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GM expected to outline spending cuts on self-driving unit Cruise

Credit: Cruise

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General Motors (GM) is expected to announce significant spending cuts on its self-driving unit Cruise this week, following a series of bad news for the subsidiary after an incident with one of its robotaxis last month.

On Wednesday, GM will outline how much it plans to cut spending on the self-driving arm, according to Financial Times, after a Cruise robotaxi hit and pinned a woman in San Francisco on October 2. Since the accident, the company has slowly been whittling back certain planned operations, including production plans and the mere scope of what cities the startup will operate in.

Currently, GM has invested a quarterly average of around $700 million, though how much it plans to cut Cruise’s operations is not yet clear. The automaker has spent billions of dollars on the startup self-driving company, last year spending $2.1 billion to buy out Softbank’s minority stake in the company. GM also had a long-term revenue target of about $80 billion by 2030, though the announcement is also expected to affect this outlook.

Part of Cruise’s pitch has been based on a goal of “zero crashes, zero emissions, zero congestion,” though it has said it is currently focused on rebuilding public trust.

GM recently said its “strategy is to relaunch in one city and prove our performance there, before expanding… [once] we have taken steps to improve our safety culture and rebuild trust.”

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GM-owned Cruise hires law, tech firms to review accident response

In addition to cutting spending, Cruise has announced multiple delays to the production of its Origin self-driving van, resignations from two separate co-founders and executives, recalls of its 950 Chevy Bolt self-driving vehicles and more. Following the incident, Cruise’s self-driving permit was immediately revoked by the California Department of Motor Vehicles (DMV), and the company faces a federal investigation from the National Highway Traffic Safety Administration (NHTSA).

A letter was sent to the NHTSA that had been signed by 26 different transportation labor organizations, highlighting “grave safety concerns about the expanded testing and operation of automated driving system-equipped vehicles,” according to Transportation Trades Department chief of staff Matthew Colvin.

Some have questioned how the company’s finances will look in the wake of the incident, especially as it moves away from tangible returns that possible investors can justify investing in. Barclays auto analyst Dan Levy thinks will be front and center in the minds of investors keeping tabs on the announcements this week.

“The big question is to what extent ‘Zero Zero Zero’ also hinged on zero rates,” Levy said. “This has been a big theme this year in auto; everyone has had to step back from the euphoria.”

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Along with being concerned about returns, GM investors are also hesitant about the startup’s safety following the accident, as expressed by some in the weeks since.

“The problem for Cruise as a business is GM is dependent on it for all the software [revenue] targets the company has set,” said one GM investor. “We don’t see a path to profit, but we do see they will burn a lot of cash trying. GM would be better placed winding back its bet, and returning the money to shareholders.”

“The public are also recognising that being unwitting guinea pigs to unproven tech that’s desperately underregulated is not what anybody has signed up for,” the investor added, noting that a move to reduce spending “as much as possible” at Cruise would constitute an “easy win.”

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.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla hired over 1,000 factory workers for its Semi program in NV: report

The update was initially reported by Insider, which cited three people reportedly familiar with the matter.

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Credit: Tesla Semi/X

Tesla seems to be putting a lot of effort into growing its Semi team. As per recent reports, the company has hired over 1,000 factory workers in Nevada for its Semi program.

The update was initially reported by Insider, which cited three people reportedly familiar with the matter. 

Bigger Semi Team

As per the publication’s sources, Tesla has reportedly hired over a thousand new factory workers for the Semi program in Nevada. The hiring ramp is reportedly part of the company’s efforts to fulfill the orders for the Semi, which have been accumulating for years.

To help the new members of the Semi team, Tesla has reportedly brought in the new workers to Giga Nevada for training and tours over the past months. These efforts are quite a notable update for the Semi program, the publication’s sources claimed, since less than 100 factory workers were reportedly assigned to the Class 8 all-electric truck until recently.

Tesla has not issued a comment about the matter as of writing.

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Tesla Semi Jobs and Updates

Insider’s report came amidst a hiring ramp in Tesla’s Careers website. As per previous reports, Tesla’s Careers website has uploaded over 80 positions related to the Semi program. The positions are varied, with listings being posted for engineering-related roles in Palo Alto, California, to manufacturing-related roles in Sparks, Nevada, and vehicle service-related roles in Sacramento, California. 

