Rising EV startup star earns $100 million and Tesla’s win-lose federal funding moment

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Before moving on to this week’s news, we have a more roundup of transportation technology at CES 2025. As I noted last week, autonomous vehicle technology was everywhere. But there were other topics as well. Check it out here.

Now, on to the latest and greatest future of transportation technology news.

A little bird

No birds this week, but thought this was the best place to say goodbye Hindenburg Researchthe short-selling firm that investigated tips from whistleblowers and used its own research to root out fraud in publicly traded companies. Hindenburg Research founder Nate Anderson posted a note Wednesday that the company stops.

In the world of transportation and weather technology, the Hindenburg is famous for exposure Nikola Motors, Lordstown Motorsand billionaire Gautam Adani of the Adani Group, who was indicted for an alleged scheme for paying more than $250 million in bribes to Indian officials in exchange for contracts for a 12-gigawatt solar power project.

Do you have a suggestion for us? Email Kirsten Korosec at [email protected]Sean O’Kane at [email protected]or Rebecca Bellan at [email protected]. Or check these instructions to learn how to contact us via encrypted messaging app or SecureDrop.

Offers!

Only a bunch of offers this week! Here’s what stands out.

Caramela startup that helps car sellers and buyers complete the final steps of the transaction, is be acquired from eBay. The terms are not disclosed.

EV Startup Precursor raised $100 million in a Series B round co-led by Tesla’s top investor Capricorn Investment Group and Leitmotif, a new US fund co-founded by the former head of M&A for Volkswagen. Also joining in the round were Tiger Global and mobility firm Maniv, both existing investors.

Sarla Aviation raised $10 million in a new round of funding led by Accel and included angel investors such as Flipkart co-founder Binny Bansal, Zerodha co-founder Nikhil Kamath, and Swiggy co-founder Sriharsha Majety.

Tesla was a winner and a loser in the last round of federal funding for electric vehicle charging infrastructure. The Department of Transportation Tesla snob on its request for $97 million to fund a big-rig recharge corridor from California to Texas. But Tesla, along with three other industry partners, ended up being awarded a separate one $100 million in funding to build electric truck charging stations throughout Illinois.

I shipa startup that has developed real-time tracking software across all modes of transportation has raised $30 million in a funding round led by Toyota Woven Capital’s growth fund. Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures also participated.

Notable readings and other tidbits

Autonomous vehicles

Aurora Innovation is it taking federal safety regulators to court in a case that centers around the rather common practice of placing physical warning triangles around semi trucks stopped along highways. TL; DR: This could have far-reaching implications for self-driving truck companies operating in a regulatory environment designed around humans.

U US Department of Commerce announced a final rule banning the sale or import of connected vehicles from China and Russia on national security grounds. The rule also prevents Chinese ride-hailing companies, such as WeRide and Pony AI autonomous car testing on the roads of the United States.

U National Traffic Safety Administration he closed his investigation in Cruise and whether the company’s robotaxis exercised adequate caution around pedestrians. The agency noted that Cruise had issued a recall on its software and that GM’s autonomous vehicle subsidiary had since ceased commercial operations.

Electric vehicles, charging and batteries

Arc Boats arrived at CES 2025, and senior reporter Sean O’Kane took his Arc Sport boat for a joy ride on Lake Mead. Here we go what he thought of the startup’s newest offering.

Tesla revealed to new Y model aimed at the Chinese and other Asia Pacific markets, marking the first major update to the SUV since its launch in 2020.

Sean DuffyPresident-elect Donald Trump’s nominee to lead the US Department of Transportation thinks electric vehicle owners should pay to use the roads. As a reporter Rebecca Bellan He explains, achieving this goal is not so easy.

This week’s wheels

Just before the holidays, I had the opportunity to enter a production prototype of the 2025 Volkswagen ID. Buzz Pro S Plus. I plan to spend more time driving the production version soon, but for now here are a few thoughts on this all-electric minibus that was priced at $69,595.

I have been waiting for this electric minibus since 2017 when it was presented by Volkswagen as a concept. This reimagined minibus had an almost impossible mission. It had to be instantly recognizable and give a nod to its iconic past while paving a new futuristic and EV path. And in many ways, the ID. Buzz does that. It is attractive; people were constantly stopping me. It’s fun while being practical. And although it is more expensive than other minivans on the market, it is not completely outrageous.

The version I tested was the all-wheel drive, with Metro Silver Metallic paint and “copper” interior with leather seats. There is a ton of space – truly cavernous – and beautiful details throughout, giving it an elevated feel. It was easy to maneuver on tight city streets, despite its length of 195.4 inches. Yes, it’s long!

It met many of my expectations. But I wonder about his future. This vehicle would be great as a child and grocery hauler in the city. It can also be used in commercial fleets in urban environments. But with a 91 kilowatt-hour battery that gets an estimated 234 kilometers of range, I wonder if it will live up to its past as a roadtrippin’ machine?

Side note: In the last newsletter, I offered a few tips about my Zoox robotaxi rides. Here is mine full writing on my Zoox experience in Las Vegas.

What is “Wheels of the Week”? It’s a chance to learn about the different transportation products we test, whether it’s an electric or hybrid car, an electric bike, or even a ride in an autonomous vehicle.