RIP Autopilot, Tesla’s Robotaxi Push, and What Waymo Signals Next

Tesla made a few carefully timed moves this week right ahead of its quarterly earnings all aimed at reinforcing one message: it’s winning the race in automated driving. But as usual with Tesla, the story runs deeper than the optics.

The week kicked off in Austin, where Tesla began offering robotaxi rides without a human safety driver in the front seat. This is an expansion of a limited service the company launched last year using modified Model Y vehicles running an advanced version of its Full Self-Driving software now labeled “unsupervised.”

Until now, Tesla had human safety operators riding shotgun as a precaution. That’s no longer always the case. Not every vehicle in the Austin fleet is fully driverless, and reports suggest that some runs are still shadowed by chase vehicles. Even so, this is a notable step forward and a clear signal that Tesla is preparing for a broader rollout.

At the same time, Tesla quietly killed off Autopilot the advanced driver-assistance system it first introduced back in 2014.

Autopilot was both wildly popular and deeply controversial. The name itself suggested far more capability than the system actually had, even though drivers were (and still are) responsible for staying alert with their hands on the wheel. Over the years, Autopilot went through multiple software and hardware updates and eventually became a standard feature across Tesla’s lineup.

That basic system which included traffic-aware cruise control and Autosteer is now gone.

Instead, Tesla has gone all-in on Full Self-Driving (Supervised), its more advanced system, which it now sells exclusively via subscription. This move comes just one week after Tesla stopped charging the $8,000 one-time fee for FSD, opting instead to push all customers toward monthly payments.

Taken together, the strategy is fairly clear: Tesla wants to recognize more recurring revenue from FSD while repositioning itself less as a car company and more as an AI and robotics company.

But there may be another motivation.

Tesla is currently staring down a possible 30-day suspension of its manufacturing and dealer licenses in California after a judge ruled in December that the company engaged in deceptive marketing by overstating the capabilities of Autopilot and FSD. That ruling has been stayed for 60 days to give Tesla time to comply.

Dropping the Autopilot name while doubling down on FSD is a bold move. Tesla may believe that retiring the most problematic branding is enough to satisfy regulators at the California DMV. Whether that gamble pays off remains to be seen.

Zipline Accelerates

Zipline, the autonomous drone delivery startup that got its start more than a decade ago transporting blood supplies in Rwanda, is also stepping on the gas.

After years of steady expansion across Africa and into the U.S., Zipline’s momentum picked up significantly following the launch of its new P2 drone platform in 2025, which is optimized for home delivery of food and consumer goods.

Now, backed by $600 million in new funding and valued at $7.6 billion, Zipline plans to launch service in Houston and Phoenix, with at least four more U.S. states on the roadmap for 2026.

The funding round included Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global.

 Other Deals That Stood Out

1. ABZ Innovation, a European maker of heavy-duty agricultural and industrial drones, raised $8.2 million led by Vsquared Ventures, with Assembly Ventures and Day One Capital participating.
2. Ethernovia, a San Jose-based startup building Ethernet-based systems for autonomous vehicles, raised $90 million in a Series B led by Maverick Silicon, an AI-focused fund created by Maverick Capital in 2024.
3. 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 makes Moxi, a hospital robot designed to handle deliveries of lab samples and supplies. Expect more crossovers between AV tech and robotics over the next year.
4. Terralayr, a German grid-scale battery storage company, raised €192 million led by Eurazeo, with participation from RIVE, Creandum, Earlybird, Norrsken VC, and Picus Capital.
5. TrueCar founder Scott Painter reacquired the company in a $227 million deal through Fair Holdings, alongside partners including AutoNation, PenFed Credit Union, and Zurich North America. TrueCar is going private, and Painter is back in the CEO seat.

Notable Reads and Industry Tidbits

1. Austin Russell, founder and former CEO of bankrupt lidar company Luminar, agreed to accept an electronic subpoena tied to the company’s ongoing bankruptcy proceedings.
2. Geely Holding Group released a five-year roadmap that includes ambitious robotaxi plans. By 2030, its Cao Cao Mobility unit aims to operate 100,000 robotaxis across major Chinese cities, with hints of international expansion later on.
3. General Motors is shifting production of two gas-powered vehicles from China and Mexico to Kansas a move that will also mark the end of the rebooted Chevy Bolt EV at the Fairfax Assembly Plant.
4. Tesla says it plans to revive work on Dojo3, its previously shelved third-generation AI chip. This time, it won’t be for self-driving Elon Musk says it’s intended for “space-based AI compute.”
5. Waymo has officially opened its robotaxi service in Miami, onboarding riders gradually from a waitlist of nearly 10,000 residents.

One More Thing

Alex Roy my Autonocast co-host alongside Ed Niedermeyer just completed a coast-to-coast drive from Los Angeles to New York in a Tesla Model S using Full Self-Driving Supervised for the entire trip.

This wasn’t Roy’s first Cannonball Run. He set the transcontinental driving record back in 2007 and has since logged multiple EV records. This time, FSD version 14.2.2.3 handled 100% of the 3,081-mile journey, including highway exits and automated parking at charging stops.