The War Between Elon Musk and Regulators Continues

Elon Musk has always had a rocky relationship with regulators. He often clashes with rules or skips them altogether. This week, his companies are facing a lot of scrutiny again.

The Boring Company’s Nevada Problems

In Nevada, The Boring Company is accused of nearly 800 violations, according to a ProPublica report.

The complaints include:

Digging tunnels without approval
Dumping untreated water on city streets
Failing to install safety barriers
Tracking mud and dirt onto public roads

These issues could lead to serious penalties and delays for Musk’s underground projects.

Tesla’s Insurance Troubles in California

Tesla is also in hot water with California’s Department of Insurance. Regulators say Tesla’s insurance arm has been delaying or denying customer claims for years. The state warned the company several times, but Tesla didn’t change its behavior.
It’s important to note that Tesla isn’t just a carmaker—it’s also an insurance provider in some U.S. states.

Tesla’s FSD Under Federal Investigation

The National Highway Traffic Safety Administration (NHTSA) has opened a new investigation into Tesla’s Full Self-Driving (FSD) technology.
Officials received reports that FSD caused cars to:

Run red lights
Drift into the wrong lanes

The NHTSA has looked into Tesla before, but this probe focuses only on FSD. It’s serious because FSD is a major part of Musk’s vision for Tesla’s future in autonomous vehicles, robotics, and AI.

Tesla recently rolled out FSD version 14, so this investigation likely won’t stop their plans. Still, it adds to growing concerns about safety and regulation around driver-assistance software.

General Motors and the Return of Autonomous Vehicles

While Tesla deals with regulators, General Motors (GM) seems to be moving quietly back into self-driving cars.

Earlier this year, a Wired report found that GM repurposed Chevy Bolt EVs from its failed Cruise robotaxi program. These cars were seen on highways in Texas, Michigan, and California, testing new driver-assistance technology.

Now, reports say GM is rebuilding its autonomous vehicle (AV) team in Austin and Mountain View. The company is even rehiring some laid-off Cruise employees, according to Bloomberg.

When GM absorbed Cruise in December 2024, it said it would merge Cruise’s self-driving tech with GM’s own advanced driver-assistance systems (ADAS) to create fully autonomous personal vehicles.

Deals and Funding News

Joby Aviation Raises $514 Million

Joby Aviation sold 30.5 million shares, raising over $514 million. The money will help the company prepare for passenger flights in Dubai by 2026, followed by launches in the U.S.
However, shares were sold at an 11% discount, which made investors nervous.

Other Big Deals

Futurail, a European startup building self-driving train tech, raised €7.5 million in seed funding.
Nexcade, based in London, raised $2.5 million to automate freight forwarding.
Toyota and Metal Mining are working together on cathode materials for solid-state batteries.
Tycho AI, a drone navigation startup, raised $10 million in Series A funding.
Utilimarc, a U.S. fleet analytics company, was acquired by Smith System.

Transportation and Tech Updates

California now allows Uber and Lyft drivers to unionize as independent contractors.
DoorDash is expanding its robot delivery program with Serve Robotics across the U.S.
Lucid Motors delivered a record number of EVs last quarter, showing slow but steady progress.
Lyft partnered with Tensor Auto to launch robotaxis in Europe and North America by 2027.
Allium Engineering is developing paper-thin stainless steel to improve bridge construction.
Tesla introduced cheaper Model 3 and Model Y versions at $36,990 and $39,990, but these models are very basic and don’t include Autopilot.
Zero Motorcycles moved its headquarters to the Netherlands to focus on global growth.

FAQs

1. Why is The Boring Company in trouble in Nevada?

Nevada regulators say it violated nearly 800 rules, including unapproved digging and improper waste disposal.

2. What is Tesla being investigated for?

Tesla’s Full Self-Driving software allegedly causes unsafe driving behaviors like running red lights or drifting lanes.

3. How is GM re-entering the self-driving market?

GM is rebuilding its autonomous vehicle team and combining Cruise’s tech with its own driver-assistance systems.

4. When will Joby Aviation start passenger flights?

Joby plans to start commercial air taxi services in Dubai by 2026 and later in the U.S.

Elon Musk Faces More Trouble with Regulators