General Motors (GM) is scaling back on its ambitious robotaxi efforts and focusing more on advanced driver-assistance technologies. This shift has effectively opened the field for Alphabet’s (GOOGL) Waymo and Tesla (TSLA) in the competitive autonomous taxi market.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
GM Is Restructuring Cruise
Earlier this week, GM announced that it will integrate Cruise, its autonomous taxi subsidiary, into its broader driver-assistance technology team. Additionally, the company will cease funding for the development of Cruise’s robotaxi, citing the “increasingly competitive robotaxi market.” Interestingly, despite being an early innovator in this space, Cruise’s progress was hindered by a high-profile pedestrian accident last year, which led to a temporary service halt.
Robotaxi Market Is Proving to Be Competitive
Cruise’s exit from the robotaxi space highlights the immense financial and technological barriers in the autonomous vehicle industry. Even established players are encountering significant challenges in pushing the technological frontier.
For instance, the robotaxi race has proven not only costly but also highly complex, even for major tech giants. A notable example is Ford (F), which exited the space two years ago by shutting down its Argo AI venture. Similarly, Apple (AAPL) abandoned its decade-long autonomous car project earlier this year.
In contrast, GM’s rivals are pushing forward in the autonomous vehicle race. Alphabet’s (GOOGL) Waymo, for example, is completing over 150,000 driverless rides weekly, showcasing its strong foothold in the market. Moreover, Waymo recently raised $5.6 billion to fuel its continued growth, further cementing its position. Meanwhile, Tesla (TSLA) is making aggressive moves, with plans to launch a robotaxi service by late 2025. Tesla’s ambitious strategy is supported by substantial investments, including $11 billion annually in infrastructure and $1 billion per quarter in research and development.
What Is the Best Stock to Buy for Driverless Cars?
For investors interested in buying stocks for driverless cars, we have rounded up the best stocks pursuing driverless cars using the TipRanks Stock Comparison tool.
