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Episode #1190: Today we cover CarMax’s executive shakeup amid disappointing guidance, Tesla shareholders’ approval of Elon Musk’s massive pay package, and how Scout Motors is seeing overwhelming demand for extended-range EVs.

Show Notes with links:

• CarMax shares plunged 24% Thursday after the used car giant issued a grim forecast and announced a surprise leadership shakeup. With profits slipping and competition heating up, the company is betting on new leadership to stabilize its course and unlock its underlying potential.
  • CarMax expects used unit sales to fall 8–12% and earnings to dip sharply to $0.18–$0.36 per share.
  • CarMax stock is down nearly 50% in 2025, while competitors like Carvana are up over 50% year-to-date.
  • CEO Bill Nash is stepping down; retail veteran David McCreight will serve as interim CEO.
  • Former CEO Tom Folliard returns as interim executive chair, citing a need for hands-on guidance.
  • “The company’s recent results do not reflect its potential. Change is needed,” said Folliard, referencing CarMax’s long-term brand strength and ability to perform at a higher level.

• Tesla shareholders just gave Elon Musk the green light on a massive pay package, potentially worth $1 trillion, in exchange for hitting big targets over the next decade. It’s not a payday just yet, but it’s a power move with long-term implications.
  • Over 75% of participating shareholders approved the plan amid loud chants of “Elon! Elon!”
  • The plan is tied to 12 performance-based tranches, each triggered by Tesla meeting specific operational, profit, and market cap goals — including a stretch target of reaching an $8.5 trillion valuation over the next decade.
  • Tesla ran an unprecedented media campaign to secure votes, including TV ads and interviews from its typically quiet board chair.
  • “Tesla is at an inflection point… this last year has been a critical one in our history,” said Chairwoman Robyn Denholm.

• Turns out, EV truck buyers want a little gas on the side. Over 80% of the 130,000 reservations for the upcoming Scout Terra and Traveler EVs are for versions with a gas-powered generator to boost range.
  • The EREV models offer 150 miles of battery-only range, with a gas engine pushing total range to 500 miles.
  • Customers are clearly favoring the “just in case” option, and CEO Scott Keogh isn't surprised: “The market has spoken.”
  • On the idea of a gas-only Scout, Keogh didn’t hesitate: “I don't see it. There’s a lot of drama now—people saying the world was all EV, now it’s going back to 100% internal combustion. The world is still heading electric.”
  • He added, “The technology is there, the innovation is there… We want to make sure Scout is prepared for the next 100 years. We’re not building a two-year brand.

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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