The Rise of Robotaxis: How Tesla, Uber, Lyft, Waymo, and Mobileye Are Shaping the Future of Transportation

 The Rise of Robotaxis: How Tesla, Uber, Lyft, Waymo, and Mobileye Are Shaping the Future of Transportation

The transportation industry is on the brink of a revolution, driven by autonomous vehicle (AV) technology advancements. Companies like Tesla, Uber, Lyft, Waymo, and Mobileye are leading the charge, investing billions into developing self-driving cars that promise safer, more efficient, and cost-effective mobility solutions. Among these innovations, "robotaxis" has emerged as one of the most promising applications of autonomous driving technology.

#### What Are Robotaxis?

Robotaxis are fully autonomous vehicles designed to operate without human drivers. These vehicles can be summoned through apps, much like ride-hailing services today, but without the need for a driver. Proponents argue that robotaxis could significantly reduce traffic accidents caused by human error, lower operational costs for ride-sharing companies, and provide greater accessibility to people who cannot drive themselves.

#### Key Players in the Robotaxi Race

1. **Tesla**  

   Tesla CEO Elon Musk has long envisioned a future where Tesla's electric vehicles (EVs) become part of a global robotaxi network. Equipped with Full Self-Driving (FSD) software, Tesla aims to enable owners to rent out their vehicles when not in use, creating a peer-to-peer ridesharing platform. While Tesla's FSD technology remains controversial due to its beta status and regulatory hurdles, the company continues to push boundaries with over-the-air updates and real-world testing.

2. **Waymo**  

   A subsidiary of Alphabet (Google's parent company), Waymo is widely regarded as the leader in autonomous driving technology. Its Waymo One service, launched in Phoenix, Arizona, offers a commercial robotaxi experience. Unlike other competitors, Waymo focuses on Level 4 autonomy, meaning its vehicles can operate without human intervention within predefined geographic areas. Waymo's expansion into new markets, including Texas, highlights its commitment to scaling its operations.

3. **Uber and Lyft**  

   Both Uber and Lyft have made significant investments in autonomous technology, though their strategies differ. Uber sold its self-driving division, Advanced Technologies Group (ATG), to Aurora Innovation in 2020, choosing instead to partner with external AV companies like Motional and Waymo. Meanwhile, Lyft partnered with Motional to launch a robotaxi pilot program in Las Vegas, offering passengers rides in self-driving Hyundai vehicles.

4. **Mobileye**  

   Intel-owned Mobileye is another major player in the autonomous driving space. Known for its advanced driver-assistance systems (ADAS), Mobileye is now expanding into robotaxis with its True Redundancy system, which combines camera-based and radar/lidar sensors for enhanced safety. Mobileye plans to deploy its first robotaxi fleet in Israel and Germany before expanding globally.

#### Why Texas Matters

Texas has become a hotspot for autonomous vehicle testing and deployment due to its favorable weather conditions, sprawling urban landscapes, and relatively lenient regulations compared to states like California. Companies like Tesla, Waymo, and Argo AI (a Ford/Volkswagen-backed startup) have already begun testing their technologies in cities like Austin and Dallas. The state's emphasis on innovation and infrastructure development makes it an ideal location for the rollout of large-scale robotaxi networks.

#### Challenges Ahead

Despite the progress made by these companies, several challenges remain before robotaxis can achieve widespread adoption:

- **Regulatory Hurdles**: Governments worldwide are still grappling with how to regulate autonomous vehicles, ensuring they meet strict safety standards while fostering innovation.

- **Public Trust**: Many consumers remain skeptical about riding in fully autonomous vehicles, citing concerns over reliability and cybersecurity.

- **Technological Limitations**: While impressive, current AV systems struggle with edge cases—uncommon scenarios that require human-like decision-making skills.

- **Economic Viability**: For robotaxis to succeed commercially, companies must prove they can operate profitably at scale, balancing high upfront costs with long-term savings.

#### Looking Ahead

As the race to develop viable robotaxi services intensifies, collaboration between tech giants, automakers, regulators, and local governments will be crucial. Success depends not only on technological breakthroughs but also on addressing societal concerns and building trust among users. If successful, robotaxis could transform urban mobility, reducing congestion, emissions, and reliance on personal car ownership.

In conclusion, the advent of robotaxis represents a pivotal moment in transportation history. With pioneers like Tesla, Waymo, Uber, Lyft, and Mobileye driving innovation forward, the dream of a driverless future may soon become a reality. As this transformation unfolds, all eyes will be on Texas—and beyond—to see how these groundbreaking technologies reshape the way we move.

