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


News
Sweden blocks Tesla FSD-style testing in Stockholm
It looks like FSD testing in Sweden would have to wait some time.

Tesla is putting a lot of effort into getting its Full Self Driving (FSD) system approved in territories outside North America. But while China seems to have embraced FSD fully, other countries like Sweden do not seem to be receiving Tesla’s automated driving system very well.
This became quite evident in a document from Stockholm City, which has started making the rounds online.
FSD Testing Rejected
The document, which was initially shared by X user @KRoelandschap, indicated that the Swedish Traffic Department in Stockholm had rejected Tesla’s request to start FSD testing in the city’s streets. Tesla has been demonstrating FSD in several areas across Europe, so it is not surprising that the company is also attempting to test its automated driving system in Sweden.
Unfortunately for Tesla, Sweden might prove to be a tough nut to crack. As per the City of Stockholm:
“The Traffic Office is currently working on updating its approach to automation. At the same time, the city and the office are under heavy pressure from other ongoing innovation tests. Our ambition is to actively participate in and learn from the continued development in the field of automation.
“Based on this, and in combination with the fact that the current test is the first of its kind, which entails certain risks for both infrastructure and third parties, and that it is planned to be carried out throughout the city, the City of Stockholm considers it is currently not possible to approve the implementation of the test.”
Tesla’s Other Swedish Troubles
Sweden’s FSD testing rejection is not the only roadblock facing Tesla in the country. Since October 2023, Swedish unions have been engaged in an active effort to disrupt Tesla’s operations. The unions’ efforts have been varied, with some resulting in Tesla having difficulty launching more Superchargers in Sweden. Despite this, Tesla has remained stubborn and has refused to bow to the unions’ demands.
Fortunately for Tesla, it seems like its numbers are still strong. Despite the company’s decline in several European countries, the new Model Y is starting to see strong sales figures in Sweden. In early May alone, the new Model Y became the country’s most popular electric vehicle—a notable accomplishment considering the unions’ active efforts to disrupt Tesla.
News
Tesla firmware shows new Model Y seat configuration is coming
Tesla could be adding another seating configuration beside the seven-seater to the Model Y lineup later this year.

Tesla firmware has been a great place for some to reveal what the company has in the pipeline, and a new seating configuration for the best-selling Model Y looks to be on the way.
Last week, we reported that Tesla was already hinting toward a 7-seater configuration of the Model Y in a promotional email it sent to those on its contact list.
However, firmware revealed by Tesla hacker greentheonly is showing that a new seating configuration is on the way — a six-seater:
The much rumored about 6-seater Model Y made an appearance in the firmware.
Unlikely to be China-only as some of the speculations said.Some weird “slow down to save energy, people typically drive this much slower here to save %%” nav suggestions.
— green (@greentheonly) June 16, 2025
Green says the configuration would not be available in China-only, and will be potentially for sale in other markets as well.
The six-seat and seven-seat configurations of the Model Y were available in the Legacy version of the vehicle, but were met with mixed reviews, as many complained about the lack of legroom in the third row.
This was something that was a real concern for many of those owners who needed something larger than the traditional five-seat variant, but did not want to buy the much more pricey Model X.
We’ve covered the size of that third row on several occasions.
Some owners even took the idea of having a seven-seater into their own hands:
Tesla Model Y third row seat test explores options for a comfortable 7-seat setup
Tesla did not explicitly announce a six-seater configuration of the Model Y, but Lars Moravy, the company’s VP of Vehicle Engineering, said the seven-seater would come to production later in 2025.
News
Tesla confirms massive hardware change for autonomy improvement
Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.
Tesla first introduced a front-facing camera on the front bumper with the Cybertruck.
Then, the Model Y “Juniper” received the hardware update. The Model S and Model X both received the front-facing camera with its latest update, which was officially revealed last week.
Tesla used new language with the release of the front-facing cameras on the Model S and Model X, confirming they will assist with several things, including “using Autopilot and Actually Smart Summon capabilities”:
“Enhanced visibility when parking or using Autopilot and Actually Smart Summon capabilities.”
This tiny feature on the new Tesla Model Y is perhaps its biggest addition
This is the first time Tesla has used this sort of language, as it was a completely different description with the launch of the new Model Y in January.
When Tesla launched this vehicle, it said the front bumper camera “provides a wider field of view for automatic assisted driving and advanced Smart Summon.”
Tesla switched from using cameras and sensors to only cameras with the launch of Tesla Vision several years ago. The company’s utilization of cameras comes from Tesla’s belief that Ultrasonic Sensors (USS) are not needed for self-driving efforts:
“Along with the removal of USS, we simultaneously launched our vision-based occupancy network – currently used in Full Self-Driving (FSD) (Supervised) – to replace the inputs generated by USS. With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and the ability to identify and differentiate between objects. As with many Tesla features, our occupancy network will continue to improve rapidly over time.”
CEO Elon Musk has said that sensors were only a crutch and that self-driving would be solved through the use of cameras:
“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”
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