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General Motors' (GM) Cruise Gets Nod for Commercial Robot Taxis
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General Motors’ (GM - Free Report) autonomous vehicle (AV) unit, Cruise, is set to operate a commercial taxi service of self-driving cars in San Francisco. In a unanimous decision, Cruise has been awarded a driverless deployment permit by the California Public Utilities Commission to start its services commercially in San Francisco and charge a fare for the rides.
The company began testing its AVs in the city in 2020. Earlier this year, Cruise started giving members of the public free rides in its driverless taxi service in San Francisco, which covers 70% of the city.
Per the California Public Utilities Commission permit, Cruise may offer its passenger services to the general public at a maximum speed of 30 mph, between 10 p.m. and 6 a.m. daily, in normal weather conditions. It will use a fleet of 30 fully driverless all-electric Chevrolet Bolts to ferry passengers around parts of California. Cruise will decide on a fare that will be comparable and competitive with traditional ride-hailing services. It intends to gradually expand its outreach across the city and eventually, in other regions.
Cruise’s competitor, Waymo, had started a fully autonomous commercial public ride hail service in October 2020 in suburban Chandler, AZ. However, Cruise is the only company to offer such a service in a major urbanized city.
In October last year, GM’s AV unit received a permit from the California Department of Motor Vehicles by which it could begin charging for AV services, like delivery. However, that ideally limits the DMV’s permit at charging for robot-taxi rides. The latest permit is a more holistic approach for the company.
General Motors is working on ambitious plans for Cruise. The U.S. auto biggie intends to spend $2 billion this year on Cruise operations. Even though Cruise has not churned any profit yet, GM expects its self-driving ride-hail fleet services to be lucrative. Last year in October, it said that it targets to reach $50 billion in revenues from the ride-hailing business.
Shares of GM have lost 40.5% over the past year compared to its industry's 18.6% decline.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 1.6% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 43.9% over the past year.
Standard Motor has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 13.5% over the past year.
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General Motors' (GM) Cruise Gets Nod for Commercial Robot Taxis
General Motors’ (GM - Free Report) autonomous vehicle (AV) unit, Cruise, is set to operate a commercial taxi service of self-driving cars in San Francisco. In a unanimous decision, Cruise has been awarded a driverless deployment permit by the California Public Utilities Commission to start its services commercially in San Francisco and charge a fare for the rides.
The company began testing its AVs in the city in 2020. Earlier this year, Cruise started giving members of the public free rides in its driverless taxi service in San Francisco, which covers 70% of the city.
Per the California Public Utilities Commission permit, Cruise may offer its passenger services to the general public at a maximum speed of 30 mph, between 10 p.m. and 6 a.m. daily, in normal weather conditions. It will use a fleet of 30 fully driverless all-electric Chevrolet Bolts to ferry passengers around parts of California. Cruise will decide on a fare that will be comparable and competitive with traditional ride-hailing services. It intends to gradually expand its outreach across the city and eventually, in other regions.
Cruise’s competitor, Waymo, had started a fully autonomous commercial public ride hail service in October 2020 in suburban Chandler, AZ. However, Cruise is the only company to offer such a service in a major urbanized city.
In October last year, GM’s AV unit received a permit from the California Department of Motor Vehicles by which it could begin charging for AV services, like delivery. However, that ideally limits the DMV’s permit at charging for robot-taxi rides. The latest permit is a more holistic approach for the company.
General Motors is working on ambitious plans for Cruise. The U.S. auto biggie intends to spend $2 billion this year on Cruise operations. Even though Cruise has not churned any profit yet, GM expects its self-driving ride-hail fleet services to be lucrative. Last year in October, it said that it targets to reach $50 billion in revenues from the ride-hailing business.
Shares of GM have lost 40.5% over the past year compared to its industry's 18.6% decline.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Wabash National Corporation (WNC - Free Report) , carrying a Zacks Rank #1 (Strong Buy) and Fox Factory Holdings (FOXF - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 1.6% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 43.9% over the past year.
Standard Motor has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 13.5% over the past year.