General Motors (GM) has officially launched layoffs at its self-driving robotaxi business Cruise, coming just months after the automaker first announced plans to cut funding and wind down operations for the startup.
In December, GM said that it would funding and end Cruise, after the company lost its permit to operate autonomous vehicles and saw major staff shake-ups following an accident involving one of its robotaxis in October 2023. In an all-hands meeting on Tuesday, Cruise said that GM has officially acquired the remainder of the company as it starts to lay off 50 percent of its remaining staff, according to a report from The Verge.
“We are grateful for their passion and contributions to help us reach this stage, and our focus is on supporting them into their next chapter with severance packages and career support,” said Sara Autio, a Cruise spokesperson. “While not an easy decision, we are focused on combining efforts with General Motors to accelerate autonomy at scale on personal autonomous vehicles.”
With the winding down of Cruise, GM will move away from the commercial robotaxi business altogether, and instead focus on in-house driver assistance development.
“By combining the specialized technology and talent at Cruise with our team developing Super Cruise, we’ll have the ability to accelerate our work on both assisted-driving and autonomous driving,” said Dave Richardson, SVP of software and services engineering at GM. “We look forward to teaming with Cruise to accelerate our work together.”
READ MORE ON GM’S CRUISE:
- Cruise forced to boost settlement offer in California accident hearing
- Cruise ordered to pay max penalty for delayed accident report
Cruise down memory lane: the October 2023 accident and subsequent downfall
Just a couple of months after gaining approval to operate its autonomous ride-hailing service 24 hours a day in San Francisco, a Cruise robotaxi seriously injured a pedestrian who had been hit by a vehicle with a human driver on October 3, 2023. The pedestrian was plunged into the path of the Cruise vehicle by the first impact, at which point the robotaxi attempted to engage an emergency pull-over maneuver, dragging the pedestrian and eventually stopping and pinning the person under its rear axle.
Authorities arrived on scene and used the Jaws of Life to lift the vehicle off the pedestrian, before rushing them to the hospital, according to the San Francisco Fire Department.
The California Department of Motor Vehicles (DMV) immediately suspended Cruise’s permit to operate autonomous vehicles after the accident. Multiple founding executives would go on to step down from the company, and an initial round of layoffs affecting about a quarter of the company came a couple of months later.
Cruise also faced significant scrutiny over its failure to disclose certain details about its response to the accident, facing investigation efforts from the state’s DMV, the California Public Utilities Commission (CPUC) and the National Highway Traffic Safety Administration (NHTSA), which later ordered the company to pay a $1.5 million fine.
While GM spent most of last year talking up its efforts to regain public and regulatory trust and to relaunch Cruise services, the company announced plans to end funding for the business in December, citing “the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market.”
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Former Cruise CEO launches robotics firm with ex-Tesla AI manager
Need accessories for your Tesla? Check out the Teslarati Marketplace:
News
Volkswagen teams with Uber for robotaxi service with the ID. Buzz
Volkswagen and Uber team up to launch a driverless ID. Buzz robotaxi fleet in U.S. cities. Testing starts in LA this year.

Volkswagen of America and Uber unveiled a plan to launch a commercial robotaxi service using autonomous electric ID. Buzz vehicles across U.S. cities over the next decade. The partnership marks a significant step for Volkswagen’s autonomous vehicle ambitions, leveraging Uber’s ride-hailing expertise.
The service will debut in Los Angeles by late 2026, with human safety operators initially overseeing the fleet before transitioning to fully driverless operations in 2027. Volkswagen ADMT, the German automaker’s autonomous subsidiary, will begin testing in Los Angeles later this year upon securing a testing permit from the California Department of Motor Vehicles. The California Public Utilities Commission will oversee permits for the commercial ride-hailing phase.
