General Motors (GM) has announced plans to cut funding for its driverless robotaxi company Cruise, in a major pivot away from the commercial robotaxi business toward autonomy development in the company’s personal vehicles.
On Tuesday, GM announced plans to cut funding for Cruise and bring its autonomy development program in-house to its own vehicles, as detailed in a press release. In departing from commercial robotaxi development, the company will instead focus on building out Super Cruise, its “hands-off, eyes-on” driver assistance system, which it says is available in over 20 GM vehicles and logs more than 10 million miles per month.
“Consistent with GM’s capital allocation priorities, GM will no longer fund Cruise’s robotaxi development work given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market,” GM writes in the post.
MORE ON CRUISE: GM’s self-driving arm Cruise hit with its latest fine over crash response
Currently, GM has a roughly 90-percent stake in Cruise, and it says it has agreements with other shareholders to bring that up to over 97 percent, before acquiring any remaining shares and restructuring.
“GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner,” GM CEO Mary Barra said. “Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
GM plans to work closely with the Cruise leadership team on restructuring and refocusing Cruise’s operations, which it says it expects will decrease spending by over $1 billion per year upon completion. The automaker also says it expects to complete the plan proposal within the first half of 2025, contingent upon the company’s repurchase of shares and Cruise board approval.
“As the largest U.S. automotive manufacturer, we’re fully committed to autonomous driving and excited to bring GM customers its benefits – things like enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress,” says Dave Richardson, SVP of Software and Services Engineering at GM.
The news comes after the company in September said that it was aiming to re-launch paid driverless ride-hailing services with Cruise in the coming months, following an accident involving one of its robotaxis last October that brought with it mass staff shake-ups and legal trouble.
Cruise Founder Kyle Vogt, who resigned from the company after the aforementioned accident last October, responded to the news of GM cutting funding in a post on X:
In case it was unclear before, it is clear now: GM are a bunch of dummies.
It also comes amidst competition from Google-owned Waymo, Amazon’s Zoox, and others in the emerging driverless ride-hailing industry, as well as Tesla, which unveiled the Cybercab robotaxi in October, set to be based on its Full Self-Driving (FSD) software.
Will Tesla license FSD to GM, BMW, and others?
For years now, many in the Tesla community have suggested that the company could someday license its FSD software to other automakers, once it shifts from Supervised to Unsupervised. It’s interesting to see GM pivot toward an autonomy development model that prioritizes data from customer vehicles, especially following Tesla’s long-anticipated launch of its own robotaxi platform, the Cybercab.
Elon Musk has said many times that the company could and would license FSD to other automakers, though no such partnerships have yet been disclosed. Following a recent video posted on X of the latest version of FSD Supervised, v13.2, the official BMW account responded to another user, affirming that the video was “very impressive.”
https://twitter.com/BMW/status/1866548798798844297
The quote elicited a response from Tesla’s main account, and it has reignited discussions around whether the company would license FSD to other companies. Between that and GM ending funding for Cruise and citing “increased competition” as a factor, it’s probably safe to say that Tesla could be inching closer to making FSD licensing deals a reality.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Cruise ordered to pay max penalty for delayed accident report


Elon Musk
Elon Musk is now a remote DOGE worker: White House Chief of Staff
The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.
As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.
Remote Musk
In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect.
“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.
“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.
Back to Tesla
Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.
“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.
Elon Musk
Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others
Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”
While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.
Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.
Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs
“This is ‘finish your cars in America and you win’,” Lutnick said.
Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.
However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.
Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.
Tesla completely dominates Kogod School’s 2024 Made in America Auto Index
It is within reach for many.
Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.
But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla
However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.
Ford has the following vehicles within just five percent of the 85 percent threshold:
- Ford Mustang GT automatic (80%)
- Ford Mustang GT 5.0 (80%)
- Ford Mustang GT Coupe Premium (80%)
Honda has several within ten percent:
- Honda Passport All-Wheel-Drive (76.5%)
- Honda Passport Trailsport (76.5)
Jeep has two cars:
- Jeep Wrangler Rubicon (76%)
- Jeep Wrangler Sahara (76%)
Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.
Chevrolet has several:
- Chevrolet Colorado 2.7-liter (75.5%)
- Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
- Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)
These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.
Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.
Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.
Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.
News
Tesla Cybertruck RWD production in full swing at Giga Texas
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.
Giga Texas Footage
As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.
The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.
Cybertruck Long Range RWD Specs
The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.
Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.
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