The Big Premiere, Musk Praises Ford, Carvana Comeback?

Paul Daly: 0:02Yo, what's up Friday. Today we're talking about the big more than cars Premier, Elon Musk was super nice to Ford, and Carvana shares are coming back. If this hasn't been a crazy week, I don't know what happened to hear a little spillover of other music and jams is because we are in I don't know what you call this areas where the Swag Shop is going to be in the main lobby, some people call it a vestibule vestibules a

‍Kyle Mountsier: 0:30

floor where the main lobby the main place where everybody's going to be like jam packed on the first morning of a soda soda.

Paul Daly: 0:37

We all were laughing like 340 like Al's over here and 40 You got to sleep in red 30 miles for his flight, he ran to the airport. And so we're here on the ground, just get some more preparations in tow for a soda con, they got the whole floor set up all the walls are out our stuffs on the screens, it start to feel you're not

Unknown: 0:56

following a soda on Instagram in particular, that's where we're going to drop a bunch of stuff from just what we're doing a day. Checking out the spaces, we'll talk a little bit about it will drip drip some stuff as we go. But yeah, I'm excited to just kind of see the space the way it's going to be set up. And this This place is amazing type you guys.

Paul Daly: 1:15

This is the spot. And if you have any reservations, we'll say this about Baltimore, because we've been telling people where it's going right and some people don't even gotta go to Baltimore, Baltimore. Well, look at the airport. It's not really in Baltimore. But we pick this venue number one, because we were familiar with the format, but also it's only like a few minutes from the airport. Right? So that whole like 45 minute hour hustle from the airport now. Quick Uber ride. Like it was like 12 bucks or something. Yeah. Everything's here. There's a mall attached to it. There's a medieval time. So Kyle, and I can go Red Knight blue Knight, yes. Full on Jesse do that. Like I know, we pull the hoods off. People go nuts. And so that's what we're doing here. And so we're excited to be here. So there's like a little music going on above us. So you might hear some of the top 40 In the middle of the show. But no, that's kind of that's kind of how it goes. We're super excited that more than cars, the show has been received as well as it has somebody wrote them. Best review on LinkedIn.

Unknown: 2:09

Yeah, Billy Reynolds wrote a full on review. And like my carried the heart of exactly what we're looking to do. So if you know who Billy Reynolds is search him on LinkedIn, he's a great writer, he's he's a great writer, he wrote up just he was at the premiere, he wrote up a little bit about it, that will lead you right into going to more than cars.tv We're actually premiering it on the 24th at one o'clock Eastern. So that backs up to 12, Central 11 Mountain 10. Because everybody to be able to, we want everyone to be able to tune in, it's 25 minutes, we're going to do a live premiere of it. You can watch with your team login, you can go to more than cars.tv. And you can register for that on LinkedIn, we would love for just people across the industry to really be able to grab hold and understand exactly what we're doing there.

Paul Daly: 2:53

Here's the thing about that, too. We need to show the people in the industry, we need to show the OEMs, the dealers, the industry partners, and more importantly, the people outside the industry that this show in the heart of the industry has support. Yeah, right. And when 1000s of people show up to a live stream, it shows everybody else that there's something going on here. So we're trying to really harness that and get it together. So go to more than cars.tv. So you can start to be in the know we give you a warning. It's gonna be a couple of weeks out so you can get people together, get your service people together, your sales people together and all your people. But we have some news to talk about. We're gonna get to it. So Elon Musk through some empathetic praise. We'll call it Ford's way. Amaze yesterday, based talking about their Evie strategy. And he said it was when Elon Musk looks at your thing and like, hey, that that's smart.

Unknown: 3:41

He's not British, but we'll go with it.

Paul Daly: 3:43

I can never do this sounds really interesting. Yeah, it's hard. It's like British and something else. I can't put them together. But he called their strategy smart. And you know, Jim, finally he's like, Oh, thanks, man.

Unknown: 3:55

He's like, Thanks, but I'm cool with you or something. Yeah. Somebody's bad side. Man, we're gonna hang out with Ford at Reuters in a couple of weeks.

Paul Daly: 4:04

Yeah, they'll put their global brand director Yeah, I wonder if he's gonna listen to the show. Um, so basically, he said this comment. Even a Twitter user reached out to me hey, look for it had negative 40% margins on there. What do you think about that, and his response was always tough with margin for new vehicle lines, especially when there are major technology shifts. I think for its overall strategy with EVs is smart. The electric F 150. Lightning has very high demand. So Elon Musk was like

Unknown: 4:31

he's paying attention he's watching and he knows like, the first few years of Tesla. That was everybody was going yeah, like eight or nine, whatever was going on. I don't know if it's ever going to take off or ever gonna make it but so he knows that like with for just recently pressing into their Eevee product lineup. It's still going to take some time and the margin is going to be is going to recover.

