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We’ve made it to the middle of the week! Today we’re talking about GM’s record pickup and SUV sales in Q2, Tesla’s tough Q2 and how Google is not getting rid of cookies after all.

Show Notes with links

• General Motors has raised its 2024 earnings forecast following a strong second quarter, driven by record North American sales of pickups and SUVs.
  • CEO Mary Barra emphasized in a letter to shareholders that responsible growth and efficient capital use amid shifting market conditions. "As excited as we are about our portfolio, we are committed to growing responsibly and profitably in any demand environment," Barra said. "Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years. As a result, we are adjusting our spending plans to make sure we're capital-efficient and moving in lockstep with customers."
  • Q2 net income rose 14% to $2.9 billion, with global revenue hitting $47.97 billion.
  • North American profit surged 39%, setting a new record at $4.4 billion.
  • GM adjusted its full-year EBIT guidance to $13-$15 billion, despite lowering net income forecast slightly.
  • The company reported increased EV sales but scaled back production targets due to lower-than-expected demand.
    
    
    
• Despite slightly better-than-expected revenue, Tesla's Q2 earnings report highlighted declining profits and raised investor concerns, particularly during a tense earnings call with CEO Elon Musk.
  • In Q2, Tesla's net income dropped 45% to $1.5 billion, down from $2.7 billion the previous year, while revenue rose to $25.5 billion, exceeding analyst estimates of $24.8 billion. 
  • The company also experienced a 4.8% decline in global deliveries to 443,956 vehicles, following an 8.5% decline in the first quarter.
  • Musk had a elevated Q&A session as he was asked a variety of questions, most of which received short, blunt answers
    • When asked about diverting GPUs from Tesla to xAi, Musk by stating that the news was based on an "old article." as he assured that the diversion of GPUs to xAI was "in Tesla's interest," not detrimental to the company
• Google no longer intends to remove third-party cookies from Chrome, a major shift from its 2020 announcement. The company will retain third-party cookies, focusing on enhancing user choice instead. 
  • Cookies are an important part of the $180 billion ad-tech industry, allowing advertisers to track users and target ads effectively.
  • The original cookie deprecation date was in 2022, and has been pushed several times by Google since then.
  • Google's alternative, Privacy Sandbox, aimed to preserve ad mechanisms while protecting privacy but had a rocky rollout.
  • Early reports indicated significant revenue losses (up to 60%) for publishers without cookies, though

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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