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Added on the 22/07/2015 17:14:33 - Copyright : Reuters - Next Media
General Motors gained as much as 8.9% to a record high on Tuesday. The gain comes on news that its autonomous vehicle subsidiary, Cruise, is receiving a large investment from Microsoft. Microsoft joins a number of companies in a $2 billion funding round for Cruise. Tuesday's price is a record-high for GM since it emerged from bankruptcy at the end of the Great Recession. The partnership will accelerate the commercialization of self-driving vehicles. It brings together the two companies' software and hardware engineering expertise, cloud computing capabilities, and manufacturing knowledge.
Win McNamee/Getty Images Tesla's services business could be worth more than all of its car sales by the end of the next decade, Morgan Stanley said last month. The bank estimates autopilot, insurance, energy, and everything else to be worth about 53% of a new street-high target price of $540 by 2030. Investors should also consider comparing the company to other services companies, like Apple, Tinder, Roku, and video game makers, the analysts said. Visit Business Insider's homepage for more stories.
Last year Tesla CEO Elon Musk predicted autonomous driving would boost his company's market capitalization to $500 billion. On Monday, Tesla's market cap soared as high as $498 billion even though Tesla is still refining its self-driving software. Business Insider reports that it has only released a beta version to a limited number of customers. Musk made the claim during an investor call in May 2019, when Tesla's market cap was less than $45 billion, CNBC reported. The Tesla chief projected in 2015 that his company's market cap could balloon to $700 billion by 2025.
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