The move is part of a larger trend among legacy automakers, with Ford also withdrawing from autonomous vehicle ventures. In contrast, companies like Tesla and Alphabet's Waymo continue to advance their robotaxi initiatives. Investors appeared to welcome GM's decision, with the company's stock initially rising due to anticipated annual savings of $2 billion. However, shares later fell, reflecting mixed investor sentiment. Analysts suggest that most investors preferred GM not to allocate more capital to Cruise, despite some hopes for external funding to sustain the division.
Key takeaways:
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- Cruise founder Kyle Vogt criticized GM's decision to stop funding its robotaxi division, calling the company "a bunch of dummies."
- GM's decision to divest from Cruise is part of a broader cost-cutting strategy as the company faces challenges in the electric vehicle market.
- Investors reacted positively to GM's move, with the company's stock initially rising, although it later fell in trading.
- Other companies like Tesla and Alphabet continue to push forward with their robotaxi initiatives, contrasting GM's decision.