Tesla and other companies are actively developing self-driving technologies and driverless ride-hailing platforms, and with President-elect Donald Trump’s transition team already focused on autonomous vehicles, the tech is highly expected to be a major theme in 2025.
According to a Reuters Breakingviews prediction report on Monday, Trump’s moves to minimize regulations surrounding autonomous vehicles and create a federal framework for the technology are expected to supercharge the industry—as increased competition emerges in the U.S. and beyond.
With Tesla CEO Elon Musk also set to play a large role in Trump’s administration, heading up the Department of Government Efficiency (DOGE), the company’s own developments in the sector could also stand to benefit substantially. Reuters also predicts that self-driving pilots could expand under the administration, especially as developers aim to increase the amount of data used to train their systems.
READ MORE ON SELF-DRIVING REGULATIONS: U.S. agency proposes rules for self-driving vehicle incident reporting
Last month, the Trump transition team said that it was already aiming to create a federal self-driving vehicle framework. Additionally, the team earlier this month was reported to be ditching federal requirements on automated driving tech crash reporting, coming as one example of the administration’s aims to streamline regulatory processes in the industry.
Internationally, the Society of Automotive Engineers (SAE) categorizes vehicle automation into five automation levels, which are generally adopted in conversations about robotaxis in the U.S. market as well. You can see these categories below, with Level 3 and above generally considered to be full automation, at least at times, while Level 2 and below are considered partial automation.
Credit: SAE International
According to the data firm Canalys, just 5.5 percent of vehicles sold this year have included Level 2 or more assistance features, such as cruise control and automated lane changes. By 2025, however, Citi research has suggested that models in China below 200,000 yuan (about $28,000) will have these features, playing a major role in consumer demand.
In China, at least 19 companies are currently testing fully autonomous vehicles, and Goldman Sachs expects the country to see as many as 90 percent of consumer sales to have features of Level 3 autonomy or greaterby 2040, compared to just 65 percent in the U.S.
While these technologies are emerging, McKinsey predicts that self-driving could become a $400 billion industry by 2035. Google parent company Alphabet runs Waymo, a Level 4 driverless ride-hailing service that already offers paid rides, while others, including Pony AI and Baidu also offer rentable self-driving vehicles in select areas.
BYD has invested $14 billion into self-driving, Toyota has around 1.7 trillion yen ($11.3 billion) going toward software, while Volkswagen has invested $700 million into China’s Xpeng Motors. Li Auto and Xiami are also considered potential competitors in these spaces, and 2025 could prove a big year for commercial self-driving hopefuls.
Tesla’s Supervised FSD program, Cybercab unveiled
Meanwhile, Tesla isn’t yet operating a paid ride-hailing service, though it gathers data through owner use of its Supervised Full Self-Driving (FSD) software. Tesla has touted the potential scalability of its Supervised FSD in the past, given that it’s available at least in some form in all of the company’s vehicles.
Musk has also regularly talked about a future in which owners of its vehicles could use an Unsupervised FSD to generate money by giving robotaxi rides while not normally in use.
On that theme, Tesla unveiled the Cybercab in October, a fully autonomous, two-seat vehicle with no pedals, set to eventually make it to the market as a driverless ride-hailing vehicle. It’s also set to be equipped with wireless charging and make use of an automated cleaning robot, offering top-to-bottom autonomy for owners.
MORE ON FSD SUPERVISED: Watch Tesla’s FSD v13.2 navigate away from park in a tricky situation
Tesla skeptics, Waymo’s driverless ride-hails, GM’s Cruise drives into the sunset
Despite the unveiling, some have shared skepticism around how long the vehicles could take to reach the market, especially given that production isn’t set to begin until 2026 with commercial deliveries aiming for “before 2027,” according to Musk during the October 10 “We, Robot” unveiling event.
On Monday, analyst Gary Black also predicted that fewer than 50 percent of Tesla owners would join the company’s robotaxi fleet, while a Guggenheim researcher in October said Tesla was “extremely unlikely” to reveal a credible path to robotaxi commercialization in the next 12 to 24 months.
Others like Waymo are some of the first companies operating paid driverless ride-hails, and the Google-run firm said in August that its robotaxis were already giving 100,000 paid self-driving rides per week. Meanwhile, General Motors (GM) announced this month that it will officially end funding for its commercial self-driving arm Cruise, after one of the company’s driverless vehicles last year ran over and pinned a pedestrian in San Francisco.
ALSO RELATED:
- Tesla China FSD approval expected by end of 2024: Musk
- Waymo to test self-driving vehicles in another country in 2025
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.
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News
SpaceX produces its 10 millionth Starlink kit
The first 5 million Starlink kits took nearly four years to build.

SpaceX has achieved a major milestone, producing its 10 millionth Starlink kit. The accomplishment was celebrated across the company’s Hawthorne, California, and Bastrop, Texas, facilities.
The milestone was shared in social media by Sujay Soman, Senior Facilities Engineer, in a LinkedIn post, which has since been deleted.
Starlink Production Ramp
Soman noted in his LinkedIn post that the first 5 million Starlink kits took nearly four years to build, but the next 5 million kits were completed in just 11 months. This underscores SpaceX’s intense efforts to ramp up the satellite internet system’s production, and it reflects the private space company’s manufacturing prowess.
The SpaceX Senior Facilities Engineer shared a couple of photos of the Machine Maintenance and Facilities team in Bastrop to commemorate the event.
“Today, Starlink Product teams across our Hawthorne and Bastrop sites produced the 10th Million Starlink Kit! It took almost 4 years to build our first 5 million kits, and we doubled that in about 11 months. Monumental accomplishment!” Soman wrote in his post.

World-Changing Technology
The Starlink kits, featuring dish hardware and supporting equipment, enable users to connect to the company’s growing constellation of low Earth orbit satellites. With over 6,000 satellites launched to date, Starlink now provides fast and reliable internet connectivity to over 6 million customers worldwide. This was a significant increase from the 5 million customers that the company reported in February 2025.
SpaceX has not detailed its next production targets, but the production of Starlink’s 10 millionth kit milestone signals the company’s readiness to scale further. Being an Elon Musk-led company, SpaceX is arguably the best in the business when it comes to efficient and cost-effective manufacturing. It would then be unsurprising if SpaceX announces another Starlink production milestone soon.
News
Tesla retires yoke steering wheel in base Model S and X
Tesla’s controversial steering yoke is now exclusive to the Model S and Model X Plaid.

Tesla has closed a chapter in the saga of the Model S and Model X’s controversial steering yoke. Following the announcement of the new iterations of the flagship vehicles, Tesla promptly removed the steering option for the vehicles’ base variants.
This means that if drivers wish to experience the Model S or Model X with a yoke, they would have to go Plaid.
The new Model S and Model X
The refresh of the Model S and Model X were quite minor, with the two vehicles featuring a new front camera, a new color, and a handful of other small changes like new exterior styling for the Model S Plaid. Tesla also noted on its website that the two vehicles now have a much smoother and quieter ride.
The changes were quite polarizing, with some appreciating the subtle improvements made to the two flagship cars and others arguing that Tesla should have done more. Others, however, noted that the level of improvements implemented on the Model S and Model X would already be considered major refresh for a tech company like Apple.
No More Yoke Unless Plaid
When Tesla refreshed the Model S and Model X in 2021, the vehicles were released with a steering yoke as standard. The yoke was controversial, with critics stating that it was unsafe and fans stating that it made driving the Model S and Model X fun. Tesla later introduced a round steering wheel option for the Model S and Model X, which later became standard on the two flagship vehicles.
This remains true today, with the most recent versions of the Model S and Model X still being released with a round steering wheel as standard. Those who wish to experience the Model S and Model X Plaid as envisioned by the company and its CEO, Elon Musk, however, might find it a good idea to spend the extra $1,000 for the vehicles’ yoke steering wheel.
Elon Musk
Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake
A Swedish pension fund is offloading its Tesla holdings for good.

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.
The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.
Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.
However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:
“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.
Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

(Photo: Tesla)
There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.
Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.
AP7 did not list any of the current labor violations that it cited as its reason for
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