TechCrunch Mobility: The ‘robot army’ argument

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I’m sure you’ve been waiting to hear the results of last week’s polls. (Reminder: Sign up for the mobility newsletter (for participating in our poll!) Here’s what I asked: “What is the best business model for autonomous vehicle technology? (Keep profit in mind.)”

Far and away, readers think long-distance delivery is the best bet, with 40% choosing this option. Robotaxis came in next with 25.5% of the vote, followed by technology licensing to automakers with 19.1% and last-mile delivery with 14.9% of the vote. A reader emailed that I had not included warehouse applications such as autonomous forklifts. The long-distance delivery category can be broken down further, though, and is worth another poll, which we include in this week’s newsletter.

Of the long list of arguments one could justify a $1 trillion compensation package, having control over a robot army certainly didn’t cross my mind. And yet, this argument Elon Musk Made during Tesla’s third quarter earnings call.

Here’s the rundown: On Nov. 6, shareholders will vote on whether to approve a board-approved compensation package that would grant Musk up to 12% of Tesla stock. If the company hits its target market value of $8.6 trillion, that package would be worth nearly $1 trillion.

The board and Musk spent weeks lobbying shareholders to approve the measure, even as proxy advisers. Institutional Shareholder Services And Glass Lewis Investors are advised to reject it. Musk is now in attack mode, which was on display at the end of the earnings call when he called the companies corporate terrorists and made his final pitch. his The logic of the robot army Power and control center, not so much money. Although, hey, money can provide both.

“My biggest line of concern: If we build this robot army, will I have a strong influence over that robot army? If I don’t have a strong influence, I don’t feel comfortable building a robot army,” Musk said during the earnings call. He mentioned Tesla’s Optimus robot program and used it as an example of products over which he wanted full control.

That argument will do little to persuade Musk’s critics, especially given his role Head of Government Efficiency Department. But Musk doesn’t have to convince his growing list of critics, unless, of course, they own Tesla shares.

a little bird

this week, General Motors throw an ax on Brightdrop electric van program Four short years later. It wasn’t the biggest surprise in the world; After all, hundreds of unsold vans have been sitting untouched in Michigan and Canada for months. (A little bird reached out to let us know there are hundreds of them in Flint, Michigan.) GM cited an expected slow market for commercial electric vans, but didn’t go into detail about why, exactly, the BrightDrop failed so badly.

Another little bird gave us a clue, though. Vans are expensive but well-liked and should save fleet owners money over time. And electric drivetrains are a great fit for last-mile delivery. According to one insider, what GM seems to have missed is the infrastructure piece. The company leaned heavily on outside partnerships to develop so-called depot charging, rather than offering it as part of fleet purchases. This has turned away several potential customers and generally caused headaches.

Got a tip for us? Email Kirsten Korose kirsten.korosec@techcrunch.com Or my signal at kkorosec.07, or email Sean O’Kane sean.okane@techcrunch.com.

Deal!

The big topic this week is about EVs and AI data centers. Yes, there is a connection.

Redwood materials raised $350 million The Series E round was led by venture firm Eclipse, and included a new strategic investment by Nvidia’s venture capital arm, NVentures. The company’s valuation was not disclosed, but a source familiar with the round told TechCrunch it was around $6 billion, a billion more than its previous valuation.

Part of that money is going toward Redwood’s new energy storage business, which is giving a new purpose to the EV batteries it collects and has too much life left to put it through the recycling process. The company connects these retired EV batteries to renewable energy sources such as wind and solar or the grid, to power AI data centers or industrial sites.

Other deals that caught my attention this week…

Avride Secured strategic investments and other commitments $375 millionPowered by Uber and Nebius. None of these companies gave me specifics when asked if they were all equity. One insider said to pay attention to the “other commitments” bit, which suggests it wasn’t a direct cash injection.

SpiroThe African electric motorbike startup is headquartered in Dubai, raised $100 million In a round led by the Fund for Export Development in Africa (FEDA), the development arm of Afreximbank. This is the largest increase to date for African e-mobility.

Notable reading and other tidbits

General Motors An event in NYC made several announcements to show where it’s headed And, yes, AI plays a central role. Before AI could take the stage, GM said it would Electrical and Computational Gut Overhaul His future vehicle. The company will roll out a new electric architecture and centralized computing platform in new vehicles, starting with the Cadillac Escalade IQ in 2028. With more capable automated driving features Driving blindfolded; and a Custom, conversational AI assistants.

Earning season is upon us, and this quarter I’ve been looking at data and executive commentary to help me understand how tariffs and the expiring EV tax credit are impacting the automotive sector. I don’t have a clear way yet – and probably won’t until next quarter.

Tariffs are hitting, reports from Q3 GM And Ford Pointing out, for example, GM forecasts that the tariffs will reduce its 2025 profits by $2.3 billion, and Ford says it will bite $2 billion off the bottom line. But both estimates are billions of dollars better than automakers predicted earlier this year, and automakers hope to offset those costs. The CEOs of both automakers thanked President Trump for extending relief from tariffs on auto parts sourced from Canada and Mexico.

Some more GM and Ford news: Ford will continue Production breaks Among its F-150 Lightning trucks, it prioritized gas and hybrid F-Series versions to recover from the fire at primary aluminum supplier Navolis. Meanwhile, GM CEO Mary Barra Verge told Decoder Podcast that the company would drop support Apple CarPlay and Android Auto from all his vehicles. Oh, and late-breaking: There’s GM Lay off 200 salaried workers from its Warren Tech Center.

Tesla Delivered a record number of vehicles in the third quarter of 2025, a result buoyed by US consumers who took advantage of the expiring federal EV tax credit. This did not translate into greater earnings. Tesla’s third-quarter profit was $1.4 billion, down 37% from the same quarter last year.

D National Highway Traffic Safety Administration Open an investigation After watching footage from early October Waymo Autonomous cars drive around a stopped school bus unloading children in Atlanta.

Rivian The cutter is subject to a bit of a shake included 600 people From its workforce (third round of layoffs this year), and its founder and CEO are taking another stand: Chief Marketing Officer. Rivian also agreed this week to pay $250 million 2022 to settle a class-action shareholder lawsuit filed after the company suddenly raised the price of its R1 pickup truck and SUV.

Meanwhile, I spent some time in the Bay Area with executives from Rivian’s micromobility spinout company Also. The company released three new products, and President Chris Yu and Rivian CEO RJ Scaringe (and also a board member) believe more are coming. For now, this is one Slick modular pedal-assist e-bike and two pedal-assist quad vehicles – delivery van versions the amazon already have agree to buy. The big compelling technology story here is vertical integration and software.