Tesla Robotaxi Miles Plummet Amid AI Data Concerns

Tesla's latest earnings report indicates a significant drop in its robotaxi service, with paid miles decreasing by approximately 36% in the most recent quarter. This decline occurs as CEO Elon Musk disclosed that the upcoming Cybercab requires new driving data, necessitating retrofitting with steering wheels and pedals for calibration. This approach contrasts with Tesla's prior assertion that its extensive customer fleet data could be leveraged for autonomous systems.

Financially, Tesla is heavily investing in next-generation products, leading to doubled capital expenditures and a return to negative free cash flow, despite a year-over-year increase in revenue. Net income saw a 5% decrease compared to the previous year.

In parallel, Travis Kalanick has re-entered the mobility scene with Atoms, a rebranded entity that acquired industrial automation startup Pronto. Atoms has secured $1.7 billion in capital, with major backing from Andreessen Horowitz. This funding is earmarked for significant investments in Industrial AI and physical automation, particularly for mining and transport sectors.

Other industry developments include Einride's acquisition of charging startup Flipturn for $38 million, IBM's purchase of quantum computing lab HRL Laboratories, and battery materials startup Sila raising $300 million to expand its manufacturing capacity. Aurora has launched its second-generation driverless trucks, aiming for a fleet of 200 by year-end, while Ford plans to integrate Apple Maps into its EVs starting in 2027.

The Insurance Institute for Highway Safety reported Waymo's driverless cars have lower crash involvement rates than human drivers. Mobileye's founder and CEO Amnon Shashua is set to step down. The NHTSA is exploring new vehicle exit requirements following a petition concerning Tesla Model 3s. Rivian is suing the U.S. government over tariffs, and two Volkswagen engineers face charges for securities fraud related to insider trading.

Waymo is reportedly discussing an end to its contract with Uber, with Waymo intending to launch its own app in Austin and Atlanta by January 2028, prior to the contract's expiration in May 2028. WhatsApp is also rolling out new features, including an updated experience for Apple CarPlay and Android Auto.