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As I was about to send out this newsletter, I received a little breaking news. The National Transportation Safety Board launched an investigation into Waymo after its robotaxis were repeatedly spotted illegally passing stopped school buses in at least two states. Read the full text here.
Now, let’s move on to the regular program…
Tesla made several moves this week, and just before its quarterly profits fell, aimed at demonstrating the company’s progress, and even dominance, in self-driving technology. But wait a minute. It’s not just about optics.
The week started with Tesla offering passengers robotaxi rides in Austin without a human safety driver in the front seat. If you recall, Tesla launched limited service in Austin last year with a fleet of modified Tesla Model Y vehicles running a more advanced version of the company’s driving software known as Full Self-Driving Supervision. Since the rollout, a human safety operator has been in the passenger seat as a precautionary measure.
Not all Tesla vehicles in Austin will be completely unmanned, and those that are will likely have tracking vehicles behind them. Still, this is notable and suggests Tesla is moving toward broader consolidation.
Meanwhile, Tesla has discontinued Autopilot, an advanced driver assistance system first introduced in its vehicles in 2014. Autopilot has undergone repeated software and hardware improvements and new features over the years.
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Autopilot quickly became popular and controversial, in part because its name implied that the system was better than it actually was. (The driver is responsible and must remain behind the wheel when Autopilot is engaged.)
Tesla eventually made a basic Autopilot system standard on all its vehicles, launching and charging a more robust system now known as Full Self-Driving (with Supervision). The now-defunct basic version included traffic-aware cruise control, which kept the vehicle at a set distance from the vehicle in front, and an autosteer feature, which centered the vehicle in its lane and steered it.
The company’s decision to discontinue standard ADAS comes a week after Tesla announced it would stop charging a one-time $8,000 fee for FSD software and move all customers to a monthly subscription.
Taken together, these decisions provide a simple enough explanation. Tesla hopes to generate more revenue from FSD as it positions itself as an AI and robotics company.
However, there may be another reason. The company faces a 30-day suspension of its manufacturing and dealer licenses in California after a judge ruled in December that Tesla engaged in deceptive marketing by exaggerating the capabilities of Autopilot and FSD.
The ruling was suspended for 60 days to allow Tesla to comply. Using FSD to remove the Autopilot name is a pretty bold move. But perhaps Tesla believes this is enough to satisfy the DMV.
Great deal!
Zipline, an autonomous drone delivery and logistics startup, has been delivering blood in Rwanda for more than a decade. Its progress has been slow and steady, winning victories in other African countries and expanding to the United States. Its trajectory accelerated after it launched a new drone platform called P2 in 2025 focused on home delivery of food and other goods.
Now, with $600 million in new funding, its expansion ambitions are even greater. The company, currently valued at $7.6 billion, serves Houston and Phoenix and plans to expand to at least four more U.S. states in 2026.
Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global participated in the funding round.
Other sales that caught my attention…
ABZ Innovation, a European-based manufacturer of large agricultural and industrial drones, has raised $8.2 million in a funding round led by Vsquared Ventures with participation from Assembly Ventures and Day One Capital.
Ethernovia, a San Jose, California-based startup developing Ethernet-based systems for self-driving cars, has raised $90 million in a Series B funding round led by Maverick Silicon. Maverick Silicon is an AI-focused fund established in 2024 by hedge fund Maverick Capital.
Nvidia and Uber-backed sidewalk delivery robot company Serve Robotics has acquired Diligent Robotics in a deal that values its common stock at $29 million. Diligent makes a robot named Moxi that is designed to assist hospitals by providing test samples, supplies, and other tasks. Note: Look out for more crossovers between self-driving technology and robots next year.
German grid-scale battery storage company Terralayr has raised €192 million in a round led by Eurazeo. RIVE Private Investment, Creandum, Earlybird, Norsken VC and Picus Capital also participated.
TrueCar founder Scott Painter, through his company Fair Holdings and partners AutoNation, PenFed Credit Union and Zurich North America, has reacquired the company in a $227 million deal. TrueCar will no longer be publicly traded, and Mr. Painter has returned to the CEO role.
Notable reads and other trivia
Austin Russell, the founder and former CEO of the bankrupt lidar company Luminar, has agreed to accept an electronic subpoena seeking cell phone information related to the company. The subpoena is related to Luminar’s ongoing bankruptcy proceedings.
Chinese automaker Geely Holding Group has released a five-year blueprint, and among its many goals is one related to robotaxis. The company announced that its Cao Cao Mobility ride-hailing division will operate 100,000 robotaxis covering major cities in China by 2030. He also hinted at plans to expand beyond China “in the future.”
General Motors will transfer production of two gasoline-powered vehicles from China and Mexico to its U.S. plant in Kansas. The change also marks the end of the relaunched Chevrolet Bolt EV, which is currently the only vehicle produced at the Fairfax Assembly Plant in Kansas. Read more about when the Chevrolet Bolt EV will end production.
Tesla aims to resume development of Dojo3, the third-generation AI chip that the company previously abandoned. Dojo3 is not intended for training self-driving models. Instead, CEO Elon Musk has said the company will focus on “space-based AI computing.”
Waymo has launched a robotaxi service in Miami. Passengers will be accommodated by approximately 10,000 local residents on a waiting list.
One more thing…
Alex Roy, who co-hosts Autonocast with me and Ed Niedermayer, just traveled from Los Angeles to New York in a Tesla Model S. The vehicle’s fully automated driving monitoring software handled all driving. This “Cannonball Run” route is one that Roy knows well. He set a transcontinental driving record in 2007, traveling this route in 31 hours and 4 minutes. He went on to set a record for Cannonball runs in EV. Others have followed and subsequently broken these records.
The FSD (version 14.2.2.3) drove 100% of the 3,081-mile trip, according to Roy, who videotaped the entire trip. This includes getting off the highway and parking at an EV charger. The time was 58 hours and 22 minutes.
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