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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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Tesla has officially launched public Robotaxi rides in Austin, Texas, without a Safety Monitor in the vehicle, marking the first time the company has removed anyone from the vehicle other than the rider.
The Safety Monitor has been present in Tesla Robotaxis in Austin since its launch last June, maintaining safety for passengers and other vehicles, and was placed in the passenger’s seat.
Tesla planned to remove the Safety Monitor at the end of 2025, but it was not quite ready to do so. Now, in January, riders are officially reporting that they are able to hail a ride from a Model Y Robotaxi without anyone in the vehicle:
I am in a robotaxi without safety monitor pic.twitter.com/fzHu385oIb
— TSLA99T (@Tsla99T) January 22, 2026
Tesla started testing this internally late last year and had several employees show that they were riding in the vehicle without anyone else there to intervene in case of an emergency.
Tesla has now expanded that program to the public. It is not active in the entire fleet, but there are a “few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors,” Ashok Elluswamy said:
Robotaxi rides without any safety monitors are now publicly available in Austin.
Starting with a few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors, and the ratio will increase over time. https://t.co/ShMpZjefwB
— Ashok Elluswamy (@aelluswamy) January 22, 2026
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
The Robotaxi program also operates in the California Bay Area, where the fleet is much larger, but Safety Monitors are placed in the driver’s seat and utilize Full Self-Driving, so it is essentially the same as an Uber driver using a Tesla with FSD.
In Austin, the removal of Safety Monitors marks a substantial achievement for Tesla moving forward. Now that it has enough confidence to remove Safety Monitors from Robotaxis altogether, there are nearly unlimited options for the company in terms of expansion.
While it is hoping to launch the ride-hailing service in more cities across the U.S. this year, this is a much larger development than expansion, at least for now, as it is the first time it is performing driverless rides in Robotaxi anywhere in the world for the public to enjoy.
Tesla has scheduled its Earnings Call for Q4 and Full Year 2025 for next Wednesday, January 28, at 5:30 p.m. EST, and investors are already preparing to get some answers from executives regarding a wide variety of topics.
The company accepts several questions from retail investors through the platform Say, which then allows shareholders to vote on the best questions.
Tesla does not answer anything regarding future product releases, but they are willing to shed light on current timelines, progress of certain projects, and other plans.
There are five questions that range over a variety of topics, including SpaceX, Full Self-Driving, Robotaxi, and Optimus, which are currently in the lead to be asked and potentially answered by Elon Musk and other Tesla executives:
- You once said: Loyalty deserves loyalty. Will long-term Tesla shareholders still be prioritized if SpaceX does an IPO?
- Our Take – With a lot of speculation regarding an incoming SpaceX IPO, Tesla investors, especially long-term ones, should be able to benefit from an early opportunity to purchase shares. This has been discussed endlessly over the past year, and we must be getting close to it.
- When is FSD going to be 100% unsupervised?
- Our Take – Musk said today that this is essentially a solved problem, and it could be available in the U.S. by the end of this year.
- What is the current bottleneck to increase Robotaxi deployment & personal use unsupervised FSD? The safety/performance of the most recent models or people to monitor robots, robotaxis, in-car, or remotely? Or something else?
- Our Take – The bottleneck seems to be based on data, which Musk said Tesla needs 10 billion miles of data to achieve unsupervised FSD. Once that happens, regulatory issues will be what hold things up from moving forward.
- Regarding Optimus, could you share the current number of units deployed in Tesla factories and actively performing production tasks? What specific roles or operations are they handling, and how has their integration impacted factory efficiency or output?
- Our Take – Optimus is going to have a larger role in factories moving forward, and later this year, they will have larger responsibilities.
- Can you please tie purchased FSD to our owner accounts vs. locked to the car? This will help us enjoy it in any Tesla we drive/buy and reward us for hanging in so long, some of us since 2017.
- Our Take – This is a good one and should get us some additional information on the FSD transfer plans and Subscription-only model that Tesla will adopt soon.
Tesla will have its Earnings Call on Wednesday, January 28.
Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.
ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.
The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.
Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.
Probably true
— Elon Musk (@elonmusk) January 22, 2026
ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.
Credit: ARK Invest
This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.
The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.
Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.
Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.
It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Tesla Earnings Call: Top 5 questions investors are asking
