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Tesla’s race to full self-driving under pressure as GM Cruise gets $2.25B investment
In a press release on Thursday, General Motors announced that SoftBank would be investing $2.25 billion in the automaker’s self-driving unit, GM Cruise Holdings LLC. The Detroit-based auto giant would also be investing an additional $1.1 billion into its self-driving division. These investments are aimed at boosting the unit’s capability to reach commercialization at scale by next year.
GM Chairman and CEO Mary Barra lauded the additional investments into the company’s self-driving unit. Barra noted in the press release that the support from SoftBank adds an “additional strong partner” as the automaker pursues its “vision of zero crashes, zero emissions, and zero congestion.”
GM Cruise currently operates a fleet of autonomous Chevy Bolt EVs in San Francisco that provide autonomous ride-hailing services to its employees. Plans are also underway to develop a Chevy Bolt EV variant that is specifically designed to be fully autonomous, with the vehicle not having pedals or a steering wheel.
SoftBank’s $2.25 billion investment into GM Cruise will be made in two tranches. SoftBank Vision Fund will first invest $900 million at the closing of the transaction. Once GM Cruise’s autonomous vehicles are ready to hit the market, Vision Fund will release the second tranche of $1.35 billion. This will ultimately result in SoftBank Vision Fund commanding a 19.6% stake in GM Cruise.
The new investment brings GM Cruise’s valuation close to $11.5 billion. The investment also brings to light the arguable undervaluation of Tesla’s Autopilot system, which has been on the consumer market for several years and has more than 150,000 vehicles from around the world that’s collecting data.
Still, GM Cruise’s new financial backing puts tremendous pressure on Tesla, which has seen its fair share of scrutiny as it steadily improves its Autopilot software in the public eye. Despite having collected reservation deposits for its Full Self-Driving capability that is yet to be released, Autopilot continues to improve and pacing toward full autonomy, according to CEO Elon Musk.
During the Q4 2017 earnings call, Musk addressed the delays in the company’s planned coast-to-coast autonomous drive. The exhibition, which was set for December 2017, did not pan out, although Tesla could have accomplished the coast-to-coast trip, according to Musk. However, doing so would have required far too much “specialized code” that would only be fully effective on a particular route. During the earnings call, Musk stated that Tesla would likely conduct the autonomous coast-to-coast drive sometime this year.
A Tesla Model 3 on Autopilot. [Credit: LivingTesla/YouTube]
One notable difference between Tesla and GM Cruise, and Google’s Waymo is the Tesla’s opposition to the utilization of LiDAR technology – a common fixture on self-driving cars. Instead of LiDAR, Tesla’s electric cars rely on a series of cameras, radar, and ultrasonic sensors to collect data on a vehicle’s surroundings. LiDAR, which is used in GM Cruise’s Chevy Bolt EVs and Waymo’s autonomous vehicles, boasts high spatial precision. Inasmuch as LiDAR can measure distances well, however, it performs poorly in bad weather.
Ultimately, Tesla’s ace-in-the-hole in the increasingly competitive self-driving car market could be its neural net and sharing of fleet data. There are roughly 150,000 AP2.0 vehicles on the road today, with each one providing valuable data to Tesla’s deep neural networks. Akin to the human brain, the more data that is available to train the neural network, the better its performance would be.
Ultimately, Tesla’s neural net could be the difference-maker when the company goes all-in and competes in the self-driving race. Until then, however, the electric car maker could soon be taking a backseat to companies like GM Cruise and Waymo, both of which are accelerating their efforts at rolling out consumer-ready autonomous vehicles in the near future.
Tesla is staging a powerful rebound in Europe. New vehicle registrations surged dramatically across multiple key markets in May 2026, signaling a strong recovery from the challenges of 2025.
Data released this week show double- and triple-digit year-over-year gains in several countries, driven by refreshed Model Y production, supportive policies, high fuel prices, and renewed consumer interest in electric vehicles.
In France, registrations exploded 655 percent to 5,446 vehicles, marking Tesla’s best May performance ever in the country. Norway, a longtime EV stronghold, saw 3,345 new Teslas registered, up 29 percent from May 2025. The company even captured a commanding 21.5 percent market share there, according to Detroit News.
Growth extended to other markets as well. Sweden posted a 71 percent increase to 858 registrations. Denmark jumped 136 percent to 1,750 units, where the Model Y became the top-selling vehicle overall. Spain climbed 113 percent to 1,690 sales, while Portugal soared nearly 350 percent to 1,463.
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Tesla Full Self-Driving expansion in Europe continues with new addition
The May results build on a broader turnaround for Tesla in Europe. The company’s sales on the continent had declined sharply in 2025, dropping between 27 and 28 percent amid production shifts, intense competition from Chinese rivals like BYD, and shifting consumer sentiment.
Early 2026 showed signs of life, with registrations rising about 45 percent across Europe in the first quarter and continuing upward momentum through April, up over 46 percent region-wide.
Europe’s overall electrified vehicle market (including BEVs, PHEVs, and hybrids) grew about 21 percent in May, providing a favorable tailwind. Tesla’s gains align with this trend, boosted by government incentives and high fuel costs that make EVs more attractive.
Earlier data from March and April already hinted at strength in Germany, where registrations had surged dramatically in prior months.
Analysts note that while competition remains fierce, Tesla’s refreshed lineup and Europe’s policy support for EVs are helping the company regain ground. The May surge suggests the worst of the 2025 downturn may be behind it, positioning Tesla for stronger performance in the second half of 2026.
