TechCrunch Mobility: The ‘robot army’ argument

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I am certain you are ready to study the outcomes of final week’s ballot. (Reminder: Join Mobility’s publication to take our surveys!) Here is what I requested: “What’s the most effective enterprise mannequin for autonomous automobile expertise? (Think about profitability.)”

By far, readers assume longer-distance distribution is the most effective guess, with 40% selecting this feature. Robotaxis got here in subsequent with 25.5% of the vote, adopted by expertise licensing to automakers with 19.1% and last-mile supply with 14.9%. A reader emailed to level out that I did not embody warehouse functions like autonomous forks. Nonetheless, the longer distance delivery class could be damaged down additional and is price one other survey, which we included on this week’s publication.

Within the lengthy listing of arguments one may make to justify a $1 trillion severance package deal, controlling a military of robots actually did not cross my thoughts. And but, that is the argument Elon Musk made throughout Tesla’s third quarter earnings name.

Here is the rundown: On Nov. 6, shareholders will vote on whether or not to approve a board-approved compensation package deal that might give Musk as much as 12% of Tesla inventory. If the corporate reaches its goal market worth of $8.6 trillion, that stake can be price about $1 trillion.

The board and Musk have spent weeks lobbying shareholders to approve the transfer, together with as proxy advisors. Institutional Shareholder Providers AND Glass Lewis have advisable that traders reject it. Musk is now in assault mode, which was on show on the finish of the earnings name when he known as the companies company terrorists and made his closing speech. His robotic military argument facilities on energy and management, not a lot cash. Though, hey, cash can present each.

“My line of best concern: If we construct this robotic military, do I’ve a robust affect over that robotic military? I do not really feel comfy constructing a robotic military if I haven’t got a robust affect,” Musk stated throughout the earnings name. He was referring to Tesla’s Optimus robotics program and used it for example of merchandise over which he needs full management.

That argument is unlikely to persuade Musk’s critics, particularly in gentle of his function as head of the Division of Authorities Effectivity. However Musk would not have to persuade his rising listing of critics, until, in fact, they personal Tesla inventory.

Just a little fowl

This week, Basic Motors dropped the ax on the BrightDrop electrical van program after 4 quick years. It wasn’t the largest shock on the earth; in any case, lots of of unsold vans have been sitting untouched on tons in Michigan and Canada for months. (Just a little fowl reached out to inform us there are lots of of them in Flint, Michigan.) GM cited a slower-than-expected marketplace for electrical business vans, however did not go into element about why, precisely, the BrightDrop failed so badly.

Nonetheless, one other little fowl has given us a clue. Vans are costly however well-liked and may save fleet homeowners cash over time. And electrical drive methods are an ideal match for last-mile supply. What GM appears to have misplaced was the infrastructure piece, based on an insider. The corporate relied closely on exterior partnerships to construct the so-called depot payment, moderately than providing it as a part of fleet purchases. This turned off quite a lot of potential prospects and usually triggered complications.

Do you’ve a tip for us? Electronic mail Kirsten Korosec at kirsten.korosec@techcrunch.com or my Sign at kkorosec.07, or e-mail Sean O’Kane sean.okane@techcrunch.com.

Affords!

The large concern this week is EVs and AI knowledge facilities. Sure, there’s a connection.

Redwood supplies raised $350 million in a Sequence E spherical led by enterprise agency Eclipse, and included a brand new strategic funding from Nvidia’s enterprise capital arm, NVentures. The corporate’s valuation was not disclosed, however a supply acquainted with the spherical informed TechCrunch it was round $6 billion, $1 billion larger than the earlier estimate.

A few of that cash will go to new power storage enterprise Redwood, which is giving a brand new function to EV batteries it has collected which can be too lengthy to undergo the recycling course of. The corporate connects these retired EV batteries to renewable power sources like wind and photo voltaic, or the grid, to energy AI knowledge facilities or industrial websites.

Different offers that caught my eye this week…

Avride secured strategic investments and different commitments of as much as $375 million, backed by Uber and Nebius. Neither of those corporations gave me specifics when requested if this was all fairness. One insider stated to concentrate to the “different commitments” half, which suggests it was not a direct money injection.

Spirothe Dubai-based African electrical motorbike startup raised $100 million in a spherical led by the Fund for Export Improvement in Africa (FEDA), the event arm of Afreximbank. That is the most important ever enhance for African e-mobility.

Seen readings and different knowledge

Basic Motors made a couple of bulletins at an occasion in NYC meant to point out the place he is headed. And, sure, AI performs a central function. Earlier than AI hit the scene, GM stated it will overhaul {the electrical} and computing energy of its future automobiles. The corporate will roll out a brand new electrical structure and centralized computing platform in new automobiles, beginning with the Cadillac Escalade IQ in 2028. This basis will permit the corporate to supply quicker software program; extra succesful automated driving features, together with Blind Spot Driving; and a personalised, conversational AI assistant.

Earnings season is upon us, and this quarter I am expecting knowledge and govt commentary that helps me perceive how tariffs and the expired EV tax credit score are impacting the auto sector. I haven’t got any clear options but – and doubtless will not till subsequent quarter.

Tariffs are hitting, TM3 studies GM AND Ford present For instance, GM predicted the tariffs would lower its income by $2.3 billion in 2025, and Ford stated it will take $2 billion off the underside line. However each of these forecasts are billions of {dollars} higher than what automakers predicted earlier this 12 months, and automakers hope to offset these prices. CEOs from each automakers thanked President Trump for extending some reduction from tariffs on auto components originating in Canada and Mexico.

Some extra GM and Ford information: Ford will proceed to halt manufacturing of its F-150 Lightning vans because it prioritizes fuel and hybrid variations of the F-Sequence in an effort to get well from the hearth at main aluminum provider Nevolis. In the meantime, GM CEO Mary Barra informed The Verge’s Decoder podcast that the corporate will drop assist for Apple CarPlay and Android Auto from all of its automobiles. Oh, and belatedly: GM has laid off 200 salaried employees from its Warren Technical Heart.

Tesla delivered a document variety of automobiles within the third quarter of 2025, outcomes pushed by U.S. prospects making the most of the expiring federal EV tax credit score. This doesn’t translate into higher income. Tesla’s third-quarter revenue was $1.4 billion, down 37% from the identical quarter final 12 months.

of Nationwide Freeway Site visitors Security Administration opened an investigation after seeing footage from early October of 1 Waymo autonomous automobile maneuvering round a stopped college bus unloading youngsters in Atlanta.

Rivian goes by way of a little bit of a shakeup that features reducing 600 individuals from its workforce (the third spherical of layoffs this 12 months), and its founder and CEO is taking over a distinct place: chief advertising and marketing officer. Rivian additionally agreed this week to pay $250 million to settle a shareholder lawsuit filed after the corporate immediately raised costs on its R1 truck and SUV in 2022.

In the meantime, I spent a while within the Bay Space with executives from Rivian’s micromobility firm. additionally. The corporate unveiled three new merchandise, and if president Chris Yu and Rivian CEO RJ Scaringe (additionally a board member) are to be believed, there shall be extra. In the intervening time, it is a nifty pedal-assist modular e-bike and two assisted four-legged automobiles – the supply van model that Amazon has already agreed to purchase. The large compelling expertise story right here is vertical integration and software program.