Cruise Stock Price, Funding, Valuation, Revenue & Financial Statements

Table Of Content

• Cruise Investments
• General Motors: $1 Billion Revenue From Cruise By 2025 Needs Near-Perfect Execution (Rating Downgrade)
• Our services
• Why April 25 Is a Date That Every Microsoft Stock Investor Should Circle
• Cruise Ends Stock Buybacks For Employees Amid Ongoing Safety Crisis
• Royal Caribbean Cruises (RCL)

The average analyst rating on the stock is a “strong buy.” The average price target is $140.09, representing an upside potential of 48.56% from the current price as of writing. The company provides expedition cruising and adventurous travel opportunities through its fleet of ten owned expedition ships and five seasonal charter vessels. Most of its guests are small groups of affluent people who are extremely loyal.

Cruise Investments

The company, which employed about 40 at the time of its acquisition, now employs about 3,000 and has been given responsibility for GM's autonomous tech development as well as its commercialization. GM has taken on additional investors, including the Honda Motor Co. (HMC), and now owns 80% of the venture, which was last valued at about $30 billion. Another way to see Forbes' projection would be if Cruise averages about 10 miles per trip across its entire fleet at an average of $25 per trip, to account for differences for different geographies, and about 20 trips per day. If Cruise increases its trip volumes, mirroring ride-hail drivers at about 28 trips per day, to earn about $335 daily per vehicle, Cruise would need 8,100 vehicles in its fleet. The main takeaway here is that Cruise will have to significantly span operations over the next 24 months if it wants to solidly achieve that $1 billion revenue target in 2025. Cruise is aiming to deploy thousands of vehicles in 2023, yet dozens of more cities will be needed to facilitate such an expansion.

General Motors: $1 Billion Revenue From Cruise By 2025 Needs Near-Perfect Execution (Rating Downgrade)

The ARS dispatch platform will send AVs to pick up passengers and after direct the vehicles to the next location. It will also monitor the status of each AV, respond to passenger requests, and even take control of the AV if needed. Autonomous vehicles will redefine transportation as we know it today, just as online shopping redefined retail.

Our services

GM's Cruise will allow share sales - Automotive News

GM's Cruise will allow share sales.

Posted: Sun, 19 Nov 2023 08:00:00 GMT [source]

From an investment perspective, GM's autonomous activities until now have been largely a story about massive development cost and overcoming technical hurdles - and little or nothing about payoff in terms of revenue or profit. A change is coming as GM has succeeded in San Francisco to launch a commercial robotaxi service, albeit on an extremely small scale. An analysis from Forbes estimated Cruise would need about 5,500 AVs in order to reach $1 billion in revenues, working off the assumption that each vehicle would run about 73,000 revenue miles annually. Such an assumption would mean each vehicle runs ~200 revenue miles daily; or about 40 trips at SF's average trip distance or 24 trips at Phoenix's average ride-hail trip distance of 8.2 miles. Assuming trips are longer, averaging about 20 minutes with a total cost of $18, a vehicle taking 15 trips per day would generate about $270.

Why April 25 Is a Date That Every Microsoft Stock Investor Should Circle

Most of its expeditions are expensive, ranging between $5,000 and $25,000, depending on the itinerary. Cruise ridehail services are not available at this time, but you can join the waitlist to be one of the first. We believe driverless technology has the potential to save lives, enhance access and improve communities. PCMag.com is a leading authority on technology, delivering lab-based, independent reviews of the latest products and services.

Cruise Ends Stock Buybacks For Employees Amid Ongoing Safety Crisis

Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. See our Risk Factors for a more detailed explanation of the risks involved by investing through EquityZen’s platform. The ETF has investments across some of the most well-known cruise companies. Given its lower expense ratio of 0.45, it makes sense to invest in the fund. OSW ended the quarter with $30.9 million in cash and $13 million available under its credit facility.

Royal Caribbean Cruises (RCL)

The California Department of Motor Vehicles last week gave the company a permit to charge fees for autonomous vehicle services. That means Cruise can operate delivery services for a fee using its self-driving cars without a safety driver. All autonomous vehicle operators need approval from the Public Utility Commission to charge passengers for rides in the state. Cruise has approximately 300 autonomous vehicles in its fleet at the moment, testing and operating in San Francisco, Austin, and Phoenix.

Now in Phoenix

As for its new acquisition, GM says Cruise will operate as an independent unit within its newly formed Autonomous Vehicle Development Team, and continue to be based in San Francisco. Founded in 2013, the company has "moved quickly to develop and test autonomous vehicle technology in San Francisco's challenging city environment," GM said. Now that Cruise's San Francisco pilot is migrating to real-time, with two more markets set to begin, autonomous technology's financial potential can soon be evaluated. The enthusiasm of GM's top executives shouldn't sway investors too much - the numbers will be available shortly. But if Cruise's Phoenix and Austin prove to be fruitful, there's little doubt that GM will accelerate its plans and expenditures. The rollout of BEV technology to the mainstream market faces an uncertain timetable, dependent on a much better-charging infrastructure and questions about consumer acceptance of vehicles that may initially be more costly to own than standard ICE models.

