Hannah Elliott on All Things Automotive

Episode Summary

Executive Summary: In this episode of Masters in Business, host Barry Ritholtz interviews Bloomberg automotive columnist Hannah Elliott about cars, collectibles, and the auto industry's future. Elliott shares her unconventional path from a non-car enthusiast to leading automotive journalist, detailing her review process, the collectible car market's dynamics, and her perspectives on electric vehicles like Tesla and Porsche. The conversation covers the shift in automotive journalism toward influencers, the impact of Tesla on the industry, and the enduring appeal of driving. Elliott also discusses her controversial review of Ford v. Ferrari and offers career advice for aspiring automotive journalists.

Main Topics: Career Journey and Review Process (Priority: 5/5): Elliott discusses her move from Forbes to Bloomberg, how she learned to review cars despite having no prior automotive background, and her methodology for evaluating vehicles—emphasizing firsthand experience, market relevance, and ignoring marketing noise. Collectible Car Market Trends (Priority: 4/5): Analysis of auction platforms like Bring a Trailer, the rise of 'young timer' cars from the 80s and 90s, the plateau of air-cooled Porsches, and the emergence of fractional ownership clubs like Rally Road. Electric Vehicles and Industry Transformation (Priority: 5/5): Discussion on Tesla's impact, the Porsche Taycan's quality edge over Model S, Rivian and Bollinger trucks, and the shift toward electrification—with Elliott predicting combustion engines will persist for at least 30 years. Influencer Culture in Automotive Media (Priority: 3/5): Elliott notes how automakers increasingly seat influencers next to executives at press events, sometimes ahead of traditional journalists, and warns about blurred lines between marketing and independent criticism. Personal Car Stories and Purchase Philosophy (Priority: 2/5): Ritholtz shares his own car buying experiences, including a BMW M6 convertible and a Porsche Macan, while Elliott humorously recounts her newly acquired 1988 Mercedes 560SL as a birthday gift. Ford v. Ferrari Movie Controversy (Priority: 3/5): Elliott defends her critical take on the film's portrayal of sexism and lack of diversity, noting the strong backlash she received—and argues that acknowledging the past helps the industry move forward. Advice for Aspiring Journalists (Priority: 2/5): Elliott advises college grads to get a journalism degree first, then specialize in a subject—stressing that writing skill matters more than automotive knowledge, and that starting work immediately after undergrad is effective.

Key Arguments: Cars should be judged first by how well they fulfill their stated purpose and price relative to competitors, not by marketing spin. The collectible car market is shifting toward 1980s-1990s 'young timer' cars driven by nostalgia among 45-50 year olds with disposable income. Tesla catalyzed the industry's electric vehicle push—without it, Porsche would not have built the Taycan—but Porsche's fit and finish are superior. Influencers are gaining access and influence in automotive media, sometimes displacing credentialed journalists at manufacturer events. The automotive industry benefits from diverse voices in decision-making, as highlighted by the sexism in Ford v. Ferrari being an accurate but outdated representation. Cars are meant to be driven, not stored as investments—a car with 34 miles is 'just a hunk of metal' according to Elliott. Writing skill is more important than subject expertise for automotive journalism: learn to write first, then master the niche.

Data Points: Sales drop of BMW and Mercedes attributed to Model 3: Not quantified - Ritholtz mentions the Model 3 is the best-selling luxury car in America and 'supposedly hurting' BMW and Mercedes. Tesla Model S versus Taycan price comparison: Taycan Turbo at $185,000 - Elliott notes the Taycan is significantly more expensive but offers higher fit and finish than a well-optioned Tesla. Number of Singer Porsches produced: Increased production, value declining - Elliott says Singer has upped production, making the cars less exclusive and 'no longer as valuable' as before. Price of a 1970s-era Porsche Turbo: From $20,000 to over $200,000 in 10 years - Example of the air-cooled Porsche bubble rising and now plateauing. Base price of new Corvette (C8): $59,000 - $80,000 - Elliott confirms the base price for the mid-engine Corvette is around $59,000, with options pushing it to $125,000. Projected timeline for half of all cars to be electric: By 2025 (automaker claims) - Elliott is skeptical of automaker promises, personally predicting 'at least 30 more years' for combustion engines. Porsche's electrification target: All vehicles offering a plug-in option by 2025 - Elliott cites Porsche's public commitment to having a plug-in option across their entire lineup by 2025.

Pivotal Quotes: "I don't want chatter in my head. I don't trust it. It has to be something real inside me. I trust my own judgment." — Hannah Elliott: Explaining why she avoids reading other reviews before testing a car. "The minute you accept a payment, you're therefore employed by them. And that kind of implies that you're not free to say anything negative. You can't criticize. And that becomes marketing." — Hannah Elliott: Distinguishing between journalists and influencers who take direct payments from automakers. "Tesla has already won. Forget the stock. The world has changed because of Elon Musk." — Barry Ritholtz: Ritholtz credits Tesla with forcing the entire industry toward electrification, specifically mentioning the Porsche Taycan.

Implications: For the auto industry: electrification is inevitable but slow; the collectible market is increasingly driven by digital platforms and fractional ownership. For journalists: independence from automaker payments is critical for credibility; writing skill trumps subject expertise. For consumers: electric vehicles offer strong performance, but combustion cars will remain relevant for decades; buying what you enjoy driving remains the best advice.