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Tesla and Cruise are under the microscope

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Andrea Guzman
Andrea Guzman
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Andrea Guzman
Andrea Guzman
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January 31, 2023, 2:27 PM ET
People inspect the Tesla Model 3 as it sits on display at the Los Angeles Auto Show.
People inspect the Tesla Model 3 as it sits on display at the Los Angeles Auto Show.Justin L. Stewart—Anadolu Agency/Getty Images
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Hello, it’s Fortune tech fellow Andrea Guzman, filling in for Jacob today. 

Already hit with multiple investigations by the National Highway Traffic Safety Administration for problems with its various driver-assist systems, Tesla now faces a subpoena from the Department of Justice over its self-driving cars. 

The electric vehicle maker said that if the government decides to pursue an enforcement action, it might have a material adverse impact on its business.

“To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred,” Tesla said in the filing Tuesday with the Securities and Exchange Commission.

Still, leaders from the local to federal level are putting tighter scrutiny on self-driving cars. In December, Cruise, an autonomous car maker owned by GM, also faced a probe. And in San Francisco, transportation officials sent protest letters to California’s Public Utilities Commission last week, asking state regulators to slow down a planned expansion of autonomous vehicles in the city.

With Waymo operating in Phoenix and San Francisco and Cruise active in those metros and Austin, I talked to residents who have witnessed some of the incidents that the transportation officials detailed in their letter. Some of the incidents involve the car making unnecessary stops for extended periods while others involve clashes with emergency response scenes like when firefighters shattered the front window of a Cruise vehicle to prevent it from moving closer to fire hoses on the ground. 

Benjamin Shaykin, who witnessed a Cruise vehicle holding up traffic in San Francisco earlier this month, said the vehicles are unsettling. But it’s not just Cruise cars he’s worried about. 

He also mentioned uneasiness over Tesla’s “Full Self-Driving” feature, and how it had been in use on Nov. 24 when a Tesla Model S changed lanes and then made a quick stop in the far-left lane of the San Francisco Bay Bridge. An eight-vehicle crash resulted and injured nine people. 

“It’s one thing for you to say, ‘I agree to take responsibility,’ or ‘I agree to put my life in the hands of this thing,’” Shaykin said. “But what about everybody else who did not consent to that?”

Others have expressed excitement over the vehicles though. Randy Fong, President of the San Francisco Chamber of Commerce, submitted a letter at the start of this month asking the utilities commission to approve Cruise’s efforts to expand.

“San Francisco businesses are already benefiting from Cruise’s all-electric, self-driving vehicles. Since the onset of the pandemic, Cruise has partnered with the SF-Marin Food Bank and SF New Deal to deliver 2.3M+ meals to those in need,” Fong wrote. 

Want to send thoughts or suggestions to Data Sheet? Drop me a line here.

Andrea Guzman

NEWSWORTHY

Your phone battery might have been drained by Facebook. According to an ex-Meta employee, the social networking company routinely tests the performance of mobile features—such as image load times and newsfeed scrolling—in a way that quickly drains the phone batteries of unwitting Facebook users. As the New York Post reports, the former employee claims in a now-withdrawn lawsuit that they were fired for refusing to comply with the so-called "negative testing" practice. 

The EV price war is on. Tesla isn't the only electric car company slashing prices. Ford said Monday that it would lower the price of its Mustang Mach-E electronic vehicle by an average of $4,500 per car. “We are not going to cede ground to anyone,” Ford Chief Customer Officer Marin Gjaja said in the announcement.

Robots in hard hats. Rigorous construction tasks like digging, surveying, and pouring concrete are increasingly being taken on by robotic technology. But the Washington Post reports that some are worried it could lead to more burnout and injuries for people working in construction. 

Will the real Joe Rogan please speak up? ElevenLabs, an artificial intelligence-generated voice startup, is looking into more safeguards around its technology after it found voice cloning misuse cases. Vice’s Motherboard found that 4chan members used it to generate voices that sound like Joe Rogan, Emma Watson, and others to say racist and violent things. The company, founded by former Google and Palantir staffers, announced a $2 million pre-seed round this month.

IN CASE YOU MISSED IT

Chinese TikTok food blogger fined almost $20,000 after eating a great white shark she bought online, by Chloe Taylor

Elon Musk considering crypto payments for Twitter in push to build ‘everything app’, by Leo Schwartz

ChatGPT might be taking over the internet, but a computer scientist explains why some problems are still too hard to solve—even for AI, by Azure Gilman

More than half of Americans raking in $100,000 or more are living paycheck to paycheck, by Megan Leonhardt

The Ukraine war made Telegram’s app more popular and important than ever. But making money is still a struggle, by Vivienne Walt

Married father of 7 claims he was fired from Google after rejecting advances of high-ranking female colleague, by Alice Hearing

From ‘The Last of Us’ to ‘The Witcher’, PlayStation game adaptations are taking the TV world by storm—here’s what’s coming next, by Eleanor Pringle

BEFORE YOU GO

Next stop, half a billion. Love seeing your Spotify wrapped each December? Others do, too. The music streaming giant had 489 total monthly active users at the end of the fourth quarter, up from 406 million a year ago, and topping analyst expectations by 11 million. Listeners of the free, ad-supported product make up the bulk of the audience, but Spotify now has more than 200 million paying subscribers of its premium product.

This is the web version of Data Sheet, a daily newsletter on the business of tech. Sign up to get it delivered free to your inbox.

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