Tesla FSD Upgrades, AV Deals & Mobility News

TechCrunch Mobility: Tesla, AV startups, deals and more

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Tesla earnings and the FSD hardware problem

Tesla's latest earnings largely matched expectations. Revenue met or slightly exceeded analyst forecasts, and the company reported $1.4 billion in free cash flow that gave shares a brief lift.

But the earnings call produced one eyebrow-raising moment. CEO Elon Musk said millions of Tesla owners will need hardware upgrades to run a more capable version of Full Self-Driving (FSD) that doesn't require human supervision. That announcement drew immediate attention from ex-Tesla engineers, industry founders and readers, many of whom reached out with skeptical commentary.

"Millions of Teslas may need physical hardware upgrades to support future FSD."

There are clear financial and legal implications. Owners of cars equipped with Hardware 3 (sold between 2019 and 2023) have long asked Tesla whether their vehicles would support the next-generation FSD. Tesla has not released that advanced FSD or proven it can be delivered at scale.

The kicker: Musk said the company would need to physically upgrade each affected vehicle. That would require a massive service effort — potentially setting up microfactories or specialized service centers in several major cities to retrofit millions of cars. This won't be cheap and could add to Tesla's capital expenditures; the company recently raised its capex guidance to around $25 billion for the year.

What this means

• Owners may face delays while Tesla upgrades fleets.
• Tesla's capex and operating costs could rise if large-scale retrofits are needed.
• Legal risk could increase if owners claim they were sold obsolete hardware without clear disclosures.

A little bird: Redwood Materials restructures

Senior reporter Sean O'Kane obtained and verified an internal memo from JB Straubel, founder and CEO of Redwood Materials, about layoffs and restructuring. The company cut roughly 135 employees — about 10% of its workforce — as it adjusts to grow its energy storage business.

Executives have recently left as well. COO Chris Lister is retiring and at least three VPs departed in recent months. The company told TechCrunch it is focused on reducing layers of management as it scales.

Spotlight: Humble Robotics raises $24M seed

A new autonomous hauler startup, Humble Robotics, announced a $24 million seed round led by Eclipse, with backing from Energy Impact Partners and RedBlue Capital. The San Francisco–based company builds cabless autonomous big rigs and is staffed by a roster of AV veterans.

Founder Eyal Cohen previously worked on Apple special projects, Uber ATG, Pronto and Waabi, and sold Spark AI to John Deere in 2023. CTO Drew Gray brings experience from Cruise, Otto and Voyage. The startup even operates from the same San Francisco building Cruise once occupied, offering a symbolic full-circle moment in AV history.

Cohen and Gray told TechCrunch they believe the current moment is right to launch an AV company. Expect a deeper profile and interview in next week's coverage.

Tips

Have a tip? Email Kirsten Korosec at [email protected] or reach her on Signal at kkorosec.07. You can also contact Sean O'Kane at [email protected].

Deals and funding highlights

Here are notable deals that caught our attention this week:

• Lyft acquired Gett's U.K. business to expand in London, reportedly for about $55 million. The deal brings a large share of registered black cab drivers onto Lyft's platform and follows Lyft's earlier purchase of Freenow.
• A&K Robotics (Vancouver) raised CAD $8M Series A to expand autonomous vehicles for airports.
• Decade Energy raised €22M to build power infrastructure at logistics depots.
• Reliable Robotics secured $160M to advance autonomous systems for aircraft. Notably, co-founder and CEO Robert Rose previously held an Autopilot role at Tesla.
• PlusAI and SPAC partner Churchill Capital Corp IX terminated their merger due to market conditions.
• Porsche is selling portions of its stakes in Bugatti Rimac and Rimac Group to HOF Capital; financial terms were not disclosed.

Notable reads and industry tidbits

Quick updates across mobility:

• Einride will add 75 electric heavy-duty trucks to Amazon's Relay freight network, giving the Swedish EV truck maker a foothold in Amazon's logistics operations.
• Reports surfaced that Ford and China's Geely discussed expanding a European tie-up into the U.S., which could have dramatic implications for Chinese-brand entries into the U.S. market. Those talks appear stalled and Ford has publicly denied the report.
• Porsche will add an electric Cayenne coupe to its lineup, slated for late summer release.
• Rivian's first customer-ready R2 SUVs rolled off the Normal, Illinois, production line despite an EF-1 tornado that damaged part of the factory roof; Rivian expects customer deliveries in June.

One more thing: Apple CarPlay Ultra test drive

I test-drive many vehicles, including non-EVs. Recently I spent time in an Aston Martin Vantage Roadster — a Chiltern green convertible that lists for about $205,000 — to test Apple CarPlay Ultra. This next-generation infotainment platform projects iPhone content across vehicle screens and integrates controls like radio, performance settings and climate.

My first experience with CarPlay Ultra last summer was mixed. When it worked, it was excellent. But a bug sometimes showed two versions of the vehicle in Bluetooth settings and caused glitches. This time, setup was instant and it worked without issues throughout the drive — a clear improvement for Aston Martin over older systems such as Mercedes' COMAND.

Why this matters

Infotainment and seamless phone integration are becoming selling points for premium vehicles. Reliable in-car software enhances user experience and reduces driver frustration, which matters as automakers differentiate on tech and convenience.

Also, if you follow gaming news, note how automakers increasingly design infotainment interfaces with richer graphics and smoother responsiveness — trends that cross over from mobile gaming and interactive media into car UX design.

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Image Credits: Bryce Durbin, Kirsten Korosec