Related Stocks

Cruise cited the need to reevaluate how to offer competitive compensation, according to sources who spoke to TechCrunch on the condition of anonymity. "What I'm really excited about is we're going from zero footprint, no maps, no infrastructure on the ground - to our first revenue-generating driverless rides in about 90 days. This is something people thought may take years. It doesn't," he said. In Phoenix, Cruise will be working with Walmart (WMT) - an investor in the amount of $2.75 billion - on package delivery. As Cruise plans to scale, it faces increasing competition from other AV developers, namely Alphabet's Waymo (GOOG), which is now testing in LA and Bellevue, Wa., with commercial operations in Phoenix and services in SF. Uber (UBER) and Motional just deployed robotaxis in Las Vegas, a market Motional is already familiar with via Lyft (LYFT). Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

It also delivered positive adjusted EBITDA and a better-than-expected cash burn rate. Given higher demand, management expects to commence service on 12 new ships, bringing the number of total fleets to 174 ships by the end of Q3 2022. Such a target will still be a challenge as a lack of progressive national policy paving the way for commercial AV deployment may hinder progress; the next markets for expansion may be Las Vegas or Los Angeles. The new ARS market is yet to start, other than Waymo's initial service in Phoenix. More companies will initiate autonomous ride services in their first target metropolitan markets, expand service in that market, and then enter new metropolitan markets. For the first five years or more, growth will come primarily in the easier to serve metropolitan areas in the southern and western parts of the U.S.

We’re reintroducing a small fleet of manually-operated vehicles to begin mapping with trained safety drivers behind the wheel. The loss to employees is highly dependent on when they started and what the stock price was at that time. Sources we spoke to indicated they would be losing upwards of tens of thousands of dollars. The market is only valuing General Motors at $65 billion today, but Cruise's last fundraising round put a $30 billion valuation on the start-up.

Applied Intuition specializes in vehicle software development, focusing on advanced driver-assistance systems (ADAS) and automated driving (AD) within the automotive industry. The company offers a development platform that enables the development, testing, and validation of ADAS and AD systems. Applied Intuition's platform is designed to shorten development cycles, enhance system safety, and utilize industry-leading technology to bring ADAS and AD systems to market faster. With a population of almost 900,000 people, and many more working there, San Francisco could be a large initial ARS market for Cruise. It will then follow this up by rapidly launching its Cruise Anywhere service to other cities over the next few years. In addition to San Francisco, Cruise is also testing in Milford, Michigan, with approximately 40 AVs using the test team as riders and in-vehicle safety operators.

Apparently, GM has other autonomous vehicle investments on the horizon as well. Cruise Automation's Vogt, meanwhile, called the acquisition "a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology." Cruise employees still hold shares in the company, but since these are not publicly traded they can only be sold if GM schedules a liquidity event, which has traditionally occurred every quarter. A third party evaluates and sets a valuation for the shares before there is a tender offer.

GM has said it will be selling 1 million BEVs (including China) by 2025 and that it aspires to an all-BEV fleet by 2035. In the U.S., much may depend on government incentives and development of reliable supply network of batteries and the minerals they require for manufacture. How profitable BEVs will be for GM and other automakers remains another mystery that only time will resolve. At the time, GM said Cruise’s soft launch of a commercial service in San Francisco was a “major milestone” on its way toward demanding payment for rides and eventually generating $50 billion in annual revenue by the end of the decade. Cruise’s board of directors held a regularly-scheduled meeting at the company’s San Francisco headquarters this past Monday.

In a statement posted to its website, cofounder and CEO Kyle Vogt said the new “Recurring Liquidity Opportunity,” or RLO for short, would level the playing field with publicly traded companies when it comes to recruiting the best and brightest engineers. This would obviate any need in the foreseeable future to list on the capital markets in order to better compete for top talent. Late on Friday, GM said it had bought SoftBank out of the robotaxi developer, acquiring its stake for $2.1 billion and, separately, pledging to honor the Japanese venture capital firm’s commitment to inject a further $1.35 billion into the company. Cruise confirmed separately that this ended the debate over whether it would seek an initial public offering. On Thursday, Cruise abruptly ended a program allowing employees and alumni to sell company stock back to its corporate parent, General Motors.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Despite a strength in demand, the bottom line remains weak due to a significant amount of leverage. It will take time for the company to recover as it is still not operating at full capacity. However, if demand continues to be upbeat, the cruise line has the capacity to recover soon.