Headquartered in Michigan, General Motors Company has been designing and building automobiles, trucks and automobile parts for sale since 1908. Amid the rapidly evolving world of autonomous vehicles, the company has been facing some issues which has led to a decline in the Robotaxi fleet. This article lets you in on the details and brings you the latest GM stock forecast.
General Motors’ (GM:NYE) self-driving car subsidiary, Cruise, has encountered hurdles in its robotaxi fleet operations in the bustling streets of San Francisco. In response to a series of “concerning incidents” over the past week, Cruise has opted to reduce its active robotaxi fleet by 50%. This has drawn attention to the broader issues surrounding the deployment of autonomous vehicles.
A Wise Move Amidst Concerns
On August 18, 2023, the California Department of Motor Vehicles (DMV) issued a reduction notice, stating that Cruise must cut down its robotaxi fleet until appropriate safety measures are taken. The decision was prompted by a series of incidents that raised safety concerns. Cruise will now operate with 50 robotaxis during the day and 150 during the night, as the company strives to address the issues at hand.
Cruise’s swift action in response to the DMV directive showcases its commitment to road safety and responsible autonomous vehicle deployment. The company is actively cooperating with ongoing investigations as it seeks to regain confidence and ensure the safe operation of its robotaxis.
Cruise’s Recently Faced Incidents
Several alarming incidents have occurred on Cruise’s robotaxi operations. In one incident, a Cruise autonomous vehicle carrying a passenger collided with an emergency fire truck that was reportedly driving on the wrong side of the road to avoid traffic signals. While the robotaxi applied brakes to reduce speed, the collision was unavoidable.
The company said that such an accident had not occurred ever before and robotaxis drove proficiently around emergency vehicles.
In another instance, a Cruise self-driving vehicle stalled at an intersection and another vehicle with a passenger onboard was hit by a driving car. Furthermore, multiple Cruise robotaxis slowed down outside an outdoor music festival and created disruptions. These incidents have prompted a heightened scrutiny of Cruise’s operations and the implications of autonomous vehicle deployment.
DMV Concerned About Public’s Safety
The California DMV plays a pivotal role in ensuring the safety of autonomous vehicles. Responsible for testing, licensing, and permitting these vehicles, the DMV holds the authority to revoke permits if warranted. Its main concern is safeguarding passengers and the public from potential risks associated with autonomous vehicle operations.
As the DMV conducts its inquiry into Cruise’s incidents, the future of the company’s robotaxi service in the city hangs in the balance.
Interestingly, the Cruise accidents saw a rise only after a week after California Public Utilities Commission granted Cruise and Alphabet’s (GOOGL:NSD) Waymo to expand their driverless fleets in San Francisco. This irony highlights the risks that autonomous vehicle companies must navigate as they strive to balance innovation with public safety.
Cruise’s Robotaxi: The Ongoing Debate
The deployment of robotaxis in San Francisco has sparked contrasting viewpoints within the local community. Critics voice concerns over safety and potential disruptions to first responders, painting robotaxis as risky propositions. On the flip side, some argue that autonomous vehicles offer cost-effective alternatives that simplify travel.
Evaluating GM Stock Forecast: Analysts’ Insights
General Motors Company has a market CAP of USD 45.16 Billion. The current price of GM stock is USD 33.12. The average analyst target is of USD 53.27 with a whooping upside potential of 60.84%. The GM stock is high in volatility which means it may be unstable and risky. Moreover, it has low market CAP however, it offers a positive cash flow.
With the spotlight on Cruise’s challenges, analysts’ perspectives on General Motors’ stock have become increasingly significant. The stock is viewed as slightly bearish and rated as “BUY” as per the analyst ratings. However, it is also important to note that GM stock has experienced a 1.55% decline year-to-date, reflecting the dynamic nature of the market and the company’s journey.
Bottom Line
As General Motors’ Cruise addresses the recent setbacks, it focuses on solving the complexity of autonomous vehicle deployment. The incidents highlight the importance of testing and safety measures which help in shaping the future of self-driving vehicles. Cruise’s response to the reduction notice showcases its commitment to responsible innovation and its goal to regain public trust.
