GM and Tesla clash on EV strategy amid tariffs and slowing growth. Both revealed Q2 earnings this week, showing very different plays for the future.
GM took a $1 billion hit from tariffs but sticks to EVs as its “north star.” Chevy is now the No. 2 EV brand in the U.S. GM’s edge: a broad lineup with over a dozen EV models. Flexibility is the buzzword from CEO Mary Barra and CFO Paul Jacobson—they’re setting up factories to build EVs and gas cars on the same lines, ready to switch based on demand.
Mary Barra and Paul Jacobson hammered the word “flexibility” nine times on the call, underlining the pivot to adaptable manufacturing. 
Mary Barra and Paul Jacobson emphasized “flexibility” nine times
on the Q2 earnings call, aiming to shift production easily between
EVs and internal combustion engines based on market demand.
Meanwhile, Tesla is zoning in on autonomy and AI over cars. CEO Elon Musk admits Q2 automotive revenue dropped 16% year-over-year and most income still comes from car sales — about 74%. But Musk isn’t focused on cars long-term. The upcoming “cheaper Tesla” is basically a stripped Model Y.
Tesla bets big on Optimus robots and autonomous rides. These ventures currently don’t make money or revenue. Musk knows rough quarters are ahead but believes these will be Tesla’s profit engines later.
Tesla’s robotaxi service is reportedly launching in San Francisco this weekend, though without full permits.
Musk faces regulatory and legal heat over his Full Self-Driving claims. California’s Department of Motor Vehicles is threatening to yank Tesla’s license to sell cars over alleged false advertising. The hearing just wrapped; a decision is pending.
Tesla’s fate in California hinges on this regulatory showdown.
On the startup front:
- Bosch Ventures led a $21M Series B for Munich’s 4screen, linking automakers and drivers via vehicle displays.
- Corporate travel infrastructure startup Blockskye raised $15.8M led by Blockchange.
- Pre-seed funding of $3.1M closed for autonomous freight startup Glīd Technologies.
- EV truck clearance startup Nevoya secured $9.3M in seed funding.
- AI military logistics-focused Rune Technologies raised $24M Series A.
- Swift Navigation raised $50M Series E to scale centimeter-accurate satellite positioning.
Other quick notes:
- Lyft will add autonomous shuttles by Benteler in late 2026 across U.S. cities and airports.
- Lucid Air owners can charge at Tesla Superchargers starting July 31, but with slower speeds.
- Uber is launching a women-preferences feature in Detroit, LA, and SF to match female riders and drivers.
California’s Tesla hearing is the biggest wild card here. The company’s survival in its biggest market could hinge on it.
Stay tuned.
