General Motors is losing a ton of money daily on their self-driving car project, Cruise.
GM confirmed that Cruise lost more than $500 million during the year’s second quarter.
This equates to a rate of $5 million a day.
This comes even as Cruise has made some tangible progress in 2022.
Including gaining approval to charge for driverless rides in San Francisco and starting to route streets in Dubai in preparation for an expansion.
However, to achieve this tangible progress, GM needed to make some massive investments.
This investment has not seen a great return as currently GM only charges in a single market for the use of the autonomous robotaxis.
GM cites a few things to blame for the massive losses, mainly rising labour costs and operational setbacks.
Even with these cash problems, Cruise Chief Executive Kyle Vogt is optimistic about the company’s future.
When you’ve got the opportunity to go after a $1 trillion market where you can have a highly differentiated technology and product, you don’t casually weigh into that. You attack it aggressively. Given our strong cash position in Cruise, we’re able to do this and aggressively presenting the market, I think, is a competitive advantage. And given our position right now, the results speak for themselves. But what you’re seeing right now is the early commercialization.
GM Chief Executive Mary Barra also echoed this positivity in her remarks about the company.
Barra also confirmed that GM would release more details about Cruise‘s plans and pathway to profitability at the upcoming Goldman Sachs conference in September.