FTC Won’t Let Ford Be, Tesla’s ‘adjustment’, Kid’s Don’t Want Cash

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It’s time for a Friday as we talk about one Senator's plan to sic the FTC on Ford. We also talk about Tesla incentivising customers to take delivery now, as well as the growing trend of kids passing on cash for meta-stuff.

• US Senator from Connecticut, Richard Blumenthal shared his plan to petition the FTC to launch an investigation into Ford’s new EV certification program under suspicion that it is violating US franchise laws
  • In a press conference he and other Connecticut legislators, along with the Connecticut Automotive Retailers Association asked for to once again delay their Dec 2nd deadline for opting in or out of the program
  • CARA co-chair Jeff Aiosa told Automotive News, "Dealers look at their sales and service agreements with the manufacturer as a partnership to represent all the brand's products as long as they're in good standing,"To unilaterally change that agreement for a program is patently unfair."
• Ford responded by saying there would be no extension: "The voluntary program empowers our dealers on when and how to enroll and we understand that some dealers operating in markets with limited EV penetration may chose not to enroll in this round," and also noted there will be another entry point in 2025
• Don’t call it a ‘discount’ but Tesla is giving a rare $3750 ‘credit’ as a ‘price adjustment’ to US consumers who take delivery of a Model 3 or Y before the end of the year
  • This appears to be half of the upcoming $7500 EV tax credit which will come into play next year and is likely in response to consumers canceling or postponing orders due to wait times or the upcoming credit
  • Likely don’t want to be sitting on inventory at the end of Q4 as demand is likely to remain very high into next year
  • As reported yesterday, Tesla's profit per vehicle is $9500 as opposed to it’s nearest EV competitor Toyota at $1300
• While adults struggle to find good use for the metaverse, Kids are easily socializing and spending money there as they are turning their nose up at allowance cash in exchange for virtual currency to spend in metaverse-like games such as Roblox.
  • “They were handing it right back to me and saying, ‘Can you convert this to Robux?’” said Mr. Robleto, a 46-year-old web designer in Rockville, Md. “I don’t even need to have cash in the house. I can just go online and put $5 into their accounts.”
    • 12 yr old daughter Kaylee bought virtual Louis Vuitton handbag and her 10 year old sister bought a Gucci jacket both cost under $5 each
    • About half of Roblox’s 60 million daily users are under the age of 13
  • Many brands are jumping in developing games for Roblox including the “Chipotle Burrito Builder”, Walmart Land, where kids earn virtual coins for “verch” such as headphones as well as clothes from Walmart’s in house-brands for their avatars and Nikeland modeled after its HQ where players can play games for swag

Hosts: Paul J Daly and Kyle Mountsier
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