Episode #1348: Today we cover Tesla raising Model Y prices for the first time in years, lenders diving deeper into subprime auto financing, and why automotive advertising is quietly losing market share.

Show Notes with links:

Tesla just bumped prices on several higher-trim Model Y variants for the first time in two years, signaling confidence that EV demand may be heating back up. Meanwhile, Wall Street is still trying to decide if the stock is charging ahead or stuck in traffic.
- Tesla raised prices by $1,000 on the Model Y Premium RWD and AWD trims, while the Performance trim climbed by $500.
- Entry-level Model Y versions remain unchanged, suggesting Tesla is protecting affordability while testing premium demand elasticity.
- Analysts point to rising gas prices and battery material costs as possible drivers behind the move.
- Despite the pricing confidence, TSLA stock slid over 4% Friday and dipped again Monday as investors weigh slowing momentum and new technical buy points.

Auto lenders are diving deeper into subprime financing as affordability pressures push buyers back into the market and lenders get more aggressive chasing deals. The result? More approvals, higher payments, and longer loan terms.
- Subprime and deep subprime borrowers made up 15.4% of all auto loans and leases in Q4, the highest share since 2021.
- Average interest rates are eye-popping: 13.2% for subprime new-car loans and nearly 22% for deep subprime used-car loans.
- Dealers say lenders are “digging a little deeper” rather than dramatically lowering standards, helped by better data and digital document verification.
- Experian’s Melinda Zabritski summed it up saying, “As affordability remains top of mind, both lenders and consumers are adapting.”

For decades, automotive advertising practically was the ad industry. But now, shrinking OEM budgets, EV uncertainty, and Tesla-style marketing strategies are changing the game and auto’s share of ad spend is slipping below a historic benchmark.
- Automotive advertising is projected to fall below 10% of total ad category spend for the first time ever tracked by Guideline.
- The category shrank roughly 7% in 2025, with spending pressure continuing into 2026.
- Analysts point to weaker EV momentum and automakers scaling back electric initiatives as major contributors.
- Newer brands are ditching traditional “big splash” campaigns in favor of leaner marketing approaches, following Tesla’s no-advertising playbook.

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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