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Tesla gains approval to test robotaxis in Arizona

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Tesla has secured approval from the Arizona Department of Transportation to begin testing autonomous robotaxi vehicles in the Phoenix metro area, the agency confirmed Friday. The trials will initially involve cars equipped with safety drivers to monitor operations.

Tesla applied for the permit in June as part of CEO Elon Musk’s plan to launch an autonomous ride-hailing service that could reach half of the U.S. population by the end of the year. While no start date or trial duration has been disclosed, Arizona’s approval marks a significant expansion of Tesla’s robotaxi testing beyond its limited pilot in Austin, Texas, launched earlier this year.

In Austin, Tesla trialed about a dozen vehicles under strict conditions, including a safety monitor in the front passenger seat and a select group of passengers. The Arizona expansion puts Tesla into one of the nation’s most competitive self-driving markets, where Waymo and Cruise have already been testing robotaxi services.

The approval reflects growing state-level support for autonomous vehicle experimentation, even as federal regulators continue to scrutinize safety and data transparency. For Tesla, success in Arizona could provide critical validation for its long-promised robotaxi ambitions.

Amazon’s Zoox to Expand Robotaxi Production Ahead of U.S. Rollout, FT Reports

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Zoox, the self-driving vehicle subsidiary of Amazon, plans to scale up production in 2025 as it prepares for a broader commercial rollout of its robotaxi fleet across the U.S., according to a report by the Financial Times on Wednesday.

Co-founder Jesse Levinson said the company will open a new facility in California’s Bay Area, significantly expanding beyond its current production site in Fremont. The new location is expected to support Zoox’s goal of producing hundreds—eventually thousands—of custom-built robotaxis.

To date, Zoox has deployed about two dozen purpose-built autonomous vehicles across six U.S. cities. It plans to begin public ride services in Las Vegas this year, with San Francisco to follow.

The expansion comes amid a shift in federal regulatory attitudes toward self-driving technology, as the Trump administration recently signaled plans to ease some vehicle safety regulations and reduce mandatory incident reporting, in an effort to accelerate autonomous vehicle deployment.

Zoox joins a crowded field of competitors in the U.S. robotaxi market, including Tesla, Waymo (owned by Google’s parent Alphabet), and GM’s Cruise. All have faced regulatory scrutiny, with U.S. authorities investigating safety issues related to autonomous driving systems—including vehicles operated by Zoox.

GM Completes Full Acquisition of Cruise to Focus on Autonomous Personal Vehicles

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General Motors (GM) announced on Tuesday that it has completed the full acquisition of its Cruise division, signaling a shift in focus toward developing autonomous technology for personal vehicles, rather than continuing with the robotaxi business. This strategic move comes after GM decided in December to halt funding for Cruise’s robotaxi operations, following a series of challenges including a pedestrian injury caused by one of its robotaxis.

GM plans to integrate Cruise’s autonomous technology into its Super Cruise system, which allows hands-free driving on 750,000 miles of North American roads. Super Cruise is already available on over 20 GM vehicle models, and the company aims to expand its use in urban environments. The merger also involves significant staff reductions, with Cruise cutting around 50% of its workforce, impacting nearly 1,000 employees according to sources close to the matter.

The goal of the acquisition is to accelerate the development of autonomy at scale for personal vehicles, rather than robotaxis. GM believes that this merger will help advance both assisted driving and full autonomy. The company has forecasted that Super Cruise will generate approximately $2 billion in annual revenue within the next five years.

Dave Richardson, senior vice president of software and services engineering at GM, expressed that this move will speed up efforts to bring autonomous driving capabilities to personal vehicles. The transition marks a pivotal moment for GM, as it shifts its focus toward achieving greater success with its hands-free driving technology.