GM’s self-driving cruise receives $1.15bn funding from T. Rowe, Softbank

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GM’s self-driving cruise receives $1.15bn funding from T. Rowe, Softbank

The no. 1 US automaker, General Motors Co.’s majority-owned Cruise self-driving division had issued a statement on Tuesday, the 7th of May 2019, saying that Detroit-based automaker’s self-driving unit had received a cash package of $1.15 billion from fund manager T.

Rowe Price and from a group of existing investors of SoftBank, which valued the GM’s self-driving unit at $19 billion. Followed by the reveal of the statement, shares of the No. 1 US automaker had opened the market 2.1 percent to $38.89, however, failed to retain the initial momentum at the later part of the day and winded up the day 1.16 percent higher at $38.53.

Besides, the latest funding from T. Rowe Price, an American publicly owned asset management company came after it had sold its 92 percent stake on Tesla Inc. earlier this year, indicating the fund manager’s growing bet on GM’s self-driving units, while Tesla Inc.

had remained more focused on delivering its best-selling Model 3 on European and Chinese market after posting as many as $700 million loss during the first quarter of the year amid ongoing tariff wars on multiple front. Nevertheless, despite GM’s last year’s attempt to shutter down five of its North-American plants in the wake of an escalating tariff war, GM’s stock price had surged more than 14 percent this year.