Uber’s Ride-Sharing Business Hit by General Motors’ Decision
General Motors Pulls the Plug on Cruise Venture
Shares in ride-hailing company Uber fell nearly 6% in Wednesday’s session, following an announcement from General Motors that it was pulling the plug on its robotaxi project Cruise. The move sent shockwaves through the industry, with investors and analysts left wondering what this means for the future of autonomous vehicles.
GM’s Decision to Refocus Autonomous Driving Development
General Motors said on Tuesday that it would stop funding the development of the Cruise venture, citing a desire to refocus its efforts on personal vehicles. The company stated that it would look to combine the technical team at its majority-owned startup Cruise with GM workers "into a single effort to advance autonomous and assisted driving." This decision has left many in the industry wondering what this means for the future of autonomous vehicles.
Uber’s Partnership with Cruise
Just last month, Uber announced a partnership with Cruise with plans to deploy autonomous vehicles on its ride-hailing platform. The companies had planned to launch the partnership next year, but it remains unclear whether this will still happen given GM’s decision.
Tesla Continues to Soar
In contrast to Uber’s declining shares, Tesla’s stock continued its upward trajectory, closing Wednesday’s session at an all-time high. This is no surprise given the company’s impressive sales figures and the ongoing demand for electric vehicles.
Tesla’s Sales Figures Continue to Impress
Data from Tesla China showed that the carmaker had sold 21,900 EVs in China in the first week of December, marking the highest weekly sales thus far in the fourth quarter. This is a testament to the growing demand for electric vehicles and the company’s ability to meet this demand.
Morgan Stanley Raises Price Target on Tesla
Investment bank Morgan Stanley raised its price target on Tesla to $400 from $310 and maintained an ‘overweight’ rating on the stock earlier this week. This decision is a reflection of the ongoing optimism around the company’s future prospects.
Meta Platforms in Focus
Social media giant Meta was also in focus on Thursday morning, after it was reported that the company had donated $1m to Trump’s inaugural fund. This news comes on the back of reports last week that suggested Meta CEO Mark Zuckerberg was looking to secure some influence in US president-elect Donald Trump’s incoming administration.
Meta’s Donations and Influence
The Financial Times reported that Sir Nick Clegg, Meta’s president of global affairs, said in a press briefing that Zuckerberg was keen to play ‘an active role in the debates that any administration needs to have about maintaining America’s leadership in the technological sphere.’ This news has raised questions around the company’s motivations and its potential influence on US policy.
Three Shares Plummet
Shares in SThree plummeted 24% on Thursday morning, after the recruiter warned on profits for 2025. The company said that new business had been impacted by delayed decision making and contract extensions remaining robust.
SThree’s Warning on Profits
The company stated that it would take a prudent view of FY25, given the ongoing uncertainty in the market. This news has left investors concerned about the future prospects of the company.
Currys Shares Surge
In contrast to SThree’s declining shares, Currys’ shares surged 12% on Thursday morning despite the electricals retailer warning of a £32m hit from the UK’s autumn budget. The company stated that this included £9m from a rise in wage costs due to national living wage increases and £12m from an increase in national insurance contributions.
Currys’ Results Show Growth
The company’s half-year results showed earnings before interest and tax up 52% year-on-year to £41m. This is a testament to the company’s ability to navigate challenging market conditions and drive growth.
Global Dividends Hit Record High, but UK Companies Lag Behind
According to data from Deutsche Bank, global dividends hit a record high in the first quarter of this year. However, UK companies lag behind their international peers, with dividend payments increasing by just 1% over the same period.
FTSE 100 LIVE: Stocks Cautiously Higher as Markets Expect ECB Interest Rate Cut
The FTSE 100 was trading cautiously higher on Thursday morning, as investors awaited news from the European Central Bank on interest rates. The market is expected to respond positively to any decision to cut rates, which could boost economic growth and support corporate profits.
Companies in Focus
- Costco (COST): The retailer reported strong sales figures for the quarter, with same-store sales up 12%.
- Broadcom (AVGO): The company announced a new partnership with a major technology firm, which could boost its revenue prospects.
- RWS (RWS.L): The company reported strong growth in its language services business, with revenue up 15% year-on-year.
- De La Rue (DLAR.L): The security printer reported a decline in sales, citing a tough market environment.
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