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Cruise Share Valuation Drops By More Than Half

Back in January 2024, GM Authority reported that General Motors’ autonomous driving subsidiary Cruise had its operating budget slashed by $1 billion over the course of the 2024 calendar year, following a halt in operations after an October 2023 incident during which a Cruise AV struck and dragged a pedestrian. Now, in other money-related woes for the robotaxi company, Cruise’s share valuation has taken quite the dive.

According to a report from Reuters, Cruise’s internal share price stood at $11.80 per share, which was down from $24.27 just a fiscal quarter prior.

“We cannot ignore that this estimate is significantly lower than we’ve seen before and that there are real-life impacts for each of us,” Cruise Chief Administrative Officer Craig Glidden remarked.

Side profile of Cruise AV

Another Cruise spokesperson claimed that the new valuation reflects “current market conditions and our operating reality,” and added that the subsidiary is focused on “earning the trust of regulators and the public before relaunching.”

Speaking of earning trust, GM President Mark Reuss acknowledged that although the Cruise is expected to return to U.S. roads within the next year or two, it will likely take at least four to five years to restore public trust in its robotaxi units. Meanwhile, Cruise Co-President Mo Elshenawy also commented that the robotaxi company had hit an all-time low.

In other Cruise-related developments, the autonomous driving company appears to be gearing up to relaunch in Texas. More specifically, Houston and Dallas, Texas are emerging as potential locations for Cruise to restart its robotaxi operations. That being said, nothing has been officially confirmed yet, as Cruise representatives are currently in the process of working with Texas officials to ensure a safe return to public streets.

Of course, we’ve known that Cruise intended to get back out on public roads for some time now. However, up to this point, it wasn’t clear what location the self-driving subsidiary had in mind.

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As a typical Florida Man, Trey is a certified GM nutjob who's obsessed with anything and everything Corvette-related.

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Comments

  1. Of course Mary missed a huge opportunity to spin it off and proceeded to completely mismanage it. But she got paid, so who cares

    Reply
  2. Good…

    Reply
  3. Oh well, not surprising, pull the plug.

    Reply
  4. You got what you asked for!

    Reply
  5. womp womp

    Reply
  6. Mary made a huge mistake. Cruise CEO Ammann was fired by Mary for wanting to spin Cruise off. My guess is she believed Cruise within GM would boost stock, and market cap.
    An independent Cruise could have attracted more capital and better talent. GM holding 50% stock would have guarenteed profits and first shot, along with Honda, at technology.
    Barra has kept GM focused on quality but ger EV Ultium transformation has failed probably taking Cadillac with it. I’m no One ark Ruess fan, either.
    Simco, except for Buick, is good with design. Buick needs Mark Adam’s back!

    Reply
  7. ZeRO CrAsHeS, ZErO EMisSiOnS, zErO FAtaLiTiES.

    Reply
    1. The triple zero fantasy comes crashing down as I said it would.

      Reply

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