Elon Musk sells Tesla shares, BMW EV sales, Lucid Motors Q3 results

Inside Automotive:

NADA President Mike Stanton discusses new guiding principles for auto retail
In response to today’s shifting retail market in the franchise system, the NADA released guiding principles on “Evolving Business Models.” Today on Inside Automotive, we’re learning more about those guiding principles from NADA’s President and CEO, Mike Stanton. Watch the complete segment here.

Headlines:

Twitter’s new owner and Tesla CEO, Elon Musk, has sold 19.5 million Tesla shares worth almost $4 billion from November 4 to November 8. Musk sold $7 billion of his stock in August to finance the purchase of Twitter. However, According to Forbes, though Musk’s personal net worth dropped below $200 billion, he is still the world’s richest person. Shares of Tesla closed Tuesday at $191.30, its lowest point in a year. The stock has lost 52% of its value since the start of 2022. Read More

In its quarterly earnings report, Lucid Motors said orders for its luxury electric cars slipped in the third quarter from the second. The company said it had more than 34,000 orders in the reported period and was down about 3,000 reservations from the second quarter. Overall, about 1,400 vehicles saw cancellations. Chief Finance Officer Sherry House claimed that Lucid would tap into the capital markets as it looks to build a factory in Saudi Arabia. Read More

BMW Chief Executive, Oliver Zipse said the premium carmaker would not abandon its lower-priced vehicle segment in the transition to electrification. Zipse also warned last week that although sales of fully electric vehicles were expected to double, the company anticipates rising inflation and interest rates to weigh on incoming orders compared to 2021. Read More

Four dealership groups expanded their portfolio in their second and third-quarter transactions, Automotive News reports. Gilchrist Automotive acquired Toyota of Lawton and gained its first dealership in Oklahoma. In Johnson City, Tennessee, the Chantz Scott Auto Group purchased a second Kia location. After acquiring Swafford’s Ford Sales, Max Motors now has five Ford dealerships. Finally, a Buick-GMC dealership previously a part of Johnson Motor Co. was purchased by the Gerald Jones Auto Group. Read More

News & Opinion

Ford’s $1.2 million EV certification faces major opposition from dealer associations
Dealer associations claim that Ford Motor Company is breaching some franchise regulations and unfairly burdening its retail network with expensive restrictions for the sale of electric vehicles in at least 13 different states. One of CEO Jim Farley’s signature initiatives requires dealers to invest up to $1.2 million on chargers, staff training, and new sales standards to overhaul the retail experience has been the subject of a letter from state officials in Pennsylvania, Virginia, North Carolina, and others asking Ford to make significant changes. Read More

Tips to improve the close on service transactions
For most dealerships, the aim for 100% service absorption is a lofty goal. Achieved, it pays the overhead expenses completely for the month, alleviating pressure on the rest of the departments for profitability. That’s especially important when the sales department isn’t able to hold gross in every deal, like the industry pre-COVID. While the sales department is more than capable of holding its own at the moment, it’s no reason for the service department to let up. There will likely come a time not too far down the road when sales profitability is a challenge, and that could still be due at times to supply chain issues. Read More

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