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Home Electric Vehicles

General Motors shifts focus to super cruise after robotaxi failure

David Ijaseun by David Ijaseun
January 31, 2025
in Electric Vehicles, Premium, Tech
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GM super cruise [Cadillac, gmauthority]

GM super cruise [Cadillac, gmauthority]

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General Motors (GM) is betting big on driver assistance technology after pulling the plug on its struggling robotaxi business. The company expects its Super Cruise hands-free driving system to generate $2 billion in annual revenue within five years.

Unlike self-driving taxis, Super Cruise keeps human drivers in control while offering a more advanced experience than Tesla’s Autopilot. The system is available on around 20 newer GM models, including high-end Cadillacs and large SUVs. For some vehicles, it comes as a standard feature, while for others, buyers pay between $2,200 and $2,500. After a three-year free trial, users must subscribe for $25 per month or $250 per year.

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David Whiston, an analyst at Morningstar, said Super Cruise has the potential to “deliver higher profit margins than manufacturing vehicles” while helping consumers transition toward full automation. Sam Abuelsamid, vice president of market research for Telemetry Insights, noted that GM’s technology offers a more robust sensing system than Tesla’s Autopilot to ensure driver attentiveness.

Despite the promising revenue stream, GM’s stock valuation remains far behind Tesla’s. Tesla is valued at about 120 times its expected earnings, while GM trades at just five times, according to LSEG data. However, the Detroit-based automaker hopes its investment in advanced driving technology will cement its place as a leader in automotive innovation.

Read more on GM ends $10bn Cruise Robotaxi business dream, shifts focus to core operations

Tags: CadillacGeneral MotorsHeadline

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