This rebound is welcome news for the EV pioneer, demonstrating resilience in a competitive and evolving market. As more data rolls in, investors and industry watchers will be closely monitoring whether this momentum can sustain through the summer and beyond.
Tesla is planning to improve one of the best features on its lineup of cars, a new patent shows. Tesla’s massive glass roof on its premium models is among the coolest additions to the all-electric vehicles, but the design certainly has its complaints, especially from those who live in even slightly warm climates.
Tesla has published a new patent that promises to transform cabin comfort in its electric vehicles, particularly those equipped with the expansive glass roofs.
The document, identified as US20260091643A1 and titled “Airflow Optimization for Cabin Comfort“, addresses that common complaint. Sunlight streaming through windshields and panoramic roofs creates localized hot air pockets near the dashboard and headliner. These pockets generate significant temperature gradients that conventional heating, ventilation, and air conditioning systems struggle to manage evenly.
The exposure to direct sunlight can make the cabin extremely warm, and even after cooling down the interior temperature, combating the continuous stream of sunlight and heat is a challenge. It uses precious energy that is especially pertinent to range and efficiency.
The patent explains how standard dashboard vents push cool air upward, only to entrain warmer air from these stagnant zones and distribute it throughout the occupied cabin space. This process forces the blower to operate at higher speeds, increasing energy consumption and reducing overall efficiency.
In electric vehicles, where every watt impacts driving range, such inefficiencies prove costly.
🚨 THE MODEL Y L IS THE MOST WATCHED EV LAUNCH OF 2026. ITS GLASS ROOF HAS ONE WEAKNESS — AND A PATENT PUBLISHED THIS WEEK SHOWS @TESLA BUILT THE FIX
The Model Y L launched in China and is now arriving in Korea, Japan, and across Asia-Pacific. It also has a glass roof. So does… https://t.co/wr6XnBn1Oc pic.twitter.com/5sYpniXJbU
— SETI Park (@seti_park) April 5, 2026
Research from AAA indicates that air conditioning can diminish range by up to 17 percent under hot conditions. Tesla’s innovation shifts the approach by extracting heat at its source rather than attempting to dilute it after mixing occurs.
Engineers describe a suction HVAC unit connected to dedicated intakes positioned strategically on the upper dashboard surface and within the headliner.
These intakes link to a hot air pocket extraction duct that channels the warmest air directly into the system’s plenum for conditioning. As the blower activates, it simultaneously draws recirculated cabin air and targeted hot pocket air through filters and cooling coils before redistributing conditioned airflow.
It seems somewhat reminiscent of the Tesla heat pump, which aims to combat colder temperatures.
Tesla highlights Model Y’s heat pump innovations in new promotional video
This method reduces entrainment, lowers peak temperatures, and achieves more uniform comfort levels. Testing data reveals that facial temperature gradients drop from 21 degrees Celsius, or 69.8 degrees Fahrenheit, in conventional setups to just 12 degrees Celsius (53.6 degrees F) with the new system. Blower speeds and compressor power requirements decrease appreciably as a result.
The design incorporates smart controls that monitor sunlight intensity and internal temperature distributions in real time. Suction activates selectively only where needed, optimizing energy use without constant high demand. Furthermore, the extraction duct serves a dual purpose.
In the summer months, it pulls hot air inward for cooling; in winter, it reverses to direct warm air outward for rapid windshield defrosting. This versatility allows the reuse of existing hardware with minimal modifications, potentially enabling retrofits in current Tesla fleets.
Lifestyle
Tesla saves its passengers again – This time after a 300-foot cliff fall in Malibu
A Tesla Model 3 fell 300 feet off a Malibu cliff and both passengers survived.
A Tesla Model 3 plunged roughly 300 feet off a cliff on Mulholland Highway in Malibu on Friday morning, May 29, 2026, and both occupants survived. The crash was reported at approximately 7:30 a.m. near the 2500 block of Mulholland Highway, triggering a multi-agency rescue operation involving Malibu Search and Rescue, the Los Angeles County Fire Department, the California Highway Patrol, and McCormick Ambulance.
When first responders arrived, the male driver was outside the vehicle shouting for help while the female passenger remained pinned inside the Tesla. Rescue crews rappelled down the cliffside on ropes to reach the wreckage. A flight medic was lowered by helicopter to begin treating both victims, and the driver was hoisted up to the roadway before crews used the Jaws of Life to free the trapped passenger. Both were airlifted to a local trauma center with moderate injuries despite a remarkable result for a fall that steep.
The outcome is not surprising, considering Model 3 earned an overall 5-star rating from NHTSA in every category and sub-category, and recorded the lowest probability of injury of any car ever evaluated by the U.S. New Car Assessment Program. The absence of a traditional engine in the front of the vehicle creates a longer crumple zone that absorbs impact energy before it reaches occupants, and the battery pack running along the floor gives the car an unusually low center of gravity that reinforces structural rigidity.
This is not the first time a Tesla has kept passengers alive after going off a cliff. A Tesla Model Y carrying a family of four survived a plunge off a cliff at Devil’s Slide near San Francisco in January 2023, with two adults and two children walking away from a 250-foot fall. That incident drew widespread attention to how the structural integrity of Tesla’s electric platform performs in extreme crash scenarios that most vehicles would not survive.
Tesla Model Y driver who drove off cliff with family attempts to avoid criminal conviction
Tesla’s European Comeback: Registrations soar in May as recovery gains momentum
Tesla plans ingenious improvement to one of its best features
