Autonomous Vehicles Make a Comeback at CES 2025, Despite Challenges Ahead

Alexis Rowe

Alexis Rowe

January 09, 2025 · 5 min read
Autonomous Vehicles Make a Comeback at CES 2025, Despite Challenges Ahead

The autonomous vehicle (AV) industry is back in the spotlight, with a strong presence at CES 2025 in Las Vegas. After a few years of disillusionment, the mood has shifted, and excitement is building again around the potential of AVs. Waymo, a dominant force in the industry, had its largest exhibit yet on the CES convention floor, showcasing its Zeekr RT, while Scout Motors, a VW Group spinoff, is confident about its future prospects.

Other notable AV startups and companies, such as Applied Intuition, May Mobility, Tier IV, Polymath Robotics, and Zoox, also had a strong presence at the event. Even John Deere, a well-known agricultural machinery manufacturer, is getting into the automated driving action. The atmosphere was upbeat, but without the same level of hype seen a few years ago. Despite the progress, extreme challenges remain, including capital and operational hurdles.

Waymo, for instance, has faced struggles, including an incident where a customer got stuck in one of its robotaxis. The company's executives, however, remain optimistic about the future of AVs. Meanwhile, Scout Motors is still a few years away from production, but Volkswagen Group is confident about its prospects, expecting big things from the startup. Scout's factory in Columbia, South Carolina, may even be used to build other vehicles, potentially including those from new VW joint venture partner Rivian.

In other news, NXP, a Dutch semiconductor giant, plans to acquire TTTech Auto, an Austrian company specializing in safety software for autonomous vehicles, in an all-cash transaction valued at $625 million. This acquisition comes as chip companies, including Nvidia and Qualcomm, focus on providing automotive-grade supercomputers and toolkits to help automakers develop and deploy AV technology.

Amazon AWS has also entered into a 10-year, $1 billion partnership with Here, a company specializing in mapping and location tech. As part of the deal, Here will use AWS's cloud infrastructure to help auto manufacturers develop and deploy automated driving features. Serve Robotics, meanwhile, has raised $80 million from unnamed institutional investors to extend its runway past 2026 and build its fleet to 2,000 sidewalk robots by the end of 2025.

Beyond autonomous vehicles, CES 2025 saw a range of other notable announcements, including BMW's revamp of its in-car user interface, Delta Air Lines' AI-powered assistant and upgraded in-flight entertainment system, and Honda's unveiling of its latest electric SUV prototype, the 0 SUV. Segway also showcased two new e-bikes, while Scout Motors stood out with its classic approach to its two vehicles, the Traveler SUV and Terra pickup.

Uber has teamed up with Nvidia to use the chipmaker's new generative world model simulation tool, Cosmos, and cloud-based AI supercomputing platform, DGX Cloud, to support the development of AVs. Vay, a Berlin-based startup, is expanding its operations in Las Vegas, with plans to increase its fleet size to 100 vehicles. Xpeng Aero HT unveiled its "modular flying car," which is essentially a huge electric van with a small, foldable eVTOL that can roll out and launch into the skies.

In related news, Tesla's "Actual Smart Summon" feature, which lets Tesla owners use their app to summon their car to them autonomously, is under federal investigation following several crashes. Aurora Innovation has lost Uber CEO Dara Khosrowshahi as one of its board members after he resigned last week, citing a desire to focus on his responsibilities at his ride-hail and delivery company.

A Serve delivery robot and a Waymo robotaxi collided at a Los Angeles intersection, highlighting the complexities of having different types of AVs on our streets. Lucid produced and delivered a record number of vehicles in 2024, meeting its production target with 9,029 EVs and delivering 10,241 vehicles. Rivian delivered 51,579 electric SUVs, trucks, and vans in 2024, up 3x from 2023.

Tesla saw fewer deliveries last year compared to 2023, marking the automaker's first ever year-to-year drop. The company's directors will also have to pay up to $919 million back to the company after a Delaware judge approved a settlement, resolving allegations that they overpaid themselves.

As the autonomous vehicle industry continues to evolve, it's clear that there are still significant challenges to overcome. However, with major players like Waymo and Scout Motors pushing the boundaries of what's possible, the future of transportation is looking increasingly autonomous.

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