Legacy automaker General Motors’ (NYSE:GM) autonomous driving unit, Cruise, is set to relaunch its robotaxis in one unspecified city soon after the operations were suspended earlier this month. The news was received by the employees via an email from the newly appointed President and Chief Technology Officer Mo Elshenawy yesterday. The email also stated that some of the non-engineering Cruise employees would be asked to leave the company.
Cruise may not relaunch its robotaxis in San Francisco because it means reapplying for the revoked permits. Instead, GM could focus on other cities like Phoenix, Austin, Houston, or Miami, where it was already running autonomous taxis. Reports suggest that Cruise could stick to Texas since the state’s regulators are more welcoming towards autonomous vehicles. Cruise will continue to use its retrofitted Bolt EVs to continue operating as driverless robotaxis. The launch of Origin robotaxis is shelved for now.
In October, GM lost its permit to drive robotaxis in California, followed by a complete stoppage of services nationwide. A series of accidents, with one particular incident involving dragging a pedestrian for 20 feet, has led to public outrage over GM’s robotaxis. Two separate investigations are currently underway to look into the mishaps. Cruise’s robotaxis has lost public trust and the company wants to regain that before expanding to other cities. The incidents also led to the stepping down of Cruise CEO Kyle Vogt, who apologized and took full responsibility for the failure to comply with safety standards.
Is GM a Good Stock to Buy Today?
With 11 Buys, five Holds, and one Sell rating, GM stock has a Moderate Buy consensus rating on TipRanks. Also, the average General Motors price target of $44.65 implies 58.9% upside potential from current levels. GM stock has lost 16.3% so far this year.
