Major Auto Earnings and Losses, Netflix Gets Trashed, Lincoln Goes Full Experiential

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Today we dig into an array of earnings reports from public auto groups, automakers, and retailers. Namely, Lithia, Carvana, and Tesla. We also talk about consumer behaviors driving Netflix’s slide as well as Lincoln’s understanding of merging hospitality best practices with the automotive experience.

• Earnings and reports for top players:

  • Lithia

    • Q1 net income more than doubled, up 119%

    • Overall revenue up 54% to 6.7B, a Q1 record

    • New and used sales up 23%

    • Avg gross profit per unit on new vehicles more than doubled to $6,179

    • Avg F&I also increased

    • Avg cost of new $47,146 (+16%); used $30,323 (+32%) WAS 22,971

  • Carvana

    • Revenue up 56% YoY to 3.49B

    • Net loss of $506M. Last year was $82M (over 600% more loss)

    • “In a letter to shareholders, Carvana CEO Ernie Garcia and CFO Mark Jenkins called the quarter "challenging."

    • CEO Ernie Garcia (letter to shareholders) "Q1, I would say — it looked like the industry environment was deteriorating throughout," Garcia said during a Wednesday earnings call with investors and analysts. "Disentangling how much of that was affordability, how much of that was just general consumer confidence or interest rates, is very, very hard."

    • “In January 2022, in recognition of Carvana selling its 1 millionth vehicle in Q4, CEO Ernie Garcia committed to giving current employees 23 shares of his personal stock once they reach their two-year employment anniversary, a gift worth over $100 million at the announcement’s stock price.”

  • Tesla

    • The company reported a monster $16.8 billion in automotive revenues, up more than 87% YoY. The company reported $18.76 billion in total revenue, more than a billion over what analysts expected.

    • total profit of more than $5.46 billion, +132% YoY

    • total vehicle production was up 69% (lol, you can’t be serious.) 291,189 Model 3 and Model Y vehicles were built in the quarter

    • expects to reach volume production of a new 'robotaxi' vehicle without a steering wheel or pedals by 2024

• Netflix loses over a third of its market value (35%) making it the worst performing stock of the year on Nasdaq 100 and S&P 500

  • Q1 net loss of subscribers when investors expected a gain -2M +)

  • 35% of Americans cut out a monthly subscription in the past six months

• New Lincoln Star Concept goes full experiential mode

  • The mood settings include:

    • Coastal Morning uses gentle, oceanic sounds, a fragrance of sea mist and the soft, warm glow of the sun with dynamic lighting throughout to replicate a stroll on the beach at sunrise.

    • Mindful Vitality is meant to reenergize the senses, with invigorating, upbeat audio, dynamic abstract artwork, soft, glowing lig

Hosts: Paul J Daly and Kyle Mountsier
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