Tesla earnings came and went, and much of it fell into the “we expected this” category. Investors seemed surprised by the $1.4 billion in free cash flow, which gave shares a brief bump, and revenue met or slightly exceeded expectations, depending on which batch of analysts you reviewed.
The earnings call, however, did deliver one eyebrow-raising moment that prompted readers (including some ex-Tesla engineers and other industry founders) to reach out to me with some schadenfreude-tinted prose. CEO Elon Musk admitted that millions of Tesla owners will need hardware upgrades to run a future, more capable version of its Full Self-Driving software that doesn’t require human supervision.
There are financial and legal implications for Tesla. As senior reporter Sean O’Kane wrote, Tesla owners with Hardware 3 cars have spent years bugging the company and Musk for a straight answer about whether they would be able to run this advanced version of Full Self-Driving — which, it should be noted, Tesla has not yet released or even proven it is capable of releasing. Tesla sold these Hardware 3 cars between 2019 and 2023.
Now, here is the kicker and it made me guffaw. Musk said the company would need to physically upgrade each of these vehicles, a feat that would require Tesla to set up microfactories in several major cities to service potentially millions of vehicles.
Microfactories? Yes, you heard correctly. This is not going to be cheap, and it could be one of the line items in Tesla’s capital expenditures budget, which it expanded to a whopping $25 billion this year.
A little bird
Image Credits:Bryce Durbin
Senior reporter Sean O’Kane obtained (and verified) an internal memo sent by Redwood Materials founder and CEO JB Straubel that announced layoffs and a restructuring. (Thanks to the little bird who shared it.) Straubel is a former CTO of Tesla.
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The company laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business. O’Kane later learned several executives have also recently left. Chief operating officer Chris Lister is retiring, and at least three other VPs have left in recent months, with the company telling TechCrunch there has been a focus on reducing layers of management.
Last week, I shared that a new autonomous hauler startup (think a cabless autonomous big rig) backed by Eclipse was about to break cover and announce a seed round, thanks to a little bird. Welp, it happened just days later.
The San Francisco-based startup, called Humble Robotics, raised $24 million in a seed round. Eclipse led the round, which also included backing by Energy Impact Partners and RedBlue Capital, a small early-stage VC firm that is surprisingly active.
As I had been told, Humble really is chock-full of Silicon Valley elite, including founder Eyal Cohen, who previously had stints at Apple special projects, Uber ATG, Pronto, and Waabi. He also founded Spark AI, which was acquired by John Deere in 2023.
Other execs include Drew Gray, who has a similarly AV-heavy résumé, including early days at Cruise, before jumping over to self-driving trucks startup Otto, which was acquired by Uber. After leaving Uber, he became CTO at Voyage, which was then acquired by Cruise.
A full-circle moment, cemented by this fun fact: Humble Robotics is in the same building Cruise was in right after the startup moved out of founder Kyle Vogt’s garage. I know, we keep circling back to 2016.
Except it’s not 2016, and Cohen and Gray talked to me about how much has changed since then, why this is the time to launch an AV startup, and where the industry is headed. Stay tuned for that story next week.
Lyft stuck to the North American market for much of its history, while Uber took a global, expand-at-all-costs strategy. Lyft has been trying to catch up since last year when it bought German multi-mobility app Freenow from BMW and Mercedes-Benz Mobility for about $197 million in cash.
Now it’s acquiring ride-hailing app Gett’s U.K. business. Lyft says the deal will give it the majority of registered black cab drivers across Greater London on the Lyft platform. The company didn’t disclose the terms, but Calcalist reported it was $55 million.
The company is also building out other means of transport in the region, including its recently renewed partnership with Serco to provide the bikes and stations for Europe’s bike-share system Santander Cycles. Lyft is also planning to start testing autonomous rides in London with Baidu later this year.
Other deals that got my attention …
A&K Robotics, a Vancouver, Canada-based maker of autonomous vehicles for airports, raised an $8 million CAD Series A round led by BDC’s Industrial Innovation Venture Fund and Vantage Futures.
Decade Energy, which provides power infrastructure at logistics depots, raised €22 million in funding led by Eiffel Investment Group and SET Ventures, along with existing investors.
Reliable Robotics, a Silicon Valley startup developing autonomous systems for aircraft, raised $160 million in a round led by Nimble Partners, existing backers Eclipse, Lightspeed, Coatue, and Pathbreaker Ventures, and new investors Island Green Capital, Socium Ventures, AE Ventures (a strategic partner of the Boeing Company), RTX Ventures, Presidio Ventures (Sumitomo Corporation), UP.Partners, KAS Venture Partners, What If Ventures, Calm Ventures, Gaingels, and Mana Ventures. History lesson: Co-founder and CEO Robert Rose had a brief stint at Tesla where he was senior director of Autopilot and helped ship that first iteration in 2015.
