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Episode #1069: Trump eyes higher auto tariffs and axes California’s EV rules, Google quietly gains ground with Gen Z shoppers, and an AI-generated NBA Finals ad shows how fast, cheap, and creative the future of advertising can be.

Show Notes with links:

• In a high-energy speech, President Trump proposed raising auto tariffs and celebrated a legislative rollback of California’s EV mandates — a double-down on his strategy to protect domestic auto manufacturing and consumer choice.
  • Trump suggested raising auto tariffs above the current 25% level to encourage automakers to produce more vehicles domestically.
  • He pointed to GM’s $4 billion investment in U.S. plants as a positive result of existing tariff policies.
  • The President signed legislation last week that rolls back California’s zero-emissions vehicle mandate, which would have banned new gas car sales by 2035.
  • Dealer and manufacturer groups applauded the repeal, arguing it protects affordability and nationwide regulatory consistency.
  • “Customers don’t want the government telling them what kind of car to buy,” said John Bozzella, CEO of the Alliance for Automotive Innovation.
  • Eleven states, led by California, have filed a legal challenge against the repeal, calling it an overreach that undermines state-level emissions standards.

• Google is making gains with Gen Z shoppers, chipping away at Amazon’s dominance in product search. New data shows young consumers are increasingly turning to Google — not just for browsing, but even when they know exactly what they want to buy.
  • Morgan Stanley data shows a rise in 16–24-year-olds using Google for product research, both general and specific
  • As of March, 30% of Gen Z shoppers who knew what they wanted still started on Google — up from 21% last fall.
  • Meanwhile, Amazon’s share dropped from 41% to 34% over the same period.
  • Analysts suggest Google's generative AI tools, like AI Overviews and Google Lens, may be fueling the shift.
  • “The volume of commercial queries on Google Search has increased with the launch of AI Overviews,” said Google’s Chief Business Officer Philipp Schindler.

• An AI-generated ad made in just two days aired during the NBA Finals, showing how creators can now move faster and cheaper than ever before. Using Google's Veo 3 and a lean workflow, one filmmaker delivered a national commercial at a fraction of traditional production costs.
  • AI filmmaker PJ Accetturo produced a 30-second TV spot for betting platform Kalshi in just two days using Veo 3 and Gemini.
  • His process involved AI-assisted scripting, iterative prompt generation, and rapid video output, yielding 15 usable clips from 300–400 generations.
  • The entire production cost came in at roughly $2,000 — a 95% reduction from traditional ad budgets.
  • Editing was done with tools like CapCut and Premiere, allowing f

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Episode #1068: Congress considers sweeping reforms to EV and emissions incentives, while Toyota tightens its corporate family ties with a bold $33B buyout—cementing Akio Toyoda's hold at the top. Plus, Lowe’s gets into the creator game with Mr. Beast and other social stars.

Show Notes with links:

• Congress is fast-tracking a comprehensive budget bill before a self-imposed July 4 deadline, with proposed changes to fuel economy standards, EV tax credits, and even regulations on artificial intelligence.
  • The Senate Commerce Committee proposes eliminating fines for automakers that fail to meet CAFE fuel economy standards.
  • The House version of the bill would terminate the $7,500 new EV credit and other clean vehicle benefits by the end of 2025.
  • A new tax deduction for up to $10K in auto loan interest could be introduced, applying only to U.S.-assembled vehicles and excluding commercial fleets.
  • Proposed limits on AI regulation would block state enforcement for a decade, with critics warning this could endanger public oversight and safety.

