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Christmas week is officially here, but before we get to presents, we speculate on the future of Honda and Nissan, plus take a closer look at Tesla’s record market cap.

Show Notes with links:

• Honda and Nissan are set to create a unified holding company to strengthen their competitiveness amidst industry challenges. Set to launch by August 2026, the combined entity is predicted to generate over $181 billion in annual revenue and $19 billion in operating profit.
  • Honda will take the lead in the new company, nominating key executives and determining strategy.
  • Plans include advancements in EVs, software development, and sales financing, aiming for significant results by 2030.
  • Mitsubishi Motors will decide by January if they will join the partnership, adding strength in Southeast Asia and hybrid technology.
  • Honda CEO Toshihiro Mibe described the merger as critical artillery for competing by 2030, stating, “We have the potential to be a world-class, leading company in new mobility.”

• Tesla's valuation has soared to a new all-time high of $1.5 trillion following the 2024 U.S. presidential election, solidifying its dominance in the global automotive market.
  • Tesla accounts for nearly half of the global automotive market cap, exceeding the combined valuation of the next 29 automakers.
  • Key competitors like Toyota ($231 billion) and BYD ($107 billion) trail far behind.
  • Investors see Elon Musk’s close ties with President Trump as a potential boost, especially with anticipated corporate tax cuts.
  • Tesla’s stock is up 57% year-to-date, despite its production (1.8M vehicles in 2023) lagging far behind Toyota (11.2M vehicles).

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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