Elon Musk vs. Regulators: A Timeline of Conflicts

TechCrunch Mobility: Regulatory Challenges for Elon Musk's Companies

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Ongoing Regulatory Issues

Elon Musk has historically maintained a complex relationship with regulatory bodies, frequently encountering friction or circumventing established local and state regulations governing his various enterprises.

The current week has seen a heightened level of regulatory activity concerning Musk’s companies.

The Boring Company Violations

The Boring Company, Musk’s tunneling and infrastructure venture, is facing accusations of almost 800 violations as reported by Nevada regulators.

These alleged infractions include unauthorized digging, the discharge of untreated water onto public streets, a failure to implement silt fences, and the dispersal of construction site debris onto adjacent roads, as revealed by a ProPublica investigation.

Tesla's Insurance Practices Under Scrutiny

Tesla is also subject to an enforcement action initiated by California’s Department of Insurance.

The action stems from a pattern of routinely denying or delaying customer claims, despite repeated warnings issued by the state regulator. It’s important to note that Tesla operates as an insurance provider in select states.

NHTSA Investigation into Full Self-Driving

Furthermore, National Highway Traffic Safety Administration (NHTSA) has renewed its focus on Tesla.

The agency has launched an investigation into Tesla’s Full Self-Driving (FSD) technology following reports indicating the software caused vehicles to disregard traffic signals or improperly change lanes.

Significance of the FSD Investigation

While NHTSA has previously investigated Tesla, this particular inquiry is significant because it specifically targets Tesla’s Full Self-Driving driver-assistance software.

Musk, along with Tesla investors, has placed considerable emphasis on the company’s potential to lead in autonomous vehicle technology, as well as in the fields of robotics and artificial intelligence.

Impact on Tesla's Future Plans

This investigation is unlikely to completely halt Tesla’s progress; the company recently released the latest iteration of FSD (v14).

However, it represents another instance of increased oversight of the technology that Tesla is positioning as central to its future, and it raises concerns regarding the development of its robotaxi program, which utilizes a version of its FSD software.

General Motors' Autonomous Vehicle Strategy

Recent findings from a July article in Wired revealed that General Motors has been utilizing previously used Chevy Bolt EVs. These vehicles, originally part of the discontinued Cruise robotaxi initiative, are now being driven on specific roadways in Michigan, Texas near Austin, and the San Francisco Bay Area.

The purpose of this deployment is to facilitate the creation of simulation models and to advance the development of new driver-assistance systems.

It appears General Motors is continuing its pursuit of autonomous vehicle technology, potentially through unconventional methods.

Following the absorption of Cruise in December 2024, GM announced plans to integrate Cruise’s technology with its existing Advanced Driver-Assistance Systems (ADAS) to create fully autonomous vehicles for personal use.

Expanding Autonomous Vehicle Teams

Reports suggest that GM is actively expanding its autonomous vehicle team, with locations in both Austin and Mountain View.

This development occurs shortly after GM began the process of rehiring former Cruise employees, as reported by Bloomberg.

Information indicates a renewed focus on autonomous driving capabilities within the company.

We are currently investigating this matter further and welcome any insights.

Do you have information to share? Please contact Kirsten Korosec at kirsten.korosec@techcrunch.com or via Signal at kkorosec.07, or Sean O’Kane at sean.okane@techcrunch.com.

Recent Investment Activity

Joby Aviation successfully completed a share sale, distributing 30.5 million shares and generating approximately $514 million in capital. These funds are earmarked for crucial stages including securing certification, establishing manufacturing capabilities, and preparing for the launch of commercial operations.

Additionally, the raised capital will contribute to general working capital needs and other corporate objectives.

The company anticipates initiating passenger transport services utilizing its electric vertical takeoff and landing (eVTOL) aircraft in Dubai by 2026.

Following this, expansion into the United States is planned.

Despite the successful fundraising, investor response was somewhat muted, as shares were offered at a discounted price of $16.85 each.

This represents a decrease of nearly 11% compared to the previous closing price.

Other Notable Transactions

Futurail, a European company focused on developing autonomous systems for trains, secured €7.5 million in seed funding.

