The shares of General Motors Corp. they fired into record territory on Tuesday, after the automaker said it was partnering with Microsoft Corp. to accelerate the marketing of driverless cars.
As part of the “long-term strategic relationship,” Microsoft will join General Motors GM,
as well as Honda Motor Co. Ltd. HMC,
7267,
and institutional investors in a new $ 2 billion combined capital investment in GM’s auto-driving start-up cruise. GM said the investment brings Cruise’s “post-money valuation” to $ 30 billion.
GM shares soared 9.4% in the morning trading, trading well above the January 14 record close of $ 51.53. Microsoft shares MSFT,
increased by 0.5%.
GM shares have now risen 31.3% so far this year as investors are reaping the benefits of GM’s comprehensive change in the electric vehicle market. GM has outperformed other electric vehicle manufacturers so far, as shares of Tesla Inc. TSLA,
have increased by 18.6% and Nio Inc., based in China, NIO,
have risen by 17.4%.
Do not miss it: GM accelerates electric vehicle plans as it races to catch up with Tesla.
Cruise will use Microsoft’s Azure cloud platform to market its autonomous vehicles on a large scale, while Azure will use Cruise’s industry experience to enhance product innovation and serve its transportation customers.
“Microsoft is a great addition to the team as we move toward a future world of zero accidents, zero emissions and zero congestion,” said Mary Barra, GM’s chief executive. “Microsoft will help us accelerate the commercialization of Cruise’s all-electric, autonomous vehicles and help GM reap even more benefits from cloud computing as we launch 30 new electric vehicles worldwide in 2025 and create new businesses and services for boosting growth “.
The valuation of the GM cruiser now ends at that of Ford Motor Co. F,
which has a market capitalization of $ 40.3 billion. Also in the EV, NKLA space by Nikola Corp.,
the market capitalization is $ 7.7 billion.
Satya Nadella, CEO of Microsoft, said: “Advances in digital technology are redefining every aspect of our work and our lives, including the way we move people and goods. As a favorite cloud of Cruise and GM, we will apply the power of Azure to help them climb and make autonomous transport the majority. “
GM’s touch has risen 64.0% in the past three months, while the S&P 500 SPX index,
has gained 10.5%.