Cruise, GM’s Autonomous Driving Unit, Now Valued At $43B

RBC is valuing General Motors’ autonomous driving unit, Cruise, at a whopping $43 billion. That is up from its $11.5 billion valuation it received just a few weeks ago. That valuation came when SoftBank invested in Cruise back in May. SoftBank invested around $2.25 billion in the autonomous driving unit. After SoftBank invested in the unit, GM had reportedly been looking to spin off the unit, or create a tracking stock for Cruise, allowing it to trade on the NYSE. RBC’s autos analyst, Joseph Spak stated that “we doubt SoftBank would have invested if they didn’t see a much larger opportunity”. And SoftBank has almost quadrupled its money since investing, and that was less than two months ago.

GM bought Cruise almost two years ago for just $1 billion, so GM has definitely made their money back on this acquisition. Cruise is a self-driving car company that GM became interested in, to help propel its own self-driving car initiative. Cruise is expecting to have over 800,000 self-driving vehicles on the road by 2030, driving over 58 billion miles by that year. It’s the biggest competitor to Alphabet’s self-driving division, Waymo, which has driven the most miles on public roads, and also has the least accidents right now.

RBC did upgrade GM’s stock price target, bringing it to $53 a share. Cruise is said to be worth about $7 a share of that share price, given the fact that GM does own 80-percent of the company, and not the entire company. It’ll be interesting to see whether GM does decide to spin off Cruise or create a tracking stock for the company, in the near future. Given that the current valuation of Cruise is around $43 billion, it also wouldn’t be that surprising to see it jump to over $100 billion before the end of the year. In fact, at this pace, it may pass that figure in the next couple of months.

The post Cruise, GM’s Autonomous Driving Unit, Now Valued At $43B appeared first on AndroidHeadlines.com |.

from: https://www.androidheadlines.com/2018/07/cruise-gms-autonomous-driving-unit-now-valued-at-43b.html