After the debacle that was the early testing of General Motors’ (NYSE:GM) Cruise line, it wasn’t all that surprising to see it taken out of commission for a while. But now, the legacy automaker’s robotaxi service is making its way back to public roads. Investors, meanwhile, are glad to see it and sent GM shares up modestly in Friday morning’s trading.
GM took its act on the road and went to several U.S. cities, including a couple of big names in Texas, to see about venues to test out the Cruise once more. This is somewhat at odds with earlier reports suggesting that GM would focus on one city with its newest round of Cruise testing, as it’s eager to make a positive reception before restarting the testing. It’s easy to see why that is, as the last major test of a Cruise robotaxi ended up with a pedestrian getting dragged for about 20 feet before it finally decided to stop.
Bonus Jitters Among Salary Staff
That wasn’t all GM had going on. It’s reengineered its bonus plan for salaried workers this year, and those who spent any amount of time reading “Dilbert” strips are likely already cringing vicariously. Previously, bonus payouts were determined based on annual earnings and free cash flow. Now, only 60% of the bonuses are related to profitability, with the other 40% reflective of electric vehicle production targets, software, associated services, and self-driving car business. Reports note that the vagueness of the terms so far is leaving salaried workers shaky about their prospects.
Is GM a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 15 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 2.71% rally in its share price over the past year, the average GM price target of $50.11 per share implies 25.67% upside potential.
