Ford EVs for All, $48B for Musk, App Data for Insurance

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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It’s the end of another week and today we’re talking about how Ford is allowing all franchise dealers to sell EVs, and how Tesla shareholders approved Elon Musk’s pay package. Plus, we cover how apps are selling driving data to insurance companies.

• It’s official, Ford is opening EV sales to its entire dealer network starting July 1, aiming to better serve customers and adapt to the evolving market.
  • Ford will end its costly Model e electric vehicle certification program less than two years after its rollout.
  • Dealers will now invest in training via Ford University and install two Level 2 chargers.
  • Dealers must complete new training and have adapters for future EV charge ports.
  • Regarding the dealers who invested heavily in the program early on, it is unclear if there will be any consideration, financial or otherwise, given by Ford.
    • Gjaja said regarding this, "Based on what we knew at the time, we think it was the right call," he said. "We believe we're pivoting at the right time to take advantage to what's happening in the market. The market's changed. It's humbling, but the most important thing we can do for our dealers and our business is to change with it, and not just keep pounding away with the same strategy."
• Tesla shareholders have approved Elon Musk's $48 billion pay package, but the CEO can't celebrate just yet as a new legal battle looms.
  • Shareholders approved Musk’s compensation package, clarifying his role at Tesla.
  • Among the broad retail investor support, the company’s largest outside shareholder, Vanguard, who represents upwards of 50 million investors, switched its vote in favor of Elon Musk’s $56 billion pay package due to the strong alignment of executive pay with shareholder returns and the motivational value for Musk, despite initially opposing it in 2018 because of its potential size​​.
  • The board hopes this resolves previous judicial concerns, but legal experts are skeptical.
  • Musk expressed gratitude to shareholders, with 72% supporting the pay package.
  • A court case in July will determine the legality of the compensation plan.
  • Tesla plans to appeal if the court doesn't reverse its previous decision.
  • “Hot damn, I love you guys,” Musk said at Tesla’s annual shareholder meeting.
• Feel like you’re being watched? According to a New York Times report, apps on your phone are tracking your driving habits and selling the data to insurers.
  • Insurers are buying data from apps like Life360 (an app used by parents to keep track of their kids), MyRadar (a weather app), and GasBuddy (an app for saving on fuel costs).
  • These apps have driving analysis features powered by Arity, an Allstate-founded analytics company. For instance, GasBuddy offers to help you improve your fuel economy by tracking your driving habits.
  • Arity analyzes driving data to provide individual risk scores to insurers.
  • This data collection happens regardless of the insurance logo on your bill

Hosts: Paul J Daly and Kyle Mountsier
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