Exclusive-GM’s Cruise valuation slashed by more than half, email shows

By Thomson Reuters Feb 29, 2024 | 2:38 PM

By Greg Bensinger

(Reuters) -General Motors’ Cruise saw its internal share price cut by more than half from a quarter ago as the fallout from an October accident continues to weigh on the self-driving car company.

Cruise employees were told the share price had been estimated by a third party at $11.80, according to an email viewed by Reuters. That’s down from a prior estimate of $24.27 just one quarter ago.

“We cannot ignore that this estimate is significantly lower than we’ve seen before and that there are real life impacts for each of us,” wrote Craig Glidden, chief administrative officer for Cruise, in the email.

Cruise has been working to recover from an October accident in which a woman was dragged by one of its vehicles after being struck by a human driven car. The company’s permit to operate in California was suspended and Cruise has stopped all testing on public roads in the United States.

Glidden said Cruise has a “longer pathway towards scaled commercialization.” The company last year had plans to roll out self-driving taxis in nearly a dozen U.S. cities but has since cut a quarter of jobs and seen its CEO, co-founder and others leave.

(Reporting by Greg Bensinger; Editing by Leslie Adler and Diane Craft)