• Toyota shareholders have re-elected Akio Toyoda as chairman, reinforcing support for the automaker’s leadership even as a proposed $33 billion buyout of Toyota Industries—its original parent company—faces backlash from global investors.
  • Toyota Industries, founded in 1926, originally birthed Toyota Motor Company and now focuses on manufacturing forklifts and key automotive components.
  • Toyota Motor plans to fully acquire Toyota Industries in a ¥4.7 trillion deal that includes Akio Toyoda investing ¥1 billion of personal funds.
  • Toyoda, the founder’s grandson, was not opposed as chairman by proxy advisers this year for the first time since 2021.
  • He is estimated to receive at least 96% of the vote—up from last year's 72%, his lowest ever.
  • “There are many ways to achieve growth, but unity under shared values has always been Toyota’s strength,” Toyoda said earlier this year

• Lowe’s is breaking out of the hardware aisle and into the influencer economy with its new Creator Network, headlined by none other than YouTube megastar MrBeast.
  • The network kicked off with over 17,000 beta participants and includes big names like DadSocial and Chris Loves Julia.
  • Creators can earn commissions, access training, and build custom storefronts linking directly to Lowes.com.
  • MrBeast will showcase his favorite tools and DIY picks via a curated storefront featuring obstacle course kits and backyard builds.
  • Lowe’s red vests are also helping construct “BeastCity” for season two of MrBeast’s Beast Games on Amazon Prime.
  • “We wanted to go even bigger and over-the-top... and we found the perfect partner to help us achieve that goal,” said Jeff Housenbold, CEO of MrBeast’s brand team.

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Episode #1067: We’re covering how President Trump announced that China will provide rare earth minerals in a new trade deal. Plus Tesla’s push toward a robotaxi launch in Austin and what it means for the future of autonomy and Apple brings a major refresh to CarPlay in iOS26.

• President Trump just announced the deal is “done” regarding a sweeping trade agreement that positions China as the upfront supplier of rare earths to the U.S.—a major shift with big implications for auto and defense manufacturing.
  • Trump says China will supply magnets and rare earths “up front” under a trade deal.
  • U.S. to grant concessions like college access to Chinese students.
  • The deal still requires final sign-off by Trump and Chinese President Xi Jinping.
  • Tensions had escalated after China restricted exports critical to auto and defense.
  • “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%,” Trump wrote on Truth Social

• Tesla’s long-awaited robotaxi service is almost here. Elon Musk says it could officially launch in Austin on June 22—with an emphasis on “tentatively.” It’s a make-or-break moment for Tesla’s autonomous ambitions.
  • Tesla is testing unmodified Model Ys with a new FSD system that has ~4x more parameters than the current version.
  • The service will launch in a geo-fenced area of Austin with a small internal fleet supported by human teleoperators.
  • A trailing car with a safety driver has been spotted following the autonomous vehicles during testing.
  • The company just started truly driverless tests in late May—weeks ahead of the projected launch.
  • "The vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision," said Wedbush analyst Dan Ives.
• Apple is rolling out iOS26 with its biggest CarPlay update in years, bringing a sleek new look and features that aim to put your car’s native OS to shame.
  • CarPlay gets a new “Liquid Glass” design with glossy, semi-transparent icons and tabs.
  • Widgets come to the homepage, allowing real-time views of calendars, smart home tools, and weather.
  • Messaging gets streamlined with voice-activated emojis (Tapbacks) and pinned conversations for quicker access.
  • Incoming calls now appear in a compact banner, no longer hijacking your entire display during navigation.
  • Live Activities—real-time countdowns and status updates—are now embedded in CarPlay for things like food orders or airport pickups.

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Episode #1066: Today we’re looking at the May economic data from Cox Automotive, how Lucid is reducing its dependence on foreign battery materials and how Meta has increased its ad revenue without increasing volume through targeting.

Show Notes with links:

• May's economic and automotive data show a market adjusting to tighter consumer budgets and lingering workforce shifts. Retail remains steady, but pricing sensitivity is driving realignment in both new and used inventory strategies.
  • Employers added 139K jobs in May, topping forecasts, but downward revisions led to a net 95K job loss.
  • Auto dealer employment rose by 2,100 jobs, though it's still 1.1% below pre-COVID levels.
  • New-vehicle SAAR dropped to 15.6M in May, down from 17.8M in April. Retail SAAR outpaced last year’s.
  • Incentives averaged $3,297—the highest discounting level in five years, and the average price paid dropped to 95.7% of MSRP.
  • Used-vehicle sales dipped 3% month-over-month, but are up 4% year-over-year
    
