Race to Robotaxis: Industry Faces Hurdles
Technology

Race to Robotaxis: Industry Faces Hurdles

According to analysts and industry experts, the quest for autonomous driving technology and robotaxis is proving to be a challenging and costly journey. Despite significant advancements, the path forward is obstructed by engineering challenges and regulatory scrutiny.

Tesla CEO Elon Musk highlighted progress in the company's Full Self Driving (FSD) and robotaxi initiatives, underscoring the electric car leader's strides in the sector. Meanwhile, Alphabet CFO Ruth Porat announced a $5 billion investment in Waymo, its self-driving subsidiary, to accelerate development over the coming years.

Waymo has recently begun testing a new robotaxi model in San Francisco, designed by Zeekr, a Chinese EV brand under Geely. However, General Motors (GM) faced setbacks with its Cruise Origin project. The company halted production of the autonomous vehicle?featuring subway-like doors and campfire seating?at a Detroit plant, incurring a $583 million charge.

Musk criticized GM's handling of the Cruise Origin, attributing the production halt to technology issues rather than regulatory obstacles. GM responded sharply, labeling Musk's comments as "blatantly false."

Cruise, which has faced multiple investigations"including by the NHTSA, Justice Department, and SEC" has come under intense scrutiny following an October accident involving a robotaxi that struck and dragged a pedestrian. In response, California revoked Cruise's driverless vehicle permit, leading to significant criticism.

Kyle Vogt, Cruise's co-founder who resigned as CEO in November, criticized GM's management, drawing parallels to the company's previous failure to capitalize on its early electric vehicle lead. Despite these challenges, GM's CEO Mary Barra remains optimistic, noting resumed robotaxi testing in three cities and the recent hiring of a new CEO. Barra has projected that Cruise could generate $50 billion in annual revenue by 2030, despite the division's $8 billion losses since 2017 and recent spending cuts.

The autonomous driving and robotaxi race continues to evolve, with significant investments and setbacks shaping the future of this transformative technology.

According to analysts and industry experts, the quest for autonomous driving technology and robotaxis is proving to be a challenging and costly journey. Despite significant advancements, the path forward is obstructed by engineering challenges and regulatory scrutiny. Tesla CEO Elon Musk highlighted progress in the company's Full Self Driving (FSD) and robotaxi initiatives, underscoring the electric car leader's strides in the sector. Meanwhile, Alphabet CFO Ruth Porat announced a $5 billion investment in Waymo, its self-driving subsidiary, to accelerate development over the coming years. Waymo has recently begun testing a new robotaxi model in San Francisco, designed by Zeekr, a Chinese EV brand under Geely. However, General Motors (GM) faced setbacks with its Cruise Origin project. The company halted production of the autonomous vehicle?featuring subway-like doors and campfire seating?at a Detroit plant, incurring a $583 million charge. Musk criticized GM's handling of the Cruise Origin, attributing the production halt to technology issues rather than regulatory obstacles. GM responded sharply, labeling Musk's comments as blatantly false. Cruise, which has faced multiple investigationsincluding by the NHTSA, Justice Department, and SEC has come under intense scrutiny following an October accident involving a robotaxi that struck and dragged a pedestrian. In response, California revoked Cruise's driverless vehicle permit, leading to significant criticism. Kyle Vogt, Cruise's co-founder who resigned as CEO in November, criticized GM's management, drawing parallels to the company's previous failure to capitalize on its early electric vehicle lead. Despite these challenges, GM's CEO Mary Barra remains optimistic, noting resumed robotaxi testing in three cities and the recent hiring of a new CEO. Barra has projected that Cruise could generate $50 billion in annual revenue by 2030, despite the division's $8 billion losses since 2017 and recent spending cuts. The autonomous driving and robotaxi race continues to evolve, with significant investments and setbacks shaping the future of this transformative technology.

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?