000 off. This move aims to attract more buyers in California's struggling hydrogen vehicle market, where the company also offers $15,000 in free hydrogen fuel credits over three years.

Speaking of Hydrogen…

The U.S. hydrogen vehicle market is struggling.

In the second quarter of 2024, hydrogen car sales dropped by 91%, with only 99 units sold.

The Toyota Mirai led with 73 sales, a 93% year-over-year decline. High costs and limited refueling infrastructure continue to hinder the adoption of hydrogen fuel cell vehicles.

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BUSINESS

Two: Carvana’s $4K, the Quest for Lithium Independence, and Q2 with GM, VW, and Manheim

Carvana's New Tax Credit Initiative

What's happening?
Carvana is offering up to $4,000 off eligible used EVs and plug-in hybrids at checkout by advancing the federal tax incentive for clean vehicles.

When does it take effect?
The discount for eligible vehicles is available on the company’s app and website now (but buyers must still transfer the tax credit to Carvana when filing taxes).

How will it affect the US automotive market?
Carvana has a widespread presence in the US market, easy online service, and the tax credit tool is now built-in. This could be a challenge for U.S. dealers, but only for EV sales.

More Q2 Highlights

GM's Q2 Performance

GM's EV sales surged 40% year-over-year in Q2 2024, with the Cadillac Lyriq leading the charge with a massive 441% increase in deliveries.

Overall, GM delivered 696,086 vehicles in the quarter, highlighting their strong momentum in the EV market despite facing challenges in SUV sales.

Volkswagen’s Challenges

Volkswagen shares dipped following a profit warning and the potential closure of its Audi plant in Brussels due to weak demand for the Audi Q8 e-tron.

The company has lowered its forecast for operating return on sales to a range of 6.5% to 7%. Overall deliveries were down 3.8% year-over-year, with a significant 19.3% decline in the Chinese market.

U.S. Dealers' Insights

Cox Automotive's Manheim Used Vehicle Value Index revealed a 0.6% price decline for June, marking an 8.9% drop YOY.

Additionally, new retail sales were down 9% and used sales decreased by 1%, which was impacted by a software outage. These trends reflect broader economic challenges and shifts in consumer behavior in the automotive market.

U.S. Quest for Lithium Independence

The U.S. is making significant strides toward securing its lithium supply for EV batteries. This effort is crucial for the automotive industry as it transitions to electric vehicles. New tech and resources are needed to make the EV business profitable and sustainable.

• $1.2B loan from the U.S. Department of Energy to ENTEK for a lithium-ion battery separator factory in Indiana.

• 1.72B square meters of separator material to be produced annually.

• 763 construction jobs and 635 operational jobs were created by the factory.

• 7-10B square meters of annual separator production is needed by 2030 for North American lithium-ion EV batteries.

• Battery separators are crucial for preventing shorts and ensuring safety in lithium-ion batteries.

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AROUND THE ASOTU-VERSE

Where Y’all At?

⛳️ July 15th — Paul and Kyle will be MCing the Beaver Toyota Charity Golf Tournament in Cumming, GA.

🏔️ July 16-18th — Paul speaking at the Darren Doane Brand Summit in Moscow, ID.

👊 August 9-11th — VeeCon in Los Angeles, CA.

👨‍⚖️ August 19th — Paul and Kyle judging Automotive Amplifiers Contest w/ ReyRey in Leesburg, VA.

🌴 August 20-24th — NAMAD Conference in Miami, FL.

🍎 September 16th — The Welcome Conference in NYC.

Quick Hits

• Microsoft and Apple are leaving the OpenAI board. 👋 

• The U.S. and its allies have shut down a Russian misinformation bot farm hosting over 1000 Twitter accounts. 🤖 

• The animated movie “Shrek 5” has been announced for a July 2026 release per almost nobody's request. 🏰 

History

• 1899: Fiat is founded as a horseless carriage business. 🐴 

• 1955: President Eisenhower signed a bill requiring the use of the inscription “In God We Trust” on all paper money. 💵 

• 1985: Coke changes its formula and introduces "New Coke." 🥤 

Thanks for reading, friend! If you read this far, send us a picture of your lunch. 🍕