Tesla is recalling 200,000 vehicles in the US due to a malfunctioning backup camera. There were reports that the cameras wouldn’t engage when the cars were in reverse, which is a pretty big safety issue and the whole point of those cameras in the first place. Tesla has processed 81 warranty claims potentially related to the issue, according to Autoblog.

The recall includes certain Model Y, Model S, and Model X vehicles from 2023. Tesla says it delivered 1.8 million vehicles in 2023, so this recall accounts for more than 10 percent of the company’s yearly output. The US National Highway Traffic Safety Administration (NHTSA) released a statement on the matter and said that a software issue was to blame for the problem, according to Reuters.

To that end, all of the recalled vehicles feature Tesla’s “Full Self-Driving” computer 4.0 and run software version 2023.44.30 through 2023.44.30.6, or 2023.44.100. Tesla owners can check to see what software versions they’re running. The company has released an over-the-air (OTA) software update to fix the glitch, according to the NHTSA.

Tesla became aware of the problem in December and decided on a recall on January 12. Customers will receive a letter alerting them to the problem by March 22. The company says that it’s not aware of any crashes, injuries or deaths associated with the malfunction.

This latest recall comes just six weeks after Tesla recalled over two million vehicles after serious safety issues regarding its Autopilot advanced driver-assistance system. That was also addressed via an OTA software update.

GM's driverless Cruise division is under investigation by both the Department of Justice (DoJ) and Securities and Exchange Commission (SEC), The Washington Post has reported. The probes follow an incident last year in which a jaywalking pedestrian was struck by a Cruise autonomous vehicle and then dragged 20 feet, worsening her injuries.

At the same time, yesterday Cruise released its own third-party findings regarding the accident, which took place on October 2 and involved another vehicle (a Nissan). The company said it "failed to live up to the justifiable expectations of regulators and the communities we serve... [and] also fell woefully short of our own expectations," adding that it's "fully cooperating" with investigators. According to its own findings, that's an understatement to say the least. 

According to the report, Cruise withheld crucial information from officials during a briefing the day after the accident. Specifically, the company failed to mention that its autonomous vehicle (AV) had dragged the victim 20 feet at around 7 MPH, causing serious injuries. According to the internal report, that occurred because the vehicle mistakenly detected a side (rather than a frontal) collision and attempted to pull over rather than stopping. 

At least 100 Cruise employees, including members of senior leadership, legal and others, were aware of the dragging incident — but failed to disclose it during October 3 meetings with the San Francisco Mayor's Office, NHTSA, DMV and other officials, the report states.

The company said it intended to let a video of the dragging incident speak for itself, then answer questions about it. However, the video didn't play clearly and fully due to internet connection issues, and then Cruise employees failed to verbally affirm the pullover maneuver and dragging of the pedestrian. In case that's not bad enough, the third-party findings state:

Cruise leadership was fixated on correcting the inaccurate media narrative that the Cruise AV, not the Nissan, had caused the Accident. This myopic focus led Cruise to convey the information about the Nissan hit-and-run driver having caused the Accident to the media, regulators and other government officials, but to omit other important information about the Accident. Even after obtaining the Full Video, Cruise did not correct the public narrative but continued instead to share incomplete facts and video about the Accident with the media and the public.

The report says the failings came about due to "poor leadership, mistakes in judgment, lack of coordination, an 'us versus them' mentality with regulators, and a fundamental misapprehension of Cruise’s obligations of accountability and transparency to the government and the public." 

Prior to the crash, Cruise was facing other problems with its autonomous vehicles (AVs) failing to recognize children and the frequency with which human operators took control. According to former CEO Vogt, human drivers needed to intervene in trips every four to five miles. 

Cruise had its license to operate suspended in California back in October. The company also laid off 24 percent of its workforce late last year, following the resignation of co-founder Daniel Kan and the departure of its CEO Kyle Vogt. On top of the two federal investigations, the company is also facing a lawsuit from the city of San Francisco. 

