Welcome back to TechCrunch Mobility, your essential guide to the future of transportation. After a brief hiatus, we are diving into the significant developments of early 2026, starting with the Consumer Electronics Show (CES) in Las Vegas, where "physical AI" emerged as a dominant theme. This edition also covers crucial shifts in global automotive trade and a roundup of recent deals and news shaping the mobility landscape.

CES 2026: The Ascendance of Physical AI and Robotics

The annual CES event in Las Vegas once again underscored a changing tide in the automotive sector. Notably, U.S. automakers were largely absent, a trend observed in previous years. Their void was filled by a robust presence of autonomous vehicle (AV) technology companies like Zoox, Tensor Auto, Tier IV, and Waymo (which recently rebranded its Zeekr robotaxi), alongside Chinese automakers such as Geely and GWM, and numerous software and automotive chip firms.

A standout concept championed by Nvidia CEO Jensen Huang was "physical AI," sometimes referred to as "embodied AI." This term describes the application of artificial intelligence beyond the digital realm, extending into the real, physics-based world. By integrating AI models with sensors, cameras, and motorized controls, physical AI enables machines—from humanoid robots and drones to autonomous forklifts and robotaxis—to perceive their environment, understand it, and make operational decisions. Its pervasive presence at CES spanned diverse sectors, including agriculture, industrial manufacturing, wearables, and, of course, autonomous vehicles and robotics.

Hyundai commanded one of the most prominent exhibits, drawing constant crowds. Instead of traditional cars, the Korean automaker showcased a range of robots, including the Atlas humanoid robot from its subsidiary, Boston Dynamics. Innovations from the Hyundai Motor Group Robotics LAB were also on display, featuring a robot designed to charge electric autonomous vehicles and the Mobile Eccentric Droid (MobEd), a four-wheel electric platform slated for production this year. The widespread embrace and exhibition of robotics, particularly humanoids, was unmistakable.

The palpable excitement surrounding humanoids and physical AI prompted a conversation with Mobileye co-founder and president Amnon Shashua, whose company recently acquired a humanoid robotics startup for $900 million. When asked about the "hype" surrounding humanoid robots, Shashua offered a historical perspective:

"The internet was also a hype, remember in 2000, the crisis of the internet. It did not mean that [the] internet is not a real thing. Hype means that companies are overvalued for a certain period of time, and then they crash. It does not mean that the domain is not real. I believe that the domain of humanoids is real."

Further insights from CES 2026 included:

Navigating the Geopolitics of Automotive Trade

Beyond CES, recent comments from President Trump at a Detroit Economic Club meeting regarding Chinese automakers entering the U.S. market have stirred significant concern within the auto industry. Insiders report that the Alliance for Automotive Innovation, a leading industry lobbying group, is "freaking out." Trump stated, "If they want to come in and build a plant and hire you and hire your friends and your neighbors, that's great, I love that. Let China come in, let Japan come in."

However, the path for Chinese automakers is complicated. While Japanese companies like Toyota are already well-established in the U.S., existing legal frameworks pose a substantial hurdle for Chinese manufacturers. In 2025, the U.S. Department of Commerce's Bureau of Industry and Security issued a rule restricting the import and sale of connected vehicles and related hardware/software linked to China or Russia, effectively banning Chinese vehicle sales in the country.

Avery Ash, CEO of SAFE, a nonpartisan organization focused on U.S. energy and supply chain security, warned against allowing Chinese automakers to sell vehicles in the U.S. "Welcoming Chinese automakers to build cars here in the U.S. will reverse these hard-won accomplishments and put Americans at risk," he stated. "We've seen this strategy backfire in Europe and elsewhere – it would have potentially catastrophic impacts on our automotive industry, have ripple effects on our entire defense industrial base, and make every American less secure."

In contrast, Canada appears to be opening its doors. Canadian Prime Minister Mark Carney announced plans to slash the country's 100% import tax on Chinese EVs to just 6.1%, as Sean O'Kane reported.

Got a tip for our "Little Bird" section? Email Kirsten Korosec at [email protected] or her Signal at kkorosec.07, or Sean O'Kane at [email protected].

Mobility Deals and Investments

The mobility sector saw several significant financial activities:

  • Budget carrier Allegiant agreed to acquire rival Sun Country Airlines for approximately $1.5 billion in cash and stock.
  • Dealerware, a provider of software services for automotive OEMs and retailers, was acquired by a group of investors led by Wavecrest Growth Partners and Radian Capital. Terms were undisclosed.
  • Long-distance bus and train operator Flix acquired a majority stake in European airport transfer platform Flibco.
  • JetZero, a Long Beach, California-based startup developing fuel-efficient triangular aircraft, secured $175 million in a Series B round led by B Capital, Bloomberg reported.
  • Joby Aviation, a developer of electric air taxis, reached an agreement to acquire a 700,000-square-foot manufacturing facility in Dayton, Ohio, to support its goal of doubling production to four aircraft per month by 2027.
  • Luminar struck a deal to sell its lidar business to Quantum Computing Inc. for just $22 million, a stark contrast to its $11 billion valuation peak in 2021.

Other Notable Mobility News