Carvana Efficient Growth, Ford Pausing Lightning Production, Starbucks One Price

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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Happy Halloween! It’s the last day of the month, and we’re tracking how Carvana has managed to continue its used car growth. Plus, we cover how Ford is slowing down its production of the F-150 Lightning and Starbucks getting rid of extra fees for non-dairy milk.

Show Notes with links:

• Shout out to our friends at UVeye! Their AI-driven automated vehicle inspection has earned a spot on TIME’s prestigious 2024 Best Inventions list, showcasing innovations that transform daily life.
  • TIME recognized its impact on safety, reliability, and transparency in inspections.

• Carvana posted a strong Q3 net income, impressing Wall Street despite an 80% decline from last year’s figures.
  • Net income hit $148 million, up 208% from Q2 but down from Q3 2023's $741 million.
  • Vehicle sales rose to 108,651, up 34% year-over-year and 7.1% over Q2.
  • Operating income reached a record $337 million, a 602% year-over-year increase.
  • Gross profit per vehicle climbed 25%, supported by reduced costs and faster sales.
  • CEO Ernie Garcia praised the "efficient growth" from Carvana's ADESA network expansion, enhancing cost efficiency and customer experience.
  • Brian Kramer called it a “MONSTER finish” for Q3, crediting the company’s disciplined acquisition and inventory management strategies. He attributed the rise in sales and gross profit to more accurate appraisal estimates, quicker sales, and higher margins on consumer-sourced inventory.
• Ford is pausing F-150 Lightning production for seven weeks, from mid-November to early January, responding to slower-than-expected demand for the electric pickup.
  • Production will stop on Nov. 15, resuming on Jan. 6 after a holiday break, as Ford adjusts to find a better mix for sales growth and profitability.
  • Despite an 86% year-to-date sales increase through September, the Lightning lost its title as the nation’s best-selling electric truck to Tesla’s Cybertruck.
  • Ford’s supply of electric models remains high: a 100-day supply of F-150s, 130 days of the Mustang Mach-E, and 128 days of E-Transit vans as of September, per Cox Automotive.
  • CEO Jim Farley remains optimistic about Ford's long-term EV strategy but acknowledges “the slow uptake of EVs,” emphasizing the company’s pivot to more affordable EV platforms in the coming years: “I wouldn’t trade [our strategy] for any of our competitors.”

• Starbucks is giving nondairy milk fans a break by dropping the extra fee for nondairy milk customizations starting Nov. 7.
  • The change coincides with Starbucks’ holiday menu launch and customers can now enjoy soy, oat, almond, or coconut milk without added costs.
  • CEO Brian Niccol says the shift supports Starbucks’ culture of drink personalization.
  • Nondairy milk customizations are the second-most-popular modification, just after extra espresso shots.
  • Customers could see a 10% p

Hosts: Paul J Daly and Kyle Mountsier
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