PlusAI and blank-check company Churchill Capital Corp IXterminated its SPAC merger deal due to market conditions.
Porsche is selling its stake in the Bugatti Rimac joint venture, which it formed in 2021, as well as electric-vehicle maker Rimac Group. Porsche, which holds a 20.6% stake in Rimac and a 45% stake in the joint venture, is selling to HOF Capital. Financial terms weren’t disclosed.
Notable reads and other tidbits
Image Credits:Bryce Durbin
Einride is adding 75 of its electric heavy-duty trucks to Amazon’s Relay freight network as part of a deal that gives the Swedish startup a toehold in the e-commerce giant’s operations.
Ford and Chinese automaker Geely reportedly held talks about extending a European tie-up into the U.S., the Wall Street Journal reported. The implications, of course, would be Chinese vehicles entering the U.S. market. But it sounds like talks have stalled, leaving this consequential deal in limbo. Bloomberg reported that Ford has denied these claims.
Porsche is adding another EV to its lineup. The Cayenne electric coupe will come to market in late summer. There’s some interesting data in my article on why this one might be a winner for Porsche.
The first customer-ready Rivian R2 SUVs rolled off the production line at its factory in Normal, Illinois, just days after it was hit by an EF-1 tornado that tore off part of the roof. Founder and CEO RJ Scaringe said Rivian doesn’t anticipate any delays to the R2, which are expected to reach customers in June.
One more thing …
Image Credits:Kirsten Korosec
As diligent readers of this newsletter know, I test-drive a fair number of vehicles, and sometimes they are not EVs. Take the Aston Martin Vantage Roadster, for instance. I was anxious to get into the roadster, not just because this $205,000 chiltern-green machine is sleek, powerful, and a convertible. I wanted to test the Apple CarPlay Ultra, the next-generation infotainment system that projects iPhone content to the vehicle’s screens (including the instrument cluster) and integrates vehicle controls like the radio, performance settings, and climate. CarPlay Ultra first launched in the Aston Martin, which isn’t exactly easy to get my hands on.
My first experience with Apple Ultra CarPlay last summer was mixed. It was great — when it worked, but it often didn’t. The problem seemed to be tied to a bug that showed two versions of the vehicle in the Bluetooth settings.
This time around, the setup was instant and it never glitched. Hooray. And it always worked. This really matters for Aston Martin, which for years was stuck with Mercedes-Benz’ old COMAND system. (Mercedes ditched that system in 2018 for its new MBUX one).
Former Deputy National Publicity Secretary of the All Progressives Congress (APC), Timi Frank, has called on President Bola Ahmed Tinubu to withdraw from the 2027 presidential election following the protest that greeted him at a mosque in Abuja.
Frank said the incident at the Shehu Shagari Central Mosque in Area 1, Garki, Abuja, should serve as a warning to the President about the level of dissatisfaction among some Nigerians over his administration.
He urged Tinubu to reconsider his second-term ambition rather than proceed with the election despite what he described as growing public opposition to his government.
The former APC chieftain also advised the President to ensure that the 2027 general election is free, fair and credible, insisting that Nigerians should be allowed to determine who leads the country through their votes.
Videos from the incident showed some individuals booing the President and chanting “Ba ma yi”, a Hausa expression meaning “we don’t want you”, as his convoy prepared to leave the premises.
Crowd Shouts ‘Bamayi’ at Tinubu, Throws Stones at His Convoy in Abuja
The protest attracted attention after footage circulated on social media.
There were also reports of individuals removing and destroying campaign posters and billboards bearing Tinubu’s image in parts of the Area 1 neighbourhood.
Nonetheless, while condemning the decision to express political grievances during a religious gathering, Frank acknowledged the efforts of the President’s security team in protecting him and preventing the situation from escalating.
However, he maintained that the reaction from some worshippers should not be ignored or dismissed as an isolated incident.
According to him, the President needs to understand the political situation in the country and pay attention to the feelings of ordinary Nigerians rather than depend entirely on assurances from political associates.
“The rejection was total and unmistakable. No Nigerian president has been embarrassed like this publicly. The way Nigerians rejected him speaks volumes. But should he decide to go ahead and he loses, he should be prepared to accept defeat just like former President Goodluck Jonathan did,” Frank said.
He further questioned the level of support Tinubu reportedly enjoys in the Federal Capital Territory, arguing that the incident at the mosque raised questions about claims made by some political figures concerning the President’s popularity in Abuja.
Frank suggested that there was a difference between the assurances political associates gave Tinubu and the political realities outside government circles.
He warned that some individuals around the President might be giving him an inaccurate picture of public opinion because of their personal interests.
“I am giving him this advice because I genuinely want him to listen to the truth. Those around him may not be telling him that he has become very unpopular and that continuing in the presidential race may be a difficult undertaking,” he said.
