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I know many of you are eager to see the outcome of last week’s survey. (Don’t forget: subscribe to the Mobility newsletter to take part in future polls!) The question was: “Which business model is most promising for autonomous vehicle technology, especially considering profitability?”
By a wide margin, most readers favored long-distance delivery, with 40% choosing this path. Robotaxis followed with 25.5%, licensing technology to car manufacturers came in at 19.1%, and last-mile delivery rounded out the list at 14.9%. One reader reached out to mention that warehouse uses, like autonomous forklifts, weren’t included. The long-haul delivery segment could be further divided, so we’ve added a follow-up poll in this week’s newsletter.
Of all the reasons someone might give to justify a $1 trillion pay package, commanding a robot army wasn’t one I expected. Yet, that’s exactly the case Elon Musk made during Tesla’s Q3 earnings call.
Here’s what’s happening: On November 6, shareholders will decide whether to approve a board-backed compensation plan that could give Musk as much as 12% of Tesla’s shares. If Tesla reaches a market cap of $8.6 trillion, the payout could reach $1 trillion.
Both the board and Musk have been actively encouraging shareholders to vote in favor, even as proxy advisors Institutional Shareholder Services and Glass Lewis have advised against it. Musk has gone on the offensive, calling these firms “corporate terrorists” during the earnings call and making his final argument. His focus is on authority and influence over the robot army, rather than financial gain—though, of course, money can buy both.
“My main concern is: If we create this robot army, will I have significant control over it? I’m uneasy about building a robot army without strong influence,” Musk stated on the call, referencing Tesla’s Optimus robot initiative as an example of the kind of project he wants to oversee directly.
That line of reasoning is unlikely to sway Musk’s detractors, especially given his recent role as head of the Department of Government Efficiency. But unless those critics are Tesla shareholders, Musk doesn’t need their support.
A little bird
Image Credits:Bryce Durbin
This week, General Motors officially ended the BrightDrop electric van project after just four years. This wasn’t entirely unexpected; hundreds of unsold vans have been parked in Michigan and Canada for months. (A tipster told us that many are sitting in a Flint, Michigan lot.) GM blamed slower-than-anticipated demand for commercial EVs but didn’t elaborate on the reasons behind BrightDrop’s downfall.
However, another source offered some insight. The vans, while expensive, are popular and could help fleet owners save money over time. Electric drivetrains are ideal for last-mile deliveries. But according to an insider, GM overlooked the infrastructure aspect. Instead of including depot charging with fleet sales, they relied heavily on external partners to provide charging solutions. This deterred some buyers and created additional complications.
Deals!
Image Credits:Bryce Durbin
This week’s headline deal links electric vehicles and AI data centers. Yes, there’s a connection.
Redwood Materials secured $350 million in Series E funding, led by Eclipse and with a new strategic investment from Nvidia’s venture arm, NVentures. The company’s current valuation wasn’t revealed, but a source told TechCrunch it’s around $6 billion—up $1 billion from the last round.
A significant portion of these funds will support Redwood’s new energy storage division, which repurposes EV batteries that still have usable life left, rather than recycling them immediately. These batteries are paired with renewable sources like wind and solar, or the grid, to supply power to AI data centers and industrial facilities.
Other deals that stood out to me this week …
Avride landed strategic investments and other commitments totaling up to $375 million, with backing from Uber and Nebius. When asked, none of the companies clarified if the entire amount was equity. One insider hinted that the “other commitments” wording suggests it wasn’t all cash.
Spiro, an African electric motorbike company based in Dubai, raised $100 million in a round led by the Fund for Export Development in Africa (FEDA), part of Afreximbank. This marks the largest funding round ever for African e-mobility.
Notable reads and other tidbits
Image Credits:Bryce Durbin
General Motors made several announcements in New York City to outline its future direction, with AI taking center stage. Before discussing AI, GM revealed plans to revamp the electrical and computing systems in its upcoming vehicles. Starting with the Cadillac Escalade IQ in 2028, GM will introduce a new electric architecture and centralized computing platform. This will enable faster software updates, more advanced automated driving features—including hands-free driving—and a personalized, conversational AI assistant.
Earnings season is here, and this quarter I’m watching for insights from data and executive comments on how tariffs and the end of the EV tax credit are impacting the auto industry. I haven’t drawn any firm conclusions yet—and likely won’t until next quarter.
Tariffs are starting to bite, as Q3 results from GM and Ford show. GM expects tariffs to cut $2.3 billion from its 2025 profits, while Ford anticipates a $2 billion hit. Still, both figures are billions better than earlier forecasts, and the companies hope to offset the losses. CEOs from both automakers thanked President Trump for extending tariff relief on parts imported from Canada and Mexico.
More updates from GM and Ford: Ford is keeping production of its F-150 Lightning trucks on hold as it focuses on gas and hybrid F-Series models, following a fire at its main aluminum supplier, Nevolis. Meanwhile, GM CEO Mary Barra told the Verge’s Decoder podcast that GM will discontinue Apple CarPlay and Android Auto support in all its vehicles. In late-breaking news, GM has also laid off 200 salaried employees from its Warren Tech Center.
Tesla delivered a record number of vehicles in Q3 2025, thanks to U.S. buyers rushing to use the expiring federal EV tax credit. However, this didn’t boost profits—Tesla’s quarterly earnings were $1.4 billion, down 37% from the same period last year.
The National Highway Traffic Safety Administration has launched an investigation after video surfaced in early October showing a Waymo self-driving vehicle navigating around a stopped school bus unloading children in Atlanta.
Rivian is going through some changes, including laying off 600 employees (its third round of cuts this year), and its founder and CEO is now also serving as chief marketing officer. Rivian also agreed to pay $250 million to settle a class-action lawsuit from shareholders after it abruptly raised prices on its R1 pickup and SUV in 2022.
Elsewhere, I spent time in the Bay Area with leaders from Rivian’s micromobility spinoff Also. The company introduced three new products, and if president Chris Yu and Rivian CEO RJ Scaringe (who also sits on Also’s board) are right, more are on the way. For now, there’s a sleek modular pedal-assist e-bike and two pedal-assist quad vehicles—including a delivery van version that Amazon has already agreed to purchase. The standout tech story here is the focus on vertical integration and software.
