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Automotive State of The Union
Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down.
Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking.
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Automotive State of The Union
Optimus Ousts Model X/S, EV’s Outsell Gas in EU, and Starbucks Turnaround
Episode #1256: Tesla IS phasing out its legacy models X and S to make room for humanoid robots. EV sales just passed petrol cars for the first time in the EU. Finally, Starbucks is brewing a comeback under a new CEO, but margins are still on the drip.
Show Notes with links:
- Tesla is officially sunsetting the Model S sedan and Model X crossover to make room for its future: humanoid robots made in a Fremont, TX factory. CEO Elon Musk says the move reflects Tesla’s shift from automaker to physical AI pioneer.
- Sales of the S, X, and Cybertruck fell 40% in 2025 to just over 50,000 combined units.
- Tesla will aim to produce 1 million Optimus robots annually in the long term.
- Musk also confirmed Tesla's robotaxi service will expand to 7 more U.S. cities this year.
- "It’s time to bring the Model S and X programs to an end with an honorable discharge," said Musk.
- In a milestone moment for the EV market, fully electric cars outsold petrol-only vehicles in the EU for the first time in December, highlighting the region’s accelerating shift toward electrification.
- EVs took 22.6% of the EU market in December, just edging out petrol at 22.5%.
- Hybrids, including plug-ins, remained dominant with a 44% share.
- EV sales in Europe, Britain, and the EFTA rose for a sixth straight month.
- Tesla’s EU registrations dropped 20.2%, while Chinese brand BYD jumped 229.7%.
- "We’re seeing consumer buy-in to this," said E-Mobility Europe’s Chris Heron.
- Starbucks is seeing its first U.S. sales growth in two years thanks to new CEO Brian Niccol’s back-to-basics approach, though investors remain wary due to continued margin pressure.
- U.S. same-store sales rose 4% in Q1; average order value increased 1%.
- Niccol’s “Back to Starbucks” plan focuses on simplified menus and service speed.
- Margins fell for a second straight year, down 290 basis points in Q1.
- High bean costs and past tariffs on imports like Brazilian coffee remain a drag.
- “I’m most excited that our turnaround plan is coming to life in the way we envision, first turn around the top line, and then earnings growth will follow…”, said Niccol.
This episode of the Automotive State of the Union is brought to you by Amazon Autos: Meet customers where they shop: reach high-intent buyers shopping for their next car on the #1 online retailer.
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