From Nasdaq, Inc.:

General Motors Co announced $1 billion in cuts to its self-driving unit Cruise for 2024. The company is aiming for Cruise autonomous vehicles to return to the road soon. CEO Elon Musk criticized investors who chose Cruise over Tesla. GM reported a $3.48 billion operating loss at Cruise in 2023 and plans to significantly cut spending.

GM plans to invest in self-driving software and AI capabilities at Cruise. CEO Mary Barra said the foundational technology is sound and the company is committed to Cruise. Barra also mentioned the possibility of raising funds to relaunch Cruise, internally or externally sourced.

Elon Musk responded to news of the downscaling at Cruise by highlighting T. Rowe Price’s billion-dollar investment in Cruise in 2019 after the fund manager cut over a 90% stake in Tesla. Musk called investors who chose Cruise over Tesla “suicidal.”

Cruise has faced safety concerns after an accident in San Francisco in early October, pausing both autonomous and manual AV operations in the United States. Last week, the GM unit announced a probe by the U.S. Justice Department and the Securities and Exchange Commission over the accident.



Read more: ‘Told Them So:’ Elon Musk Mocks Big-Ticket Investor Who Chose Cruise Over Tesla After GM’s Self-Driving Unit Plans $1B Expense Cut