new updates on the Tesla AI might mean the end of self-driving cars let's see how the stock price will handle today's shocking Tesla news welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video the driverless tech industry hit a couple of snags this week first came using Ford's fq3 earnings report that the automaker was shutting down its Argo AI autonomous driving joint venture Ford


said it would be taking a dollar 2.7 billion dollars non-cash for tax impairment on its investment in Ardo AI with engineers and other employees being absorbed by Ford and its Argo AI partner Volkswagen Volkswagen said it would take a dollar 1.9 billion dollars charge from the winding down of Argo then Reuters reported that the justice department began a criminal probe last year looking into several crashes involving Tesla's autopilot driver assistance system which was activated during those accidents and whether Tesla


made fraudulent claims about its driver assistance Technology's capabilities Argo Ai and Tesla were both pursuing the goal of level 4 and level 5 driving automation while using different strategies to get there Argo AI worked with authorities and stakeholders like cyclist and pedestrian safety organizations to help shape its product whereas Tesla made its users and even the open roads of the US is beta testing playground in any case it's become clear it's going to take longer than what


investors really wanted to hear Philip coupen Carnegie Mellon associate professor and self-driving expert told Yahoo finance dumb field Ford's Chief product and Tech officer said during the company's earnings call this week that level 4 self-driving is going to be a really tough problem to solve field a former long time Tesla engineer added that the task will be the toughest problem of Our Generation Ford said in struggles with developing fully autonomous level 4 and level 5 Tech was both a capital and talent issue


meaning the automaker did not know how much capital and talent it would need to solve the problem ultimately the cost was something that Ford and Volkswagen were unwilling to bear when we looked at the business opportunity here we saw that the arc to a scaled profitable business was a long way off five years plus out John Lawler Ford CFO said to Yahoo finance this week about level 4 and level 5 autonomous services four technologists believe there's a lot of hurdles that need to be crossed Koopman surmised that the industry is


now focused on deployment models like middle mile Trucking I autonomous Trucking on highways only as well as L2 and L3 assisted driving technology that Ford is now focusing on Argo was taking safety really seriously this is a good thing Koopman said but for the industry overall we've been seeing the industry shift away from robitaxes towards other deployment models big valuations bigger losses automakers have spent close to 1.75 billion dollars developing autonomous technology but there is not


much there to show for it yet so what happened to an industry that UBS said would have a total addressable Market Worth close to Dollar 2.8 trillion dollars by 2030 no one seemed to fully price in the challenges from a technological capital resources and policy perspective that would make the self-driving puzzle so hard to solve Wall Street is now assessing that the promise of autonomous driving is too far off and is valuing the tech accordingly Intel's spin-off and IPL of its mobile autonomous Tech unit recently garnered a


dollar 16 billion dollars valuation after being valued at Dollar 50 billion dollars a year ago at the same time some companies are clear-eyed about the investment required self-driving startup waymo is not at the mercy of an oem original equipment manufacturer Hoover waymo's owner can afford to make a 10-year bet and the OEM just may not be comfortable with that kind of burn rate on that kind of time frame Cuban says GMO and cruise is going to depend on how much patience GM has as for Tesla CEO of Elon Musk recently


doubled down on his company's ability to solve the level 4 level 5 problem you're going to have no one in the car by the end of this year must set on the company's most recent earnings call and certainly without a question that's whatever is in my mind next year he said I think we'll also have an update next year to be able to show The Regulators that the self-driving car is safer much so than the average human however Regulators like the doj SEC and the nhsi investigating dozens of crashes


involving Tesla's self-driving software there is some uncertainty as to when Tesla can fully launch its level 4 level 5 platform where's the difference between puffery and fraud I don't know kupen said describing it as a legal question for lawyers and the doj legal issues aside coopin explained there isn't much in the way of what a regulator can do when a permit is requested for the deployment or live phase Beyond approving the permit if the testing phase has gone smoothly once it's live or in deployment like waymo


and Cruz are in California Regulators can monitor performance for safety issues there is no regulatory hurdle to Tesla other than actually getting their technology to work coupon said this news comes as Toyota faces serious problems with its evline being one of the major automakers falling behind and just before we continue we're giving away a 50 Amazon gift card every single day you just need to subscribe to the channel like this video and get the Bell on also comment I love trade daily to lock in


your entry winners will be contacted privately good luck now let's not waste another second and get right back into the video as Toyota Dithers on its approach to electrification it's falling further behind the world's automakers a recent Reuters report states that to better compete in a booming sector has been slow to enter Toyota has temporarily halted the dollar 38 billion dollars electric vehicle EV rollout that had previously announced in order to reconsider its long-term electrification


strategy a Critic of Eevee despite Rising sales as I previously noted the industry's swiftly accelerating move away from internal combustion engines hasn't won over president Akio Toyota currently the company holds the top spot in the world for manufacturing gas electric hybrids in the third quarter Toyota sold almost 100 000 hybrids half of all hybrid vehicles sold in the United States in 2022 are a Toyota with that sort of market share it's little wonder that Toyota remains among the


fiercest opponents of pure battery electric technology earlier this month he told reporters that battery electric vehicles aren't just going to take longer than the media would like us to believe this places Toyota at a disadvantage in its attempts to compete with market leader Tesla as well as Rivals like General Motors and Volkswagen both of which are stepping up their own electrification efforts fully electric vehicle sales have been increasing far more quickly than even Skeptics had anticipated growing to six percent of


U.S Auto Sales in the third quarter of 2022 up from 2.2 percent during the same period in 2020. a change of heart and an about face nevertheless the company seemed to have bowed to the inevitable in December 2021 when it announced a plan to spend dollar 38 billion dollars to bring 30 battery electric vehicles to Market by 2030 but the strategy called for a mix of powertrains including conventional gas electric hybrids plug-in hybrids hydrogen fuel cell Vehicles as well as EV the company also planned to transform Lexus into a fully


electric brand in North America by 2030. as if to prove its intentions for the sector the company rolled out its first EV earlier this year only to Hull production and recall all the models to correct a product defect ever started production in early October then came the Reuters report which quotes Anonymous sources within the company as saying Toyota is examining whether to change its recently launched electric vehicle platform or engineer a new one the fallback is notable for a company that perfected lean production


which led to its dominance in the Auto industry but the company's Advantage is that Toyota lies behind Tesla in establishing The Benchmark for easy production costs the world's automakers have been envying emulating Toyota for decades but the company is no longer a leader in electrification that honor Falls to Tesla which is now the target of every other automaker worldwide as Toyota reshuffles his plans and decides what it should build most of its biggest competitors already sell EV and


have more on the way Toyota engineers and management realize it's Tesla noct Iota that set him as standard for Ev production costs which is one reason managements is reassessing its electrification plan while the company remains among the world's largest automakers it's going to have to invest billions of dollars in EV to catch up with leading American European and even Korean automakers that are already ahead in the market if you own the stock it remains one to hold as it Remains the


world's largest automaker its Market position and profitability should continue although it can be challenging to foresee the end of an era this appears to be it for those betting on an automaker to lead the EV future Toyota does not appear to be one to buy now and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like to make it clear that this is a news and entertainment video not investment


advice you should always do your own research and speak to a financial advisor before making any Investments thank you all so much for your support don't forget to like And subscribe for the chance to win up to twenty thousand dollars in Amazon gift cards and we'll see you in the next video if you want more crazy trade news how about this video we did