McDonald's Q4 2024: E. Coli Outbreak, Inflation Concerns, and the Return of the Shamrock Shake

As McDonald's wrapped up its fourth quarter of 2024, the global fast-food giant faced a mix of challenges and opportunities. The company reported strong sales growth despite ongoing inflationary pressures, but its reputation took a hit following an E. coli outbreak linked to one of its supply chains. Meanwhile, fans eagerly awaited the return of the iconic Shamrock Shake, which was set to make its seasonal debut in early 2025.

### E. Coli Outbreak Raises Safety Concerns

In late December 2024, health officials identified an E. coli outbreak tied to lettuce supplied to several McDonald's locations across multiple states. While the exact source of contamination remains under investigation, the incident led to temporary closures of affected restaurants and a recall of implicated products. This isn't the first time McDonald's has dealt with food safety issues, but the timing couldn't have been worse as the holiday season typically sees a surge in customer traffic.

The company issued a public apology and vowed to strengthen its supplier vetting processes. "We take food safety extremely seriously," said CEO Chris Kempczinski in a statement. "Our top priority is ensuring the well-being of our customers and employees."

### Navigating Inflationary Pressures

Like many businesses, McDonald's continues to grapple with rising costs due to inflation. Labor shortages, increased wages, and higher prices for commodities such as beef and chicken have squeezed profit margins. To offset these expenses, the chain implemented modest price increases throughout the year, though it remains cautious about alienating budget-conscious consumers.

Despite these headwinds, McDonald's reported solid financial results for Q4 2024, driven by robust demand in international markets and continued strength in digital ordering channels. Analysts praised the company's ability to adapt to changing consumer behaviors while maintaining profitability.

### The Return of the Shamrock Shake

Amidst the turbulence, McDonald's loyal fanbase found reason to celebrate with the announcement of the Shamrock Shake's return for spring 2025. First introduced in 1970, the mint-flavored dessert has become a beloved seasonal tradition at McDonald's locations worldwide. This year's iteration features a new twist—a limited-edition swirl option combining classic Shamrock Shake with vanilla soft serve.

Marketing executives hope the promotion will drive foot traffic during the post-holiday lull and help restore some goodwill following the recent E. coli scare. "The Shamrock Shake is more than just a product; it's an experience," said a spokesperson. "It connects people to fond memories and brings joy during the colder months."

### Looking Ahead

While the final quarter of 2024 presented its share of obstacles, McDonald's leadership remains optimistic about the future. By prioritizing food safety, embracing innovation, and leveraging nostalgia through campaigns like the Shamrock Shake, the brand aims to reinforce its position as a leader in the quick-service restaurant industry.

For now, fans can look forward to indulging in their favorite green treat when it makes its highly anticipated return next year.

A group of investors led by Elon Musk has submitted a $97.4 billion offer for control of artificial intelligence startup OpenAI, maker of ChatGPT, The Wall Street Journal reports. In a statement to the Journal, Musk said: “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was." Musk was among OpenAI's founders in 2015 but subsequently left the organization. OpenAI CEO Sam Altman promptly rebuffed the unsolicited bid.

Who doesn’t love a good rivalry? The Drake/Kendrick feud took its final bow at the Super Bowl, but before we even had time to miss it, Elon Musk and Sam Altman stepped up to keep the drama going. Rapper beef? Grammy snubs, diss tracks, subliminal. Billionaire beef? Hostile takeover bids, Twitter jabs, and valuation chaos. ICYMI:
🚀 Musk just threw down a $97.4 billion bid to buy OpenAI's nonprofit parent entity.
💁‍♂️ Altman clapped back with: "No thanks, but we’ll buy Twitter for $9.74B if you want."

We live in an absurd timeline. Musk’s bid is unlikely to happen in a traditional sense ...you can’t just “buy” a nonprofit? But that’s not the point. The bid has thrown a financial grenade into OpenAI’s biggest ongoing headache: its messy, awkward transition from a nonprofit into a fully for-profit AI powerhouse. A key question has been: How much should OpenAI’s nonprofit be compensated for giving up control? Musk just handed them an answer: $97.4 billion.

Why this matters:
🔹 OpenAI was originally structured as a nonprofit research lab, but in 2019, it created a for-profit subsidiary to attract investors like Microsoft.
🔹 The nonprofit still governs OpenAI and technically owns the for-profit entity.
🔹 As OpenAI transitions to a fully independent for-profit company, it has to compensate the nonprofit for giving up control.

