Not long after General Motors revealed it was getting rid of its autonomous driving subsidiary, Cruise, Waymo is expanding the number of its testing cities and Tesla CEO Elon Musk made the technology part of his rosy forecast for 2025. Will self-driving cars make it or not?
More and more vehicles are being equipped with automated driving systems. Some, like GM’s Super Cruise, allow hands-free operation. Others simply assist a driver in braking, steering or accelerating.
GM and Waymo represent two companies moving in different directions when it comes to the still-in-the-proving stage of development. The Detroit-based automaker basically shut down its self-driving unit, Cruise, after investing an estimated $10 billion into the technology and seeing some level of progress.
The company bought out the minority investors and folded what was left into its in-house technical operation that develops other technology, such as Super Cruise. The beginning of the end came in October 2023 when a Cruise vehicle hit a pedestrian in San Francisco that was tossed in front of it. The Cruise vehicle dragged the pedestrian to the curb, after initially stopping.
However, GM’s not given up on technology helping people drive their vehicles. As mentioned, they’re planning to take the knowhow gleaned from Cruise and roll it into things like Super Cruise, which officials told investors Tuesday should bring in big money for the company: as much as $2 billion annually within the next five years.
It suggests that GM isn’t giving up entirely, it’s just waiting for autonomous technology to incubate a bit longer while it uses semi-autonomous programs like Super Cruise to enhance it. The revenue from Super Cruise “is much higher-margin than manufacturing vehicles” and would pave the way for consumer acceptance of completely self-driving cars, Morningstar analyst David Whiston told Reuters.
More testing
GM has effectively ceded the robocab field to competitors like Waymo, with Tesla preparing to launch its own CyberCab.
If the Cruise debacle proved anything it’s that the technology still needs work. The leadership at Waymo, Alphabet’s self-driving company, seemingly agrees, announcing plans to expand its testing program to 10 new cities in 2025.
In addition to ongoing trips to Truckee, Michigan’s Upper Peninsula, Upstate New York and Tokyo, the company will expand testing into San Diego and Las Vegas, with additional cities coming in the future. In early December, the company revealed Miami would see Waymo One service in 2025.
Officials note that trained drivers will be in the vehicles as they put new fleets into new locations for the first couple of month. The company’s been taking drivers around in other cities in driverless Jaguar I-Paces, Hyundai Ioniq 5s, and Chrysler Pacifica minivans for some time now, earning enough credibility to secure another round of funding — $5.6 billion — suggesting investors are still betting on the technology.
Waymo’s been around for some time, originally testing little egg-like vehicles that would, in the long term, have no driving controls in them for the passengers to take over in an emergency. However, it’s been in the testing phase for years, initially limited to a small part of Phoenix. However, as the years have gone on its added new areas, such as Los Angeles and San Francisco, for further development of the technology.
Biggest bet
Perhaps no one believes in the technology more strongly than Tesla CEO Elon Musk. Last October, he revealed the Cybercab, proclaiming the future was just around the corner.
A big test for Tesla and Musk will come with the promised launch of the self-driving CyberCab scheduled for 2026.
Production of the vehicle, which is slated to cost $30,000, will begin at the end of 2026 — or early 2027, Musk offering a nod to his overly optimistic past predictions.
“And we’ll make this this in big, very high volume,” he said during the debut.
The Cybercab, as Musk dubbed it, has no steering wheel or foot pedals. He did not suggest if you could order a version with those controls. It also looks unlike any other Tesla product with two powered butterfly-style doors and seating for at least four. It’s low-slung and looks more like a sports sedan than a taxi.
Now with Musk seemingly having the ear of President Donald Trump, which Tesla investors responded to positively, sending the stock price up more than 60% in the second half of 2024. He pitched that scenario during the company’s earnings call Wednesday evening, sending the company’s stock up 3% in after-hours trading despite missing analysts’ financial targets.
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