A California judge has forced General Motors’ (GM) self-driving unit Cruise to increase its settlement offer to the maximum amount, after one of the company’s robotaxis pinned and seriously injured a pedestrian in October.
On October 2, a driverless Cruise vehicle dragged and pinned a pedestrian in San Francisco, and the company’s license to operate self-driving cars was immediately revoked by the California Department of Motor Vehicles (DMV). The DMV later said that Cruise “misrepresented” and “omitted” crucial details about its response to the accident, and the California Public Utilities Commission (CPUC) in December ordered the company to appear before a judge this month.
During the hearing, which was held on Tuesday, California Administrative Law Judge (ALJ) Robert Mason III suggested that Cruise revise its $75,000 settlement offer to the maximum penalty of $112,500, after calling the company’s proposed amount “low,” and even suggesting the company was seeking a “discount.”
While Judge Mason III said he appreciated Cruise attempting to take “corrective action” in its crash response procedures, he added that the company should “take a hint” following his multiple questions about the offer amount, suggesting directly that Cruise change its settlement offer to the full penalty.
“Point taken, your Honor,” responded Craig Glidden, Cruise President and Chief Administrative Officer. “We immediately revise our offer to the amount requested.”
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The hearing discussed findings from an investigation conducted by the law firm Quinn Emanuel, which Cruise hired, including that internet connectivity hampered the company’s sharing of video footage from the accident with regulators in meetings that followed.
In response to the motion for approval to settle at $75,000, the commission can adopt, adopt with revisions, or reject Cruise’s filing. Following the hearing, the next step is for Judge Mason to write a proposed decision on the case for the commissioner’s consideration, with the general timeframe falling within about 60 days, as a CPUC spokesperson clarified to Teslarati.
Cruise said it was eager to resolve the case and move past the incident, adding that it wanted to continue to “advance the mission of bringing driverless cars that are safer to the public and also greater accessibility to the public to the market.”
However, Mason didn’t make it sound like the commission was eager to set the case aside:
“While the commission does fall on the side of getting its cases resolved, I don’t know that this is one of those protracted pieces of litigation that we’re usually most anxious to put aside and then move forward with the regulatory process,” Mason added.
In the original motion, filed on January 30, Cruise outlines the key requirements it would have to follow as part of the settlement:
1. Cruise will adopt voluntarily several new data reporting enhancements that will provide additional data to the Commission concerning California collisions and AVs operating in California under a deployment permit that enter a minimal risk condition (“MRC”) state and result in conditions described in Attachment A;
2. Cruise will provide the Commission with Cruise’s responses to the permit reinstatement questions from the California Department of Motor Vehicles (“DMV”) at the same time Cruise provides those responses to the DMV;
3. Cruise will make a payment of $75,000 to the State General Fund within ten (10) days of the Commission’s approval of the Settlement Agreement without modification; and
4. Upon the Commission’s approval of the Settlement Agreement, the OSC proceeding will be closed.
“We are committed to working in partnership with the CPUC, other regulators and government agencies to improve transportation safety in support of a shared goal –– providing better, safer and more accessible transportation to the public in our communities,” a Cruise spokesperson wrote in an email to Teslarati. “Over the past several months, we have taken important steps to improve our leadership, processes and culture, and we are committed to resolving matters to the Commission’s satisfaction as we work to restore regulatory and public trust.”
Cruise also noted that the accident, which occurred after the pedestrian had already been hit by a human driver, was partially caused by the driverless ride-hailing vehicle falsely identifying the situation as a side-impact collision rather than a frontal collision, causing the Minimal Risk Condition (MRC) response that forces the vehicle to pull over.
In addition, Cruise said it is currently expecting a new Chief Safety Officer in the “not too distant future,” after two co-founders resigned immediately following the accident, and after the company fired nine executives and laid off nearly a quarter of its staff on the same day in December.
GM recently announced plans to cut spending on Cruise in half this year, though it said it also hoped to “refocus and relaunch” the company’s operations. GM CEO Mary Barra highlighted significant changes at Cruise, which the company began implementing following the Quinn Emanuel investigation.
“At Cruise, we are committed to earning back the trust of regulators and the public through our commitments and our actions,” Barra said following GM’s 2023 earnings call.
You can see the full January 30 filing from Cruise below, including the findings from the Quinn Emanuel investigation, which Cruise made public last month.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Tesla is continuing to refine and improve its Robotaxi program from A to Z, and it is now going to make some sweeping changes to the smartphone app portion of the suite.
The company is aiming to make some sweeping changes with the release of Robotaxi app version 26.4.5, which was recently decompiled by Tesla App Updates on X. The update reveals significant new code, focused on remote operations, safety protocols, and seamless autonomous ride-hailing.
These improvements evidently signal Tesla’s preparations for scaling unsupervised Cybercab deployments, particularly the steering wheel-less variants spotted in production. The enhancements emphasize providing a reliable experience that gives passengers support when needed, along with operational efficiency.