Porsche just officially revealed the new all-electric Macan SUV, after giving us a little tease last year. Along with the reveal, the company dropped specs, pricing information and an approximate release date. 

This looks to be a direct rival to vehicles like Jaguar’s I-Pace and the Polestar 4. To that end, this is a well-equipped vehicle. First and foremost, the battery is on point, allowing for 381 miles before running out of power. That’s Miami to Jacksonville on a single charge, with some juice to spare. It’ll be available in two variants: the 397hp Macan 4 and 621hp Macan Turbo. The company promised 600 horsepower and it looks to have delivered, with the Turbo at least. It’s worth noting that the range here dwarfs the popular Porsche Taycan EV, though that model’s made for speed and not distance.

Porsche

On the interior, the EV Macan features three digital displays as part of a robust infotainment system. There’s a standard 12.6-inch curved instrument cluster and an 11-inch infotainment touchscreen. The vehicle also offers another 11-inch touchscreen for passengers, to allow them to stream content and adjust controls. The whole platform’s powered by Porsche’s proprietary voice assistant, which is built on top of the Android Automotive operating system. There’s even a dedicated app store, appropriately named the Porsche App Center.

You’ll also notice a streamlined exterior that looks exceptionally sleek when compared to earlier iterations of the Macan. The rear even boasts a retractable spoiler that automatically adjusts positioning to increase downforce. The front motor was developed by Bosch, but the rear motor was made in-house at Porsche’s manufacturing center in Zuffenhausen, Germany.

Porsche

There’s also a new electronically-controlled traction management system, which Porsche says is up to five times faster than the four-wheel drive system of the existing gas-powered Macan. The vehicle also includes Porsche’s Torque Vectoring Plus system, for enhanced steering behavior.

The Porsche Macan EV, which is no longer called the E-Macan, will be sold alongside the gas-powered version until next year, at which point the company will sunset the OG model. This is part of the company’s promise to transition 80 percent of global sales to electric vehicles by 2030.

Porsche should release the car by the end of the year, though it was originally supposed to show up in 2023, so we shall see. The EV Macan SUV will cost $88,600 for the standard model and a whopping $120,000 for the Turbo, according to Autocar.

Elon Musk has confirmed that a "next-generation low-cost" Tesla EV is in the works and is "optimistic" that it'll arrive in the second half of 2025, he said in an earnings call yesterday. He also promised "a revolutionary manufacturing system" for the vehicle that's far more advanced than any others in the world by a "significant margin."

An article yesterday from Reuters indicated that the new vehicle would be a small crossover codenamed "Redwood." Tesla reportedly sent requests to suppliers for quotes, predicting a weekly production volume of 10,000 vehicles. Musk previously stated that the automaker is working on two new EV models that could sell up to 5 million per year, combined. 

"Our current schedule shows that we will start production towards the end of 2025, sometime in the second half," he said on the call. The vehicle will be built in Tesla's Austin, Texas Gigafactory to start with and other locations around the world later. Musk hinted that there would be a strong push to ramp up assembly: "We'll be sleeping on the line practically," he said.

We achieved a record production and deliveries of over 1.8 million vehicles, in line with our official guidance. And in Q4, we're producing vehicles at an annualized run rate of almost 2 million cars a year. And people are often surprised that the the highest-output... car factory in North America is in the San Francisco Bay area.

Musk stated that the company's new manufacturing technique will be "very hard to copy" because "you have to copy the machine that makes the machine that makes the machine... manufacturing inception." He added that as before, the new line could start slowly before production significantly ramps up. 

He warned shareholders of "notably lower" sales growth for 2024, however, as the wave of Model 3 and Model Y sales subsides. The company predicted a second sales wave that will start with the next-generation vehicles coming in 2025. 

