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Kirsten Korosec is still on vacation, so you have me once again! Today is the big one Tesla shareholder vote. We’ll finally find out, among other things, whether investors think Elon Musk is worth his $56 billion pay package. And if they don’t, will Musk follow through on his threats and leave Tesla to focus on xAI or SpaceX or just X?!
You’ve probably seen the cut-and-thirsty pleas from Tesla board members, shareholders and Musk himself asking investors to vote in favor of the compensation package. Musk and his supporters have claimed he is owed such astronomical wealth for hitting whatever agreed-upon target they say he hit. But before the shareholder vote begins, we think it’s worth a second look at why Chancellor Kathaleen McCormick rejected the package’s “re-authorization” in January.
Her dominant theme? Musk wields so much influence over Tesla and its board that there was no substantive negotiation when the company made this deal with him in 2017-2018.
We’ll be monitoring and reporting, so check back for updates.
— Rebecca Belan
A little bird
A little bird came up to senior reporter Sean O’Kane and told him that Passage it was employee poaching at EV startup Canoo. That led O’Kane down the LinkedIn rabbit hole, where he learned that Ford was quite busy scouting for talent at competitors and tech giants like Rivian, Tesla, Formula 1 and Apple. The result; Ford is taking advantage of the recent chaos in the auto industry to create its secret low-cost EV team.
Do you have a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com, Sean O’Kane at sean.okane@techcrunch.com, or Rebecca Bellan at rebecca.bellan@techcrunch.com. Or see these instructions to learn how to contact us through encrypted messaging apps or SecureDrop.
Agreements!
General Motors gives Cruise an $850 million lifeline as the robotaxi company slowly begins to claw its way back into the markets. The money is a bridge of sorts to help Cruise fund its day-to-day operations until it can “find the right long-term efficient capital strategy, including new partnerships and external financing.”
While that seems like a big capital outlay, especially since GM has already invested over $8 billion in Cruise, that $850 million is hundreds of millions less than what the automaker likely would have spent on Cruise this year. GM told investors late last year that it would cut spending on Cruise after a series of safety incidents that culminated in the grounding of the entire Cruise fleet in November 2023.
Other offers that caught my eye…
Descarteslogistics company, acquired BoxTop Technologiesprovider of shipment management solutions for small to mid-sized logistics service providers for $13 million, the company told TechCrunch via email.
FLO, an EV charging network operator, has secured $136 million in long-term capital, primarily from a Series E round led by Export Development Canada. The funds will help FLO accelerate the development of its charging network in the US and Canada and advance the development of new charging products, according to a statement from the startup.
Fly E-Bike, a New York-based e-bike retailer focused on last-mile food delivery, went public on the Nasdaq last week at an opening price of $4.78 per share. The stock has since fallen nearly 20%.
General MotorsThe board approved a new stock repurchase plan to repurchase up to $6 billion of existing common stock to create more upside for investors, according to a press release. The automaker also increased its stock dividend by 33%, from $0.09 to $0.12 per share, in the first quarter.
Tern AIThe company’s positioning system aims to provide a low-cost alternative to GPS. The startup just raised a $4.4 million seed round from Scout Ventures, Shadow Capital, Bravo Victor VC and Veteran Fund.
Belgian transport and logistics management startup Qargo has raised $14 million in a Series A led by Balderton Capital. Qargo’s goal is to help the logistics industry digitize to create efficiencies, reduce costs and reduce emissions.
Notable reads and other items
Autonomous vehicles
In addition to funding from GM, Cruise also announced that he is back in Houston with a small fleet of vehicles. They’ll have a human safety driver behind the wheel as Cruise slowly and painstakingly revalidates its technology.
May mobility will start one autonomous transport service in Detroit for residents who are disabled or who are 65 or older. Starting June 20, May will deploy three AVs, two of which are wheelchair accessible, to help participants get to healthcare facilities, shopping malls, work and social activities.
Waymo issued its second recall after one of its robots in Phoenix crashed into a telephone pole. Waymo updated the software in its more than 600 vehicles as they returned to the depot for routine maintenance and recharging.
Electric vehicles, charging & batteries
Aptera is the perfect example of how Crowdfunding can go wrong. The startup has raised over $100 million from private investors lured by eye-catching social media campaigns. So far, Aptera has nothing to show for it.
The European Commission he’s got came to the conclusion that the Chinese EV industry suffers from unfair subsidies that make it a threat to EU electric vehicle producers. So it imposes more tariffs on Chinese EVs. For example, BYD would see a 17.4% duty, Geelyit would be 20% and SAICis a whopping 38.1%.
Well, we definitely saw this coming. Fisher issued its first recall for the troubled Ocean SUV due to problems with warning lights. The recall comes as Fisker is on the brink of bankruptcy and has cut its workforce to the bone.
Rivian at first it seemed like it was a bit all over the place. But with the revamped version of its first two consumer vehicles (which you can read more about below!) built more efficiently, and Rivian’s decision to shelve plans to build a factory in Georgia, the EV startup’s road to survival becomes clearer.
Walk-hail
I have fun launched an all-Tesla ride-hailing service in New York City in 2021. Now the company is abandoning the employee model in favor of a gig worker model similar to competitors Lyft and Uber. Along the way, Revel will have to lay off its 1,000 driver employees.
This week’s wheels
What is “This week’s wheels”? It’s an opportunity to learn about the different transportation products we’re testing, whether it’s an electric or hybrid car, an e-bike, or even a ride in an autonomous vehicle.
Before Kirsten goes on vacation, she drove Rivian’s refreshed R1T and R1S. Let’s see what he learned.
I recently got behind the wheel of the next generation Rivian R1T and R1S. For those who want a deep dive, you can read my story on why this refresh matters and what new components and features customers can expect.
For those looking for the highlights, here are some quick notes on some important changes.
Ride quality, especially road noise and suspension, is much improved in the next-generation R1 range. The ride quality on the first-generation R1S has drawn complaints, so this improvement couldn’t have come at a better time.
I also had the opportunity to test the advanced driver assistance system. The first generation R1 vehicles also have ADAS, but this is supported by many new sensors, computers and software. The automaker calls it the “Rivian Autonomy Platform,” but I won’t because I’m stuck on what it is and what it is. is not autonomy. This is a hands-on system for now and the driver is expected to be in control at all times.
That said, there’s a lot of potential here. The perception stack includes 11 cameras, five radars, computers that are 10 times more powerful than what’s in first-generation vehicles, and what the company describes as “predictive AI technology.” And this system is standard.
Rivian will also offer a premium version of the system, called Rivian Autonomy Platform+. I had the opportunity to test a feature in this premium version called “Lane Change on Command”. The feature, which is only available on divided highways, will move the vehicle to another lane if the driver hits the signal indicator. The feature worked, although I noticed that it took a moment to settle the vehicle in the center of the lane.
Rivian says more automated driving features will roll out to this premium system in the coming months.
Correction: Waymo clarified that its recall did not involve an over-the-air software update.
