GM stock: GM stock soars toward another record after Microsoft partnership on driverless cars

 Jan. 19, 2021

Here is the article. 

Here are my notes:

1. 2 billion equity investment in GM's self-driving vehicle startup Cruise from Microsoft, So GM and HMC and MSFT three companies are working together on Cruise startup;
2. GM’s stock has now run up 30.9% so far this year
3. Cruise will use Microsoft’s Azure cloud platform to commercialize its autonomous vehicles at scale, while Azure will use Cruise’s industry expertise to enhance product innovation and serve its transportation customers.

Shares of General Motors Corp. shot up into record territory Tuesday, after the automaker said it was partnering with Microsoft Corp. to speed up the commercialization of driverless cars.

As part of the “long-term strategic relationship,” Microsoft will join General Motors GM, +9.75%, as well as Honda Motor Co. Ltd. HMC, +0.29% 7267, +0.25% and institutional investors on a combined new $2 billion equity investment in GM’s self-driving vehicle startup Cruise. GM said the investment brings the “post-money valuation” of Cruise to $30 billion.

GM’s stock soared 9.1% in very active afternoon trading, to trade well above its Jan. 14 record close of $51.53. Trading volume ballooned to 47.4 million shares, compared with the full-day average over the past 30 days of about 16.8 million shares.

Microsoft shares MSFT, +1.78% rose 1.3%.

GM’s stock has now run up 30.9% so far this year, as investors are reaping the benefits of GM’s all-in move into the electric vehicle market. GM has outperformed other electric vehicle makers year to date, as shares of Tesla Inc. TSLA, +2.23% have rallied 18.5% and of China-based Nio Inc. NIO, +3.86% have climbed 18.6%.

Cruise will use Microsoft’s Azure cloud platform to commercialize its autonomous vehicles at scale, while Azure will use Cruise’s industry expertise to enhance product innovation and serve its transportation customers.

“Microsoft is a great addition to the team as we drive toward a future world of zero crashes, zero emissions and zero congestion,” said GM Chief Executive Mary Barra. “Microsoft will help us accelerate the commercialization of Cruise’s all-electric, self-driving vehicles and help GM realize even more benefits from cloud computing as we launch 30 new electric vehicles globally by 2025 and create new businesses and services to drive growth.”

The valuation of GM’s Cruise is now closing in on that of Ford Motor Co. F, +1.93%, which has a market capitalization of $40.1 billion. Also in the EV space, Nikola Corp.’s NKLA, +2.79% market cap is $7.7 billion.