Cruise’s Valuation Plunges by More Than Half Amidst Fallout from October Accident
General Motors’ self-driving car subsidiary, Cruise, faces a significant setback as its internal share price plunges by more than half, now estimated at $11.80, down from $24.27 just a quarter ago. This decline follows an October accident that resulted in the suspension of Cruise’s permit to operate in California and a halt to all U.S. road testing. With a “longer pathway towards scaled commercialization,” Cruise has had to recalibrate its plans, including slashing jobs and facing regulatory scrutiny. Despite aiming for a limited return to city streets with human drivers later this year, Cruise’s challenges underscore the formidable obstacles in their path to success in the AD industry.