GM Halts Robotaxi Funding to Focus on Personal Vehicles

Investing.com — General Motors Company (NYSE: GM) saw a rise in after-hours trading on Tuesday after announcing the halt of funding for robotaxi production. The automaker plans to refocus efforts on developing autonomous driving technology for personal vehicles, which is expected to significantly reduce spending.

GM's stock increased by more than 1% following the news.

The company intends to merge its majority-owned robotaxi firm, Cruise LLC, with its technical teams to enhance autonomous driving technologies, including its Super Cruise feature. Super Cruise is available on over 20 GM models and logs more than 10 million miles per month.

GM anticipates that this restructuring will lead to cost savings of over $1 billion annually once the plan is implemented in the first half of 2025. The company holds about 90% of Cruise and has agreements to increase this ownership to over 97%, with plans to acquire all remaining shares.

GM stated it will collaborate with the Cruise leadership team to restructure and refocus operations.