GM's Cruise 'Imploded' But Risked More Than Waymo Or Tesla, Says Ark Analyst — Musk Promises FSD That Will 'Far Exceed Human Safety'
Portfolio Pulse from Anan Ashraf
Ark Invest analyst Tasha Keeney highlighted that GM's Cruise took more risks in autonomous driving than Waymo or Tesla, with a higher crash rate per million miles. Despite the pause in Cruise operations due to safety concerns, its efforts alongside Waymo have aided regulatory approval for autonomous cars, which may benefit Tesla. Elon Musk responded, emphasizing the safety of Tesla's FSD and its future potential with Version 12 neural nets. Cruise has paused operations to rebuild trust and undergo safety reviews, planning a relaunch in one city.
November 23, 2023 | 8:44 am
News sentiment analysis
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POSITIVE IMPACT
Waymo, owned by Alphabet, is mentioned as having a better safety record than GM's Cruise, which could be perceived positively by investors, potentially benefiting Alphabet's stock in the short term.
The comparison highlighting Waymo's superior safety record in autonomous driving could bolster investor sentiment towards Alphabet, possibly leading to a short-term uptick in its stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Tesla's FSD is praised by CEO Elon Musk for its safety, and Ark's analysis suggests it may benefit from regulatory advancements. Positive sentiment could lead to a short-term increase in Tesla's stock price.
The positive remarks from both Ark Invest and Elon Musk regarding Tesla's FSD safety and potential regulatory benefits could create a favorable investor sentiment, possibly driving up Tesla's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
GM's Cruise autonomous driving unit is under scrutiny for its high crash rate and has paused operations to address safety concerns, which may impact investor confidence and the stock price in the short term.
The negative press surrounding Cruise's safety record and the pause in operations could lead to a decrease in investor confidence, potentially causing a short-term dip in GM's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80