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).
BY NKECHI NAECHE-ESEZOBOR—The Nigerian Insurers Association (NIA) has expressed deep sorrow over the death of former President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Barrister Rotimi Edu, describing his passing as a monumental loss to Nigeria’s insurance industry.
In a statement issued by the association, the NIA said the late Edu was an outstanding leader, accomplished legal practitioner, and a respected figure whose contributions significantly shaped the growth and regulatory development of the insurance sector in Nigeria.
The association noted that Edu, who served as the 21st President of the NCRIB, was widely admired for his commitment to professionalism, ethical standards, and industry unity. According to the NIA, he championed stronger collaboration between insurance brokers and underwriters, helping to deepen cohesion within the sector.
“Barrister Rotimi Edu was a titan whose dedication to professionalism and ethical conduct remained exemplary throughout his career. His passing leaves a huge vacuum that will be deeply felt across the financial services industry,” the statement read.
The NIA further highlighted his strategic contributions as a member of the National Institute for Policy and Strategic Studies (NIPSS), Kuru, where he consistently advocated reforms aimed at aligning the insurance industry with evolving economic realities.
The association extended its condolences to the President and Governing Board of the NCRIB, the entire brokerage community, as well as Edu’s family, friends, and professional associates.
While mourning his death, the NIA said it takes solace in the enduring legacy of integrity, visionary leadership, and institutional progress he left behind.
The association prayed for the peaceful repose of his soul and for strength for his family and the insurance industry to bear the irreparable loss.
A Fulani group, under the auspices of Concerned Amalgamated Fulani Association, has warned Plateau State Governor, Barr. Caleb Manasseh Mutfwang to retract the recent shoot-on-sight order he gave security agencies in the state against anyone found destroying farmlands in the state.
Mutfwang, worried at the renewed violence that has engulfed the state leading to the death of over 50 people in the last month, gave the order during a condolence visit to Barkin Ladi Local Government Area last week.
While many have applauded the Governor over what they believe is a bold step towards curtailing the series of attacks and killings allegedly carried out by Fulani bandits and Islamic extremists, the Fulani group has, however, warned the Governor that he is playing with fire by giving the order which it said is partisan and aimed at targeting the Fulani people.
In a statement issued on Saturday by the coordinator of the group, Modibo Sule, the order is bound to backfire and instead of having the effect it aims at, would be counter-productive if Fulani people decide to defend themselves in the face of attacks from ethnic militia gangs.
“His Excellency, Barr. Caleb Mutfwang, the Executive Governor of Plateau State last week gave security agencies a shoot-on-sight order against anyone caught destroying farmlands in the state,” the group said in the statement.
“The order, according to the Governor, is to checkmate the lingering attacks and violence in the state but what we will remind the Governor is that the order seems to be one-sided, partisan, and seemingly aimed at Fulani people and in the long run, will be counterproductive.
“We want Governor Mutfwang to understand that no matter his good intentions, such an order has shown that he does not have the interest of the Fulani people at heart.
“Our people are peace-loving and have been living in peace with their neighbours in different communities until the natives began attacking them, killing them, stealing their cattle, and destroying their means of livelihood. In such unprovoked attacks, does anyone expect us to sit back and watch our people being destroyed?
“While the order from the Chief Security Officer of Plateau State is a firm stance against farm destruction and addresses a core livelihood threat to many communities, the order appears one-sided.
“It gives limited public emphasis to parallel grievances, including killings of herders, cattle rustling, poisoning of grazing fields and water sources, and destruction of livestock. This selective focus risks deepening mistrust.
“It is a selective enforcement that cannot deliver lasting peace. Insecurity in the state thrives on cycles of reprisals fueled by perceived bias. Partial measures that target one side while appearing to ignore the other only breed resentment, encourage underground retaliation, and erode confidence in government and security institutions.
“We demand equal justice for all and say no to favoritism, tribalism, ethnic, and religious bias from the government.
“Every criminal act, whether farm destruction, herder killings, livestock rustling, or attacks on communities, must be pursued with the same vigour regardless of the perpetrator’s identity.
“True security lies in impartiality, accountability, and even-handed protection of lives and livelihoods for farmers and herders alike. Anything less perpetuates the conflict rather than resolving it. Only fairness can break the cycle,” the group said.