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This Cruise in San Francisco seemingly could not figure out how to pull aside on a narrow street to let a buss pass.

Matt Rosoff, CNBC

Cruise CEO and founder Kyle Vogt posted comments on Hacker News on Sunday responding to allegations that his company’s robotaxis aren’t really self-driving, but instead require frequent help from humans working in a remote operations center.

First, Vogt confirmed that the General Motors-owned company does have a remote assistance team, in response to a discussion under the header, “GM’s Cruise alleged to rely on human operators to achieve ‘autonomous’ driving.”

The CEO wrote, “Cruise AVs are being remotely assisted (RA) 2-4% of the time on average, in complex urban environments. This is low enough already that there isn’t a huge cost benefit to optimizing much further, especially given how useful it is to have humans review things in certain situations.”

CNBC confirmed with Cruise spokesperson Tiffany Testo that the comments were accurate and came from the company’s CEO.

Cruise recently took the drastic move of grounding all of its driverless operations following a collision that injured a pedestrian in San Francisco on October 2. The collision and Cruise’s disclosures around it led to state regulators stripping the company of its permits to operate driverless vehicles in California, unless there is a driver aboard.

The DMV previously said its decision was based on several factors, citing four regulations that allow suspension in the event “the Department determines the manufacturer’s vehicles are not safe for the public’s operation,” and “the manufacturer has misrepresented any information related to safety of the autonomous technology of its vehicles.”

As NBC News previously reported, California Department of Motor Vehicles accused Cruise of failing to show them a full video depicting the October 2 collision, during which a pedestrian was thrown into the path of the Cruise robotaxi by a human driver in a different car who hit her first.

During that incident, Cruise previously told NBC, its vehicle “braked aggressively before impact and because it detected a collision” but then tried to pull over and in the process pulled the pedestrian forward about 20 feet. 

Rival Waymo, which is owned by Google parent company Alphabet, continues to operate in the city.

How often do remote workers intervene?

A New York Times story followed last week diving into issues within Cruise that may have led to the safety issues, and setback for Cruise’s reputation and business. The story included a stat that at Cruise, workers intervened to help the company’s cars every 2.5 to five miles.

Vogt explained on Hacker News that the stat was a reference to how frequently Cruise robotaxis initiate a remote assistance session.

He wrote, “Of those, many are resolved by the AV itself before the human even looks at things, since we often have the AV initiate proactively and before it is certain it will need help. Many sessions are quick confirmation requests (it is ok to proceed?) that are resolved in seconds. There are some that take longer and involve guiding the AV through tricky situations. Again, in aggregate this is 2-4% of time in driverless mode.”

CNBC asked Cruise to confirm and provide further details on Monday.

The Cruise spokesperson wrote in an e-mail, that a “remote assistance” session is triggered roughly every four to five miles, not every 2.5 miles, in Cruise’s driverless fleet.

“Often times the AV proactively initiates these before it is certain it will need help such as when the AV’s intended path is obstructed (e.g construction blockages or detours) or if it needs help identifying an object,” she wrote. “Remote assistance is in session about 2-4% of the time the AV is on the road, which is minimal, and in those cases the RA advisor is providing wayfinding intel to the AV, not controlling it remotely.”

CNBC also asked Cruise for information about typical response time for remote operations, and how remote assistance workers at Cruise are trained.

“More than 98% of sessions are answered within 3 seconds,” the spokesperson said.

She added, “RA advisors undergo a background check and driving record check and must complete two weeks of comprehensive training prior to starting, consisting of classroom training, scenario-based exercises, live shadowing and knowledge-based assessments. Advisors also receive ongoing training and undergo supplemental training whenever there is a new feature or update. Regular reviews, refreshers and audits are conducted to ensure high performance.”

As far as the ratio of remote assistance advisors to driverless vehicles on the road, the Cruise spokesperson said, “During driverless operations there was roughly 1 remote assistant agent for every 15-20 driverless AVs.”

