Tesla and Lithia Q3 earnings, Biden EV grants

Inside Automotive:

RADA President Brad McAreavy discusses New York’s 2035 EV mandate
In the first week of October, New York Governor Kathy Hochul announced that the state will mandate all new vehicle purchases to be zero-emission starting in 2035. Joining us on Inside Automotive today to discuss this development is Brad McAreavy, President of the Rochester Automobile Dealers Association. Watch the complete segment here.

Headlines:

Tesla has reported that third-quarter revenues set another record for the company but still missed analysts’ expectations. The electric vehicle maker reported revenues of $21.45 billion dollars for Q3, shy of estimates of $21.86 billion. The company reported a net income of $3.3 billion for the quarter, nearly double what the company earned during the same period last year. CEO Elon Musk blamed rising material costs, production ramp inefficiencies, and the strengthening American dollar as contributing factors cutting into Tesla’s profitability. Read More

Lithia Motors reported its highest third-quarter revenue and earnings per share in history this week. Q3 revenue for the company increased by 18% to $7.3 billion, up from $6.2 billion during the same period last year. The company also reported a net income of $330 million, a 7% increase. Bryan DeBoer, President and CEO of Lithia & Driveway, stated, “We posted strong results across our business lines this quarter, while navigating the current environment, integrating a steady stream of acquisitions, and continuing to grow driveway and Driveway finance.” Read More

BMW Group announced plans to invest $1.7 billion in its US operations to build electric vehicles and batteries. $1 billion is earmarked for the automaker’s existing factory in Spartanburg, South Carolina, and $700 million for a new high-voltage battery-assembly facility in nearby Woodruff. BMW plans to produce at least six fully electric models in the US by 2030. The announcement also included information about a deal to purchase battery cells from Envision AESC. The Japanese-based company will build a new battery cell factory in South Carolina that will supply BMW plants. Read More

The Biden Administration announced it will award $2.8 billion dollars in grants to projects to expand US manufacturing of electric vehicle batteries and domestic mineral production. The grants are a part of the president’s $1 trillion bipartisan infrastructure law and will allow 20 companies across 12 states to extract and process more lithium, graphite, nickel, and other materials used in EV battery production. A statement from Energy Secretary Jennifer Granholm read, “Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country.” Read More

News & Opinion

How to measure the value your service advisors bring to the dealership
Like it or not, a successful dealership boils down to metrics. Hit a certain threshold, and you can rest easy (or easier) until next month or next quarter. But the numbers aren’t always about sales; fixed operations can benefit from benchmarks. This approach starts with service advisors. Let’s explore the fundamentals of keeping these staffers accountable and how they can help the bottom line. Read More

The link between emotional intelligence and selling cars
Emotional intelligence is just as important as technique in car sales. Consumers want more than just a competent car salesperson that can state the facts. Instead, consumers want someone who can understand their needs and purpose for car shopping. It is much easier to speak to someone who is emotionally intelligent compared to someone who only knows how to calculate numbers and sales. Read More

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