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.
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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;
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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.
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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.
News
SpaceX just launched a secret payload from California
SpaceX launched a classified Space Force mission from Vandenberg, revealing almost nothing about its payload.
SpaceX launched a classified Falcon 9 mission for the U.S. Space Force from Vandenberg Space Force Base on Saturday night, and the government released almost nothing about what was on board. The mission, designated USSF-366, lifted off from Space Launch Complex 4E with a window that opened at 9:52 p.m. ET and ran into the early hours of Sunday, according to SpaceX’s own mission page, which described the payload only as classified. SpaceX confirmed the launch on its X account and pointed viewers to a livestream that began roughly ten minutes before liftoff.
Watch Falcon 9 launch the USSF-366 mission from pad 4E in California https://t.co/FFEzeYOds1
— SpaceX (@SpaceX) August 16, 2026
The lack of detail did not stop analysts from filling in the blanks. Independent tracking of the rocket’s stage drop zones matched the pattern SpaceX has used on previous Starlink Group 15 missions, according to reporting from Outer Space Today, which pointed to Starshield as the likely payload rather than a one off government satellite. Starshield is SpaceX’s national security product, a version of the Starlink satellite bus built to Pentagon specifications for earth observation, communications and hosted payloads. Unlike consumer Starlink, government agencies do not have to disclose what Starshield satellites are actually doing once they reach orbit.
USSF-366 is the latest entry in a steady flow of classified and semi classified work between SpaceX and the Space Force. The company picked up a $178.5 million task order in April to launch missile tracking satellites for the Space Development Agency, as Teslarati reported at the time, and followed that in July with a $1.6 billion award covering 18 more Falcon 9 missions from Vandenberg through the end of 2027, also detailed by Teslarati. Add those contracts up and SpaceX’s Pentagon business for 2026 alone tops $8 billion.
SpaceX scores another massive Pentagon deal to support military satellites
The Falcon 9 that flew Saturday landed back near the launch site, producing the sonic booms that have become routine for residents near Vandenberg. What is less routine is how little the public will likely ever learn about what the rocket carried. SpaceX and the Space Force have not confirmed the Starshield connection, and government satellite programs built on commercial buses rarely get identified beyond a mission number and a general orbit. For a company that live streams almost everything else it does, from Starship test flights to Optimus robot demos, USSF-366 is a reminder that some of SpaceX’s busiest work now happens entirely out of public view.
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On Friday, Tesla launched the Outlet Adapter that enabled Vehicle-to-Load (V2L) energy transfer, meaning owners could essentially utilize their cars as a power source for things like laptops, electric grills, or string lights.
However, even owners of some of the newest builds of the Model Y are finding out that their cars are not compatible with the new $80 accessory, stirring up a new complaint among members of the community.
Tesla launches V2L Outlet Adapter for Premium Model Y in the U.S.
Upon the release of the Outlet Adapter on Friday, I signed into my Tesla account to order the accessory. However, I was met with the dreaded “This product is not compatible with your 2026 Model Y” message at the bottom of the screen.
Some said their accounts also displayed the same message, but they ordered anyway. However, they might be surprised to find that this is no mistake; some of the newest Model Ys do not have the appropriate Power Conversion System (PCS). Mine, which was ordered on this day last year and delivered on August 31, has the old 48A, single-phase PCS.
Vehicles with the new, two-piece PCS are able to utilize V2L features on their cars:
🚨 Looks like you can hit the Parts Catalog and enter your VIN and check to see if your Model Y will be able to use the adapter for V2L.https://t.co/QA9zRk7n2k
h/t to @SawyerMerritt for finding this out.
-I am sad but this isn’t a huge loss. https://t.co/AYpI12QVV9 pic.twitter.com/LRFSrtRywo
— TESLARATI (@Teslarati) August 16, 2026
Obviously, it’s disappointing. Many owners have taken delivery this year and still can not utilize the Outlet Adapter because their cars feature the old PCS:
Took delivery in February of 2026. I have the older one, so not going to work for me pic.twitter.com/RcOVq8gvvT
— Russell (@QuietTesla) August 16, 2026
It looks like if you have one of these older PCS units, you can upgrade, but the parts alone are $1,750, and that’s before Tesla adds labor for installing. It is honestly more logical to get some kind of portable power supply or power station at that point.
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It is great that Tesla has enabled V2L for Model Y vehicles, but it is also unfortunate that vehicles that are less than one year old are not able to take advantage of this awesome new feature.
With that being said, it truly is a first-world problem; can you really complain when Full Self-Driving is available, maintenance is incredibly inexpensive, and the car has been so good through a year of ownership?
Tesla has launched a new Vehicle-to-Load (V2L) Outlet Adapter for Premium Model Y vehicles in the United States, meaning you can now power devices like laptops or light strings with your vehicle’s battery.
It appears the capability will be available for any Model Y Premium trim, including those that were purchased prior to the Adapter being launched. It will also only impact Juniper Model Y vehicles, so the first-gen owners will unfortunately not have access to this capability.
If your Model Y was purchased before Tesla renamed the trim levels to “Premium” and “Standard,” it does not seem to be compatible. My Model Y is technically a Premium build, as it is the Long Range All-Wheel-Drive. However, Tesla says it is not compatible with my vehicle.
🚨 Tesla has launched the Outlet Adapter for Model Y Premium in the U.S., enabling V2L capability for all Premium trims (that’s what it appears to be as it is available for purchase with all Premium trims)
It’s available for $80. 2.4kW max power and rated for 120v, 20A pic.twitter.com/lDxlVIk5s8
— TESLARATI (@Teslarati) August 14, 2026
For $80, you can now utilize your car as a portable charger for small appliances or devices. This is perfect for things like tailgates, concerts, or camping, as you can now plug in devices that you might use. Those string lights for camping? That laptop for the other games that are on at the tailgate?
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They’ll both utilize energy from your Tesla’s battery to be powered. This is the first time Tesla has expanded the capability to vehicles outside of the Model Y Performance and Cybertruck. However, this feature has been highly requested by owners for an extended period of time.
Tesla launched the Outlet Adapter in China last year:
Tesla China rolls out Model Y L V2L adapter, and it’s free for early owners
You will need the Mobile Connector to operate the Outlet Adapter: the Outlet Adapter will plug into the main housing of the Mobile Connector, where the appropriate adapter to charge your vehicle will plug in.
It is rated for 120 volts and 20 amps, and has a max power rating of 2.4kW.
You can buy it here from Tesla for $80.
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SpaceX just launched a secret payload from California
Tesla V2L adapter for Model Y stirs up a new complaint among owners
