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Tesla CEO Elon Musk finds himself in a challenging position. He has pushed hard for shareholders to view Tesla as an AI and robotics company rather than just an electric vehicle manufacturer. Yet, the bulk of Tesla’s revenue still comes from its electric cars. While Tesla’s EVs are advanced—particularly in vehicle architecture and software—and its Full Self-Driving Supervised system is among the most capable driver-assistance technologies available, Musk’s vision of Tesla as an AI leader hinges on self-driving cars and humanoid robots, neither of which exist at scale today.
Tesla took its first notable step toward this goal in June by launching a limited robotaxi service in Austin, Texas. These Robotaxi-branded vehicles, available to invited customers via an app, still require a Tesla employee in the front passenger seat—far from Musk’s original vision of a fully autonomous ride-hailing service where Tesla owners could rent out their vehicles.
With time running short, Musk needs to demonstrate progress or at least tease upcoming launches to reassure shareholders. This urgency may explain Tesla’s recent move into ride-hailing in California. Earlier this month, Musk stated that Tesla would launch a robotaxi service in the Bay Area within “a month or two,” citing regulatory approvals as the primary hurdle. However, as of last Friday, Tesla had not even applied for the necessary permits with the California DMV, which oversees driverless testing. A DMV spokesperson confirmed a meeting with Tesla to discuss autonomous vehicle testing plans but noted no permit applications had been submitted.
Instead, Tesla has launched a ride-hailing service in the Bay Area, which some users—including Musk’s brother and Tesla board member Kimbal Musk—have mistakenly referred to as robotaxis. To be clear, these vehicles are not autonomous. Tesla lacks the permits to operate any form of self-driving service, meaning these rides are simply Tesla employees driving customers in company-owned EVs.
This move has left many questioning Tesla’s strategy. The likely answer? Optics.
In other news, recent reports suggest the National Automobile Dealers Association is focusing its opposition to direct sales on Scout, an EV spinout from Volkswagen Group. Unlike Tesla, Rivian, and Lucid, Scout is tied to a legacy automaker with an established dealer network, making it a unique target for the dealership lobby.
On the deals front, logistics company Flexport has sold the Convoy platform to DAT Freight & Analytics. While terms were undisclosed, reports indicate the sale brought in $250 million—a significant return on Flexport’s initial $16 million investment in the once-$3.8 billion freight tech unicorn.
Other notable deals include Israel-based eVTOL startup AIR raising $23 million in Series A funding and LG Innotek investing up to $50 million in lidar company Aeva as part of a broader manufacturing partnership.
In autonomous vehicle developments, Aurora reported progress in its Q2 earnings, with three self-driving trucks operating commercially between Dallas and Houston and plans to expand operations. Meanwhile, Elon Musk’s Boring Company announced plans to build a 10-mile tunnel loop in Nashville, though construction won’t begin immediately.
Ford is set to reveal more details about its upcoming low-cost EVs at an event in Kentucky, while Joby Aviation has partnered with defense contractor L3Harris to explore hybrid VTOL aircraft for defense applications.
Lyft is making moves in autonomy, planning to add Benteler Group’s autonomous shuttles to its network by late 2026. Waymo, meanwhile, is preparing to launch a robotaxi service in Dallas next year, partnering with Avis Budget Group for fleet management—though two of its autonomous vehicles recently collided in Phoenix, highlighting ongoing challenges.
Chinese AV company WeRide has secured an autonomous driving permit in Saudi Arabia, adding to its existing approvals in multiple countries.
Finally, Waymo co-CEO Tekedra Mawakana will join the Disrupt Stage at TechCrunch Disrupt 2025 for a discussion on the future of autonomous vehicles. The event takes place October 27–29 in San Francisco.