Carmax Crushes Q1, When EV Tax Credits Will Go Away, Honda Takes on Rockets

Automotive State of The Union

Shoot us a Text.

Episode #1075: Today we’re talking CarMax’s record-setting quarter, Congress clashing over EV tax credits, and Honda’s surprising success in rocket science. Yep, you read that right—Honda landed a rocket.

Show Notes with links:

• CarMax's latest quarterly results are in—and they're cruising past analyst expectations with strong used vehicle sales, revenue growth, and record-breaking profit per unit.
  • Q1 net income jumped 38% to $210.4 million, while revenue rose to $7.5 billion, up 6.1% year-over-year.
  • Used retail vehicle sales hit 230,210 units, a 9% increase and gross profit per unit hit a record $2,407.
  • Same-store sales were up 8.1%, marking the fourth consecutive positive quarter.
  • “These results highlight the strength of our earnings growth model… and our sharp focus on execution.” — CarMax CEO Bill Nash

• President Trump’s proposed budget is taking aim at federal EV tax credits, with House and Senate Republicans offering two versions of how—and how fast—they should end. The result could drastically shift EV affordability and consumer interest.
  • The House plan ends credits in 2026 for smaller brands but cuts off top sellers like Tesla and GM this year.
  • Automakers under the 200,000-vehicle cap—like Rivian, Honda, and Lucid—would still benefit temporarily.
  • The Senate version is more aggressive, ending all credits within 180 days and leasing perks immediately.
  • EV leaders warn of market disruption; some predict a sales dip once credits vanish.
  • “They’re really trying to put a stake in the heart of EV subsidies,” said Mike Murphy, CEO of the American EV Jobs Alliance.

• In a move beyond automobiles, Honda has successfully launched and landed a reusable rocket as part of its R&D efforts to enter the space industry and support future satellite demand.
  • The rocket hit 890 feet before landing within 14in of its target at a Japan test site.
  • Honda leveraged tech from its automated driving systems for flight and landing.
  • The launch took place in Taiki Town, a growing hub for aerospace development in Japan.
  • The 21-foot, 2,800-pound rocket flew for just under a minute on retractable legs.
  • “Honda will continue making progress... with a technology development goal of realizing a suborbital launch by 2029,” the company stated

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.
Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/