Musk, and other critics, argue that OpenAI is dramatically undervaluing the nonprofit’s stake in this transition. By making a public, unsolicited offer at nearly $100 billion, Musk has:
✔️ Complicated OpenAI’s internal valuation math - if they reject the bid, does that mean they think it’s worth even more?
✔️ Created uncertainty for OpenAI’s investors, just as they try to raise billions more.
✔️ Put more regulatory scrutiny on OpenAI’s for-profit conversion, especially given Microsoft’s influence.

Musk is unlikely to own OpenAI. But he just made life a lot harder for Altman and his investors. His attorney sums up their rationale: "If Sam Altman and the present OpenAI Inc. Board of Directors are intent on becoming a fully for-profit corporation, the charity must be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time"

This just in - Elon Musk & partners make a $97.4B bid to buy all assets of OpenAI/ChatGPT.

Sam Altman of course publicly declined. Why is that?
- ChatGPT, while having recently come under pressure from new entrants like Chinese DeepSeek is still considered one of the leaders in generative AI
- The last funding round of OpenAI was at a valuation of over $150B
- Sam Altman and the existing investors don't seem to be in a rush to cash-in on their investment, nor do they seem to have doubts that they can grow further

For all the startup founders out there:
- would you accept a buy-out of $XM of your company?
- Or would a $XM buy-out offer not be a sign that your company should at least have that value?

 Hong Kong will file a complaint on recent U.S. tariffs imposed on the city to the World Trade Organization, claiming the U.S. has completely ignored the city's status as a separate customs territory, Chief Secretary Eric Chan said on Tuesday.

"This is absolutely inconsistent with the WTO rules. Of course, they have totally disregarded Hong Kong as a separate customs territory," Chan, the China-ruled city's number two official, told reporters.

"We will file a complaint to the WTO regarding this unreasonable arrangement," he said without giving specifics.

Chan was responding to a U.S. decision to impose 10% tariffs on goods from the Asian financial hub as U.S. President Donald Trump targets Chinese imports.

The U.S. Postal Service last week suspended all inbound mail and packages from China and Hong Kong, then reversed that decision soon afterwards.

The move to stop accepting parcels from China and Hong Kong had caused chaos and confusion among retailers and express shipping firms over how to deal with the U.S. tariffs.

"All I can say is the policies are mercurial," said Chan.

Trump's move also included closing the "de minimis" duty exemption for packages valued at under $800, with the stated aim of stopping the flow of fentanyl and precursor chemicals into the United States.

Hong Kong has long been known as a free and open trading hub, but China's imposition on Hong Kong of a sweeping national security law in 2020 drew criticism from the U.S. and led it to end the former British colony's special status under U.S. law, escalating tensions between China and the U.S.

The U.S. subsequently stipulated that goods made in Hong Kong for export to the U.S. needed to be labeled as made in China, ending one of Hong Kong's longstanding competitive advantages as a trading hub.

Meta began notifying staff of job cuts this morning, kick-starting a process that will terminate ~3,600 people at the company as it cracks down on “low-performers” and scours for new talent to dominate the AI race.

Meta workers who were let go were notified via email, and the company is offering US-based employees severance packages that include:
🔷 16 weeks of salary, in addition, two weeks for each year of service
🔷 bonuses for staff whose performance reviews qualified them
🔷 staff will still receive stock awards as part of the upcoming vesting cycle later this month.

Job cuts have been consistent at Meta in recent years. The company laid off thousands of employees in '22 + '23 as part of an efficiency push. The latest wave of terminations is expected to be completed by the end of the performance cycle that goes through February. They come as Meta seeks to beat out competitors including OpenAI and DeepSeek AI in a fast-moving AI race.

The weekend's Super Bowl set an all-time viewership record for the second year in a row, with 126 million tuning in to see the Philadelphia Eagles triumph over the Kansas City Chiefs, according to broadcaster Fox. More than 13 million watched via Tubi, which live-streamed the game for the first time. Halftime performer Kendrick Lamar also saw a huge boost from his appearance, with Spotify streams for his Grammy-winning anthem "Not Like Us" surging 430%.

Coca-Cola is investing billions to diversify beyond sugary sodas. As Bloomberg reports, its fastest-growing brand is Fairlife milk. Fairlife's ingredients — high in protein, low in sugar — have been a hit with consumers, driving sales to $1 billion in 2022 from $90 million in 2015. But that's only a small percentage of Coca-Cola's $46 billion in annual sales, leaving the beverage giant with the challenge of convincing investors "there's more to come."

