Topline
Shares of General Motors fell over 6% on Tuesday, pacing the company’s worst day in nearly a year after production of an autonomous vehicle from its self-driving unit Cruise was delayed indefinitely, after the car—which doesn’t have a steering wheel or pedals—faced years of delays, and Cruise endured scrutiny after a pedestrian was struck by another company car.
A delay will lower costs and address “regulatory uncertainty” around the vehicle, the company said. Getty Images
Key Facts
GM shares dropped to about $46.50 as of around 11 a.m., the stock’s furthest fall since a 5.7% decline on Aug. 8 last year, when the company said production of its electric vehicle lineup would be slowed because of battery assembly issues. In its second-quarter report, GM said its self-driving brand Cruise indefinitely delayed production of its Origin vehicle, a decision that GM CEO Mary Barra said would lower Cruise’s costs and address “regulatory uncertainty” around the car, which does not include a steering wheel, pedals or mirrors. Cruise CEO Kyle Vogt temporarily paused production of the Origin in October as the company paused driverless operations nationwide, after Forbes reported a pedestrian was inadvertently dragged by one of the company’s robotaxis. Cruise will instead focus on developing the next-generation Chevrolet Bolt, a previously discontinued electric car that Cruise has used to develop its vehicles, according to GM. Halting Cruise production at a Detroit plant resulted in about $583 million in costs for GM, the company said.
We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Tangent
GM raised its earnings estimates for the year from between $12.5 billion to $14.5 billion to between $13 billion and 15 billion. The company reported second-quarter earnings of $3.06 per share and revenue of nearly $48 billion, ahead of analyst projections of $2.75 per share and roughly $45.5 billion, according to FactSet.
Surprising Fact
Development of the Origin has faced delays for years. GM petitioned the NHTSA to develop a Chevrolet Bolt without steering wheels or brake pedals in 2018, though it withdrew the petition a year later after the agency took no action. Cruise petitioned the NHTSA to approve Origin in 2022. The agency has not issued a decision, while Cruise has said it was allowed to test the vehicles while waiting for regulatory approval.
Key Background
Cruise suspended operations last year after a series of safety concerns, with Forbes reporting a female pedestrian was dragged by a Cruise robotaxi after a human-driven car pushed her in front of the car. Regulators have launched investigations into Cruise’s vehicles because of the incident, including the National Highway Traffic Safety Administration, the Justice Department and the Securities and Exchange Commission, including whether Cruise has done enough to safeguard pedestrians. Cruise launched an internal review of the incident and hired an outside consulting firm to review its technology, the company said in November. Testing of Cruise’s robotaxi fleet with human-driven vehicles was resumed in Phoenix earlier this year, and testing has since expanded to Dallas and Houston.
Further Reading
GM Shares Dip 6% After Halting Cruise Self-Driving Cars
- Advertisment - 
Recent Comments
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on ‘Pokémon Scarlet’ and ‘Violet’ Fan Theories Suggest Legendary Time Travel, Alternate Dimension Plot
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on Inside the Michael Jordan ‘Air’ movie, plus why NFL, others are buying into the sports film industry
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on Hollywood Reporter: Tom Cruise negotiated with movie studios over AI before the actors strike began
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Carlos Sainz’s Soccer Fanboy Emerges as Spaniard Shares Defining Moment With This Real Madrid Legend
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on Ahead of big sports weekend, dispute with Disney leaves millions of cable subscribers in the dark
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Army vs. Coastal Carolina live stream, how to watch online, CBS Sports Network channel finder, odds
on AL Rookie of the Year Julio Rodriguez Spreads Joy and Sportsmanship to the Youth of Loma de Cabrera
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer