The autonomous vehicle market is expected to grow to $7 trillion by 2030. And GM is now at a pole position to capture the market by officially becoming the first company to mass produce a fully-autonomous vehicle. In June this year, GM manufactured 130 self-driving Chevrolet Bolt EVs and started testing them on roads, beating rivals including Tesla (TSLA), Ford (F), Google’s (GOOGL) Waymo and other smaller competitors.
GM had identified a shift of customer preference towards autonomous vehicles pretty early, acquiring Cruise Automation, a start-up that works on self-driving technology by 2016. Some reports suggest that GM may now cruise into the lucrative ride-hailing service, currently dominated by Uber and Lyft, by 2019.
Honda and General Motors join hands to build a new self-driving vehicle
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General Motors is not short of funding either. Closely following the heels of $2.25 billion investment by SoftBank Group, Japanese automobile giant Honda Motor Company has pledged $2.75 billion in the company over the next one year. Honda has separately announced a $750 million towards Cruise Automation.
The Detroit-based carmaker has a PE ratio of 5.59 and PEG ratio of 0.74, clearly indicating that the stock is undervalued. Let not the opportunity slip between your fingers this time around.
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