Carvana Defies Expectations, Mazda’s Dull Logo, Tesla Hoods Unlatched

Paul J Daly: 0:01

It's it lasts a July. It's here. It's almost over. It'll be over soon. Today we're gonna talk about Carvana defying expectations Mazda's new logo and Tesla's hoods being unlatched.

‍Unknown: 0:15

People really want to know who is and who. Out there at the end of the month and

Paul J Daly: 0:21

a lot of a frunk. From could I guess you could call it the front? Could the front, the front lid? I mean, is it a lid is? Is it a hood? Because it's like the deck lid, the trunk lid? Is it a trunk lid and not a hood? On a Tesla? These are questions that people are demanding answers to.

Unknown: 0:41

They have a love guy or need to know if it's a fraud if it's a Franklin. Frank, I don't know.

Paul J Daly: 0:49

How many dealers do you think want to hear from you today?

Kyle Mountsier: 0:53

How many dealers want to hear from me? Yeah. None. Nobody wants to talk to me.

Paul J Daly: 0:58

Unless I'm working in one of their sales department does zero.

Kyle Mountsier: 1:03

I have a call with an IT guy today. That's who cares about.

Paul J Daly: 1:09

Right. Right. Exactly. Or unless you're looking for value for your trade? Maybe?

Kyle Mountsier: 1:13

Yeah, that's right. That's right. That's right.

Unknown: 1:16

You know, if I'm looking to buy a car, they want to talk to me all day might might be in that game.

Paul J Daly: 1:22

Oh, hey, a week from today, we are going to have our next DeSoto edge webinar with our friend Jim Ganser. From mosaic. I know you're not thinking about today, last day of the month, but next week, you should be thinking about what's been going on under the surface with the cars rule, we're going to have some new information, because next week is kind of a big week. So Jim has been gathering all the stuff, he's going to share all this stuff. And we're going to tie it back to how that ties down today to your sales process to how you're moving things through. So and we always have a lot of fun, let's just do a lot of fun. You You waste you easily waste 20 minutes of your day, next Wednesday. So don't waste it. Instead, spend it with us go to a soda.com Go to a soda.com right now, just sign up for the webinar. Because what gets scheduled gets

Kyle Mountsier: 2:04

done who's Yeah, and I'll tell you the registration. You know, I always like looking at like the registration list, and I wish we can share them. But when I look at the registration list of this one, there's like some really layers, strong players that are thinking about this. And so like if you use that as a barometer to know whether or not you should be interested, just know the types of people that are interested in this one are not just like, you know, some salesperson that

Paul J Daly: 2:35

no crypto expert,

Kyle Mountsier: 2:36

no crypto experts on our on this.

Paul J Daly: 2:38

I mean, maybe but that's not what they're leaving. That could be true.

Unknown: 2:43

I think I think that's what we got. So let's get into it. Let's get into this deal. All right. It might

Paul J Daly: 2:49

be fun to talk about this for a moment. Actually. Yesterday, we did a flashback. And we were like Hey 10 years ago this is what the headlines were in automotive was so much fun like Millennials are gonna stop buying cars because the ride sharing so so let's let's show the graphic. We have a little LinkedIn newsletter that we do if you don't do it. Follow us on LinkedIn at asoto. And basically, the first print ad an automotive was released yesterday in history back in 1998. So it's man. That's what we're like 125 years. That's a century and a quarter. Basically on July 30 1898, the weekly journal Scientific American introduced the world's first car ad courtesy of Cleveland's Winton Motor Carriage company in case you didn't know they're not around a new company the the ad said this basically here put the ad backup here's what it said dispense with a horse and save the expense care and anxiety of keeping it to run on Motor Carriage costs about half a cent per mile. The ad went on to say things like ball bearings, zero vibration and I doubt it was zero vibration whatsoever but if you've ever ridden a horse especially at slow speed there's a little vibration going

Kyle Mountsier: 4:01

on and things like this do right and they smooth that Joker also

Paul J Daly: 4:06

in the ad advertise the the feature zero odor. I don't know what that thing was running on. It wasn't electricity. Well, you know it is no relative Paul because it didn't smell like a horse

Kyle Mountsier: 4:20

to having a horse bag that's catching it style bag. Bag. It was that bag yet

Paul J Daly: 4:27

so that's it. It was basically if this was the beginning of the shift from horse drawn carriages to what we call motor carriages. Alexander Witten is brainchild, promised the future of motoring convenience, and public curiosity. And now you know, now we know everything about people when we market to them, or at least quite a bit not just like a friend out there.