    
    
• With all the buzz around China’s dominance of EV battery raw materials, Lucid surprised us with a plan to source all of its materials domestically.
  • Lucid’s agreement with Graphite One kicks off natural graphite production in 2028 from Alaska’s Graphite Creek site.
  • They’ve layered this with a 2024 synthetic graphite deal and a 2026 supply agreement with Syrah Resources in Louisiana.
  • All three deals align with IRA requirements, boosting eligibility for EV tax credits and reducing reliance on China, which supplies 90%+ of the world’s anode materials.
  • Graphite One’s Ohio facility will produce enough anode material for up to 2 million EVs per year.
  • Lucid’s Interim CEO said the U.S.-focused strategy “supports our efforts to reduce the carbon footprint of our vehicles.”

• Meta might be all-in on Gen Z vibes, but it’s the boomers and Gen Xers footing the bill. A new Barclays report reveals that older Facebook users see far more ads—because they’re the ones clicking.
  • Facebook shows more ads to users aged 45+ due to higher purchasing power.
  • Those aged 45-54 see the highest ad load at 22%; teens only see 4.3%.
  • Dynamic ad tech like Andromeda and Lattice tailors volume by user value.
  • 97% of Meta’s revenue comes from ads.
  • Meta has actually increased ad revenue without upping total ad volume by targeting high-value users—a shift analysts call “arguably the most bullish development.”

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Episode #1065: Today we’re breaking down Rivian’s big win with VW, a wild scene in LA as Waymo vehicles go up in flames, and how back-to-school shopping is creeping into summer.

Show Notes with links:

• The tech partnership between EV upstart Rivian and legacy automaker Volkswagen just took a major leap forward. Rivian’s upcoming R2 SUV platform won’t just support Rivian’s own vehicles—it’s about to become the backbone of every new EV under the Volkswagen Group umbrella.
  • All VW brands—Audi, Porsche, Lamborghini, Scout, Skoda, Seat—will share the R2 tech stack.
  • VW’s ID Every1 will be the first to launch using Rivian’s off-the-shelf zonal architecture.
  • The partnership helps VW replace its troubled Cariad software division with a proven modular platform.
  • Rivian’s Chief Software Officer confirmed all VW EVs will use the same scalable architecture, calling it “the digital brain” of the portfolio.
  • Each brand keeps its unique identity via custom UI, tuning, and features, but the tech core is unified.

• At least five Waymo self-driving I-Pace EVs were destroyed during violent protests in Los Angeles over the weekend—representing a possible 5% loss of its local fleet.
  • The unrest followed ICE raids and escalated into clashes with police and vandalism.
  • Rioters reportedly summoned Waymo vehicles, slashed tires, smashed windows, and set them on fire.
  • Fire crews couldn’t access the scene in time, and the vehicles burned completely.
  • Waymo operates about 100 cars in LA and over 1,500 nationwide.
  • Waymo has suspended service in the area, saying, “We will not be serving any rides in the protest area until it is deemed safe,”

• Back-to-school deals have crept into early summer, with brands and retailers scrambling to catch up to shifting consumer habits—and to tariff-driven inventory pressures.
  • Retailers like Amazon, Walmart, and Wayfair kicked off fall prep as early as Memorial Day.
  • Prime Day in the middle of July now marks the unofficial start of the back-to-school shopping season.
  • This year’s shoppers are favoring essentials and budget-friendly items over big-ticket dorm splurges
  • “Consumers are looking for the best discount, the best sale, the best value...” — Kassi Socha of Gartner

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Paul, Kyle, and Chris realize their shared aspiration identity...Charles Ingles from Little House on the Prairie. They laugh about how ironically he is a representation of what it is to steward your community. 

When Hurricane Milton hit, the South Pasadena Fire Department was left boatless, until Maher Chevrolet stepped in. The dealership donated a rescue-ready inflatable boat and stairs for the department’s new high-water vehicle. Now the crew can reach stranded residents faster and safer. It’s another case of a local dealer showing up big when it counts. Read our writeup in this post.

