He's saying that because of the upsized tires you're counting less miles on the odometer than what you're actually going so once you change the gear for the correct one you get an accurate odometer reading and your FE will "increase" because you're calculating it correctly. For example:
On the stock tire size when you go 1 mile the odometer will read 1 mile.
On tires that are upsized when you've traveled 1 mile the odometer will read it as less than 1 mile because the amount of revolutions are lower.
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Aiming for 50 MPG from an automatic.
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