“Volkswagen is not just a car manufacturer — we are shaping the future of mobility, and our collaboration with Uber accelerates that vision,” said Christian Senger, CEO of Volkswagen Autonomous Mobility. “What really sets us apart is our ability to combine the best of both worlds–high-volume manufacturing expertise with cutting-edge technology and a deep understanding of urban mobility needs.”
The Trump administration’s recent policy shift, announced last Thursday by Transportation Secretary Sean Duffy, supports initiatives like VW and Uber’s partnerships by easing federal safety rules and crash reporting requirements on autonomous vehicle development. According to Duffy, the United States government wants to outpace Chinese competitors in autonomous vehicle development.
Volkswagen ADMT, which launched publicly in July 2023, has been testing 10 ID. Buzz vehicles equipped with Mobileye’s autonomous technology in Austin, reported TechCrunch. Two years ago, Volkswagen focused on selling self-driving vans and fleet management software rather than building its own ride-hailing service. VW’s strategy toward autonomous vehicles appears to have shifted, as reflected in its Uber partnership.
Uber will strengthen its autonomous vehicle portfolio through its partnership with Volkswagen. The ride-hailing service company has secured deals with over 14 firms, including Waymo in Austin and a forthcoming launch in Atlanta.
The Volkswagen-Uber collaboration positions both companies to capitalize on the growing robotaxi market. With testing imminent and regulatory support increasing, the ID. Buzz fleet could redefine urban mobility, blending Volkswagen’s manufacturing prowess with Uber’s ride-hailing network to compete in the evolving autonomous vehicle landscape.
News
These automakers are pushing to overturn California’s gas car ban
This lobbying group represents Detroit’s Big Three automakers, as well as several others selling vehicles in the U.S.

A lobbying group made up of several automakers is pushing Congress to ban California’s plan to phase out and ban new gas car sales altogether by 2035, ahead of a vote that could also affect the 11 other states that have followed with similar plans.
The Alliance for Automotive Innovation (AAI), an organization representing the interests of Ford, General Motors (GM), Stellantis, Toyota, Volkswagen, Hyundai, and several others, recently sent a letter to Congress requesting that it overturn a waiver granted to California letting it set its own emissions rules.
Later this week, the U.S. House of Representatives will vote on overturning the waiver granted to California under the 1968 Clean Air Act to impose the tightened standards, according to Reuters. In the previous letter, the AAI argued to Congress that automakers would be “forced to substantially reduce the number of overall vehicles for sale to inflate their proportion of electric vehicle sales,” adding that it would also boost prices and reduce competition in the market.
The waiver, enacted under the Biden administration’s Environmental Protection Agency (EPA), allows California to mandate at least 80 percent electric vehicle sales by 2035 under the Clean Air Act. The passage of disapproval of the waiver is being ushered under the Congressional Review Act, and an initial vote in the House of Representatives is set to take place on Wednesday.
READ MORE ON STATE EMISSIONS RULES: Tesla could face emissions credit tax in Washington
The U.S. Court of Appeals for the District of Columbia backed the EPA’s decision to grant the waiver last April, following a challenge from 17 Republican-run states. The group claimed that California was being given unconstitutional regulatory power in the decision, adding that other states didn’t have those same powers.
In December, the U.S. Supreme Court agreed to hear out bids from Valero, the AAI, and other groups to oppose the 2035 California gas car sales ban, which would begin phasing them out in 2026 if the waiver remains in place.
You can see the full list of members of the AAI below, including automakers and a handful of other tech companies.
