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Cruise to reduce self-driving fleet by 50% in SF following robotaxi crash
The California Department of Motor Vehicles (DMV) has asked General Motors’ self-driving unit, Cruise, to temporarily reduce its robotaxi fleet by 50% in San Francisco. The request came after one of the company’s driverless vehicles was involved in a crash with a fire truck last week.
The California DMV noted that its is investigating “recent concerning incidents” involving autonomous robotaxis in the city. With this in mind, the DMV has advised that Cruise must reduce its San Francisco fleet by half until the investigation is completed and the self-driving company takes appropriate actions to improve road safety.
Following is the CA DMV’s statement about Cruise’s recent robotaxi incidents.
“Safety of the traveling public is the California DMV’s top priority. The primary focus of the DMV’s regulations is the safe operation of autonomous vehicles and safety of the public who share the road with these vehicles.
“The DMV is investigating recent concerning incidents involving Cruise vehicles in San Francisco. The DMV is in contact with Cruise and law enforcement officials to determine the facts and requested Cruise to immediately reduce its active fleet of operating vehicles by 50% until the investigation is complete and Cruise takes appropriate corrective actions to improve road safety. Cruise has agreed to a 50% reduction and will have no more than 50 driverless vehicles in operation during the day and 150 driverless vehicles in operation at night.
“The DMV reserves the right, following investigation of the facts, to suspend or revoke testing and/or deployment permits if there is determined to be an unreasonable risk to public safety.”
With Cruise agreeing to reduce its fleet by 50%, the company also released a blog post explaining the circumstances that led up to the accident. As per Cruise, the robotaxi identified the emergency vehicle almost immediately as it came into video. The robotaxi operator also noted that the vehicle initiated a braking maneuver and reduced its speed, but it was ultimately unable to avoid the collision.
All in all, the damage is super light. Good learning experience. A deaf, colorblind, human driver would have probably also gotten clipped.
In this situation, if you don't hear the truck and you don't notice the approaching scattered red light, reflecting on the buildings/street… pic.twitter.com/mTAGEQkAEk
— oFFMetaSweat (@oFFMetaSweat) August 18, 2023
Following is Cruise’s post about the incident.
“While our investigation is ongoing and we remain in contact with city officials and regulators, we wanted to provide an update on our preliminary analysis on the incident involving an emergency vehicle colliding with a Cruise AV.
“First and foremost, our primary concern remains with our passenger and their well-being. We have been in contact to offer support and will remain in touch.
“In terms of what occurred around the scene of the collision there are many aspects that looked typical from the AV’s perspective and several factors that added complexity to this specific incident.
“The AV positively identified the emergency vehicle almost immediately as it came into view, which is consistent with our underlying safety design and expectation. It is worth noting, however, that the confines of this specific intersection make visual identification more challenging – for humans and AVs alike – as it is significantly occluded by buildings, meaning that it is not possible to see objects around the corner until they are physically very close to the intersection.
“The AV’s ability to successfully chart the emergency vehicle’s path was complicated by the fact that the emergency vehicle was in the oncoming lane of traffic, which it had moved into to bypass the red light.
“Cruise AVs have the ability to detect emergency sirens, which increase their ability to operate safely around emergency vehicles and accompanying scenes. In this instance, the AV identified the siren as soon as it was distinguishable from the background noise.
“The Cruise AV did identify the risk of a collision and initiated a braking maneuver, reducing its speed, but was ultimately unable to avoid the collision.
“During the course of more than 3 million miles of fully autonomous driving in San Francisco we’ve seen an enormous number of emergency vehicles – more than 168,000 interactions just in the first 7 months of this year alone. Our first responders are trying to balance keeping all of us safe while quickly responding to emergency scenes and we’re grateful for their work and dedication.
“We realize that we’ll always encounter challenging situations, which is why continuous improvement is central to our work. We will continue to work in partnership with regulators and city departments on EMV interactions to reduce the likelihood of incidents like these happening again.”
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News
Tesla stands to gain from Ford’s decision to ditch large EVs
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Ford’s recent decision to abandon production of the all-electric Ford F-150 Lightning after the 2025 model year should yield some advantages for Tesla.
The Detroit-based automaker’s pivot away from large EVs and toward hybrids and extended-range EVs that come with a gas generator is proof that sustainable powertrains are easy on paper, but hard in reality.
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Here’s why:
Reduced Competition in the Electric Pickup Segment
The F-150 Lightning was the Tesla Cybertruck’s primary and direct rival in the full-size electric pickup market in the United States. With Ford’s decision to end pure EV production of its best-selling truck’s electric version and shifting to hybrids/EREVs, the Cybertruck faces significantly less competition.
Credit: Tesla
This could drive more fleet and retail buyers toward the Cybertruck, especially those committed to fully electric vehicles without a gas generator backup.
Strengthened Market Leadership and Brand Perception in Pure EVs
Ford’s pullback from large EVs–citing unprofitability and lack of demand for EVs of that size–highlights the challenges legacy automakers face in scaling profitable battery-electric vehicles.
Tesla, as the established leader with efficient production and vertical integration, benefits from reinforced perception as the most viable and committed pure EV manufacturer.
Credit: Tesla
This can boost consumer confidence in Tesla’s long-term ecosystem over competitors retreating to hybrids. With Ford making this move, it is totally reasonable that some car buyers could be reluctant to buy from other legacy automakers.
Profitability is a key reason companies build cars; they’re businesses, and they’re there to make money.
However, Ford’s new strategy could plant a seed in the head of some who plan to buy from companies like General Motors, Stellantis, or others, who could have second thoughts. With this backtrack in EVs, other things, like less education on these specific vehicles to technicians, could make repairs more costly and tougher to schedule.
Potential Increases in Market Share for Large EVs
Interestingly, this could play right into the hands of Tesla fans who have been asking for the company to make a larger EV, specifically a full-size SUV.
Customers seeking large, high-capability electric trucks or SUVs could now look to Tesla for its Cybertruck or potentially a future vehicle release, which the company has hinted at on several occasions this year.
With Ford reallocating resources away from large pure EVs and taking a $19.5 billion charge, Tesla stands to capture a larger slice of the remaining demand in this segment without a major U.S. competitor aggressively pursuing it.
News
Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”
Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.
The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.
It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.
Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.
“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.
🚨 Ford has announced it is discontinuing production of the F-150 Lightning, as it plans to report a charge of $19.5 billion in special items.
The Lightning will still be produced, but instead with a gas generator that will give it over 700 miles of range.
“Ford no longer… pic.twitter.com/ZttZ66SDHL
— TESLARATI (@Teslarati) December 15, 2025
While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.
Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.
Andrew Frick, President of Ford, said:
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”
CEO Jim Farley also commented on the decision:
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”
Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”
SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.
Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.
Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.
A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.
American CEO Robert Isom said (via Bloomberg):
“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”
Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.
The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:
“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”
CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”
American Airlines will lose a lot of customers if their connectivity solution fails
— Elon Musk (@elonmusk) December 14, 2025
There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.
Currently, the company is focusing on expanding into new markets, such as Africa and Asia.
Tesla stands to gain from Ford’s decision to ditch large EVs
Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