Musk also touched on Tesla's FSD (full self-driving) progress, noting other "car companies should be asking for FSD licenses" and adding that the reasons "will become obvious probably this year." Musk has made similar rosy predictions for FSD before, though, and it still remains at Level 2 capability. Meanwhile, rival Mercedes-Benz recently gained Level 3 approval in the US. 

As Musk admitted himself, the production forecast "should be taken with a grain of salt as I'm often optimist... regarding time." He was accurate when he said the Model 3 would arrive in 2017, but was very wrong about the $35,000 price (it debuted at just under $50K and Tesla only briefly sold a $35K model). If that history holds, the next-gen model may arrive on time, but it may take some time for the price to come down.

Tesla is reportedly working on compact crossover EV codenamed "Redwood" with production set to start in June 2025, sources familiar with the matter told Reuters. The company reportedly sent requests for quotes for the new model to suppliers last year, predicting a weekly production volume of 10,000 vehicles. 

The rumor lines up with Elon Musk's comments at a May 2023 shareholder meeting that Tesla was working on two new EV models that could sell up to 5 million a year combined. "Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry," he said at the time.

Tesla has also been promising a $25,000 car for some time, with Musk dropping the idea then reviving it due to high consumer interest rates (the cheapest Model 3 is $38,990). However, Reuters' sources didn't mention the price of the vehicle set to arrive in 2025. 

The report arrives at a convenient time for Tesla, as critics have recently been after the company for sitting on its haunches with the relatively stale Model 3 and Y designs. The timing of any new EVs was one of the most voted questions from investors for Tesla's earnings call, set for this afternoon (January 24). 

If the new vehicles live up to Musk's description, they could help allay those concerns. At the same time, Tesla is starting to ship its Cybertruck EV to decidedly mixed reviews, with some users decrying quality issues and others lauding the performance and audacity of the vehicle. 

Ford says it's cutting production of the F-150 Lightning due to lower than expected demand. As of April 1, the Rouge Electric Vehicle Center (the Michigan plant where the electric pickup is built) will transition from two production shifts to one. That will have an impact on roughly 1,400 workers.

The automaker says it will transfer around half of those to its Michigan Assembly Plant, where it's putting together a third crew to build more of the Bronco and Bronco Raptor, as well as the new Ranger and Ranger Raptor to meet demand. The company is hiring another 900 workers to fill that shift.

The rest of the affected F-150 Lightning workers will be reassigned to different roles at the Rouge plant or Ford's other facilities in the region. That is, unless they take up a retirement incentive offer.

Ford didn't say by how much it's reducing production of the F-150 Lightning. However, by moving from two shifts to one, that indicates output will drop roughly by half, which aligns with recent reports. According to CNBC, Ford planned to cut production from around 3,200 units per week to 1,600.

The automaker retooled the Rouge facility in 2023 so that it would have an annual F-150 Lightning capacity of up to 150,000. However, demand hasn't kept up. While sales of the EV were up by 55 percent last year, it hasn't been selling as quickly as it did previously.

The company says that it expects EV sales to continue to grow globally this year, but at a lower rate than previously anticipated. With that in mind, as well as the fact Ford is readying next-gen EVs, the company has decided to pull back on F-150 Lightning production for the foreseeable future. 

That isn't the only EV Ford has scaled back on either. In November, it slashed production of the Mustang Mach-E.

“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America's best-selling EV pickup,” Ford President and CEO Jim Farley said. “We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla's charging network beginning this quarter."

Following last week's terrifying incident in which a Boeing 737 Max 9 lost a cabin panel mid-flight, the Federal Aviation Administration says it will have more oversight of the company's production and manufacturing. The FAA is also carrying out an investigation into Boeing following the incident, which led to the agency grounding around 171 of the company's 737 Max 9 planes.

