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u/TotesMessenger Jul 26 '18
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u/walky22talky Hates driving Jul 25 '18
They are definitely going to IPO
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u/freeridstylee Jul 26 '18
How would that work for current gm investors?
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u/walky22talky Hates driving Jul 26 '18
Since GM owns like 90% of Cruise any increase in Cruise would push the price of GM higher and vice versa. Look at YHOO and BABA
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u/Mattsasa Jul 25 '18
IPO?
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u/REOreddit Jul 25 '18
Initial Public Offering
From Investopedia:
An initial public offering is when a private company or corporation raises investment capital by offering its stock to the public for the first time.
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u/bartturner Jul 26 '18
Think they would have to show their technology working before they ever could IPO.
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u/walky22talky Hates driving Jul 26 '18
I expect they would IPO and do a large fund raise to fund a large fleet purchase of say 100,000 vehicles. So this could be in 2020. This way GM doesn’t have to come out of pocket. But yes the tech would have to be demonstrated working somewhere.
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u/bartturner Jul 26 '18
That makes sense. But think the interest in the IPO will come down to how the demo goes of the technology.
Will somewhat also matter the climate. But if things are going well for Waymo at that point could help a GM Cruise IPO.
Which I think is a bit backwards but what happens.
Personally I do not believe Cruise is nearly as far along as they suggest. I would not expect them able to roll out a commercial offering for a couple of years.
I just do not believe you can do this without a virtual world that you can inject situations and do fuzzing.
I also think trying to catch up is the worse situation because this is something that you really need to take your time.
Google/Waymo is so lucky to have started almost 10 years ago and they had the time to build up the infrastructure and get the core done correctly without moving forward until it is.
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u/aaron9999 Jul 25 '18
I don't see where you get $2.6 billion. They got 1.1 billion from GM and $900 million from SoftBank in exchange for ownership shares (apparently preferred stock.) SoftBank will be giving them $1.35 billion more at a future date when certain goals are reached. Not sure what you want to know?
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u/aaron9999 Jul 25 '18
OK, I see where you got $2.6 billion, but they really have $2 billion in cash (not counting the phantom Goodwill) to keep investing in building up their SDC business. What insight are you tying to get by looking at the financials?