Kyle Mountsier: 4:46

We think we know everything about everybody and we know how to market them. But we're still trying to figure that out. So I wonder I wonder Yeah, we

Paul J Daly: 4:52

thought we did 10 years ago 20 years ago, right? We

Kyle Mountsier: 4:55

think it's gonna change everything. We're gonna be able to track everything we're gonna know where everyone is at all times.

Paul J Daly: 5:00

Yeah. Cookies are back facial recognition. I don't know, maybe. Maybe. Nathan, our producer just puts in the I think all the people who cared for horses were worried about their business back then. Yep. I would love to see how many of those people ended up selling motor carriages? I guess we'll call them. I bet you I bet a couple we got to dig up those stories. Yes.

Kyle Mountsier: 5:23

You know, earlier this week or late last week, we're talking about, you know, oil companies getting into the charging game, right, like, how do you how do you transition as a business? We talked about that with dealers, right? On shrinking profit margins, how do you get into other verticals, other opportunities for margin? And so it's, it's, it's been a long history in that in shifting for business

Paul J Daly: 5:46

sounds like entrepreneurship to me. Oh, hey, this

Kyle Mountsier: 5:50

was right now because I had a perfect segue, but we'll just keep rolling

Paul J Daly: 5:54

the wheels on no rules on the last day of the month. We could go the last three years the next one, this is pretty relevant to as reinventing online us retailer Carvana. You know, they are expected to report a significant year over year increase in sales in the second quarter with results anticipated posts market closed today, so we'll get the results today when the market closes Carvanha sold 91,878 vehicles in q1, which was up 16% year over year, analysts are predicting q2 sales were surpass last year 76,500 vehicles with a potential 3% quarter over quarter growth with William Blair as analyst Sharon zek via adjusting her q2 sales estimate to 98,000. That'd be a pretty big increase increase. They have their reporting 15% increased inventory 16% site traffic and they're saying these are positive indicators. btig analyst Marvin Fung praises their business model setting a share price at a target $155 Here's a quote from him. He said While there's no way around the fact carvone vana trades at a premium to most ecommerce auto related sites, we believe they're vertically integrated and insource business model is simply a better mousetrap in an enormous retail market that shouldn't be overlooked.

Kyle Mountsier: 7:13

Oh, man. See, now if my boy Ben Hadley was listening right now he'd be screaming from the rooftops about building a better mousetrap right? There were, you know, we talked about the first story was all about putting the cheese out there, right? What are we inviting people to come to? And what's the mousetrap Is it is it, you know, able to actually engage consumers and not just have them kind of, you know, perusing or shopping or interested. And Carvana has definitely built that they built a way to say, hey, you might be interested based on some core beliefs about the shopping process. And once you're interested, they know exactly how to push you further into the funnel. And that's, you know, like,

Paul J Daly: 7:54

well, there's a segment to there's like they they've identified a market segment who wants to purchase that way. And there will always be a segment that wants to purchase that way. I was having conversation with the dealer of a large group earlier this week about call to action buttons. And we were talking about what button should there so we were kind of going around, and like oh, should it be? I'm interested? Should it be? You know, like, what's my trade? Should it be talked with someone now? And then Carvana is just got one button, it's let's get going. Right? And if you're not ready to let's get going, which means you have to set up an account, like give them information, right, then they're like, Okay, then you're not that's

Kyle Mountsier: 8:27

fine to fit. You're not You're not a good fit. And that's that's I think, hard for dealers and any retailer to understand is that is that the actions you take? Must be willing to say no to some consumers. Yep. Right. And that's the position then trying to say yes to everyone. Yeah, I

Paul J Daly: 8:46

mean, but granted, like, you know, they do isolate themselves by being online only in the beginning. Yep. Right. Like, do you trust them to have a vehicle that you can't test drive? You can't look, even if you can, you know, give it back or have them pick it back up? Right. There's a hassle there. So but yeah, we'll see what they do. Obviously, entrepreneurial spirits alive and Carvana. Think like, what a year ago, their stock price was not even close to 155. It

Kyle Mountsier: 9:09

was well, it was close to 155. It had a

Paul J Daly: 9:16

little bit of a hiccup little glitch going on there. Speaking of little glitches. Segue. Segue And finally this week, Tesla is air quotes recalling approximately 1,000,001 point 8 million vehicles due to a software glitch affecting the hood latch assembly impacting 21 through 2020 21 through 2024, model threes, model X's and the 2020 through 2024 model Y National Highway Traffic Safety Administration warns a software maif software may fail to detect an unmatched hood potentially causing it to open and obstruct the driver's view. We all know what this looks like. We've seen Tommy Boy movies. Tesla has issued a free over the air saw software update to fix the issue without requiring a physical visit. Basically, they said, just make sure your car connects to the Tesla network and wow, away it goes

