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The California Department of Motor Vehicles has granted Nuro the green light to test its third-generation R3 autonomous delivery vehicle in four cities across the Bay Area. This approval comes as a significant boost for the startup, which has faced financial challenges and setbacks in recent years. Unlike traditional vehicles, Nuro's R3 is designed solely for goods delivery, lacking seats, windows, steering wheels, or pedals. Nuro has been developing the R3 for several years but paused a major manufacturing initiative with Chinese electric carmaker BYD last year, which delayed its commercial operations. However, Nuro's CEO, Ferguson, stated that the company has made substantial progress in its autonomy technology, enhancing both software and hardware capabilities. The R3 is currently being tested using a fleet of retrofitted Toyota Priuses, with ongoing deliveries for Uber Eats as part of a 10-year partnership established in 2022. The R3 is capable of reaching speeds of up to 45 miles per hour, although initial deployments may not utilize this full capacity. Ferguson emphasized that the vehicle's design allows for comprehensive Level 4 driverless testing and potential commercialization across a broader area, excluding freeways. Nuro's strategy has shifted towards utilizing large foundational AI models to improve efficiency in tasks such as mapping and localization. Looking ahead, Nuro plans to focus on refining its technology and maximizing its delivery operations with Uber Eats. Additionally, Ferguson hinted at exploring new market opportunities beyond autonomous delivery, although specific details remain undisclosed.