General Motors (GM) is shifting its technology strategy toward its Super Cruise driver assistance system after discontinuing its costly robotaxi venture, Cruise. The company expects Super Cruise, a partially automated driving system similar to Tesla’s Autopilot, to generate approximately $2 billion in annual revenue within five years.
Super Cruise, available on select Cadillac and large SUV models, enhances driver convenience while ensuring attentiveness through a robust sensing system. Unlike Tesla’s Autopilot, Super Cruise actively monitors driver engagement, offering a more structured approach to hands-free driving. Customers can access the technology as a standard or optional feature, with optional pricing between $2,200 and $2,500. After a free three-year trial, users can continue with a subscription at $25 per month or $250 annually.
Despite GM’s push into software-driven vehicle technologies, its stock remains undervalued compared to Tesla. Tesla’s valuation is around 120 times expected earnings, reflecting its tech-driven appeal, while GM trades at just five times earnings. Investors also remain cautious about potential tariffs under the Trump administration, which contributed to an 8.9% drop in GM shares following its earnings report.
However, GM CEO Mary Barra remains optimistic about Super Cruise’s growth. The automaker expects to double its fleet of 360,000 Super Cruise-enabled vehicles in 2025. Currently, about 20% of users subscribe after their trial period ends, and GM aims to increase its subscription revenue as more vehicles reach their renewal window.
While Super Cruise involves hardware costs such as cameras and radar, analysts believe its software component will be highly profitable. Recurring subscription revenue could boost customer retention and brand loyalty, strengthening GM’s long-term position in the driver-assistance market.