TechCrunch Mobility: The “Robot Army” Argument.

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I’m sure you’re waiting to hear the results of last week’s poll. (Reminder: Sign up for the Mobility newsletter to participate in our surveys!) Here’s what I asked: “What is the best business model for self-driving vehicle technology? (Keep profitability in mind.)”

Outside of that, readers believe longer distance delivery is the best bet, with 40% choosing this option. Robotaxis came in next with 25.5% of the vote, followed by licensing the technology to automakers at 19.1% and last-mile delivery at 14.9%. A reader emailed to point out that I didn’t include warehouse applications like autonomous forklifts. However, the longer distance delivery category can be broken down further, and is worthy of another survey, which we have included in this week’s newsletter.

In a long list of arguments one could make to justify a trillion-dollar compensation package, controlling an army of robots was certainly not on my mind. However, this is the argument Elon Musk It was made during Tesla’s third-quarter earnings call.

Here’s the summary: On November 6, shareholders will vote on whether to approve a compensation package approved by the board that would give Musk up to 12% of Tesla shares. If the company achieves its target market value of $8.6 trillion, this package will be worth about $1 trillion.

The board and Musk spent weeks lobbying shareholders to approve the action, even as proxy advisors Institutional shareholder services and Glass Lewis It has been recommended to investors to reject it. Musk is now in attack mode, which was evident at the end of the earnings call when he called companies terrorists and made his final pitch. His argument for a robot army focuses on power and control, not a lot of money. Although money can provide both.

“My biggest concern is: If we build this robot army, will I have a strong influence on this robot army? I don’t feel comfortable building a robot army if I don’t have a strong influence,” Musk said during the earnings call. He was referring to Tesla’s Optimus robot software and used it as an example of products he wants complete control over.

This argument is difficult to convince Musk’s critics, especially in the wake of his role as head of the Government Efficiency Administration. But Musk doesn’t need to convince his growing list of critics, unless they own Tesla stock, of course.

birdie

this week, GM The ax fell on BrightDrop’s electric truck program after four short years. It wasn’t the biggest surprise in the world; After all, hundreds of unsold trucks have been sitting untouched in much of Michigan and Canada for months. (One little bird reached out to tell us that hundreds of them are in the Flint, Michigan, area.) GM cited a slower-than-expected market for commercial electric trucks, but didn’t go into detail about why BrightDrop failed so miserably.

However, another little bird has given us an idea. The trucks are expensive but very popular and should save fleet owners money over time. Electric propulsion engines are well suited for last-mile delivery. What GM appears to have missed is the infrastructure piece, according to an insider. The company relied heavily on external partnerships to build so-called warehouse shipping, rather than offering it as part of fleet purchases. This turned away a number of potential customers and generally caused headaches.

Got a tip for us? Email Kirsten Korosek at kirsten.korosec@techcrunch.com Or my Signal at kkorosec.07, or email Sean O’Kane at sean.okane@techcrunch.com.

Offers!

The big thing this week is about electric vehicles and AI data centers. Yes, there is a connection.

Red wood materials It raised $350 million in a Series E round led by venture firm Eclipse, and included a new strategic investment by NVitures, Nvidia’s venture capital arm. The company’s valuation was not disclosed, but a source familiar with the round told TechCrunch that the valuation was around $6 billion, $1 billion higher than the previous valuation.

Much of that money goes to Redwood’s new energy storage business, which gives new purpose to the electric vehicle batteries it has collected that have too much life left to put through the recycling process. The company connects these retired electric vehicle batteries to renewable energy sources such as wind and solar, or the grid, to power AI data centers or industrial sites.

Other deals that caught my attention this week…

Afried Secured strategic investments and other commitments amounting to $375 million, with support from Uber and Nebius. None of these companies gave me details when asked if this was all stock. An insider said the “other liabilities” part should be taken care of, suggesting it was not a direct cash infusion.

Spirothe Dubai-based African electric motorcycle startup, has raised $100 million in a round led by the Fund for Export Development in Africa (FEDA), the development arm of Afreximbank. This is the largest ever increase in e-mobility in Africa.

Notable Readings and Other Stories

GM It made several announcements at an event in New York City that were supposed to show where it was headed. And yes, AI plays a central role. Before AI can hit the stage, GM said it will overhaul the electrical and computing capabilities of its future vehicles. The company will roll out a new electrical architecture and central computing platform in new vehicles, starting with the Cadillac Escalade iQ in 2028. This foundation will allow the company to deliver faster software; More capable automated driving features, including blind driving; And a dedicated conversational AI assistant.

Earnings season We’re in for a treat, and I’m watching this quarter for data and executive commentary that helps me understand how tariffs and the expiring EV tax credit will impact the auto sector. I don’t have any clear conclusions yet, and it probably won’t happen until next quarter.

Tariffs take a hit, Q3 reports from GM and Ford Pointing. For example, General Motors expected the tariffs to cut its 2025 profits by $2.3 billion, and Ford said it would shave $2 billion off the bottom line. But both of these forecasts are billions of dollars better than what automakers predicted earlier this year, and automakers hope to offset those costs. CEOs from both automakers thanked President Trump for expanding tariff relief measures on auto parts imported from Canada and Mexico.

Some other GM and Ford newsFord will continue to pause production of its F-150 Lightning trucks as it prioritizes gas and hybrid versions of the F-Series in an effort to recover from a fire at its main aluminum supplier, Nevolis. Meanwhile, CEO of General Motors Mary Barra The Verge’s Decoder podcast stated that the company will drop Apple CarPlay and Android Auto support from all of its cars. Oh, and late: General Motors laid off 200 paid workers from its Warren Technology Center.

Tesla The company delivered a record number of vehicles in the third quarter of 2025, results supported by US customers who took advantage of the expiration of the federal electric vehicle tax credit. This did not translate into greater profits. Tesla’s third-quarter profit was $1.4 billion, 37% lower than in the same quarter last year.

the National Highway Traffic Safety Administration He opened an investigation after seeing footage from early October of Waymo An autonomous vehicle maneuvers around a parked school bus that was dropping off children in Atlanta.

Rivian The company is undergoing some change that includes cutting 600 people from its workforce (the third round of layoffs this year), and its founder and CEO is taking on another role: chief marketing officer. Rivian also agreed this week to pay $250 million to settle a class-action lawsuit brought by shareholders after the company suddenly raised prices for its R1 pickup truck and SUV in 2022.

Meanwhile, I spent some time in the Bay Area with executives from micromobility company Rivian also. The company has unveiled three new products, and if Chairman Chris Yu and Rivian CEO RJ Scaringe (also a board member) are to be believed, there will be more to come. Right now, it’s a modular pedal-assist e-bike and two pedal-assist quad bikes – the delivery truck version that Amazon You have already agreed to purchase. The big, compelling technology story here is vertical integration and software.