Asterion Ventures and Leap435 co-led the investment round, with participation from EIT Urban Mobility, Zero Infinity Partners, and Heroic Ventures.

Notably, Alex Haag, CEO and co-founder of Futurail, was recently a guest on The Autonocast, a podcast I co-host.

Listeners are encouraged to check out the episode for further insights.

Nexcade, a London-based startup specializing in automation solutions for freight forwarders, raised $2.5 million in a pre-seed round.

Connect Ventures spearheaded the funding, with contributions from MMC Ventures, Entropy Industrial Capital, and Inovia.

A significant collaboration has been established between Toyota and Metal Mining.

The two companies will jointly focus on the large-scale production of cathode materials designed for all-solid-state batteries.

These batteries are intended for use in battery electric vehicles.

Tycho AI, a startup innovating in autonomous drone navigation, secured $10 million in a Series A funding round.

FirstMark led the investment in this round.

Finally, Utilimarc, a fleet analytics and benchmarking firm based in Minneapolis, has been acquired by Smith System.

The financial details of the acquisition were not publicly disclosed.

Recent Developments in Transportation and Automotive Technology

Gavin Newsom, the governor of California, has approved legislation granting Uber and Lyft drivers within the state the ability to form unions while maintaining their status as independent contractors.

Autonomous Delivery and Robotics

Last week, we highlighted DoorDash’s internal initiative to develop its own autonomous delivery robot. Despite this ongoing internal project, the company is also pursuing external collaborations. A multi-year partnership between DoorDash and Serve Robotics has been established to deploy autonomous robots for deliveries throughout the United States.

Electric Vehicle Production

Lucid reported a record number of EV deliveries during the third quarter. Although current sales figures remain below initial projections made during the company’s public offering, the latest report indicates positive momentum.

Robotaxi Expansion

Lyft has secured another partnership focused on autonomous vehicles, this time with Tensor Auto. The companies intend to begin deploying robotaxis in both Europe and North America starting in 2027.

While Tensor Auto may be unfamiliar to some, its origins are linked to the Chinese robotaxi company AutoX. Tensor Auto evolved from AutoX, though the San Jose-based company previously confirmed to TechCrunch that its Chinese operations have been fully divested.

Infrastructure and Materials Innovation

Advancements in transportation infrastructure are also underway. Climate tech reporter Tim De Chant investigated Allium Engineering, a startup pioneering the development of paper-thin stainless steel. This material has the potential to revolutionize bridge construction techniques.

Tesla's New Vehicle Configurations

Tesla has introduced simplified versions of the Model 3 and Model Y, priced at $36,990 and $39,990 respectively. These “standard” models feature a reduced set of included features.

Several aspects of these new models are noteworthy. Notably, the base price does not include Tesla’s Autopilot system. Furthermore, while Tesla is widely recognized for its innovation in manufacturing, software, and business models, this move represents a reduction of features rather than a novel advancement.

The resulting price reduction was less substantial than previously suggested. It’s worth recalling that Elon Musk had previously discussed a $25,000 vehicle, a plan that was ultimately abandoned.

Zero Motorcycles' Strategic Shift

Zero Motorcycles has relocated its primary operations from California to a new European headquarters located in the Netherlands. The company stated that this move is intended to accelerate growth and prioritize global market opportunities.

Connect in San Francisco

Should your plans bring you to San Francisco this month, an opportunity to connect awaits. I will be attending TechCrunch Disrupt 2025, scheduled from October 27th through October 29th at Moscone West.

Furthermore, several presentations focusing on transportation are anticipated to be particularly insightful.

Key Discussions at TechCrunch Disrupt

TechCrunch is set to host a conversation with Sachin Kansal, Uber’s Chief Product Officer, and Dave Ferguson, Nuro’s Co-founder and President. This discussion will center on the developing synergy between artificial intelligence and the future of transportation.

The session is projected to explore how advancements in predictive modeling and computer vision are contributing to enhanced road safety. It will also address the role of last-mile delivery as a testing ground for autonomous technologies.

Finally, the speakers will likely delve into the challenges and requirements for achieving widespread adoption of AI-powered transportation systems.