Microsoft Faces $800M Loss After GM Shuts Down Cruise Robotaxi Program
The Financial Fallout of Cruise’s Shutdown
General Motors’ recent decision to halt its Cruise robotaxi program has sent shockwaves through the autonomous vehicle industry, with Microsoft becoming one of the most significantly impacted minority investors.
Key Financial Implications:
- $800 million impairment charge for Microsoft (per SEC filing)
- Charge to be recorded in “other income and expense” category
- Estimated $0.09 negative impact on Q2 2024 diluted earnings per share
- Charge not included in Microsoft’s October 30, 2024 guidance
The Changing Landscape of Cruise Ownership
GM, which currently owns approximately 90% of Cruise, has announced plans to:
- Buy back shares from minority investors
- Increase ownership stake to over 97%
- Shift focus from robotaxis to personal autonomous vehicles
Historical Context of Cruise Investments
Cruise attracted significant investment since GM’s initial acquisition:
- 2016: GM acquired Cruise for $1 billion
- 2021: \(2 billion funding round (including Microsoft) at \)30 billion valuation
- Total investment: Over $10 billion by GM alone
Strategic Partnerships Unravel
The shutdown affects several high-profile partnerships:
Microsoft’s Role:
- 2021 investment included long-term strategic partnership
- Planned use of Microsoft Azure for Cruise’s autonomous ride-hailing services
Other Impacted Investors:
- Walmart
- SoftBank (initial $1.5B investment)
- T. Rowe Price
- Honda (recently terminated Japan joint venture)
The Future of Autonomous Vehicles at GM
GM’s new strategy focuses on:
- Integrating Cruise technology into GM’s existing operations
- Developing driver assistance features
- Eventually creating fully autonomous personal vehicles
This pivot marks a significant shift from the original robotaxi business model that attracted Microsoft and other high-profile investors.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: Ayala Bar Pink Necklace
Image: Premium product showcase
Advanced ayala bar pink necklace engineered for excellence with proven reliability and outstanding results.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
🛍️ Featured Product 2: Ayala Bar Grey + Purple Earrings
Image: Premium product showcase
Carefully crafted ayala bar grey + purple earrings delivering superior performance and lasting value.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
🛍️ Featured Product 3: Versace T-Shirt (S)
Image: Premium product showcase
Premium quality versace t-shirt (s) designed for professional use with excellent performance and reliability.
Key Features:
- Professional-grade quality standards
- Easy setup and intuitive use
- Durable construction for long-term value
- Excellent customer support included
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
