General Motors has just released its Q2 2023 financials. Their slide deck is packed full of progress on Electric Vehicles and by 2025, they expect to have 1 Million units of manufacturing capability. Perhaps the bigger opportunity for GM is their autonomous efforts, through sub-brand Cruise they acquired in 2016.
In the shareholder’s deck, GM disclosed that Cruise has now reached the 3 million driverless miles milestone in just 49 days which is nearly 2x faster than it took to get to 2 million.
Right now, the service operates in select parts of San Francisco, CA, Phoenix, AZ and Austin, TX and is currently doing around 10,000 rides a week.
Cruise recently hit a peak of 390 driverless AVs running concurrently across all operating cities.
They achieved their first million driverless miles safety report shows 54% fewer collisions overall vs human drivers in a comparable driving environment.
The service has seen an ~15% decrease in cost per mile each month, for the last 6 months, led by optimizations in infrastructure, process improvements, and automation.
Cruise is now targeting costs below $1 per mile.
This figure is important as the average cost per mile for transportation in the US is estimated at between $0.58 and $0.75 per mile for a gas-powered car, or $0.30 – $0.45 per mile for an EV.
To date, Cruise has leveraged a GM Bolt for their service, retrofitting them with an array of hardware and software to enable the autonomous, driverless service.
Cruise is working towards their next vehicle, the Cruise Origin, a shuttle-style vehicle that should lower the cost of transport even further.
Cruise‘s financials are interesting to watch as they expand their service. In the first half of 2023, they made US$100 million in revenue. EBIT-adjusted, they lost US$1.2 Billion.
They went from having $3.7 Billion in cash/equivalents in 2022 H1, to now having 2.1 Bil in 2023 H1.
Primarily reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in the three and six months ended June 30, 2023, and 2022.
2 Excludes $1.1 billion in compensation expense in the six months ended June 30, 2022, resulting from modification of the Cruise stock incentive awards.
Excludes a multi-year credit agreement with GM Financial whereby Cruise can borrow, over time, up to an additional aggregate of $4.4 billion, through 2024, to fund the purchase of AVs from GM and all
accessories, attachments, parts and other equipment acquired in connection with or otherwise relating to any AV. As of June 30, 2023, Cruise had total borrowings of $0.2B under this agreement.
Excludes a multi-year framework agreement with us whereby Cruise can defer invoices received through 2024, up to $0.8B, related to engineering and capital spending incurred by us on behalf of Cruise. As of June 30, 2023, Cruise deferred $0.3B under this agreement.