GM’s Cruise Sees Robotaxi Unit Growing Past $50Billion

General Motors EV

General Motors Co.’s Cruise LLC autonomous vehicle unit will tell investors this week that it sees a path for its ride-hailing business to reach $50 billion in revenue as it ramps up over the next couple of years, people familiar with the matter said.

GM’s shares jumped the most in nearly three months.

Cruise Chief Executive Officer Dan Ammann is expected to say that the company plans to charge for rides as soon as next year and could expand in 2023 if Cruise gets the green light from California regulators.

The operation will take a starring role as GM makes a case to investors on Oct. 6 and 7 that its push into electric vehicles, self-driving software and connected technologies will soon start increasing the automaker’s revenue, said the people.

Charging for self-driving vehicle services would be a significant step for Cruise and other companies that have spent billions trying to get their technology ready and regulatory permission to run cars without a human safety driver.

Technological progress and establishing approvals for robotic driving have taken longer than anticipated, making revenue elusive for startups. Cruise had to back off plans to deploy robotaxis in 2019 because it needed more time for performance and safety checks.

The shares climbed 3.6% to $55.04 at 9:36 a.m. Monday in New York after gaining as much as 4.4%, the most intraday since July 9. GM had advanced 28% this year through Oct. 1 while the S&P 500 rose 16%.

Cruise, in which GM has a majority stake, hopes to start charging for rides next year with a modified version of the Chevrolet Bolt electric car.

GM has said that Cruise had $55 million in revenue in the first half. The company charges for delivery services in Phoenix and gets some licensing revenue from Honda Motor Co.

GM reported a $561 million first-half loss attributable to Cruise.

GM’s presentation will include updates on the automaker’s electric vehicle plans, its SuperCruise driver-assistance feature and how the company will use its Ultify software platform to generate more revenue from app-based services in cars.

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