Artificial intelligence is not a normal technology. This maxim guides potentially trillions of dollars of capital, investor glee and pain, and the clout of OpenAI boss Sam Altman and his nemesis Elon Musk. Their years-long feud cranked up on Monday, when Tesla (TSLA.O), opens new tab boss submitted a $97.4 billion bid for the non-profit, controlling the ChatGPT maker. It’s a perfect illustration of AI absurdity meeting founder’s syndrome.

Altman and Musk co-founded OpenAI as a charity in 2015 with the ostensible mission of safely guiding an existentially dangerous technology. But building ever more powerful models required more capital than could be gleaned from donations. Musk sought influence and control in return for his resources, OpenAI claims, opens new tab; Altman instead set up a “capped-profit” subsidiary, soliciting investments from Microsoft (MSFT.O), opens new tab and others. The pair split, acrimoniously.

Musk is accustomed to getting his own way. His one major setback was being ousted as boss of payments firm PayPal (PYPL.O), opens new tab in 2000. That pales next to taking control of Tesla, engineering a merger with his fellow company SolarCity, opens new tab, “negotiating” a $56 billion pay package, and upping sticks, opens new tab from Delaware when a judge called foul. And, of course, he sued OpenAI - now in a precarious position as it attempts to transition into a for-profit company. How the non-profit arm, which still holds a controlling stake, is valued in the shift is a delicate legal matter that Musk could muddy.

This is textbook founder’s syndrome: when an autocratic boss demands total, unchallenged control. Musk’s case is super-charged by investor largesse. Shares of $1.1 trillion Tesla trade at an eye-watering 128 times expected earnings for the next 12 months, according to LSEG, conferring vast wealth on its boss. These runaway hopes are fueled by AI, which Musk promises Tesla will lead in. His separate artificial intelligence business, xAI, is valued at $50 billion.

A chart showing the reported potential valuations of OpenAI and Anthropic, and the last announced valuations of xAI and Mistral AI

Yet Tesla’s self-driving cars and humanoid robots are yet to materialize. OpenAI might seem a more solid bet: actually existing AI application ChatGPT rocketed to 100 million weekly active users at speed; it anticipates $11.6 billion in revenue this year, the New York Times reported. But its $157 billion valuation already relied on aggressive growth to $100 billion in sales, and the company may bag, opens new tab a $300 billion price tag from SoftBank (9984.T), opens new tab. The significance of the number Musk and a consortium of investors put on the arm controlling this value, a hazy extrapolation of the worth of a nascent technology, seems limited to its usefulness in gumming up OpenAI's conversion.

What is clear is that Altman, having parried Musk once before surviving his own near-coup, opens new tab, is also not used to hearing no. A showdown seems inevitable. A contest over OpenAI is one over the avatar of the market mania that cemented both men’s positions. What self-respecting founder could let it go?

This year's Super Bowl saw slim pickings for automotive ads, with only two car brands — both owned by auto giant Stellantis — ponying up for air time. According to Stellantis CMO Olivier Francois, the ads were intended to demonstrate the company's commitment to U.S. car buyers as it mounts a "comeback" after a lackluster year and the departure of its CEO. The company's Ram and Jeep ads featured actors Glen Powell and Harrison Ford, respectively.

Tech companies including Alphabet, OpenAI and Roblox have formed a coalition focused on providing free, open-source resources to enhance child safety on the internet. The initiative — known as Robust Open Online Safety Tools, or ROOST — has raised $27 million in funding, and provides AI-driven tools to identify and flag potential instances of child abuse online. The effort comes as reports of suspected online child exploitation saw a 12% increase from 2022 to 2023.

President Donald Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% "without exceptions or exemptions" in a move to aid the struggling industries but which increases the risk of a multi-front trade war.

Trump signed proclamations raising the U.S. tariff rate on aluminum to 25% from his previous 10% rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals. A White House official confirmed the measures would take effect on March 4.

The tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs.

The move will simplify tariffs on the metals "so that everyone can understand exactly what it means," Trump told reporters. "It's 25% without exceptions or exemptions. That's all countries, no matter where it comes from, all countries."

Trump later said he would give "great consideration" to Australia's request for an exemption to the steel tariffs due to that country's trade deficit with the U.S.

The proclamations were extensions of Trump's 2018 Section 232 tariffs to protect domestic steel and aluminum makers on national security grounds. A White House official said the exemptions had eroded the effectiveness of these measures.

