General Motors (GM) to Expand Robotaxi Services in California
General Motors Company's GM self-driving arm, Cruise, has applied to the California Department of Motor Vehicles (“DMV”) for approval to expand testing of its robotaxi services throughout the state. The autonomous driving pioneer has been testing rides in various locations for over a year.
Services began in San Francisco and have spread to Phoenix, AZ, and, most recently, Austin, TX. In February, the company exceeded 1 million miles driven, joining robotaxi competition Waymo in the 1M club.
Per Cruise spokesperson Drew Pusateri, Cruise intends to expand its robotaxi operations throughout California. However, there are no plans to launch services in any specific cities in the near future. If the California DMV approves Cruise's application, the company states its rides will initially be confined to employees only, and additional licenses will be required to expand to customers, whether they are paying or not. California, like many other EV-related developments, appears to be the breeding environment for increased robotaxi operations.
General Motors’ strides in autonomous vehicle (AV) development augur well its for long-term growth. Cruise holds a dominant position in the self-driving landscape thanks to state-of-the-art technology, unique auto-maker partnerships and all-electric purpose-built vehicles sans human controls. This self-driving unit aims to generate $50 billion in annual revenues by 2030-end.
Shares of General Motors have decreased 19.8% in the past year compared with a 45.4% decline of the industry.
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General Motors, on its fourth-quarter call, stated that it expects full-year 2023 net income in the band of $8.7-$10.1 billion. The adjusted EBIT forecast is in the range of $10.5 billion to $12.5 billion. Adjusted EPS is expected in the band of $6-$7. Adjusted automotive free cash flow is envisioned between $5 billion and $7 billion.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks to consider in the Auto-Tires-Trucks space include Wabash National WNC, Mazda Motor MZDAY and Modine Manufacturing MOD.
Wabash National currently sports a Zacks Rank #1 (Strong Buy). The company has a projected earnings growth rate of 28.89% for the current year. It has a trailing four-quarter earnings surprise of roughly 46.1% on average. WNC has gained approximately 62.1% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mazda Motor currently sports a Zacks Rank #2. The company has a projected earnings growth rate of 4% for the current year. It has a trailing four-quarter earnings surprise of roughly 97% on average. MZDAY has gained approximately 21.4% in a year.
Modine Manufacturing currently sports a Zacks Rank #2. The company has a projected earnings growth rate of 43.1% for the current year. It has a trailing four-quarter earnings surprise of roughly 56.1% on average. WNC has gained approximately 149% in a year.
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