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Uber forced to stop self-driving pilot program in San Francisco by DMV
No longer will Uber’s self-driving cars be seen on San Francisco’s streets. The company announced on Wednesday that it was ending its autonomous car service, which began just a week ago, after clashes with state regulators and amidst much public concern.
The state’s Department of Motor Vehicles revoked Uber’s registrations, saying they “were improperly issued for these vehicles because they were not properly marked as test vehicles.” While competitors such as Tesla Motors, Google, and Nvidia have complied with state testing requirements, Uber claimed it didn’t need a permit, as it says its cars were not fully autonomous.
The sixteen Uber Volvo XC90s were equipped with a suite of roof-mounted sensors and dual driver controls. Two humans were onboard, one who was required to keep hands on the steering wheel at all times and another who monitored the technology.
Self-driving vehicles steer and brake independently but generally operate with a human in the driver’s seat who is prepared to assume driving responsibilities should the situation merit it. California law defines autonomous vehicles as those that drive “without the active physical control or monitoring of a natural person.” Under threat of legal action, Uber shut down the pilot program.
From the moment that Uber’s small self-driving fleet entered San Francisco’s traffic patterns, controversy arose. Videos emerged of Uber pilot cars running a red light and stopped in the middle of an intersection. Uber blamed red light incidents on human driver error, not the cars’ technology.
Brian Wiedenmeir, executive director of the San Francisco Bicycle Coalition, wrote on the organization’s website that, prior to Uber’s official launch, he encountered self-driving Ubers make multiple illegal and unsafe “right-hook” turns across bicycle lanes. “Those vehicles are not yet ready for our streets.” Uber, however, countered, explaining that a software fix for right hooks “has already been fixed operationally.” In other words, the two humans aboard were instructed to assume vehicle control when making these more complicated turns.
San Francisco Mayor Ed Lee commended the DMV for taking enforcement action against Uber. “I have always been a strong supporter of innovation and autonomous vehicle development and testing,” he wrote Wednesday in an emailed statement, “but only under conditions that put human, bicyclist, and pedestrian safety first.”
In a letter to Uber, DMV Director Jean Shiomoto assured the company that the department is a proponent of autonomous technologies. “We are committed to assisting Uber in their efforts to innovate and advance this ground-breaking technology.”
“Uber is welcome to test its autonomous technology in California like everybody else, through the issuance of a testing permit that can take less than 72 hours to issue after a completed application is submitted,” a DMV spokesman wrote in an emailed statement. “The department stands ready to assist Uber in obtaining a permit as expeditiously as possible.”
“We’re now looking at where we can redeploy these cars,” an Uber spokeswoman said in a provided statement, “but remain 100 percent committed to California and will be redoubling our efforts to develop workable statewide rules.”
Uber’s reveal of its San Francisco self-driving car rollout was quite the spectacle, intended to position the company as a keen rivals to its competitors. Anthony Levandowski, vice president for Uber’s self-driving technology, blogged that “the promise of self-driving is core to our mission of reliable transportation, everywhere for everyone.”
Now Pittsburgh is the only U.S. city which allows Uber’s self-driving carshare service. No major incidents have been reported from the Pittsburgh test program, which began in September.
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Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and robotaxi operations.
A report from South Korea has suggested that Samsung Electronics is set to begin supplying 5G automotive modems to Tesla. If accurate, this would mark a major expansion of the two companies’ partnership beyond AI chips and into vehicle connectivity.
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and Robotaxi operations.
Samsung’s 5G modem
As per industry sources cited by TheElec, Samsung’s System LSI division has completed development of a dedicated automotive-grade 5G modem for Tesla. The 5G modem is reportedly in its testing phase. Initial supply is expected to begin in the first half of this year, with the first deployments planned for Tesla’s Robotaxi fleet in Texas. A wider rollout to consumer vehicles is expected to follow.
Development of the modem began in early 2024 and it required a separate engineering process from Samsung’s smartphone modems. Automotive modems must meet stricter durability standards, including resistance to extreme temperatures and vibration, along with reliability over a service life exceeding 10 years. Samsung will handle chip design internally, while a partner company would reportedly manage module integration.
The deal represents the first time Samsung has supplied Tesla with a 5G vehicle modem. Tesla has historically relied on Qualcomm for automotive connectivity, but the new agreement suggests that the electric vehicle maker may be putting in some serious effort into diversifying its suppliers as connectivity becomes more critical to autonomous driving.
Deepening Tesla–Samsung ties
The modem supply builds on a rapidly expanding relationship between the two companies. Tesla previously selected Samsung’s foundry business to manufacture its next-generation AI6 chips, a deal valued at more than 22.7 trillion won and announced in mid-2025. Together, the AI chip and 5G modem agreements position Samsung as a key semiconductor partner for Tesla’s future vehicle platforms.
Industry observers have stated that the collaboration aligns with Tesla’s broader effort to reduce reliance on Chinese and Taiwanese suppliers. Geopolitical risk and long-term supply stability are believed to be driving the shift in no small part, particularly as Tesla prepares for large-scale Robotaxi deployment.
Stable, high-speed connectivity is essential for Tesla’s Full Self-Driving system, supporting real-time mapping, fleet management, and continuous software updates. By pairing in-vehicle AI computing with a new 5G modem supplier, Tesla appears to be tightening control over both its hardware stack and its global supply chain.
Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
