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GM jumps 9% to record high after Microsoft announces investment in the company's self-driving car subsidiary Cruise

Emily Graffeo   

GM jumps 9% to record high after Microsoft announces investment in the company's self-driving car subsidiary Cruise
Stock Market2 min read
  • General Motors gained as much as 8.9% to a record high on Tuesday amid 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 which also includes backing from Honda and institutional investors.
  • Tuesday's intraday price is a record-high for the auto giant since it emerged from bankruptcy at the end of the Great Recession and started trading publicly again in 2010.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of General Motors gained as much as 8.9% to a record high on Tuesday amid news that its autonomous vehicle subsidiary, Cruise, is receiving a large investment from Microsoft.

The stock rose to an intraday record high of $54.42 shortly after the opening bell. Meanwhile shares of Microsoft gained 1% to $241.92.

Microsoft joins a number of companies in a $2 billion funding round for Cruise which also includes backing from Honda and institutional investors.

The partnership will accelerate the commercialization of self-driving vehicles by bringing together the two companies' software and hardware engineering expertise, cloud computing capabilities, and manufacturing knowledge, according to a statement from Cruise.

Read more: Michael Saylor has invested over $1 billion of MicroStrategy's funds in Bitcoin. The software CEO-turned Bitcoin whale explains why he is making such a massive bet on the digital asset.

Cruise will leverage Azure, Microsoft's cloud and edge computing platform, to commercialize its autonomous vehicle solutions at scale.

"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 Chairman and CEO Mary Barra in a statement. "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."

Tuesday's intraday price is a record-high for the auto giant since it emerged from bankruptcy at the end of the Great Recession and started trading publicly again in 2010.

The stock has soared 28% in 2021 alone. It leaped 8.8% last Tuesday after announcing an electric delivery van and revealed potential plans for a foray into flying cars.

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