General Motors GM halted development of their Origin autonomous vehicle as they cannot make it work and not because of regulatory concerns as claimed, Tesla Inc TSLA CEO Elon Musk alleged on Tuesday.
What Happened: “Well, obviously, the real reason that they canceled it because GM can’t make it work, not because of regulators, they’re blaming regulators,” Musk said. “That’s misleading of them to do so, because Waymo is doing just fine in those markets. So it’s just that their technology is not at par.”
The CEO was answering a question on Tesla’s earnings call on how regulatory hurdles will likely impact the company’s plans for its robotaxi product slated to be unveiled later this year. Like GM’s Origin, Tesla’s robotaxi, too, is expected to have no pedals or steering wheels.
It is now slated to be unveiled on October 10, two months later than Musk’s initial timeline of Aug. 8.
GM Abandons Origin: GM CEO Mary Barra said in a letter to shareholders on Tuesday that the company is abandoning its plans to build the Origin autonomous vehicle and instead focussing on using its next-generation Chevrolet Bolt for the autonomous driving operations of its Cruise unit.
“The Cruise team will also simplify their path to scale by focusing their next autonomous vehicle (AV) on the next-generation Chevrolet Bolt, instead of the Origin. This addresses the regulatory uncertainty we faced with the Origin because of its unique design. In addition, per-unit costs will be much lower, which will help Cruise optimize its resources," Barra wrote on Tuesday.
A Chevrolet spokesperson subsequently told Benzinga in a statement that the next generation of the Bolt EV is expected to launch late next year. However, the company has not ascertained when Cruise AVs will shift to that platform, he added.
Cruise Co-founder Responds: Cruise co-founder Kyle Vogt on Tuesday also expressed disappointment at GM abandoning Origin.
“Disappointed to see GM kill the Origin. Would have been amazing for cities,” Vogt wrote on X. Vogt stepped down as CEO of Cruise last year following the involvement of one of its robotaxis in an accident in San Francisco.
Vogt also accused GM of getting in early on innovative projects, only to abandon them later and lose the lead.
“GM repeatedly finds themselves with a 5-10 year head start, but then fumbles the ball, shuts things down, and loses the lead. Anyone remember the EV1? It's like someone keeps letting them look into a crystal ball and then they just go, "nah, we're good",” Vogt alleged.
For the first half of 2024, Cruise accrued an operating loss of $1,650 million, 28% higher than the loss of $1,289 million recorded in the corresponding period of last year. GM also spent $583 million on restructuring Cruise in the period.
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Photo courtesy: GM
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