George Mason University professor and autonomous systems expert Missy Cummings, who was previously a safety advisor to the federal vehicle safety agency (NHTSA), told CNBC that whether or not the public still considers Cruise vehicles self-driving, it has been an “industry standard” for humans to be on call, monitoring the operations of drones, robotics, and now autonomous or semi-autonomous vehicles.

“I start to get concerned,” she said, “about how we’re using humans when we are using them. In other domains, we’ve seen issues where, for example, an air traffic controller maybe fell asleep on the job.”

Cummings also said it would be very important to understand whether Cruise vehicles involved in any collisions — especially in the October pedestrian collision — called back to remote operations for help. “I would like to know whether a human was notified at all and what the human’s actions were in the remote operations center.”

Cruise declined to say whether the October 2 incident triggered a remote assistant call, whether a human advisor made decisions to authorize the vehicle’s movement, or whether any Cruise employee had called 911.

The company spokesperson said, “We have initiated third-party reviews of the October 2 incident and are working with NHTSA on their investigation as well. In respect of those processes, we will await the findings of those reviews before commenting further.”

GM said last month that the company has lost roughly $1.9 billion on Cruise in the first nine months of this year, including $732 million in the third quarter alone.

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Elon Musk ratchets up attacks on Navarro as Tesla shares slump for fourth day

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Elon Musk ratchets up attacks on Navarro as Tesla shares slump for fourth day

Elon Musk (L), and Peter Navarro (R).

Reuters

As Tesla shares plummeted for a fourth straight day, CEO Elon Musk let loose on President Donald Trump’s top trade advisor Peter Navarro.

Musk, the world’s richest person, started going after Navarro over the weekend, posting on X that a “PhD in econ from Harvard is a bad thing, not a good thing,” a reference to Navarro’s degree. Whatever subtlety remained at the beginning of the week has since vanished.

On Tuesday, Musk wrote that “Navarro is truly a moron,” noting that his comments about Tesla being a “car assembler,” as much are “demonstrably false.” Musk called Navarro “dumber than a sack of bricks,” before later apologizing to bricks. Musk also called Navarro “dangerously dumb.”

Musk’s attacks on Navarro represent the most public spat between members of President Trump’s inner circle since the term began in January, and show that the steep tariffs announced last week on more than 180 countries and territories don’t have universal approval in the administration.

When asked about the feud in a briefing on Tuesday, White House press secretary Karoline Leavitt said, “Look, these are obviously two individuals who have very different views on trade and on tariffs.”

“Boys will be boys, and we will let their public sparring continue,” she said.

For Musk, whose younger brother Kimbal — a restaurant owner, entrepreneur and Tesla board member — has joined in on the action, the name-calling appears to be tied to business conditions.

Tesla’s stock is down 22% in the past four trading sessions and 45% for the year. Tesla has lost more tha $585 billion in value since the calendar turned, equaling tens of billions of dollars in paper losses for Musk, who is also CEO of SpaceX and the owner of xAI and social network X.

Even before President Trump detailed his plan for widespread tariffs, he’d already placed a 25% tariff on vehicles not assembled in the U.S. Many analysts said Tesla could withstand those tariffs better than competitors because its vehicles sold in the U.S. are assembled domestically.

But the company’s production costs are poised to increase because of the tariffs on materials and parts from foreign suppliers. Canada and Mexico are among the leading sources of U.S. steel imports, and Canada is the nation’s largest supplier of aluminum, while China and Mexico are home to major suppliers of printed circuit boards to the automotive industry.

At a recent an event hosted by right-wing Italian Deputy Prime Minister Matteo Salvini, Musk said, “Both Europe and the United States should move, ideally, in my view, to a zero-tariff situation, effectively creating a free trade zone between Europe and North America.”

Musk, whose view on trade relations with Europe stands in stark contrast to the policies implemented by the president, has a vested interest in the region. Tesla has a large car factory outside of Berlin, and the European Commission previously turned to SpaceX for launches.

