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Episode #1170: California’s new CARS Act sets tough transparency rules for dealers, a new report exposes EV charging’s reliability gap, and Elon Musk’s xAI looks to raise $20 billion—with Nvidia both selling the chips and buying in.

Show Notes with links:

• Governor Gavin Newsom has signed the California Combating Auto Retail Scams (CARS) Act, a landmark law that establishes new consumer protection standards and stricter sales transparency across the state beginning in 2026.
  • The California CARS Act closely mirrors roughly 70% of the FTC’s now-vacated federal CARS Rule and prohibits dealers from misrepresenting key facts about vehicle sales, leases, or financing.
  • The law requires clear and conspicuous disclosure of total vehicle price and the voluntary nature of add-ons.
  • The CARS Act bans “valueless” add-ons, such as unnecessary service contracts or redundant protection products.
  • Buyers of used vehicles under $50,000 now have a three-day right to cancel with mileage and condition limits.
• A new EV Charging Reliability Report from ChargerHelp! reveals a critical gap between charger availability and usability, showing that nearly one in three charging attempts fails despite reported uptime near 99%.
  • The study analyzed 100,000 sessions across 2,400 chargers, finding only a 71% first-time charge success rate (FTCSR).
  • ChargerHelp! CEO Kameale Terry argues FTCSR is the true measure of reliability—not uptime—because “it captures the real driver experience.”
  • The biggest culprit is software fragmentation, with EVs, chargers, and payment systems often failing to communicate properly.
  • Reliability declines with aging infrastructure, as older stations drop from 85% to 70% success after three years due to outdated protocols.
  • Terry remains hopeful: “It’s a solvable problem... even gas cars had their growing pains before becoming mainstream.”

• Elon Musk’s xAI is reportedly seeking a $20 billion fundraising deal that could include Nvidia both as a chip supplier and as a key investor—an arrangement highlighting the increasingly intertwined nature of the AI hardware race.
  • The proposed structure reportedly combines equity and debt within a special-purpose vehicle that would buy Nvidia chips and lease them back to xAI.
  • Nvidia could contribute up to $2 billion in equity while also profiting from the chip sales.
  • Analysts note the “circular” nature of these AI financing deals, where investors also serve as vendors.
  • Nvidia has made similar moves recently, including a $100 billion commitment to OpenAI and a $5 billion stake in Intel.

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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