Tesla also shared a recent video of the ongoing progress of the Semi factory’s construction near Giga Nevada. As per Tesla Semi program lead Dan Priestley, the company has spent the last few months building the facility’s shell, so efforts are now underway to equip the factory with production equipment. The Tesla executive also reiterated the company’s target of producing 50,000 units of the Semi annually from its Nevada factory.

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Elon Musk jokes he will join Mr Beast’s “100 Men vs 1 Gorilla” challenge

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again.

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Credit: Elon Musk/X

Following the first quarter Tesla earnings call, CEO Elon Musk seems to have become a bit more relaxed—relaxed enough to joke about fighting a gorilla with 99 other people, at least.

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again and not too busy picking fights with politicians on social media.

The Viral 100 Men vs 1 Gorilla Challenge

Over the weekend, a post on social media platform X went viral. The post itself was quite simple, with user @DreamChasnMike stating that he thinks 100 men could beat one gorilla. “Everybody just gotta be dedicated to the sh*t,” the X user joked. The post exploded on the platform, garnering 284 million impressions as of writing.

The silly question also triggered a massive debate about whether 100 men would really stand a chance against a literal gorilla. Some users even lamented that the premise was a sign of male hubris. Nevertheless, the question proved to be a fun topic on X, with some more dedicated users even posting simulated videos of what the “100 Men vs 1 Gorilla Challenge” could look like. 

Mr. Beast and Elon Musk Join In

The premise is quite similar to other viral videos from noted YouTube creator Mr. Beast, so it was no surprise that edited images of Mr. Beast YouTube thumbnails with “100 Men vs a Gorilla” also started spreading on the social media platform. Mr. Beast, who tends to be game to such silly ideas, actually reposted the edited image, joking “Need 100 men to test this, any volunteers?”

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In true Elon Musk fashion, the Tesla and SpaceX CEO noted that he would join the challenge. “Sure, what’s the worst that could happen” Musk wrote in his post on X. Musk’s reply triggered quite a few laughs on X, with some stating that the world probably still needs the CEO.

While silly, Musk’s comment and his recent, more frequent posts about his companies’ products like Starlink and Grok have been received well by his supporters. Over the past months, after all, Musk has been very political and quite confrontational on social media. With Musk soon taking a step back from the Department of Government Efficiency’s (DOGE) daily operations, however, it seems like X will soon get a more tempered and lighthearted Elon Musk once more.

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Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs

That’s a big competitive advantage for Tesla’s best-selling vehicle.

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Credit: Tesla Europe & Middle East/X

It appears that Tesla may see itself with a notable advantage in the United States.

This is, at least, as per recent comments from United States Commerce Secretary Howard Lutnick.

Lutnick’s Comments

In recent comments to reporters, Lutnick stated that vehicles finished in the United States with 85% domestic content will have no tariff applied, as noted in a report from The Guardian. Automakers that meet this threshold stand to gain an advantage in the U.S. auto sector, especially considering the Trump administration’s aggressive tariffs.

As per Lutnick, the administration’s auto tariffs will apply to foreign carmakers that are building their vehicles in the United States. “This is ‘finish your cars in America and you win’,” Lutnick stated.

Big Tesla Advantage

Lutnick’s comments were received positively by Tesla watchers on social media, many of whom noted that the threshold would probably be met only by the electric vehicle maker’s cars. Teslas that are sold in the United States are built in the United States, and they have consistently ranked among the most American cars in the country for several years running.

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Back in December, for example, American University’s Kogod School of Business released its Made in America Auto Index, which explores the total domestic content of vehicles that are available for purchase today. In its rankings, only three vehicles received a total domestic content score of 85% or higher—the Tesla Model Y, Model Y Long Range, and the Model 3 Performance.

The two Model Y variants received a total domestic content score of 85%, while the Model 3 Performance had a total domestic content of 87.5%. If Secretary Lutnick’s comments are any indication, these three vehicles would be subjected to zero tariffs. This bodes well for Tesla, as the Model Y is the company’s best-selling vehicle by a notable margin.

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