A series of incidents and lawsuits have placed Full Self-Driving (FSD) under intense scrutiny. The latest involves a fatal crash in Texas where Autopilot, now discontinued, was engaged. Tesla's VP Ashok Elluswamy claims the driver manually overrode the system, but an independent investigation is pending.

Meanwhile, the National Highway Traffic Safety Administration and the National Transportation Safety Board are investigating. Additionally, Tesla has settled a lawsuit related to another fatal crash involving FSD (Supervised). This case is part of an ongoing NHTSA probe into whether the system can handle reduced visibility conditions like sun glare or fog.

Around this AI-centric storm, Waymo continues its push with its growing fleet of Ojai robotaxis. The minivan-like vehicles are designed in Sweden and manufactured in China before being equipped with Waymo’s advanced self-driving systems for use in the US. MoffettNathanson estimates that 3,156 such vehicles will enter the country this year.

The landscape is also shifting with corporate deals and funding rounds. Aseon Labs secured $10 million, while CaoCao and May Mobility partnered to explore international markets for robotaxi services. Elroy Air plans a merger for an estimated $1 billion valuation, while Terawatt Infrastructure seeks up to $300 million in credit.

Regulatory changes could see fewer brake pedals required in fully autonomous vehicles, and Lucid is cutting costs with 18% layoffs as it aims for competitiveness. Lyft has also tightened safety standards for autonomous rides, excluding those using only cameras like Tesla's FSD (Unsupervised).