TechCrunch Mobility: Tesla vs GM: A tale of two earnings

Welcome to ProAITools, your trusted source for the latest in AI and technology news. This week, we delve into the contrasting strategies of two automotive titans, General Motors (GM) and Tesla, as revealed in their recent earnings calls. Both companies are navigating a challenging landscape marked by evolving tariffs, slowing electric vehicle (EV) growth, and the impending reduction of EV incentives. Their approaches to securing future profitability, however, couldn’t be more different, as analyzed in the latest TechCrunch Mobility.

GM, despite facing a significant $1 billion hit from tariffs in Q2, remains steadfast in its commitment to EVs, declaring them its “north star.” While currently trailing Tesla in sheer EV sales, GM boasts a more diverse portfolio of over a dozen EV models, allowing it to cater to a broader customer base. This strategy has already paid dividends, with Chevrolet emerging as the No. 2 EV brand in the U.S. A key theme from GM’s Q2 earnings call, articulated nine times by Chair and CEO Mary Barra and CFO Paul Jacobson, was “flexibility.” This refers to their innovative manufacturing approach, enabling factories to seamlessly switch between assembling EVs and traditional internal combustion engine (ICE) vehicles based on market demand. Furthermore, GM highlighted $4 billion in deferred revenue from its advanced driver-assistance system, Super Cruise, along with OnStar and other software services, signaling a growing revenue stream beyond vehicle sales.

In stark contrast, Tesla’s CEO Elon Musk is placing a colossal bet on the future, envisioning the company primarily as a leader in autonomy and “real-world AI,” rather than solely a car manufacturer. Despite approximately 74% of Tesla’s revenue still stemming from automotive sales, which saw a 16% year-over-year decline in Q2, Musk’s focus is clearly on Optimus robots and large-scale autonomous vehicle deployment. The challenge, however, lies in the present: these ambitious future products are not yet generating substantial profits or revenue. While Tesla does accrue revenue from its supervised Full Self-Driving (FSD) system and has initiated robotaxi rides in South Austin, these initiatives are not yet at scale or profitable. Musk acknowledged that the path ahead would involve some “rough quarters,” yet he firmly believes these AI-driven ventures will eventually become the primary drivers of Tesla’s profitability. Recent reports, however, suggest that Tesla is significantly behind on its Optimus robot production targets, and their reported limited robotaxi service launch in San Francisco this weekend might proceed without the necessary permits, indicating the immense pressure the company is under. Adding to this, Tesla faces increasing regulatory and legal scrutiny, particularly concerning its Autopilot and Full Self-Driving claims, which could further impact its sales and future plans.

The broader mobility sector continues to innovate, attracting significant investments. Recent funding rounds highlight this dynamism: 4screen secured a $21 million Series B led by Bosch Ventures for in-vehicle display technology. Corporate travel infrastructure company Blockskye raised $15.8 million with Blockchange leading the round. Glīd Technologies closed a $3.1 million pre-seed round for autonomous road-to-rail freight. Nevoya raised a $9.3 million seed round led by Lowercarbon to scale its EV truck fleet, achieving cost parity with diesel. Rune Technologies secured $24 million in Series A funding for AI-enabled military logistics. Lastly, Swift Navigation garnered $50 million in Series E financing led by Crosslink Capital to advance centimeter-accurate satellite positioning for vehicle autonomy.

Beyond earnings, the industry continues to evolve rapidly. Lyft is set to integrate autonomous shuttles from Benteler Group into its network by late 2026, targeting U.S. cities and airports. In EV charging news, Lucid Air owners will soon gain access to thousands of Tesla Supercharger stations in North America, although with a caveat: charging speeds may not match those of Tesla vehicles. Furthermore, Uber is expanding its commitment to driver and rider safety by bringing its “women preferences” feature, allowing female riders and drivers to match, to key U.S. cities like Detroit, Los Angeles, and San Francisco. A critical development for Tesla is the ongoing Department General Services hearing in California, where the California Department of Motor Vehicles is challenging Tesla’s license to sell vehicles in the state, citing alleged false advertising claims regarding its Autopilot and Full Self-Driving systems. The outcome of this hearing could significantly impact Tesla’s operations in its home state.

As the automotive industry pivots towards an electrified and autonomous future, the strategies of GM and Tesla offer a compelling study in contrasts. GM opts for adaptability and a diversified portfolio, responding directly to current market demands, while Tesla pushes the boundaries with an aggressive, AI-centric vision for the long haul. Both face formidable challenges and opportunities, shaping the trajectory of mobility for years to come.