Kyle Mountsier: 10:08

yet again, like Whitlatch could come on Done. Fear not connect to network to

Paul J Daly: 10:17

get the Think of the anxiety that creates if like, you get a recall where like, your head might fly out while you're driving. Some people are gonna be like, Oh, just make sure it's set. But some people like are thinking

Kyle Mountsier: 10:25

about that. Well, and I mean, how many people never even know about the recall before the over the air update happened?

Paul J Daly: 10:32

Because it was sent in an envelope to your previous address. Right? Like, Stan, just,

Kyle Mountsier: 10:40

it's a totally different world. It's just a different world.

Paul J Daly: 10:43

I don't know, I wonder when maybe not close, they're gonna like not call this a recall. If you have a vehicle that's capable of just fixing the stock, right, like, is there an issuance? And there's like, What do you mean, that's a safety issue? Right, definitely a safety issue.

Kyle Mountsier: 11:03

But it's the exact same thing that like, it's a physical safety issue. But there are data safety issues that happen every single day on the Apple App Store. And what do you get, you get a software update says says minor bugs and fixes. And some of those could be as large as like exposing your data. Right. So like, what's the, you know, what is software change actually protecting you from and what is it called? Is it called a recall? Or is it just called, you know,

Paul J Daly: 11:30

yeah, I mean, some of it has to do like the physical safety. There's like, I guess just picture like, what does this look like? On a like a Buzzfeed headline? Oh, yeah, Tesla Hood could come unlatched. Right. Or your data may potentially be exposed.

Kyle Mountsier: 11:48

Right? Yeah. It's a different feeling.

Paul J Daly: 11:51

It is it

Kyle Mountsier: 11:51

is speaking of a different field. Oh, nice

Paul J Daly: 11:54

job. Segue guy here.

Kyle Mountsier: 11:59

Well, it looks like Mazda is going to have a new brand, based on a logo that has been recently filed for trademark in Japan, which shows a new streamlined design. I think we have it up now. Basically, they've flattened the old logo, all of the light gradients and everything and took a little bit of the edge out of it. It looks like honestly, if you're a designer, it looks like someone went into Illustrator dropped the logo in hit vectorize and came up with the new flatten logo. The new logo retains a familiar shape, with the circular emblem used since 1997. And tracks. So the simpleide logo was previously seen on the irata SUV concept and auto trying to 2024. But will it's still uncertain if the new logo will appear on future moto Mazda models. Recently, other competitors of which that they are saying that they are competitors now with BMW, Audi, Buick, Cadillac and Jaguar Land Rover have all simplified their logos as of recent, Mazda is aiming to be that I liked

Paul J Daly: 13:11

the PR player, this one, that's great. That's some publicist is like I got it. We're gonna talk about our competitors. Yeah, I think whenever you use gradients and shading as a distinctive characteristic of your logo you're losing. I think the logo just lacks distinction. It just, I don't know. It kind of looks like the valence Van Halen logo to me now. Like, put it back up there, Nathan.

Kyle Mountsier: 13:33

Yeah,

Paul J Daly: 13:34

it looks like you just kind of inhale. I mean, it's a logo. And a logo is only as strong as what you do with it, right? Like how you build brand around it. And Mazda is obviously on the upswing, I think they can storytel around it definitely will look will look better than Ford, I just want to have a four color green, it

Kyle Mountsier: 13:51

just blows my mind that in a decade, they have literally changed their brand. If this goes through. And if this is actually happening, they will have in a decade change their brand style guide for their logo three times. Now, the

Paul J Daly: 14:04

ironic part about that is that they are the most picky when it comes to how the brand is represented. Oh my goodness. Right. They're just when if you're if you're in building a store, if you're working on marketing collateral, right? I mean, they they just dialed in, like that department. It's got I don't know, they got an unusual error on

Kyle Mountsier: 14:28

their payroll like illegal shame is on payroll. You know what I mean? Give it to them.

Unknown: 14:33

Oh my gosh. All right. Well, time to go.

Paul J Daly: 14:37

Last day of the month. That's why dealers you know, you're out there selling cars anyway, you're not worried about the Mazda logo, but you might be tomorrow, whatever it is close out the month strong. We'll be here for you. First of August.

Unknown: 15:00

Hello

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