TechCrunch Mobility: The 'Robot Army' Argument

TechCrunch Mobility: Autonomous Vehicle Business Models and Elon Musk's Compensation

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Poll Results: Optimal Autonomous Vehicle Business Models

Many of you have been anticipating the results from last week’s poll. (Remember to join the Mobility newsletter to participate in future polls!) The question posed was: “Considering profitability, what represents the most viable business model for autonomous vehicle technology?”

The overwhelming majority, 40% of respondents, believe that long-haul delivery presents the strongest opportunity. Robotaxis followed with 25.5% of the votes. Licensing the technology to established automakers garnered 19.1%, while last-mile delivery received 14.9%.

One reader rightly pointed out the omission of warehouse applications, such as autonomous forklifts, in the original poll. However, the long-haul delivery category itself warrants further investigation, and a new poll addressing this specific area is included in this week’s newsletter.

Elon Musk and the $1 Trillion Compensation Package

Among the numerous justifications for a $1 trillion executive compensation package, control over a fleet of robots was surprisingly cited by Elon Musk during Tesla’s third-quarter earnings call.

Shareholders will vote on November 6th to approve a board-supported compensation plan that could grant Musk up to 12% of Tesla’s stock. Should the company achieve its targeted market capitalization of $8.6 trillion, this package would be valued at approximately $1 trillion.

Both the board and Musk have actively campaigned for shareholder approval. However, proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended against the measure. Musk has responded with strong criticism, labeling the firms as “corporate terrorists” during his concluding remarks on the earnings call.

The "Robot Army" Argument

Musk’s argument centers on the importance of maintaining control, rather than solely focusing on financial gain. “My biggest concern is: If we build this robot army, do I have a strong influence over that robot army? I don’t feel comfortable building a robot army if I don’t have a strong influence,” Musk stated during the call.

He referenced Tesla’s Optimus robot program as an example of products where he desires complete oversight. This line of reasoning is unlikely to sway his critics, especially given his recent role as head of the Department of Government Efficiency.

Ultimately, Musk doesn’t need to convince those already critical of him, unless they also happen to be Tesla shareholders.

BrightDrop's Electric Van Program Discontinued

General Motors recently ceased operations of the BrightDrop electric van initiative after a brief four-year run. This decision wasn't entirely unexpected, considering the substantial number of unsold vans accumulating in storage facilities across Michigan and Canada. Reports indicate a significant inventory remains in Flint, Michigan.

GM attributed the program's termination to a slower-than-anticipated adoption rate for commercial electric vans, but refrained from elaborating on the specific reasons for BrightDrop’s difficulties.

However, a source has provided insight into the situation. Despite the vans being favorably received and offering potential long-term cost savings for fleet operators, a critical element was overlooked.

The Infrastructure Challenge

The core issue appears to be a deficiency in infrastructure support. Instead of integrating depot charging solutions directly into fleet purchases, GM heavily relied on external partnerships to establish this crucial component.

This approach proved problematic, deterring numerous prospective clients and creating logistical complications. The lack of a comprehensive, in-house charging solution ultimately hindered the program’s success.

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Significant Investment Activity

This week’s key developments center around electric vehicles and the infrastructure supporting artificial intelligence. A notable synergy exists between these two sectors.

Redwood Materials successfully completed a Series E funding round, securing $350 million. The round was spearheaded by Eclipse, a prominent venture firm, and featured a new strategic investment from NVentures, Nvidia’s venture capital division.

While the company’s valuation remains undisclosed, sources indicate an approximate value of $6 billion. This represents a $1 billion increase over its prior valuation.

A substantial portion of these funds will be allocated to Redwood’s burgeoning energy storage division. This initiative repurposes EV batteries that, while no longer optimal for vehicle use, retain considerable remaining capacity.

These retired batteries are being integrated with renewable energy sources, such as wind and solar power, to provide electricity for AI data centers and industrial facilities.

Further noteworthy deals from this week include…

Avride has obtained strategic investments and commitments totaling up to $375 million. Backing comes from Uber and Nebius.

Specific details regarding the composition of this funding – particularly the proportion of equity – were not disclosed by the companies involved. However, an internal source highlighted the significance of the “other commitments,” suggesting the funding wasn’t solely a cash infusion.

Spiro, an electric motorbike startup based in Dubai with a focus on the African market, has raised $100 million in a funding round. FEDA, the development arm of Afreximbank, led the investment.

This represents the largest funding round to date for an African e-mobility company.

Industry Updates and Key Developments

General Motors recently unveiled a series of announcements during an event held in New York City, outlining its future direction. Artificial intelligence is positioned as a core component of this strategy. Prior to focusing on AI advancements, GM declared plans to significantly modernize the electrical and computational systems within its upcoming vehicles.

A new electrical architecture and a centralized computing platform will be implemented in future models, beginning with the Cadillac Escalade IQ in 2028. This foundational change is intended to enable quicker software updates, more advanced automated driving capabilities – including hands-free operation – and a personalized, voice-activated AI assistant.

The current earnings season is underway, and attention is focused on analyzing data and executive statements to gauge the impact of tariffs and the expiration of the EV tax credit on the automotive industry. Definitive conclusions remain elusive at this time, and a clearer picture is anticipated with the next quarterly reports.

The effects of tariffs are becoming apparent, as indicated by Q3 reports from both GM and Ford. GM projects a $2.3 billion reduction in 2025 profits due to tariffs, while Ford anticipates a $2 billion impact. However, these projections represent improvements compared to earlier estimates, and both companies are actively seeking ways to mitigate these costs.

CEOs from both automakers expressed gratitude to President Trump for extending a tariff relief measure concerning automotive components sourced from Canada and Mexico.

Further developments at GM and Ford include Ford’s continued pause in production of the F-150 Lightning truck, prioritizing gasoline and hybrid F-Series models following a fire at its aluminum supplier, Nevolis. Additionally, Mary Barra, CEO of GM, announced the company’s decision to discontinue support for Apple CarPlay and Android Auto across its entire vehicle lineup.

In a recent development, GM has implemented layoffs, affecting 200 salaried employees at its Warren Tech Center.

Tesla reported record vehicle deliveries in the third quarter of 2025, driven by increased demand from U.S. customers capitalizing on the expiring federal EV tax credit. However, this surge in deliveries did not translate into increased profitability.

Tesla’s third-quarter profit totaled $1.4 billion, representing a 37% decrease compared to the same period last year.

The National Highway Traffic Safety Administration has initiated an investigation following the release of footage from early October depicting a Waymo autonomous vehicle navigating around a stationary school bus during student unloading in Atlanta.

Rivian is undergoing restructuring, including workforce reductions of 600 employees – marking its third round of layoffs this year. The company’s founder and CEO is also assuming the additional role of chief marketing officer.

Rivian has also reached an agreement to pay $250 million to resolve a class-action shareholder lawsuit stemming from the company’s unexpected price increases on its R1 pickup truck and SUV in 2022.

Discussions were held with executives from Rivian’s micromobility subsidiary, Also, in the Bay Area. The company unveiled three new products and, according to president Chris Yu and CEO RJ Scaringe (who also serves on the Also board), further innovations are planned.

Currently, the offerings include a streamlined, modular pedal-assist e-bike and two pedal-assist quad vehicles, with Amazon already committed to purchasing the delivery van version. A key technological aspect of this venture is vertical integration and software development.