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Today we’re talking about political fireworks as Trump and Musk’s bromance blows up, Ram’s surprising V8 comeback after admitting they “screwed up,” and Samsung phones getting a dose of AI-powered fashion ads, right on your lock screen. 

• A once-powerful political-tech alliance is in tatters as Elon Musk and Donald Trump clash in a very public, very messy breakup. From social media jabs to threats of canceled contracts, the drama is shaking up D.C., Wall Street, and possibly the International Space Station.
  • Trump and Musk traded barbs online after Musk denounced Trump’s spending bill and left his government role.
  • Tesla stock nosedived over 14%, losing $150 billion in value—the worst single-day drop in the company's history.
  • Musk hinted at decommissioning SpaceX’s Dragon over subsidy threats, but later pulled back.
  • The White House gave mixed signals on whether a reconciliation call would happen between the two.
  • “Without me, Trump would have lost the election,” Musk posted on X.

• The V8 is back! Ram is reversing course on its engine strategy, bringing the 5.7-liter Hemi back to the 2026 Ram 1500. After a bumpy ride with their all-six-cylinder lineup, they’re owning the misstep—and listening to the roar of the customer base.
  • Ram reintroduces the 5.7L Hemi V8 for 2026 models, available as a $1,200 option on most trims.
  • CEO Tim Kuniskis admits dropping the Hemi was a mistake: “We own it and we fixed it.”
  • A special “Symbol of Protest” badge will adorn V8-equipped trucks.
  • The reintroduction was fast-tracked by an internal team, cutting development from 18 months to six.
  • “Make it exactly the way it was,” Kuniskis said, streamlining the return by skipping recertifications.
• Samsung Galaxy users are about to get an unexpected addition to their phones—a generative AI-powered shopping app from Glance AI that brings fashion suggestions straight to the lock screen. Whether you asked for it or not, it’s coming... with a side of dystopia.
  • Glance AI is partnering with Samsung to roll out a lock screen shopping platform to U.S. Galaxy phones.
  • The feature uses gen AI and selfies to visualize outfits you can buy, right from your lock screen.
  • It's opt-in for now, but the rollout begins today for Galaxy S22–S25 models.
  • While ads aren’t yet part of the U.S. version, Glance’s history in India suggests that could change.
  • “I will absolutely throw my phone into the sea the first time I see an ad on my lock screen,” wrote reviewer Allison Johnson.

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Episode #1062: In a first on this show, Paul does a live food review of Buddy’s Pizza, provided by Steve Greenfield. Plus, we talk about how Amazon is preparing to have humanoid robots jump into the last mile of package delivery.

Show Notes with links:

• A little over a week ago, Steve Greenfield was shocked to learn that Paul had never had a Detroit-style pizza. What followed on social media was a hotly debated post by Steve where the comments raged about which Detroit-style pizza was best. In the end, Buddy’s won. 
  • True to his word, Steve sent Paul a pizza from Buddy’s so he could eat his first bite live while he and Kyle wish they were eating pizza too. Will Paul like it?
    
    
    

• Amazon is set to launch real-world tests of humanoid robots that could one day walk your packages from electric vans to your doorstep. It's a next-level experiment blending robotics, AI, and EV logistics.
  • A new report says that “Amazon hopes humanoid robots will be able to hitch a ride in the back of Amazon’s electric Rivian vans and spring out to deliver packages.”
  • Over 20,000 Rivian vans are in service; Amazon aims for 100,000 by 2030.
  • A “humanoid park” at Amazon’s San Francisco office simulates real-world delivery scenarios.
  • Robots from companies like Unitree are included, with Amazon developing proprietary software using DeepSeek-VL2 and Alibaba’s Qwen.

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Episode #1061: China’s rare earth restrictions are causing real pain for Europe’s automakers, Costco’s gas game and checkout tech are stepping up, and American shoppers are oddly calm about rising tariffs—at least for now.