The former APC spokesman maintained that Tinubu should seriously consider stepping aside from the 2027 contest instead of allowing political pressure from his associates to determine his decision.
Frank also questioned the confidence expressed by some political leaders about their ability to deliver substantial votes for the President in the next election.
Nyesom Wike
He specifically mentioned FCT Minister Nyesom Wike and Edo State Governor Monday Okpebholo, questioning whether the electoral figures reportedly promised by political allies would reflect the actual choices of voters.
He argued that promises to secure 80 per cent of the votes in Abuja and 2.5 million votes in Edo State should not be taken as a guarantee of electoral victory.
According to him, political leaders should understand that making promises on behalf of voters is different from securing their support at the polling units.
Frank also referred to reactions witnessed in Abuja and Jos following political activities involving the ruling party.
He argued that such developments should encourage Tinubu to reassess the level of support his administration commands.
He further alleged that some individuals within the APC and the President’s political circle were more concerned about personal financial benefits than providing honest assessments of the government’s performance.
The former party official also brought opposition figures, including former Vice-President Atiku Abubakar and former Anambra State Governor Peter Obi, into the discussion.
He claimed that the reception given to the opposition leaders during their public appearances showed that Nigerians were increasingly interested in alternative political options ahead of the next general election.
Frank argued that the crowds received by the opposition figures were an indication that political support could not always be measured through organised rallies and the number of people mobilised by political parties.
“Wherever these opposition leaders go, Nigerians come out in large numbers to receive them without being induced with rice or money. Their reception should tell the President something about the mood of the country,” he said.
He maintained that the Tinubu administration should take public reactions seriously, particularly as political activities ahead of the 2027 elections continue to gather momentum.
Frank also linked the dissatisfaction he alleged to the economic difficulties confronting Nigerians.
He mentioned rising food prices, hunger, unemployment, insecurity and the increasing cost of living as some of the challenges affecting households across the country.
According to him, the difficulties experienced by ordinary citizens have contributed to the criticism directed at the Federal Government.
He argued that the administration needed to pay greater attention to the economic situation and the concerns of Nigerians instead of relying on political endorsements as evidence of public acceptance.
“If the President had performed well, there would be no need for the desperation we are witnessing today,” he said.
Frank also questioned the sincerity of some political endorsements received by Tinubu, alleging that certain expressions of support were driven by expectations of financial rewards and personal benefits.
He urged the President to identify those genuinely interested in the country’s progress and distinguish them from individuals whose political positions were influenced by their personal interests.
File: Election in Nigeria
Beyond his criticism of the administration, Frank warned against any attempt to manipulate the 2027 general election or undermine the wishes of voters.
He insisted that the credibility of the election would be more important than the political ambitions of any individual or party.
“Nigerians will not accept a situation in which someone is declared the winner when the people know they did not vote for him. They should not push the country into a crisis by attempting to impose him on the people,” he warned.
He called on Tinubu to respect the democratic process and ensure that the electoral authorities are allowed to conduct an election in which every vote counts.
The former APC spokesman further argued that the President could still secure a positive place in Nigeria’s political history if he chose to put the country’s democratic interests above his personal ambition.
“President Tinubu still has an opportunity to make history and have his name written in gold. He can achieve this by ensuring that the country conducts a free, fair and credible election,” he said.
Frank maintained that a transparent electoral process would allow Nigerians to freely choose their preferred candidate without intimidation, manipulation or interference.
He also stressed that the next presidential election should not become a source of political instability, warning that attempts to impose a candidate against the wishes of voters could generate serious consequences for the country.
Former President Olusegun Obasanjo has told Nigerian youths not to allow politicians to use them to cause division in the country.
Obasanjo gave the advice on Saturday shortly after he was honoured with an honorary doctorate degree by Skyline University of Nigeria in Kano.
Speaking through a recorded video message, the former president said young people must refuse any campaign built on hate, segregation, discrimination and marginalisation, no matter who is behind it.
He said youths should not sit down and wait for change, but must fight for the kind of future they want for themselves.
According to him, young Nigerians must be positively disruptive, and must be ready to shake the system in a good way to bring real development.
Obasanjo reminded them that Nigeria was built by young leaders in the past, and he mentioned the likes of Aminu Kano and Anthony Enahoro, who stood up early to serve the country.
He said age, tribe or religion should not stop any youth from making impact, adding that the future of Nigeria is in the hands of the young generation.
"Don't let politicians divide you. You must reject campaigns capable of promoting division, segregation, discrimination and marginalisation, regardless of their ethnic, religious or age differences," he said.
The former president received the honour alongside former Executive Secretary of the National Universities Commission, Prof. Abubakar Adamu-Rasheed, and Mrs. Vadana Luthra.