Paul Daly: 4:55

That's a good nod to have. Yeah, that is a good night to get when Ilan. So Is that so? I think everybody's feeling feeling pretty good about that. Why am I clipping all of a sudden?

Unknown: 5:04

I don't know what happened where?

Paul Daly: 5:05

I felt that too, right. got excited. Well, the little audio thing got pretty excitable. Okay, we're good. So hey, this is live just if you didn't realize it and realize you didn't realize it's live no cuts. So I mean, I think that's one of the first interactions we've seen, like direct with like Elon and forums. And you know, obviously, the cybertruck is slated to come out sometime, maybe late q3. Maybe he's trying to just be like, here I am. I'm a truck guy. But who knows he's got a ringer in the back and he's gonna be like, take write that. Well, that's, that's the big to be determined. We'll see. You're gonna love or hate the cybertruck it's just it. Is it ever gonna launch is really the question. It's a bigger question. Speaking of launching, oh, I wish I had a segue time but after a 98 drop, a 90% drop in share value. Last year Carvana. Shares soared by 33%. After hours yesterday, as they reported, I don't know. What were you gonna call it? The actually a positive core profit?

Unknown: 6:01

Yeah. So like, positive profit. And then also like they're cute q2 projections about a month and a half into q2. They're, they're looking very, very positive they're tracking on or ahead of goal. CEO Ernie Garcia said on a call with analysts yesterday, I think major headwinds that have faced the business over the year are largely subsiding. So some of the things probably like inventory pressure, US GAAP pressures, ability to acquire used cars, even interest rates are starting to slow in their, in their in their raising like the Fed raised interest rates, but it wasn't as aggressive of a hike. And there's been signals to say that that's not gonna, that's not going to continue at the pace that has, so I think consumers are starting to come back into the used car market up. And for him as a used car dealer, it's really really good to see inventory coming back on the new car side because they're able to acquire cars last two years, and wholesale prices are dropping, which, which is an advantage for for Carvanha. So I think that's a that's a leading indicator, and probably an indicator for us to see like, hey, use car market is going to get more aggressive again. So watch out even though dealers are still maintaining high profit margins. If Carvanha is coming back, it's going to just be a used car market that we're gonna have to pay attention to at a different level.

Paul Daly: 7:17

There's a friend of ours Darren don't some of you may know him, a lot of you may know him. He sent us a text message yesterday with a screenshot of an email he got from Carvana which was a picture of his truck and saying like this is what it was worth last year and this is what it's worth right now. And you're just trying to like buy inventory and indicated that they're back in the market. They're giving prices out to people who have been checked their price a year ago, and his his text said this. I don't know what this is, but I like it.

Unknown: 7:42

Yeah. Which is I like it.

Paul Daly: 7:46

Yeah, cuz I did last year I got out of my Telluride lease. Yeah, I don't remember what other car put in there. But I got two of those emails this week.

Unknown: 7:53

But I wish it was. I wish we had a screenshot but if you haven't done this with Carvana it was very like Zillow. Redfin ask, the way it kind of looked and felt it was like market value.

Paul Daly: 8:04

90% informational, with a very small call to action, very

Unknown: 8:08

small call to action. Yeah, it was it was like, Hey, this is what's going on with your car has given him an updated value. And the speed to transaction at that point was probably pretty high.

Paul Daly: 8:18

But it's not all optimism in the market. Piper Sandler analysts warned in a note on Friday, the stock may not be suitable for risk averse investors due to persistent solvency issues, and a tangible threat of macro economic decline. Despite this concerns, they also raise their price target of from Carvana from $20 to $21. So there's just a little bit of cautious optimism but we don't want to say we were totally wrong. So let's raise our target just a little bit. Isn't that wild though that we're talking about a cautiously up to at $21 for Carvana. It's still a wild go down to was the level it's like three bucks.

Unknown: 8:52

I don't think it went under five but I could be wrong about that. Okay, so Okay, well, either

Paul Daly: 8:56

way. It's kind of a wild Friday. Yeah, it's a little bit. Ford Carvana stock went up. 30 back up. We're in Baltimore. Which isn't that wild?

Unknown: 9:04

Yeah. Welcome to like the move of auto

Paul Daly: 9:08

legitimately listen a roller coaster. I legitimately thought it was Friday yesterday for half of the day.

Unknown: 9:13

Oh, man, I can't wait till you see some of the content. We recorded a digital dealer because you know why? That's not much of a surprise to me. But today's Friday, we've got some stuff to do. We got to get into it. We're headed into the venue. Follow us so do on our social media, check out more than cars.tv You're gonna want to be there for the live stream bring the whole industry around it because we know that dealers are good

‍