Hyundai's decision to use its CES keynote to tout Boston Dynamics' Atlas robot sends a pretty clear message about how the auto industry is absorbing the bad news about EVs in the United States in 2025, and where it thinks things are heading in the new year. EVs are out, and AI and robotaxis are in. In addition to Hyundai, Mercedes announced its plans to roll out its Nvidia-powered Level 2++ driver assist feature in the US later this year.
The biggest macro factor for DRIV isn't consumer demand or battery costs. It's trade policy: tariffs and industrial incentives that determine where EVs get built and sold. DRIV holds $340 million in assets split between US tech giants and global automakers. When tariff threats emerge or federal EV tax credits shift, the fund's diverse holdings react differently. Watch for announcements from the Office of the US Trade Representative on Chinese EV and battery component tariffs. These typically surface quarterly or around major trade negotiations.
"Specifically, we are constantly reviewing sensor devices and layouts, further improving computing power, and making our End-to-End Driving AI stronger," said Izumi Kawanishi, president and COO of Sony Honda Mobility. "As a result, the cabin will evolve into a drive-less environment, reducing the task of manual driving, and providing more freedom to relax and enjoy entertainment content. In the future, the drive-less environment will transform the cabin into a true 'Creative Entertainment Space,'" Kawanishi said.
I opened the discussion by admitting that I have reversed my long-standing negative view on Ford and General Motors. Lee immediately agreed, pointing out that GM has been one of the strongest-performing auto stocks this year. The reason is simple. The EV growth narrative has cooled, and the market is refocusing on what actually sells cars in the United States.
The Gen.Urban is currently operating on a set route in Wolfsburg to observe passenger reactions to vehicles without a steering wheel. Volkswagen wants to enter the autonomous vehicle space and it plans to offer a self-driving ID. Buzz next year. More carmakers are looking at producing driverless robotaxis and Volkswagen wants to be at the forefront. The German giant has begun testing an autonomous cab in its hometown of Wolfsburg, Germany, without a steering wheel and pedals.
For months, Tesla's robotaxis in Austin and San Francisco have included safety monitors with access to a kill switch in case of emergency - a fallback that Waymo currently doesn't need for its commercial robotaxi service. The safety monitor sits in the passenger seat in Austin, and in the driver seat in San Francisco. Neither service is fully open to the public yet, relying instead on customer waitlists.
I wake up between 6:30 and 7 a.m. I don't use an alarm clock because I hate them. The first thing I do is turn on the "Today" show, grab my phone, and have a cup of black coffee. Everyone says, "Don't get right on your phone in the morning," but I love getting on my phone for at least 30 minutes to check emails and catch up.
"We believe there are synergies shared between the development of autonomous driving and physical AI," the company said in its third-quarter shareholder letter. "Mind Robotics will focus on the advancement of industrial AI to reshape how physical world businesses operate and leverage Rivian operations data as the foundation for a robotics data flywheel." It added that the kind of "AI-enabled robotics" it plans to build "can support a wide range of industrial applications."
It's a lot, and it all comes against the backdrop of President Trump's trade wars, tariffs, and the expiring EV tax credit here in the United States, all of which have really upended the car business. Just last week, the day before I talked to Mary and Sterling, GM took a $1.6 billion writedown on its EV business against falling demand.
GM announced that "eyes-off" highway driving is coming to its electric Cadillac Escalade SUV in 2028. The company is also integrating Google Gemini and conversational AI into its vehicles next year. GM said its eyes-off technology will allow drivers to read or respond to texts, and relies on LiDAR technology.
