#743 - 🚗 Spinning New Records

TOGETHER WITH

Yo! It is Monday!

The day that separates the “Got To”s from the “Get To”s!

Hit reply, and tell us what you get to do today.

In today’s email, we’ve got an economic update, news from Ford, Rivian, Volvo, and Tesla, then we have some context for the CrowdStrike outage.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Mid-July Market Watch

The economy's cooling yet positive growth, along with moderating inflation, has created an energetic environment for stocks, pushing the S&P 500 and Nasdaq to record highs this week.

All major car segments saw year-over-year price declines in early July, but some segments performed better month-over-month.

• SUVs and Pickups — Down 6.0% and 6.1% YOY, respectively.

• Midsize and Compact Cars — Declined 6.6% and 7.0% year-over-year.

• Luxury Vehicles — Dropped 7.7% year-over-year.

• Month-Over-Month Gains — Compact cars up 2.7%, midsize cars up 3.1%, SUVs and pickups up 1.8%.

• EVs vs. Non-EVs — EV prices are down 12.1% YOY and non-EVs are down 5.8%.

Used vehicle prices are becoming more affordable than they have been in the past three years, providing more opportunities for shoppers.

• Price Decline – Used retail prices have fallen 7% compared to 2023.

• Historical Context – Current prices are now below levels at this time in 2021 (a year marked by a significant spike in used vehicle values due to low new production).

• Consumer Sentiment — More affordable prices will hopefully enhance consumer confidence and satisfaction.

👉 Check out our LinkedIn article for the full write-up. 👀

TOGETHER WITH AUTOMOTIVE INNOVATORS TOUR

Two Great Cities, One Great Tour

Finally, a day event that offers a hands-on, immersive experience with platforms and systems you can take back to your store the next day to immediately upgrade your game!

Introducing the Automotive Innovators Tour hosted by Gray Scott, a 2024 40 Under 40 Honoree, and Brian Pasch, a leading automotive consultant. If you've considered what AI would look like in your operations and want a hands-on experience, this is the event for you.

Why Attend?

• Solve a monthly business objective using AI.

• Ensure your scheduling process is frictionless.

• Jump into audience creation using in-house databases.

This is not a sit-back-and-listen event. Join for a full day of focused learning, including breakfast, lunch, and happy hour.

Check out these two opportunities and agendas to elevate your game:

• TOMORROW! July 23rd, 2024, in Chicago, IL (we hear there is going to be some fire Chicago chow)

• August 7th, 2024 in Atlanta, GA

AROUND THE ASOTU-VERSE

Out and About

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

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

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

🍎 September 16th — The Welcome Conference in NYC.

BUSINESS CONT’D

News: Ford Reconsiders, Rivian Goes to the Park, Volvo Breaks a Record, Tesla Tries FSD Again, and All the Airplanes Get Delayed

Ford Reconsiders All-EV Strategy in Europe

Ford has revised its plan to go all-electric in Europe by 2030, now incorporating more hybrid vehicles. This change follows a slowed adoption of EVs, high battery costs, and reduced government incentives. Ford's Model E division COO, Marin Gjaja, stated that the original plan was too ambitious. The shift echoes decisions by other automakers like Volkswagen and GM, who are also integrating more hybrids.

Rivian Opens EV Charging Station Near Yosemite

Rivian has launched a new EV charging station in Groveland, CA, near Yosemite National Park. The site offers five fast chargers and amenities such as snacks, a library, and a recycling drop-off. Currently, only Rivian vehicles can use the chargers, but the company plans to open access to all EVs by late 2024, promoting sustainable travel and EV education.

Volvo Cars Reports Record Operating Profit

Volvo Cars shares surged 11% after announcing a record core operating profit of 8.2 billion Swedish kronor ($776 million) for Q2, a 28% increase from last year. This growth was driven by a 15% rise in global sales, particularly from hybrid and electric models, which accounted for 48% of total sales. Volvo is focusing on EVs amid growing competition and geopolitical tensions.

Tesla Offers Free Upgrades with Full Self-Driving Purchase

Tesla is offering free hardware upgrades on Model 3 and Model X vehicles for customers purchasing the Full Self-Driving (FSD) package to qualify for federal tax credits. This strategic move allows customers to add premium paint or a 7-seat option without exceeding the MSRP limit for tax incentives. The FSD package is priced at $8,000.

More about Tesla:

• California Registrations Drop: Tesla registrations fell by 24% in Q2.

• Market Challenges: High interest rates and increased competition are reducing demand.

• Brand Impact: CEO Elon Musk's public persona affects Tesla's image, particularly in California.

• Model Y Sales: Despite challenges, the Model Y remains Tesla's top-selling EV in California, though market share dropped to 53.4% from 64.6% last year.

• Incentives: Free upgrades aim to keep vehicles under the $55,000 and $80,000 price limits for tax credits, enhancing buyer appeal.

CrowdStrike Software Error Causes Global Outage

A software update error at cybersecurity firm CrowdStrike caused a global internet outage affecting various industries, including airlines and banking. The issue, not linked to a cyberattack, was quickly addressed by the company. CrowdStrike, a major player in cloud security, holds significant market share and is trusted by numerous U.S. federal agencies and large corporations. 

Quick Hits

• Did you like the Dune movies? Well, HBO is making a series about the elusive yet powerful Bene Gesserit (the ones who look like dark sci-fi nuns?) to reveal more about the story universe. 🪱 

• OpenAI launched a mini version of their GPT4o. 🤏 

• Companies and systems worldwide were affected by the CrowdStrike outage, but the stock market held strong. Except for CrowdStrike’s stock, it dipped 8%. 📉 

History

• 1793: Alexander Mackenzie reaches the Pacific Ocean, becoming the first recorded human to complete a transcontinental crossing of North America. 🏇 

• 1908: Fred and Charles Fisher found Fisher Body in Detroit, Michigan, which became the largest automobile body manufacturer by 1914, and after being acquired by General Motors in 1926, continued to influence the industry until its dissolution in 1984, with its legacy living on through companies like Fisher & Company and Fisher Dynamics. 🚘️ 

• 1933: Wiley Hardeman Post (Wiley Post) becomes the first man to fly solo around the world in his plywood monocoque aircraft. 🛬 

Thanks for reading, friend! Be sure to follow along on LinkedIn for more informative, encouraging, and community-building content from our team. Use the links below to pick your platform.