Companies represented by the Alliance for Automotive Innovation (AAI)
Here’s the full list of AAI members, according to the lobbying group’s website:
- AESC
- AISIN
- Aptiv
- Autoliv
- BMW Group
- Bosch
- Denso
- Emergency Safety Solutions
- Ferrari
- Ford
- GM
- Harman
- Honda
- Hyundai
- InEos Automotive
- Infineon
- Isuzu
- Jaguar-Land Rover
- Kia
- LG
- Luminar
- Magna
- Mazda
- McLaren
- Mercedes-Benz
- Mitsubishi Motors
- Nissan
- Nuro
- Panasonic
- Porsche
- Qualcomm
- RV Industry Association
- Samsung
- SiriusXM
- SK On
- Stellantis
- Subaru
- Texas Instruments
- Toyota
- Uber
- VinFast
- Volkswagen
- Volvo
- Zoox
California proposal to allow self-driving tests for heavy-duty trucks
News
Neuralink’s third brain chip patient shares first video edited with BCI
The third Neuralink brain chip patient is the trial’s first patient with ALS and its first non-verbal patient, and he has detailed his experience regaining speech and more.

Elon Musk’s Neuralink has officially installed its brain-chip interface (BCI) into a third human patient, and the individual shared a video this week detailing his experiences gaining control of external devices and regaining the ability to talk through the use of AI.
On Monday, X user Bradford G Smith shared a video detailing his experience as the third person in the world to receive the Neuralink BCI, and as the first non-verbal patient and the first with Amyotrophic Lateral Sclerosis (ALS) to receive the implant. In the video, Smith details how the BCI works, how it’s less limiting than his previous eye tracker technology, and how it has literally helped him regain his voice through AI.
“I am typing this with my brain,” Smith wrote. “It is my primary communication.”
The video, which he says is the first edited directly with a BCI, is narrated by an AI-generated version of his old voice. Prior to the BCI, he was also unable to leave the house using his eye tracker, as it made it difficult to communicate unless he was in dark or low-light settings.
The video also shows how he’s able to connect with external devices using the BCI, with a live shots of him controlling his computer using a cursor.
You can see the full update below, which runs a little under 10 minutes.
READ MORE ON NEURALINK: Elon Musk: over 1,000 humans with Neuralink implants in 2026 is feasible
The news follows Neuralink’s initial update with Brad and other initial BCI patients, as was shared in a post on the company’s website in February. In it, Brad also explained how groundbreaking it was to be able to communicate outside and see his son win a robotics award, along with being able to consider leaving the city area for the first time in half a decade:
The most significant thing that happened this week will sound strange to you: I got to use the computer on the porch, and it worked!!
I went to [my child’s] soccer game, and the referee thought I was sleeping. I was actually able to talk outside. I [am] actually thinking about traveling outside the [city] metro [for] the first time in 5 years.
Both of Neuralink’s studies focus on restoring autonomy to people who are paraplegic through the use of external devices. The company gained initial approval from the U.S. Food and Drug Administration (FDA) to install the first BCI in a human patient in May 2023, with Noland Arbaugh being the first, a patient named Alex being the second, and Brad being the third.
Neuralink opened its Patient Registry worldwide earlier this month, allowing participants to submit to take part in the company’s initial PRIME and CONVOY studies. The firm also announced plans to operate the PRIME study out of a second location in Miami, Florida in January, after an initial location was launched in Phoenix, Arizona.
Last week, it was reported by Bloomberg that Neuralink is currently targeting a $500 million funding round at a valuation of $8.5 billion. Meanwhile, Neuralink has also been constructing office buildings near Austin, Texas, which initially aimed to be completed in May 2025.
-
News1 week ago
Tesla’s Hollywood Diner is finally getting close to opening
-
Elon Musk2 weeks ago
Tesla doubles down on Robotaxi launch date, putting a big bet on its timeline
-
News4 days ago
Tesla is trying to make a statement with its Q2 delivery numbers
-
News2 weeks ago
Tesla’s top investor questions ahead of the Q1 2025 earnings call
-
News2 weeks ago
Underrated Tesla safety feature recognized by China Automotive Research Institute
-
News2 weeks ago
Tesla reveals its Q1 Supercharger voting winners, opens next round
-
News2 weeks ago
Tesla police fleet saves nearly half a million in upkeep and repair costs
-
Investor's Corner7 days ago
LIVE BLOG: Tesla (TSLA) Q1 2025 Company Update and earnings call