GM

General Motors’ self-driving unit, Cruise, could be worth $43 billion, RBC Capital Markets estimates.
The autonomous arm received a valuation of $11.5 billion from Japan’s SoftBank in May.
GM is reportedly eyeing a spin-off or tracking stock for Cruise, Bloomberg reported last month.
Follow GM’s stock price in real-time here.

Cruise, the self-driving car company bought by General Motors in 2016, could be worth a whopping $43 billion, RBC Capital Markets estimates.

That new valuation is nearly four times the figure eyed by Japan’s SoftBank when it invested $2.25 billion in the autonomous driving unit in May. Since then, Bloomberg reported that GM was eyeing a possible spin-off or tracking stock for Cruise.

“We doubt SoftBank would have invested if they didn’t see a much larger opportunity,” Joseph Spak, RBC’s autos analyst, said in a note to clients Tuesday.

“For now, it appears GM’s plans are to run its own transportation network company (TNC). If they can get the technology right and execute on this plan, then when we run this scenario, we see them having a fleet of ~800,000 vehicles by 2030 driving ~58 billion miles that year. At $0.55/mile and 29% EBIT margins, we see ~$17 billion of …read more


Source:: Businessinsider – Finance

      

(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *