Rivian Unveils Custom Silicon, R2 Lidar Roadmap, and Universal Hands Free

Autonomy subscriptions are how things are going to go, I called this a long time ago. It makes too much sense in terms of continuous development and operations/support to not have a subscription -- and subscriptions will likely double as insurance at some point in the future (once the car is driving itself 100% of the time, and liability is always with the self driving stack anyway).

Of course, people won't like this, I'm not exactly enthused either, but the alternative would be a corporation constantly providing -- for free -- updates and even support if your car gets into an accident or stuck. That doesn't really make sense from a business perspective.

Agreed, it seems inevitable that autonomy and insurance are going to be bundled.

1. Courts are finding Tesla partially liable for collisions, so they've already got some of the downsides of insurance (aka the payout) without the upside (the premium).

2. Waymo data shows a significant injury reduction rate. If it's true and not manipulated data, it's natural for the car companies to want to capture some of this upside.

3. It just seems like a much easier sell. I wouldn't pay $100/month for self-driving, but $150 a month for self-driving + insurance? That's more than I currently pay for insurance, but not a lot more. And I've got relatively cheap insurance: charging $250/month for insurance + self-driving will be cheaper than what some people pay for just insurance alone.

I don't think we need to hit 100% self-driving for the bundled insurance to be viable. 90% self-driving should still have a substantially lower accident rate if the Waymo data is accurate and extends.

History suggests it won't be that clean.

1. High-severity accidents might drop, but the industry bleeds money on high-frequency, low-speed incidents (parking lots, neighborhood scrapes). Autonomy has diminishing returns here; it doesn't magically prevent the chaos of mixed-use environments.

2. Insurance is a capital management game. We’ll likely see a tech company try this, fail to cover a catastrophic liability due to lack of reserves, and trigger a massive backlash.

It reminds me of early internet optimism: we thought connectivity would make truth impossible to hide. Instead, we got the opposite. Tech rarely solves complex markets linearly.