We now have reached the end of the Cruise robotaxi debacle and at least one accompanying probe. Legacy automaker General Motors (GM) has agreed to recall 1,200 robotaxis in order to satisfy the terms of a government probe operation. The news gave shares a modest uptick in Thursday afternoon’s trading.
The Cruise unit of GM agreed to pull in the taxis over issues with “hard braking,” reports noted, and with that, the National Highway Traffic Safety Administration (NHTSA) agreed to shut down the probe into Cruise over its autonomous driving systems.
Cruise, for its part, disputed the notion that a recall was even necessary. But it was willing to play along for the sake of getting the NHTSA to back off. Cruise noted it was “…committed to building trust and increasing transparency with respect to autonomous vehicle technology.”
Big Battery EVs
Meanwhile, GM is also eager to establish dominance in the field of “big battery EVs.” Here, a “big battery electric vehicle (EV)” is one that has an unusually large battery—around 200 kilowatt-hours, or possibly larger—in order to boost range. However, this comes with some difficulties of its own, and some of GM’s competitors, like Ford (F), are starting to look at other ways of improving the range.
In fact, Ford is looking to smaller vehicles that do not need that level of battery power to get going, and that could lead to a new paradigm shift in the industry.
Is GM a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 11 Buys, two Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 40.16% rally in its share price over the past year, the average GM price target of $57.50 per share implies 23.42% upside potential.