The FAA says it will audit the 737 Max 9 production line and its suppliers to make sure Boeing is complying with quality protocols. It notes that the results will determine whether further audits are needed. In addition, the FAA will more carefully monitor in-service events concerning the 737 Max 9. It will also conduct an assessment of safety risks related to delegated authority and quality oversight. In the latter case, the agency will look into whether it makes more sense to have independent third parties oversee Boeing's quality control and inspections.

"It is time to re-examine the delegation of authority and assess any associated safety risks," FAA Administrator Mike Whitaker said in a statement. "The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk." As for when the 737 Max 9 might return to service, the FAA says that timeline will be determined by "the safety of the flying public, not speed."

There were no major injuries reported as a result of last Friday's incident on an Alaska Airlines plane. Boeing's 737 Max line was previously grounded for nearly two years after two crashes in 2018 and 2019 that killed 346 people.

Nissan has unveiled its latest Nismo electric vehicle. The Ariya Nismo is based on the Ariya e-4orce and it's scheduled to be available in two trims. The B6 has a 66kWh battery, while the B9 has a 91kWh version. With Nismo being Nissan's performance division, it's no real surprise that the EV will offer a little more power than other Ariyas. The B6 model will have 362 hp and 413 lb-ft while the B9 is set to have 429 hp and 443 lb-ft, though Road and Track points out that these figures might change before the electric SUV hits the road.

The Nismo team is said to have tuned the acceleration and added an exclusive driving mode that aims to maximize response. Nissan claims that the tuning, combined with the four-wheel-control tech of e-4orce and tires mounted on rigid 20-inch aluminum wheels, will help deliver "superior stability and turn-in ability as well as better line-tracing and enhanced cornering ability at high speeds."

Nismo also added an optional Formula E-esque sound to the Ariya Nismo for additional "excitement," Nissan said. The automaker added that the cabin has a premium feel with specially designed Nismo seats and trim.

This isn't quite the first Nissan EV that the Nismo team has worked on. It debuted the Leaf Nismo RC concept at the 2011 New York Auto Show. A second-gen model went into production in Japan in 2018. Nissan has yet to announce pricing and a release window for Nismo's new flagship EV.

Hertz says it's selling around 20,000 electric vehicles from its US fleet, which constitutes approximately a third of its total number of EVs in its global fleet. It claimed that "expenses related to collision and damage, primarily associated with EVs, remained high" in the most recent financial quarter, "thereby supporting the company’s decision to initiate the material reduction in the EV fleet." Hertz said it plans to reinvest some of the proceeds into purchasing gas-powered vehicles.

"The company expects this action to better balance supply against expected demand of EVs," Hertz said in an SEC filing. "This will position the company to eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs."

There were already signs that Hertz was having cold feet over its decision to invest heavily in EVs over the last few years. It was reported in 2021 that the rental company had ordered 100,000 EVs from Tesla. The following April, it emerged that Hertz planned to buy up to 65,000 EVs from Polestar over five years.

However, in October 2023, Hertz said it was slowing down plans to electrify its fleet. At the time, CEO Stephen Scherr said EVs cost Hertz "about twice in terms of damage cost repair than a conventional internal combustion engine vehicle."

As Reuters notes, Tesla is currently selling more than 700 EVs through its used car website. The vast majority of those are Tesla Model 3 and Model Y vehicles.

A year since Sony Honda Mobility (SHM) announced its debut EV concept, the Afeela, the company is back at CES 2024 to offer more details, more collaborations and a driving simulator.

The name of the concept vehicle hasn’t changed since last we saw it. What is new, however, is the car's ability to be driven around with a PlayStation controller. I didn’t get to do that — it was a stunt operated by one of the company's employees — but there was a DualSense controller involved in my demo.

So let’s begin where SHM left off. At last year’s CES 2023, it revealed the Afeela Concept EV, which packed in 45 cameras and an expansive “media bar” that spread across the vehicle's dash, showing a mix of car information, navigation, music players and more. The steering wheel was redesigned as a yoke so that the driver can better view that sumptuous dash. The company also further teased some mixed-reality tricks in collaboration with Epic Games.

