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I’m sure you’re waiting to hear the results of last week’s poll. (Reminder: Sign up for the Mobility newsletter to take our polls!) Here’s what I asked: “What’s the best business model for autonomous vehicle technology? (Keep profitability in mind.)”
By far, readers think long-haul delivery is the best bet, with 40% choosing that option. Robotaxis came in next with 25.5% of the vote, followed by technology licensing to automotive companies with 19.1% and last-mile delivery with 14.9%. A reader emailed to point out that I didn’t include warehouse applications like autonomous forklifts. However, the longer distance delivery category can be further analyzed and deserves another poll, which we have included in this week’s newsletter.
In the long list of arguments one could make to justify a $1 trillion severance package, being in control of an army of robots was definitely not on my mind. And yet, that’s the argument Elon Musk were made during Tesla’s third quarter earnings call.
Here’s the rundown: On Nov. 6, shareholders will vote on whether to approve a board-approved compensation package that would grant Musk up to 12 percent of Tesla stock. If the company reaches its target market value of $8.6 trillion, that stake will be worth about $1 trillion.
The board and Musk have spent weeks lobbying shareholders to approve the measure, even as proxies. Institutional Shareholder Services and Glass Lewis have advised investors to reject it. Musk is now in attack mode, which was on display at the end of the earnings call when he called the companies corporate terrorists and made his latest pitch. The argument for his robot army centers on power and control, not so much money. Although, hey, money can provide both.
“The line of greatest concern to me: If we build this robot army, do I have strong influence over that robot army? I don’t feel comfortable building a robot army if I don’t have strong influence,” Musk said during the earnings call. He was referring to Tesla’s Optimus robot program and used it as an example of products he wants full control over.
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That argument will hardly convince Musk’s critics, especially in the wake of his role as head of the Department of Government Efficiency. But Musk doesn’t need to convince his growing list of detractors, unless, of course, they own Tesla stock.
A little bird
this week, General Motors dropped the ax on the BrightDrop electric van program after four short years. It wasn’t the biggest surprise in the world. Besides, hundreds of unsold trucks have been sitting untouched on lots in Michigan and Canada for months. (A birdie reached out to tell us that hundreds of them are on lots in Flint, Michigan.) GM cited a slower-than-expected market for commercial electric trucks, but didn’t elaborate on why, exactly, BrightDrop failed so miserably.
However, another little bird gave us an idea. Trucks are expensive but loved and will save fleet owners money over time. And electric powertrains are perfectly suited for last-mile delivery. What GM seems to have missed was the infrastructure piece, according to one insider. The company leaned heavily on outside partnerships to create the so-called warehouse charge, rather than offering it as part of fleet purchases. This turned off many potential customers and generally caused headaches.
Do you have a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or my Signal at kkorosec.07 or email Sean O’Kane at sean.okane@techcrunch.com.
Offers!
The big deal this week is EVs and AI data centers. Yes, there is a connection.
Redwood materials raised $350 million in a Series E round led by venture capital firm Eclipse and included a new strategic investment from Nvidia’s venture capital arm NVentures. The company’s valuation was not disclosed, but a source familiar with the round told TechCrunch it was around $6 billion, a billion dollars higher than its previous valuation.
Some of that money goes to Redwood’s new energy storage business, which is giving new purpose to EV batteries it has collected that are too long-lived to go through the recycling process. The company connects these retired EV batteries to renewable energy sources such as wind and solar power, or the grid, to power AI data centers or industrial sites.
Other deals that caught my eye this week…
Avride secured strategic investments and other commitments to 375 million dollarswith the support of Uber and Nebius. Neither of these companies would give me details when asked if it was all equity. One of the insiders said to pay attention to the “other commitments” part, which suggests it wasn’t a simple cash injection.
Spyrothe Dubai-based African electric motorcycle startup has raised $100 million in a round led by the Africa Export Development Fund (FEDA), the development arm of Afreximbank. This is the largest increase ever for African electrification.
Notable reads and other items
General Motors made several announcements at an event in New York that were meant to show where he was headed. And, yes, artificial intelligence plays a central role. Before AI can take the stage, GM said it will overhaul the electrical and computing guts of its future vehicles. The company will develop a new electrical architecture and central computing platform in new vehicles, starting with the Cadillac Escalade IQ in 2028. This foundation will allow the company to deliver faster software. more capable automated driving features, including eyes-free driving. and a custom, conversational AI assistant.
Earning season is upon us, and this quarter I’ve been tracking data and executive feedback to help me understand how pricing and the expiring EV tax credit are impacting the auto sector. I don’t have any clear conclusions yet — and probably won’t until next quarter.
Tariffs hit, third quarter reports GM and Passage indicate. For example, GM predicted the tariffs would cut its 2025 profits by $2.3 billion, and Ford said it would take $2 billion from the end. But both of those forecasts are billions of dollars better than automakers predicted earlier this year, and automakers hope to offset those costs. The CEOs of both automakers thanked President Trump for extending a measure of relief from tariffs on auto parts from Canada and Mexico.
Some other GM and Ford news: Ford will continue to discontinue production of its F-150 Lightning trucks as it prioritizes gas and hybrid F-Series versions in an effort to recover from a fire at Nevolis’ main aluminum supplier. Meanwhile, CEO of GM Mary Barra told the Verge’s Decoder podcast that the company will end support Apple CarPlay and Android Auto of all its vehicles. Oh, and belatedly: GM has fired 200 employees from the Warren Tech Center.
Tesla delivered a record number of vehicles in the third quarter of 2025, results boosted by US customers taking advantage of the expiring federal electric vehicle tax credit. This did not translate into higher profits. Tesla’s third-quarter earnings were $1.4 billion, down 37% from the same quarter last year.
THE National Road Safety Agency opened an investigation after seeing footage from early October of a Waymo autonomous vehicle that maneuvered around a stopped school bus unloading children in Atlanta.
Rivian is undergoing a bit of an upheaval that includes cutting 600 people from its workforce (the third round of layoffs this year), and its founder and CEO is taking on yet another position: chief marketing officer. Rivian also agreed this week to pay $250 million to settle a shareholder class action lawsuit filed after the company suddenly raised prices on its 2022 R1 truck and SUV.
Meanwhile, I spent some time in the Bay Area with executives from Rivian’s spinout micromobility company Also. The company unveiled three new products, and if President Chris Yu and Rivian CEO RJ Scaringe (also a board member) are to be believed, there are more to come. For now, it’s a sleek modular pedal-assist e-bike and two pedal-assist four-wheelers — the delivery truck version that Amazon has already agreed to buy. The big exciting tech story here is vertical integration and software.