Version 26.4.5 of the Robotaxi app has been de-compiled and we’ve got some interesting things added this update (https://t.co/jInbED7fOv):
– Remote Operator Voice Calls 📞
– Proactive Remote Assistance 🤖
– Manual Override + Remote Start for wheel-less Cybercabs 🎮
-…
— Tesla App Updates (iOS) (@Tesla_App_iOS) May 16, 2026
Remote Operator Voice Calls
One standout addition is support for remote operator voice calls. The app now includes a dedicated native voice-communication system linking passengers directly to Tesla teleoperators via the vehicle’s cabin microphone and speakers.
This feature allows real-time assistance during rides, addressing issues like navigation questions or comfort adjustments without disrupting the autonomous journey. It builds on existing support protocols, making human intervention more accessible and intuitive.
Proactive Remote Assistance
The update introduces proactive remote assistance capabilities. Rather than waiting for passenger-initiated requests, the system can anticipate and offer help based on monitored conditions.
This might include something like suggesting route changes, climate adjustments, or addressing potential delays. By integrating AI-driven monitoring with human oversight, Tesla aims to deliver a smoother, more attentive experience that exceeds traditional ride-sharing services.
Manual Override and Remote Start for Steering Wheel-less Cybercabs
A key highlight for the wheel-less Cybercab fleet is manual override plus remote start functionality. Fleet operators and technicians can now temporarily take control or remotely start vehicles lacking steering wheels. This is crucial for lower-speed maneuvers, such as getting vehicles from tight parking situations or even performing maintenance.
Controls are strictly limited for safety–typically to speeds under 2 MPH–ensuring these interventions remain emergency measures only.
Tesla is adding a secure “Enable Manual Drive” mode that will allow those fleet operators or others to take control temporarily.
Additionally, a Remote Start feature, which authorizes an empty vehicle to begin a driverless ride alone.
Ride-Hailing and Dispatch Features
Ride dispatch has been enhanced with soft-matching and multi-stop support. The app can intelligently pair riders with available Cybercabs while accommodating multiple destinations in a single trip.
This optimizes fleet utilization, reduces wait times, and improves efficiency for shared rides. Soft-matching likely considers factors like proximity, rider preferences, and vehicle availability for better user satisfaction.
Rider-Cabin Sync, Real-Time Routing
New synchronization tools allow the rider’s app to mirror and control cabin settings like seating, climate, and entertainment directly from their phone. Real-time routing updates adapt dynamically to traffic or road conditions, while dynamic safety monitoring continuously assesses the environment.
The app can now push updates directly to the main screen, enabling Center Display Control. Additionally, there is a dedicated navigation protocol sharing the exact coordinates of road closures and construction, which could prevent the car from getting stuck and needing manual override.
These features create a cohesive, responsive experience where the vehicle and app work in harmony.
Kill Switch
A high-security command lets Tesla completely freeze a vehicle’s ability to drive. This would take the vehicle out of the Robotaxi fleet for any reason Tesla sees fit, and would not allow it to be put into gear even with the correct equipment, like valid keys.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
Tesla just raised Model Y prices for the first time in two years, with the largest increase being $1,000.
The move signals shifting dynamics in the competitive electric vehicle market as the company continues to work on balancing demand, profitability, and accessibility.
The new pricing affects premium trims while leaving entry-level options unchanged. The Model Y Premium Rear-Wheel Drive (RWD) now starts at $45,990, a $1,000 increase.
The Model Y Premium All-Wheel Drive (AWD)—previously referred to in the post as simply “Model Y AWD”—rises to $49,990, also up $1,000. The top-tier Model Y Performance sees a more modest $500 bump, bringing its starting price to $57,990.
Tesla Model Y prices just went up:
New prices:
🚗 Model Y Premium RWD: $45,990 – up $1,000
🚗 Model Y AWD: $49,990 – up $1,000
🚗 Model Y Performance: $57,990 – up $500 https://t.co/e4GhQ0tj4H pic.twitter.com/TCWqr3oqiV— TESLARATI (@Teslarati) May 16, 2026
Base models remain untouched to preserve affordability. The entry-level Model Y RWD holds steady at $39,990, and the base Model Y AWD stays at $41,990. This selective approach keeps the crossover accessible for budget-conscious buyers while extracting more revenue from higher-margin configurations.
After years of aggressive price cuts to stimulate volume amid slowing EV adoption and rising competition from rivals like BYD, Ford, and GM, Tesla appears confident in underlying demand. Recent lineup refreshes for the 2026 Model Y, including refreshed styling and efficiency gains, have helped maintain its status as America’s best-selling EV.
By protecting base prices, Tesla avoids alienating price-sensitive customers while improving margins on the more popular variants.
Tesla Model Y ownership review after six months: What I love and what I don’t
For consumers, the changes are relatively modest—under 3% on affected trims—and still position the Model Y competitively against gas-powered SUVs in the same class. Federal tax credits and potential state incentives may further offset costs for eligible buyers.
This marks a subtle but notable shift from the deep discounting era that defined much of 2024 and 2025. As the EV market matures into 2026, Tesla’s pricing strategy will be closely watched for clues about production ramps, new variants like the rumored longer-wheelbase Model Y, and broader profitability goals.
In short, today’s adjustment reflects a company that remains dominant yet pragmatic—willing to test higher pricing where demand supports it. It is unlikely to deter consumers from choosing other options.
Tesla is making sweeping improvements to Robotaxi
Starship V3 is here putting SpaceX closer to Mars than it has ever been
