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GM and Honda are scrapping an EV partnership to take down Tesla

Credit: GM

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General Motors and Honda are scrapping a partnership they had to develop electric vehicles to chase after U.S. market leader Tesla.

GM CEO Mary Barra stated during the company’s Q3 Earnings Call on Tuesday that it would shift its plan away from entry-level and affordable EVs in an attempt to gain profitability and recover margins as the automaker is one of several dealing with UAW strikes.

In a joint statement, the companies said (via Reuters):

“After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market.”

Barra also said in the call that a specific $5 billion commitment over the next several years would be one of the things that GM would shift away from. The company confirmed Barra was referring to its partnership with Honda.

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In April 2022, GM and Honda vowed to “share our best technology, design, and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America, and China.”

GMC Hummer EV sports its massive size alongside full-size SUV

It was a step for both companies to achieve carbon neutrality in global products and operations by 2040, as well as eliminate tailpipe emissions from light-duty vehicles in the U.S. by 2035.

The partnership would yield EVs in price points below $30,000, which GM has managed to do on its own with the Chevrolet Bolt EV. The companies expected to develop a lineup of these low-priced EVs by 2027.

However, it was also expected to result in potential partnerships that would develop other “EV battery technology collaboration opportunities, to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.”

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It seems there was simply not enough in the cards for the partnership to flourish after both companies potentially took into account current macroeconomic conditions.

“After studying this for a year, we decided that this would be difficult as a business, so at the moment, we are ending development of an affordable EV,” Honda CEO Toshihiro Mibe said to Bloomberg.

The news comes just one week after Honda and GM announced plans to develop driverless ride services in Japan with Cruise.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla says it denied Musk CEO replacement report before it was published

Tesla says it responded to the WSJ’s request for comment, denying that it was in search of a new CEO to replace Elon Musk.

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(Credit: Tesla)

Tesla said that it denied seeking a replacement for CEO Elon Musk before a report was published claiming the company was considering a new frontman.

Last night, The Wall Street Journal reported that Tesla’s Board of Directors was looking for Musk’s replacement after he had devoted too much time to his role within the government. The publication revised its headline to the report no fewer than five times, initially stating the company was still seeking a replacement.

By the time the headline revisions were complete, it had outlined that Tesla had looked for a replacement a month ago, but had stopped its search following Musk’s commitment to Tesla during the company’s earnings call last month.

Shortly after the report surfaced, Board of Directors chairwoman Robyn Denholm officially issued a statement on behalf of Tesla:

“Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.  – Robyn Denholm.”

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Tesla Board Chair slams Wall Street Journal over alleged CEO search report

Interestingly, Denholm’s statement indicates it had responded to a request for comment from the Wall Street Journal before the report was published. This is especially interesting because Tesla does not typically respond to media outreach, as it dissolved its media department several years ago.

Tesla typically makes its statements publicly on X.

Musk also responded to the report, indicating that the WSJ had committed an “extremely bad breach of ethics” by publishing a “deliberately false article” that did not include Tesla’s “unequivocal denial beforehand.”

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Robotaxis are already making roads safer, Waymo report reveals

Waymo Driver is already reducing severe crashes and enhancing the safety of vulnerable road users.

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Waymo hires former Tesla Executive 
(Credit: Waymo)

Industry leaders such as Elon Musk have always maintained that autonomous robotaxis will make roads safer. A recent blog post from Waymo about the safety of its self-driving cars suggests that Musk’s sentiments are on point.

Way More Safety

Waymo Driver is already reducing severe crashes and enhancing the safety of vulnerable road users. As per a new research paper set for publication in the Traffic Injury Prevention Journal, Waymo Driver had outperformed human drivers in safety, particularly for vulnerable road users (VRUs).

Over 56.7 million miles, compared to human drivers, Waymo Driver achieved a 92% reduction in pedestrian injury crashes. It also saw 82% fewer crashes with injuries with cyclists and 82% fewer crashes with injuries with motorcyclists. Waymo Driver also slashed injury-involving intersection crashes by 96%, which are a leading cause of severe road harm for human drivers. Waymo Driver saw 85% fewer crashes with suspected serious or worse injuries as well.

What They Are Saying

Mauricio Peña, Waymo’s Chief Safety Officer, was optimistic about Waymo Driver’s results so far. “It’s exciting to see the real positive impact that Waymo is making on the streets of America as we continue to expand. This research reinforces the growing evidence that the Waymo Driver is playing a crucial role in reducing serious crashes and protecting all road users,” the Chief Safety Officer noted.

Jonathan Adkins, Chief Executive Officer at Governors Highway Safety Association, also noted that Waymo’s results are very encouraging. “It’s encouraging to see real-world data showing Waymo outperforming human drivers when it comes to safety. Fewer crashes and fewer injuries — especially for people walking and biking — is exactly the kind of progress we want to see from autonomous vehicles,” Adkins stated.

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Tesla hints at June 1 launch of Robotaxi platform in Austin

Tesla has hinted at a potential launch date for the Robotaxi service in Austin, Texas.

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tesla robotaxi app on phone
Credit: Tesla

Tesla just dropped its biggest hint yet about the potential launch date of its Robotaxi ride-hailing platform in Austin, Texas, shedding more light on when to expect it to take off.

In preparation for the ride-hailing service to launch, Tesla has been in talks with the City of Austin for months. It has also spent recent months bolstering its Full Self-Driving suite, aiming for it to handle initially supervised rides with the use of teleoperators to keep things safe and dependable, at least early on.

The company has also said that it expects the Robotaxi service, which will drive passengers in Tesla Model Y vehicles to start, to launch in Austin in June. However, Tesla has not given an exact date.

Now, Tesla is hinting that Robotaxi could launch on June 1, based on a very vague X post it published on May 1:

Of course, this is extremely speculative. However, it’s the first time Tesla has made any suggestions about a potential launch date, so it’s worth taking it seriously.

While the automaker has often missed timelines in the past, most notably the launch of a “feature-complete” Full Self-Driving platform, this is the first time we’ve seen Tesla be so adamant and truly reiterate a target date.

Tesla has not shied away from this June date for the Robotaxi launch yet, something that is worth noting as we move closer to June. All signs point toward Tesla being able to come through on this timeline, and it could be one of its biggest accomplishments yet on the grand scheme of things. The Robotaxi rollout will be controlled and small to start, the company noted on its most recent Earnings Call.

CEO Elon Musk said:

“The team and I are laser-focused on bringing robotaxi to Austin in June. Unsupervised autonomy will first be solved for the Model Y in Austin.”

At first, it also seems as if the first Robotaxi rides will be available to a select group, as Musk said the ability to order one will not be available to the general public until later in the month. He also said the initial fleet will be between 10 and 20 vehicles:

“Yeah. We’re still debating the exact number to start off on day one, but it’s, like, I don’t know, maybe 10 or 20 vehicles on day one. And watch it carefully. They scale it up rapidly after that. So, we want to make sure that you’re paying very close attention the first time this happens. But, yeah, you will be able to — end of end of June or July, just go to Austin and order a Tesla for autonomous drive.”

While the June 1st date of the Robotaxi launch is extremely speculative, Tesla seems convinced that its vehicles could already handle this task. It would be something to see them come through on this date, especially on the first day of the month.

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