The Afeela EV itself looks mostly the same as the prototype from last year, although it now has a substantial LiDAR bar above the windscreen that looks like a giant smartphone notch. The company says that the car will be available for pre-order in 2025 before going on sale in the US the following year.

At CES 2024, I got to step inside an Afeela, while an SHM representative gave me a tour of everything that’s so far been crammed into this concept vehicle.

Combining both Sony and Honda’s expertise, the Afeela will create its own noise cancellation bubble, apparently “tailoring the cabin for entertainment” using Sony’s Spatial Audio technology. According to SHM’s renders, there appear to be roughly 30 speakers, although that’s more than likely to change as the concept further evolves. A spokesperson added that over 42 sensors grace the Afeela’s initial spec sheet.

Photo by Mat Smith/Engadget

In one of the most surreal experiences I’ve had at CES, I also got to play Horizon Forbidden West on the Afeela's expansive dashboard display. No, there isn’t a PS5 baked into this concept EV — why not, though? — but a demonstration involving PlayStation’s long-running Remote Play feature. Sure, the Bluetooth connection to the controller was temperamental (CES is just hundreds of Bluetooth and Wi-Fi signals clashing), but conceptually, you get that it’s possible. The two screens for passengers sitting in the rear would also be able to display games, movies and more; however they were just dummy screens in this demo car.

SHM also announced during Sony’s CES show that it’s already teamed up with Microsoft to use its Azure OpenAI technology to create a “Mobility Personal Agent” — a conversational in-car virtual assistant for drivers and passengers alike.

It’s also working with Polyphony Digital, the company behind Gran Turismo, on a nebulous goal of developing vehicles that “fuse the virtual and the real, mainly in the area of human senses.” For now, that collaboration has resulted in an Afeela you can drive in Gran Turismo.

But it’s the new dash, combined with AR graphics overlays and that LiDAR notch, which intrigues me most. The EV will draw information and imagery from its sensors and create 3D models of the outside world. This can be used for frivolous things, like Godzilla-styled monsters on your dashcam feed and augmented reality games. Or more simply, rich, detailed overlays for navigation to nearby businesses and destinations.

While we weren’t driving the Aveela EV around Las Vegas, SHM tried to offer the next best thing: a car simulator made in collaboration with Epic Games (and what appears to be that Unreal Engine 5 Matrix demo). Steering around the virtual world, in an Aveela cockpit (in a moody black colorway, different to the light-gray showroom car I sat in earlier), the digital wing mirrors also displayed the same highly realistic 3D world. The dash display then offered an AR overlay, showing vehicles, objects and pedestrians, flagging nearby hazards in red.

SHM is still putting a lot of its focus on developing its autonomous driving technology and advanced driver assistance systems, the latter are non-autonomous helper features, similar to Tesla’s Autopilot. With Qualcomm’s Snapdragon Ride SoC powering the concept vehicle’s advanced driving features, the Aveela could reach limited Level 3 autonomous driving capabilities. At that point (and we’re not there yet) a vehicle can manage most aspects of driving without any human intervention. A spokesperson added it would be capable of Level 2 Plus autonomous driving in urban settings. SHM also teased traffic monitoring through the sensors, detection for objects like traffic cones, and apparently, using what it calls a Vision Transformer that will work to detect environmental characteristics “in a broader perspective” — this could translate into predicting future traffic jams before you meet them or alternative driving routes.

The car will also utilize all those sensors more frivolously, to detect drivers' approach and open the door for them. The same sensors, including LiDAR and cameras, will guide the Afeela as it parks itself.

Many of us still wonder if SHM’s EV will ever exist as a consumer vehicle. The commitment to getting its car on roads by 2026 is still there, and while CES may be the perfect audience for the hype being served up, will car buyers think the same?

We're reporting live from CES 2024 in Las Vegas from January 6-12. Keep up with all the latest news from the show here.