Introducing: Bloomberg Hot Pursuit!

Episode Summary

Executive Summary: Hosts Matt Miller and Hannah Elliott, joined by Barry Ritholtz, discuss the Las Vegas Formula One race amid falling ticket and hotel prices, and consider whether softer luxury collectibles signal a broader slowdown. They debate hybrids versus fully electric cars, highlight Kia’s improving products, assess Audi’s electric SUVs and maintenance costs, and share stories about their first cars.

Main Topics: Las Vegas Formula One: demand, pricing, and spectacle: The hosts weigh cheaper-than-expected tickets and hotel rooms against claims of a sellout and record revenue. They cite high prices, cold weather, a late start, and Max Verstappen’s dominance as possible obstacles, while noting the race’s celebrity appeal and Vegas setting. Luxury collectibles and the economic backdrop: Ritholtz suggests falling prices may reflect a broader cooling after the 2021–22 run-up. The discussion compares the Las Vegas pricing situation with a Ferrari 250 GTO sale below expectations and declining prices for high-end watches. Hybrids versus fully electric vehicles: The speakers debate whether hybrids are a practical transition or an unsatisfying middle ground. Supporters value electric commuting and gas-powered range for longer trips; skeptics prefer either fully electric performance or traditional combustion. Toyota is described as betting on hybrids for the coming decade. Kia’s value proposition and rising ambitions: Miller praises the Sorento plug-in hybrid’s equipment and power for its price, while Elliott says the EV9 impressed her. They discuss Kia’s attempt to move upmarket and attract shoppers who might otherwise consider Volvo, Land Rover, or Audi. Audi EVs, brand strengths, and repair costs: Elliott describes the SQ8 e-tron as refined and well-appointed but heavy, while Miller contrasts its understated design with the gas Q8. Ritholtz praises Audi’s design and all-wheel-drive capability but cautions that German-car repairs can be costly. Car ownership and personal automotive histories: The guests recall their first cars and discuss the appeal of older, enthusiast-oriented vehicles. Their examples reinforce the episode’s mix of practical ownership considerations and affection for distinctive cars.

Key Arguments: Las Vegas F1’s falling prices may reflect overly ambitious initial pricing, the event’s inconvenient late start, and predictable results, though organizers say they expect a sellout and record revenue. Softening prices for luxury cars and watches could be part of a broader pullback from the 2021–22 boom, rather than an issue unique to Formula One. Hybrids can combine electric-only utility for short trips with combustion-engine range and performance for longer journeys; critics see them as an in-between option rather than a destination. Kia’s appeal rests on offering substantial features and performance for the money, and its newer vehicles may help it compete for more premium-minded buyers. Audi vehicles are presented as well-designed, solid, and capable, but buyers of used German cars should budget for potentially expensive repairs.

Data Points: Las Vegas F1 hotel room price mentioned: $600–$700 per night - Miller says a room at a property such as the Venetian could cost this much, while noting it is below rates listed a month or two earlier. Las Vegas Grand Prix start time: 10 p.m. Pacific; 1 a.m. Eastern - The late local start is cited as a barrier for live television viewers on the East Coast. Max Verstappen wins cited: About 17 of the last 20 races - The hosts point to his dominance and already-clinched title as reasons the F1 season may feel predictable. Ferrari 250 GTO sale: Nearly $52 million; $47 million hammer price - The sale was below expectations of more than $60 million, illustrating softness relative to seller hopes. Bloomberg Subdial luxury-watch index: Down 1.8% in the previous month; lowest level since 2021 - Ritholtz cites declining Rolex and Patek Philippe prices as evidence of cooling in luxury collectibles. Volvo XC90 T8 electric-only range: 20 miles or more - Presented as useful for local trips before the gas engine supports longer journeys. Porsche Panamera hybrid fuel economy: Nearly 40 mpg - Ritholtz reports this on a roughly 100-mile trip, with most of the electric range used. Kia Sorento PHEV engine and output: 1.6-liter inline-four; 260 horsepower and 260 lb-ft of torque - Miller cites the specifications to illustrate the vehicle’s performance despite its small engine. Fully loaded Kia Sorento PHEV price: About $50,000 - Miller uses the price and feature set to emphasize Kia’s value proposition. Audi SQ8 e-tron starting price and weight: About $90,000; around 6,000 pounds - Elliott describes its premium positioning and notes that its weight is noticeable. Potential BMW X5 air-suspension repair: $1,800 per corner - Miller cites a review warning about repair costs on a used BMW X5. Used BMW repair reserve suggested: $10,000 - A reviewer’s recommendation, as relayed by Miller, for buyers of a used high-end BMW.

Pivotal Quotes: "I think this YOLO economy is over." — Hannah Elliott: Elliott connects weaker luxury-watch prices and the Ferrari sale below expectations to a broader cooling in discretionary spending. "The immediate future, the next decade, is going to be hybrid." — Barry Ritholtz: Ritholtz summarizes Toyota’s stated view that hybrids will be central to the near-term auto market. "So, to me, it's the best of both worlds: almost 40 miles a gallon on a hundred-mile trip into the woods in Connecticut, and somewhat less on the way home without any electric." — Barry Ritholtz: He explains why he values plug-in hybrids for combining electric driving with long-distance capability.

Implications: Automakers may need to match ambitious pricing with clear value as luxury demand cools. Hybrids remain a pragmatic bridge for buyers facing charging constraints, while Kia’s improving products could intensify competition across mainstream and premium segments.