GM Is Doubling Down on Cruise's Autonomous Future
Investing in General Motors (NYSE: GM) today is increasingly becoming an investment in the future of electric autonomous driving through its majority ownership of Cruise. Late last week, GM announced it was buying out SoftBank's stake in Cruise for $2.1 billion and will take on a $1.35 billion investment tranch that's due now that Cruise is reaching commercialization.
For GM, the investment could be a fortuitous opportunity. SoftBank was due to get a big bill at a time when it was trying to sell assets, not buy more. Time will tell if this was a sale at depressed prices for Cruise, but if you're a believer in autonomous ride-sharing, it increases GM's stake in the company to over 80% and could eventually be a massive asset for the automaker.
Image source: Cruise.
Source Fool.com
