General Motors (GM) has announced plans to cut funding for its driverless robotaxi company Cruise, in a major pivot away from the commercial robotaxi business toward autonomy development in the company’s personal vehicles.
On Tuesday, GM announced plans to cut funding for Cruise and bring its autonomy development program in-house to its own vehicles, as detailed in a press release. In departing from commercial robotaxi development, the company will instead focus on building out Super Cruise, its “hands-off, eyes-on” driver assistance system, which it says is available in over 20 GM vehicles and logs more than 10 million miles per month.
“Consistent with GM’s capital allocation priorities, GM will no longer fund Cruise’s robotaxi development work given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market,” GM writes in the post.
MORE ON CRUISE: GM’s self-driving arm Cruise hit with its latest fine over crash response
Currently, GM has a roughly 90-percent stake in Cruise, and it says it has agreements with other shareholders to bring that up to over 97 percent, before acquiring any remaining shares and restructuring.
“GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner,” GM CEO Mary Barra said. “Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
GM plans to work closely with the Cruise leadership team on restructuring and refocusing Cruise’s operations, which it says it expects will decrease spending by over $1 billion per year upon completion. The automaker also says it expects to complete the plan proposal within the first half of 2025, contingent upon the company’s repurchase of shares and Cruise board approval.
“As the largest U.S. automotive manufacturer, we’re fully committed to autonomous driving and excited to bring GM customers its benefits – things like enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress,” says Dave Richardson, SVP of Software and Services Engineering at GM.
The news comes after the company in September said that it was aiming to re-launch paid driverless ride-hailing services with Cruise in the coming months, following an accident involving one of its robotaxis last October that brought with it mass staff shake-ups and legal trouble.
Cruise Founder Kyle Vogt, who resigned from the company after the aforementioned accident last October, responded to the news of GM cutting funding in a post on X:
In case it was unclear before, it is clear now: GM are a bunch of dummies.
It also comes amidst competition from Google-owned Waymo, Amazon’s Zoox, and others in the emerging driverless ride-hailing industry, as well as Tesla, which unveiled the Cybercab robotaxi in October, set to be based on its Full Self-Driving (FSD) software.
Will Tesla license FSD to GM, BMW, and others?
For years now, many in the Tesla community have suggested that the company could someday license its FSD software to other automakers, once it shifts from Supervised to Unsupervised. It’s interesting to see GM pivot toward an autonomy development model that prioritizes data from customer vehicles, especially following Tesla’s long-anticipated launch of its own robotaxi platform, the Cybercab.
Elon Musk has said many times that the company could and would license FSD to other automakers, though no such partnerships have yet been disclosed. Following a recent video posted on X of the latest version of FSD Supervised, v13.2, the official BMW account responded to another user, affirming that the video was “very impressive.”
https://twitter.com/BMW/status/1866548798798844297
The quote elicited a response from Tesla’s main account, and it has reignited discussions around whether the company would license FSD to other companies. Between that and GM ending funding for Cruise and citing “increased competition” as a factor, it’s probably safe to say that Tesla could be inching closer to making FSD licensing deals a reality.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Cruise ordered to pay max penalty for delayed accident report
Tesla will increase its Full Self-Driving subscription price, meaning it will eventually be more than the current $99 per month price tag it has right now.
Already stating that the ability to purchase the suite outright will be removed, Tesla CEO Elon Musk said earlier this week that the Full Self-Driving subscription price would increase when its capabilities improve:
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”
This was an expected change, especially as Tesla has been hinting for some time that it is approaching a feature-complete version of Full Self-Driving that will no longer require driver supervision. However, with the increase, some are concerned that they may be priced out.
$99 per month is already a tough ask for some. While Full Self-Driving is definitely worth it just due to the capabilities, not every driver is ready to add potentially 50 percent to their car payment each month to have it.
While Tesla has not revealed any target price for FSD, it does seem that it will go up to at least $150.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Additionally, the ability to purchase the suite outright is also being eliminated on February 14, which gives owners another reason to be slightly concerned about whether they will be able to afford to continue paying for Full Self-Driving in any capacity.
Some owners have requested a tiered program, which would allow people to pay for the capabilities they want at a discounted price.
Unsupervised FSD would be the most expensive, and although the company started removing Autopilot from some vehicles, it seems a Supervised FSD suite would still attract people to pay between $49 and $99 per month, as it is very useful.
Tesla will likely release pricing for the Unsupervised suite when it is available, but price increases could still come to the Supervised version as things improve.
This is not the first time Musk has hinted that the price would change with capability improvements, either. He’s been saying it for some time. In 2020, he even said the value of FSD would “probably be somewhere in excess of $100,000.”
The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.
— Elon Musk (@elonmusk) May 18, 2020
Tesla has chosen to axe the ability to purchase Full Self-Driving outright from a select group of cars just days after CEO Elon Musk announced the company had plans to eliminate that option in February.
The company is making a clear-cut stand that it will fully transition away from the ability to purchase the Full Self-Driving suite outright, a move that has brought differing opinions throughout the Tesla community.
Earlier this week, the company also announced that it will no longer allow buyers to purchase Full Self-Driving outright when ordering a pre-owned vehicle from inventory. Instead, that will be available for $99 per month, the same price that it costs for everyone else.
The ability to buy the suite for $8,000 for a one-time fee at the time of order has been removed:
NEWS: Tesla no longer allows buyers to purchase FSD outright in the U.S. when ordering a pre-owned vehicle directly from inventory. Tesla now gives you the option to either subscribe for $99/month, or purchase FSD outright after taking delivery (available until February 14th). pic.twitter.com/1xZ0BVG4JB
— Sawyer Merritt (@SawyerMerritt) January 23, 2026
This is a major move because it is the first time Tesla is eliminating the ability to purchase FSD outright for one flat fee to any of its vehicles, at least at the time of purchase.
It is trying to phase out the outright purchase option as much as it can, preparing people for the subscription-based service it will exclusively offer starting on February 14.
In less than a month, it won’t be available on any vehicle, which has truly driven some serious conversation from Tesla owners throughout the community.
There’s a conflict, because many believe that they will now lose the ability to buy FSD and not pay for it monthly, which is an attractive offer. However, others believe, despite paying $8,000 for FSD, that they will have to pay more money on top of that cost to get the unsupervised suite.
Additionally, CEO Elon Musk said that the FSD suite’s subscription price would increase over time as capabilities increase, which is understandable, but is also quite a conflict for those who spent thousands to have what was once promised to them, and now they may have to pay even more money.
News
Tesla Robotaxi has a highly-requested hardware feature not available on typical Model Ys
These camera washers are crucial for keeping the operation going, as they are the sole way Teslas operate autonomously. The cameras act as eyes for the car to drive, recognize speed limit and traffic signs, and travel safely.
Tesla Robotaxi has a highly-requested hardware feature that is not available on typical Model Ys that people like you and me bring home after we buy them. The feature is something that many have been wanting for years, especially after the company adopted a vision-only approach to self-driving.
After Tesla launched driverless Robotaxi rides to the public earlier this week in Austin, people have been traveling to the Lone Star State in an effort to hopefully snag a ride from one of the few vehicles in the fleet that are now no longer required to have Safety Monitors present.
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Although only a few of those completely driverless rides are available, there have been some new things seen on these cars that are additions from regular Model Ys, including the presence of one new feature: camera washers.
With the Model Y, there has been a front camera washer, but the other exterior “eyes” have been void of any solution for this. For now, owners are required to clean them manually.
In Austin, Tesla is doing things differently. It is now utilizing camera washers on the side repeater and rear bumper cameras, which will keep the cameras clean and keep operation as smooth and as uninterrupted as possible:
🚨 Tesla looks to have installed Camera Washers on the side repeater cameras on Robotaxis in Austin
pic.twitter.com/xemRtDtlRR— TESLARATI (@Teslarati) January 23, 2026
Rear Camera Washer on Tesla Robotaxi pic.twitter.com/P9hgGStHmV
— TESLARATI (@Teslarati) January 24, 2026
These camera washers are crucial for keeping the operation going, as they are the sole way Teslas operate autonomously. The cameras act as eyes for the car to drive, recognize speed limit and traffic signs, and travel safely.
This is the first time we are seeing them, so it seems as if Safety Monitors might have been responsible for keeping the lenses clean and unobstructed previously.
However, as Tesla transitions to a fully autonomous self-driving suite and Robotaxi expands to more vehicles in the Robotaxi fleet, it needed to find a way to clean the cameras without any manual intervention, at least for a short period, until they can return for interior and exterior washing.
Tesla to increase Full Self-Driving subscription price: here’s when
Tesla starts removing outright Full Self-Driving purchase option at time of order
