Company has burned through $8.2 billion since 2017, hopes to restart testing
There is hope for Cruise, the robotaxi company that was forced to cease operations after one of its driverless cars hit a pedestrian in San Francisco last October. That hope is coming in the form of $850 million from its parent company, GM GM -2.31%↓
GM CFO Paul Jacobson, who announced the investment at an auto industry conference in New York, said the cash infusion would help cover operating expenses as it resumes testing in several U.S. cities. This includes Houston, which will be testing the company’s autonomous vehicles. The company currently has vehicles on the road in Phoenix and Dallas.
Cruise has burned through a lot of cash—about $8.2 billion since 2017, according to published reports. Out of that staggering number, the company lost $3.48 billion in 2023.
For its part, Cruise grounded its vehicles after the San Francisco incident and made stringent safety reviews. In addition, it recalled its fleet of 950 vehicles last year to make software updates. The company has settled a lawsuit, with the woman who was hit, for $8 million.
However, top execs like co-founders Kyle Vogt and Dan Kan left the company. In addition, much of the company’s staff was laid off.
Telsa’s TSLA 3.21%↑ Elon Musk posted, in reaction to a post on X about the investment: “They are not making the right moves to succeed.”
In other autonomous vehicle news, Alphabet‘s Waymo said it would recall 672 of its self-driving vehicles after one of its driverless vehicles struck a utility pole in Phoenix last month, according to Reuters.
