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Episode #1088: We’re kicking off the week with Elon Musk mixing politics and business, a brutal forecast for China’s crowded EV market, and one unforgettable funeral send-off in Detroit.
Show Notes with links:
- Elon Musk’s creation of the “America” political party is fueling investor anxiety as Tesla faces a pivotal year marked by declining sales, shifting strategy, and mounting public scrutiny.
- Musk aims to influence key House and Senate races in 2026 via his new party, but analysts fear it could distract from Tesla’s core business and turnaround plans.
- Tesla’s global sales fell 13% in Q2; shares are down 20% year-to-date amid shifting investor sentiment.
- Consumer surveys show Tesla’s brand perception continuing to erode in the U.S., ranking last among 19 EV makers in a May survey.
- Azoria Partners delayed its Tesla ETF launch, citing conflict with Musk’s CEO responsibilities.
- “I encourage the Board to…evaluate whether [Musk’s ambitions] are compatible with his full-time obligations,” said Azoria CEO James Fishback.
- A new report by AlixPartners projects that only 15 out of 129 EV and plug-in hybrid brands in China will survive through 2030, as fierce competition and overcapacity push the market toward consolidation.
- The surviving 15 brands are expected to control 75% of the market, each selling over 1 million units annually.
- Most Chinese EV makers remain unprofitable with the current market driving innovation and unsustainable pricing models; only BYD and Li Auto have achieved full-year profitability.
- Despite low profitability, regional governments may continue to support struggling brands to protect local economies.
- “This environment has driven remarkable advances...but it has also left many companies struggling,” said Stephen Dyer of AlixPartners.
- Meanwhile, Sony Honda Mobility’s operating loss more than doubled to ¥52B ($362M) as it pushes to launch the Afeela EV this year.
- Darrell Thomas, a beloved Detroit car wash owner and NHRA-licensed drag racer, was known for his generosity. At his funeral, his family honored that legacy in dramatic fashion—showering the community with rose petals and $5,000 in cash from a helicopter during a public celebration of his life.
- The tribute shut down a stretch of Gratiot Avenue in front of Showroom Shine Express.
- The family says they informed police, though DPD claims they weren’t told about the money drop.
- The FAA has launched an investigation into the aerial drop, but no action is expected from local authorities, according to Detroit Police.
- “This was a final expression of love from him to the community because he was a giver,” said niece Crystal Perry.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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