Even before the tariffs, Tesla’s business was faltering. Last week, the company reported a 13% year-over-year decline in first-quarter deliveries, missing analysts’ estimates. That report that landed days after Tesla’s stock price wrapped up its worst quarter since 2022.

Musk, who spent roughly $290 billion to help return Trump to the White House, is now leading the Department of Government Efficiency, or DOGE, which has slashed costs, eliminated regulations and cut tens of thousands of federal jobs. In the first quarter, Tesla was hit with waves of protests, boycotts and some criminal activity that targeted vehicles and facilities in response to Musk’s political rhetoric and his work in the White House.

WATCH: Brad Gerstner explains his Tesla position

Brad Gerstner explains his Tesla position

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Apple’s 4-day slide puts Microsoft back on top as most valuable company

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Apple's 4-day slide puts Microsoft back on top as most valuable company

Satya Nadella, CEO of Microsoft, laughs as he attends a session at the World Economic Forum in Davos, Switzerland, on Jan. 23, 2020.

Denis Balibouse | Reuters

Apple‘s 23% plunge over the past four trading sessions has again turned Microsoft into the world’s most valuable public company.

As of Tuesday’s close, Microsoft is worth $2.64 trillion, while Apple’s market cap stands at $2.59 trillion.

While the market broadly is getting hammered by President Donald Trump’s sweeping tariff plan, Apple is getting hit the hardest among tech’s megacap companies due to the iPhone maker’s reliance on China.

The Nasdaq is down 13% over the past four trading days, as President Trump’s decision to impose tariffs on imports from more than 100 countries has sparked fears of a recession brought on by rising prices. UBS analysts on Monday predicted that the price of the iPhone 16 Pro Max could jump as much as $350 in the U.S.

Both Apple and Microsoft, along with chipmaker Nvidia, were previously valued at upward of $3 trillion before the recent sell-off.

In January, Microsoft issued disappointing revenue guidance. Nevertheless, last week, as Jefferies analysts reduced their price targets on many software stocks, they wrote Microsoft was among the “companies who we view as more insulated” from tariff uncertainty.

Microsoft also had the highest market capitalization of any public company in early 2024, but Apple soon reclaimed the title.

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Tech stocks struggle with intraday gains amid tariff uncertainty

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Tech, semiconductor stocks bounce on tariff optimism, Nvidia jumps 7%

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Tech, semiconductor stocks bounce on tariff optimism, Nvidia jumps 7%

Technology stocks bounced Tuesday after three rocky trading sessions, spurred by rising optimism that President Donald Trump could potentially negotiate tariff deals with world leaders.

Nvidia led the Magnificent Seven group’s gains, rallying about 7%. Meta Platforms, Amazon, Tesla, Apple and Microsoft jumped at least 4% each. Alphabet rose about 3%.

The sector is coming off a wild trading session after speculation that the White House could potentially delay tariffs fueled volatile swings. Alphabet, Meta Platforms, Amazon and Nvidia finished higher, while Apple, Microsoft and Tesla posted losses.

Trump’s wide-sweeping tariff plans have sparked violent turbulence over the last three trading sessions. Trading volume on Monday hit its highest in nearly two decades. Technology stocks gyrated after the Nasdaq Composite posted its worst week in five years and the Magnificent Seven group lost $1.8 trillion in market value over two trading sessions.

Semiconductor stocks also rebounded Tuesday, with the VanEck Semiconductor ETF jumping more than 5% to build on a more than 2% gain from the previous session. Advanced Micro Devices, Lam Research and Micron Technology jumped about 6%.

Chipmakers were excluded from the recent tariffs, but have come under pressure on worries that higher duties could diminish demand for products they are used in and slow the economy. The sector is also expected to see tariffs further down the road.

Elsewhere, Broadcom surged 9% after announcing a $10 billion share buyback plan through the end of the year. Marvell Technology also bounced more than 9% after agreeing to sell its auto ethernet business for $2.5 billion in cash to Infineon Technologies.

WATCH: Tariff volatility erases majority of AI stock gains

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