Show Notes with links:

• China's tightened grip on rare earth exports is starting to squeeze Europe’s auto manufacturing sector. With critical materials stuck in red tape and only a quarter of export licenses approved, major OEMs and suppliers are bracing for broader production halts in the coming weeks.
  • CLEPA, the European Association of Automotive Suppliers, says hundreds of export license requests were submitted, but only 25% approved since April.
  • Parts plant shutdowns are already affecting suppliers to VW, Mercedes-Benz, BMW, and Bosch.
  • The slowdown stems from China’s April decision to suspend exports of rare earths and magnets amid a trade standoff with the U.S.
  • Delays in customs clearance and license processing are compounding the issue, say VDA (the German Automotive Industry Association) and CLEPA.
  • China may ease restrictions for certain European semiconductor firms, but auto remains at risk.
  • “Production delays and even production outages can no longer be ruled out,” said VDA President Hildegard Mueller.

• America’s third-largest retailer is leaning into its members-first model. Costco is expanding hours at gas stations, testing scan-and-go checkout tech, and adding flexible payment options to stay competitive in a tightening retail race.
  • Gas stations now open nationwide until 10 p.m., with select sites opening earlier too.
  • CEO Rob Vachris says the goal is to drive more foot—and fuel—traffic by boosting convenience.
  • Gas accounted for 12% of Costco's total sales in 2024, thanks to exclusive member access and competitive prices.
  • “Scan & Pay” via smartphone is being piloted to streamline checkout, competing with Sam’s Club's tech-forward edge.
  • Costco has also teamed with Affirm for monthly payment plans as shoppers look beyond credit cards.

• A new survey by Modern Retail highlights that while many Americans are concerned about rising costs and tariffs, their spending behavior has yet to shift significantly.
  • 76% of surveyed consumers said they were familiar with recent tariffs; over half believe tariffs increase prices for everyday goods.
  • Despite that concern, 40% reported no notable changes in their purchasing habits.
  • A majority of respondents said they were either delaying planned purchases due to higher prices or had already bought items early to avoid anticipated tariff-related cost increases.
  • Electronics and clothing were identified as the most likely categories to see reduced spending.
  • Over half of respondents expressed optimism about their financial outlook for the next six months.

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Episode #1060: Steve Greenfield sounds the alarm on rising repair and insurance costs, Tesla loses its charger deal on the New Jersey Turnpike, and Meta doubles down on AI-generated advertising—even as trust from brands wavers.

Show Notes with links:

• Collision repair costs are skyrocketing and insurance premiums are following suit. At ASOTU CON, Steve Greenfield broke down the challenges facing OEMs and dealers as vehicles become more complex, harder to repair, and more expensive to insure, saying “this has me more worried than anything else right now.”

• Tesla is pulling its chargers from the New Jersey Turnpike after the state awarded an exclusive deal to another provider. The decision led Elon Musk to cry foul, but the change seems more about contracts and control than conspiracy.
  • Tesla built 64 Superchargers across 8 Turnpike stations under a 2020 agreement.
  • NJ Turnpike Authority chose not to renew, awarding exclusivity to Applegreen.
  • Tesla calls the move disappointing but says it has 116 alternative stalls ready nearby.
  • Elon Musk called the decision “corruption” despite providing no supporting evidence.
  • Applegreen will now supply EV charging at all 21 Turnpike service areas.

• Meta is leaning hard into artificial intelligence, announcing plans to let brands generate entire ad campaigns with AI by the end of next year. While the potential for automation is high, many advertisers are questioning the transparency and reliability of Meta’s growing ad-tech empire.
  • Meta will allow brands to create full ad campaigns from a single product image.
  • Meta’s AI will personalize ads in real time based on user location and environment—e.g., showing a sneaker on a city street for urban users and on a hiking trail for rural ones.
  • This dynamic rendering aims to increase relevance and engagement, particularly for smaller advertisers with limited creative budgets.
  • Advertising made up 97% of Meta’s revenue in 2024, with much of it being reinvested back into AI.
  • Ad executives remain skeptical, with one saying, “No clients will trust what they spit out.”

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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