Uber (UBER) stock took another hit Wednesday on investors’ robotaxi jitters. Shares of the ride-hailing giant fell after General Motors (GM) said it would wind down its Cruise self-driving-taxi efforts.
GM will focus instead on developing advanced driver-assistance systems for use in personal vehicles, the company said late Tuesday. The automotive giant cited growing competition in the robotaxi market. Cruise has faced several setbacks, while Alphabet (GOOGL)-owned Waymo is already providing more than 150,000 paid trips each week. Tesla (TSLA), meanwhile, is targeting next year to launch a ride-hailing service.
Gene Munster, managing partner at Deepwater Asset Management, wrote on X Tuesday that the Cruise announcement looked like good news for Tesla and Google and bad news for Uber and its top U.S. rival, Lyft (LYFT).