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Highlights
- Cruise is owned by General Motors Company (NYSE:GM).
- Cruise is an autonomous car maker, and it aims to start commercialization of its products through robotaxi services.
- Cruise was established in 2013 by Kyle Vogt and Dan Kan.
In April, autonomous car maker Cruise LLC was valued at more than US$ 30 billion after it reportedly raised US$ 2.75 billion in a funding round in which it received an additional investment from Walmart Inc and other investors.
Ever since the funding round, interested investors have been speculating about Cruise's initial public offering (IPO) plans. Self-drive technology is yet to be commercialized; however, it garners a lot of interest from investors due to innovations in the industry.
Autonomous trucking technology company TuSimple had gone public earlier this year and its stock (NASDAQ:TSP) was up 2.3 per cent on Friday, December 17, at US$ 32.48 per share.
As self-driving technology is rapidly evolving, stock market traders often focus on companies involved in this business, in hopes that the stocks give them higher returns in future.
Also Read: Sidus Space IPO: How to buy this aerospace stock in Canada?
Cruise IPO on the cards?
It seems that interested investors in Cruise will have to wait to get hold of the stock of this San Francisco-based company. Last week, it was reported that Cruise's chief executive officer (CEO) Dan Ammann was dismissed from the startup.
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Cruise is owned by General Motors Company (NYSE:GM) and according to published reports, General Motors' CEO Mary Barra and Mr Ammann had different opinions on how to focus on Cruise's plans of commercializing its products through a launch with a taxi service.
After Mr Ammann's removal as the CEO of Cruise, it seems that the company is not going public anytime soon and interested investors cannot invest in shares of this company as it remains private.
If reports are to be believed, the former Cruise CEO had different plans and he wanted the autonomous car maker to launch its IPO, however, General Motors had other plans as it reportedly believed that Cruise's IPO would slow the automaker's progress.
Bottom line
General Motors owns a majority stake in Cruise, and if you are interested in this stock, then the only alternative option is to get hold of GM shares. As of December 17, the automaker's shares were priced at US$ 55.16 apiece after declining 5.5 per cent by the end of the trading session.
Mr Ammann was appointed as a treasurer at General Motors, and he later served as the chief financial officer and president of the company. He is believed to have played an essential role in downsizing the company's loss-making overseas operations.
The former CEO played an important role in the acquisition of Cruise and ran the company for two years. Cruise is looking to get permission from the California Public Utilities Commission to start its self-driving taxi business and charge fees for rides in its autonomous vehicles.