Trump also will impose a new North American standard requiring steel imports to be "melted and poured" and aluminum to be "smelted and cast" within the region to curb U.S. imports of minimally processed Chinese and Russian metals that circumvent other tariffs.

The action also extends the tariffs to downstream products that use foreign-made steel, including fabricated structural steel, aluminum extrusions and steel strand for pre-stressed concrete, a White House official said.

As he signed the order at the White House, Trump said he would follow Monday's action with announcements about reciprocal tariffs on all countries that impose duties on U.S. goods over the next two days, and said he was also looking at tariffs on cars, semiconductor chips and pharmaceuticals.

Asked about threats of retaliation by other countries against his new tariffs, Trump said: "I don't mind."

Trump's trade adviser Peter Navarro said the latest measures would shore up national security by strengthening domestic steel and aluminum producers.

"The steel and aluminum tariffs 2.0 will put an end to foreign dumping, boost domestic production and secure our steel and aluminum industries as the backbone and pillar industries of America's economic and national security," he told reporters.

U.S. data showed aluminum smelters produced just 670,000 metric tons of the metal last year, down from 3.7 million in 2000. Plant closures in recent years including in Kentucky and Missouri have left the country largely reliant on imports.

Canada, whose abundant hydropower resources aid its metal production, accounted for nearly 80% of U.S. primary aluminum imports in 2024.

Steel imports accounted for about 23% of American steel consumption in 2023, according to American Iron and Steel Institute, opens new tab data, with Canada, Brazil and Mexico the largest suppliers.

Canada's industry minister said the U.S. tariffs were "totally unjustified", with Canadian steel and aluminum supporting key U.S. industries including defense, shipbuilding, energy and autos.

Item 1 of 8 A drone picture shows Alcoa's Becancour aluminum smelter, in Becancour, Quebec, Canada February 10, 2025. REUTERS/Bernard Brault

[1/8]A drone picture shows Alcoa's Becancour aluminum smelter, in Becancour, Quebec, Canada February 10, 2025. REUTERS/Bernard Brault Purchase Licensing Rights, opens new tab

"This is making North America more competitive and secure," Francois-Philippe Champagne said in a statement. "We are consulting with our international partners as we examine the details. Our response will be clear and calibrated."

COLD WAR TRADE LAW

Trump first targeted steel and aluminum for tariffs in 2018 under a Cold War-era national security law. He later granted several countries exemptions, including Canada, Mexico and Australia, and struck duty-free quota deals for Brazil, South Korea and Argentina based on pre-tariff volumes.

Trump's successor, Former president Joe Biden, later negotiated duty-free quotas for Britain, Japan and the EU.

"We applaud the president for instituting these 25% tariffs on steel imports and getting rid of exclusions, carveouts and quotas that are based on antiquated data," said Philip Bell, president of the Steel Manufacturers Association.

These were based on 2015-2017 import levels that no longer reflect current market dynamics, Bell said.

Before the proclamations, shares in U.S. steel and aluminum makers jumped, while shares in European and Asian steelmakers fell.

U.S. 2024 vs 2023 steel product imports by country of origin

The European Commission said it saw no justification for the tariffs and said President Ursula von der Leyen would meet U.S. Vice President JD Vance in Paris on Tuesday during an AI summit.

In South Korea, the Industry Ministry called in steelmakers to discuss how to minimize the impact of tariffs.

RECIPROCAL TARIFFS

Trump has promised detailed information on Tuesday or Wednesday on his reciprocal tariff plan. He has long complained about the EU's 10% tariff on auto imports, much higher than the U.S. car rate of 2.5%. However, the U.S. applies a 25% tariff on pickup trucks, a vital source of profit for Detroit automakers like General Motors (GM.N), opens new tab.

Overall, the U.S. trade-weighted average tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for the EU.

Simple average and trade-weighted tariff rates by country

Indian Prime Minister Narendra Modi is preparing tariff cuts ahead of a Wednesday meeting with Trump that could boost American exports, Indian government officials said.

Trump has previously called India a "very big abuser" on trade, and his top economic adviser Kevin Hassett singled out the country as having "enormously high" tariffs in a CNBC interview.

Trump had already threatened to impose tariffs of 25% on all imports from America's two largest trading partners, Canada and Mexico, saying they must do more to halt the flow of drugs and migrants across the U.S. border. After some border security concessions, Trump paused the tariffs until March 1.