Welcome back to TechCrunch Mobility, your essential source for the latest news and insights shaping the future of transportation. This week, the autonomous vehicle sector saw significant developments, with Tesla making strategic shifts in its automated driving offerings and Waymo facing a federal investigation. Meanwhile, a wave of investments is fueling innovation across drone delivery, robotics, and other mobility technologies.

Tesla's Strategic Shift: Autopilot Out, FSD In

Tesla has made several pivotal moves this week, just ahead of its quarterly earnings release, signaling a renewed focus on its advanced automated driving technology. The company launched driverless robotaxi rides in Austin, Texas, using modified Model Y vehicles running an advanced, "unsupervised" version of its Full Self-Driving (FSD) software. While not all of Austin's fleet will be fully driverless, and chase vehicles are reportedly used, this marks a significant step towards broader deployment.

In a parallel development, Tesla has discontinued Autopilot, its advanced driver-assistance system first introduced in 2014. Autopilot, which included features like traffic-aware cruise control and Autosteer, was popular but also controversial due to its name implying greater capabilities than it possessed. Tesla had previously made a basic version standard, while charging for the more robust FSD (Supervised) system.

This decision comes shortly after Tesla announced it would transition all FSD customers to a monthly subscription model, eliminating the one-time $8,000 purchase fee. These combined actions suggest a clear strategy: Tesla aims to boost FSD revenue as it increasingly positions itself as an AI and robotics company.

However, another factor might be at play. Tesla faces a potential 30-day suspension of its manufacturing and dealer licenses in California. A December ruling found Tesla engaged in deceptive marketing by overstating Autopilot and FSD capabilities. While the ruling is stayed for 60 days, dropping the Autopilot name while pushing FSD could be a bold attempt to satisfy the DMV and comply with regulatory demands.

NTSB Investigates Waymo Over School Bus Incidents

In breaking news, the National Transportation Safety Board (NTSB) has launched an investigation into Waymo. This probe follows numerous reports of Waymo's robotaxis illegally passing stopped school buses in at least two states. Read the full story here.

Deals and Investments Fueling Mobility Innovation

The mobility sector continues to attract significant investment, with several companies securing substantial funding rounds and making strategic acquisitions this week.

  • Zipline, the autonomous drone-delivery and logistics pioneer, has secured $600 million in new funding, valuing the company at $7.6 billion. Known for its decade-long work delivering blood in Rwanda and expanding into the U.S., Zipline's growth accelerated after launching its P2 drone platform in 2025, focusing on home delivery. The company plans to expand its service to Houston and Phoenix, with at least four more U.S. states targeted for 2026. Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global participated in the round.
  • ABZ Innovation, a European manufacturer of heavy-duty agricultural and industrial drones, raised $8.2 million. Vsquared Ventures led the funding, with participation from Assembly Ventures and Day One Capital.
  • Ethernovia, a San Jose-based startup developing Ethernet-based systems for autonomous vehicles, secured $90 million in a Series B round. Maverick Silicon, an AI-focused fund launched in 2024 by hedge fund Maverick Capital, led the investment.
  • Serve Robotics, the Nvidia and Uber-backed sidewalk delivery robot company, acquired Diligent Robotics in a deal valuing the common stock at $29 million. Diligent Robotics develops Moxi robots, designed to assist in hospitals with tasks like delivering lab samples and supplies. This acquisition highlights a growing trend of crossovers between autonomous vehicle tech and robotics.
  • Terralayr, a German grid-scale battery storage company, raised €192 million in a round led by Eurazeo, with RIVE Private Investment, Creandum, Earlybird, Norrsken VC, and Picus Capital also participating.
  • TrueCar founder Scott Painter reacquired the company in a $227 million deal through his firm Fair Holdings, alongside partners AutoNation, PenFed Credit Union, and Zurich North America. TrueCar will now operate as a private entity, with Painter returning as CEO.

Notable Reads and Industry Tidbits

  • Austin Russell, founder and former CEO of the bankrupt lidar company Luminar, has agreed to accept an electronic subpoena for phone information related to Luminar's ongoing bankruptcy proceedings.
  • Chinese automaker Geely Holding Group unveiled its five-year blueprint, which includes ambitious robotaxi plans. By 2030, its Cao Cao Mobility ride-hailing unit aims to operate a fleet of 100,000 robotaxis across major Chinese cities, with future international expansion hinted.
  • General Motors (GM) is shifting production of two gas-powered vehicles from China and Mexico to a U.S. factory in Kansas. This move will also mark the end of production for the rebooted Chevrolet Bolt EV, currently the sole vehicle built at the Fairfax Assembly Plant. More details on the Chevy Bolt EV's production end are available here.
  • Tesla plans to restart work on Dojo3, the company's previously abandoned third-generation AI chip. CEO Elon Musk stated that Dojo3 will not focus on self-driving models but instead be dedicated to "space-based AI compute."
  • Waymo has officially launched its robotaxi service in Miami, gradually accepting riders from its nearly 10,000-strong local waitlist.

A Cross-Country FSD Journey

In a remarkable demonstration, Alex Roy, co-host of the Autonocast, recently completed a journey from Los Angeles to New York in a Tesla Model S, with the vehicle's Full Self-Driving (FSD) Supervised software handling all driving tasks. Roy, a veteran of transcontinental "Cannonball Run" records, reported that FSD version 14.2.2.3 autonomously managed the entire 3,081-mile trip, including highway exits and parking at EV chargers, completing it in 58 hours and 22 minutes. This feat underscores the evolving capabilities of advanced autonomous driving systems.