Greg Bensinger
(Reuters) – General Motors Cruise’s domestic share price fell by more than half from a quarter earlier as fallout from an October crash continued to weigh on the self-driving car company.
Cruise employees were told that a third party had priced the shares at $11.80, according to an email reviewed by Reuters. That’s down from the previous estimate of $24.27 just a quarter ago.
“We cannot ignore the fact that this estimate is significantly lower than we have seen before and that this has real-life implications for each of us,” Craig Glidden, Cruise’s chief administrative officer, wrote in an email.
Cruise is working to recover from an October crash in which a woman was dragged under one of its vehicles after she was hit by a vehicle driven by a man. The company’s permit to operate in California was suspended, and Cruz stopped all testing on public roads in the United States.
Glidden said Cruz has a “longer path to commercialization at scale.” The company planned to launch self-driving taxis in nearly a dozen U.S. cities last year but has since cut a quarter of its jobs and its CEO, co-founder and others have left.