Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

In two weeks, the coronavirus has brought the entire U.S. auto industry to a screeching halt. When it finally sputters back to life, many companies may be forced to change, defer — or even abandon — their ambitious plans for self-driving vehicles.

The big picture: Auto factories are shut down across North America to prevent the spread of the virus among workers, while stay-at-home orders have kept car shoppers away from showrooms. The resulting financial shock means carmakers have shifted their focus to survival, not investing in expensive technologies with no clear payoff.

The uncomfortable truth about self-driving cars is that there's no clear business model yet.

  • Most carmakers, tech giants and startups racing to develop the technology assume urban robotaxis are a good place to start, because their 24/7 operation makes the economics work better.
  • But after this pandemic, shared anything seems less appealing, especially a car where there's no driver available to disinfect between passengers.
  • Spray disinfectants and ultraviolet lighting, along with antimicrobial materials, could help, along with more voice commands to replace touchscreens.
  • Even so, "I think there's a very good chance that autonomy for robotaxis may be reexamined," says Gartner Group vice president Mike Ramsey.

Autonomous delivery seems made for a pandemic like this, on the other hand. People who are afraid to go out have discovered the convenience of home delivery in huge numbers.

  • Small delivery robots like Starship, Kiwibot and Amazon's Scout were already piloting delivery services before the coronavirus hit.
  • Nuro, whose low-speed driverless delivery vans just received federal approval, could be the beneficiary of exquisite timing.
  • Other AV companies like Waymo, Cruise and Argo AI, might pivot away from driverless ride-hailing and focus more of their efforts on automated deliveries, analysts predict.
  • "This is a tremendous market opportunity for them, and I think they're definitely going to go for it," says Gary Silberg, head of automotive consulting at KPMG.

Yes, but: When the economy does begin to recover, investment capital could be hard to come by.

  • Traditional carmakers will be focused on getting their core business back up and running and might be forced to choose between spending limited resources on new vehicles or future technologies.
  • AV startups, meanwhile, could find it more difficult to secure investment capital because the timeline for self-driving cars has likely been extended, says RBC's Robert Spak.
  • Ride-hailing firms like Uber and Lyft could also struggle to keep funding their own internal AV efforts, he said.

Cruise CEO Dan Ammann told Axios his company is focused on keeping employees safe and sticking to its mission.

  • "We're fortunate in that we're stable, well-funded and have a crystal clear mission, and that's a good position to be in right now."

What's next: Industry consolidation is likely to accelerate within the next six to 12 months.

Go deeper

Cuomo: "I am not going to resign"

New York Gov. Andrew Cuomo apologized Wednesday for acting in a way that made women feel "uncomfortable," but insisted that he has "never touched anyone inappropriately" and said he will not resign.

Driving the news: Cuomo reiterated in his first public appearance since sexual harassment allegations surfaced that he will fully cooperate with a team of independent investigators appointed by New York Attorney General Letitia James, but suggested that demands for his resignation from were simply "politics."

Facebook to lift political ad ban imposed after November election

Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images

Facebook will finally allow advertisers to resume running political and social issue ads in the U.S. on Thursday, according to a company update.

The big picture: Facebook and rival Google instituted political ad bans to slow the spread of misinformation and curb confusion around the presidential election and its aftermath.

Bryan Walsh, author of Future
45 mins ago - Technology

AI is industrializing

Illustration: Sarah Grillo/Axios

Artificial intelligence is becoming a true industry, with all the pluses and minuses that entails, according to a sweeping new report.

Why it matters: AI is now in nearly every area of business, with the pandemic pushing even more investment in drug design and medicine. But as the technology matures, challenges around ethics and diversity grow.