GM's Robotaxi Retreat Highlights Autonomous Vehicle Challenges
Originally Published 1 year ago — by TheStreet
General Motors has announced it will cease funding its Cruise robotaxi division, impacting both its stock and Microsoft's investment in the venture. Microsoft, which invested in Cruise in 2021, expects an $800 million impairment charge due to GM's decision. The move comes after Cruise faced significant challenges, including a high-profile accident and regulatory setbacks. GM cites the extensive resources required to scale autonomous vehicles as a reason for the decision, while still committing to personal-use autonomous technology. This shift may benefit Tesla by reducing competition in the robotaxi market.