General Motors (GM) is strategically focusing on its Super Cruise driver assistance technology, akin to Tesla's Autopilot, in anticipation of generating significant revenue. GM anticipates that Super Cruise could yield approximately $2 billion in annual revenue within five years, positioning the company as a technology leader alongside its vehicle manufacturing reputation.
Morningstar analyst David Whiston highlighted that revenue from Super Cruise is more lucrative than vehicle manufacturing, paving the way for wider acceptance of self-driving cars. While Super Cruise and Tesla's Autopilot share automated driving features, Super Cruise employs a more advanced sensing system to ensure driver attentiveness, according to market research VP Sam Abuelsamid.
Super Cruise is currently offered in around 20 newer high-end gasoline and electric vehicle models, such as Cadillacs and large SUVs, with options for standard and additional features at a cost. GM's venture into this technology sector, however, has not yet mirrored Tesla's stock market success.
CEO Mary Barra remains optimistic about the growth potential in driver assistance technology, aiming to expand the Super Cruise fleet significantly by 2025. Barra noted a positive response from users after the complimentary subscription period, with plans to enhance subscription revenue in the future.
While there are hardware costs associated with Super Cruise, software profitability is seen as a key factor by analyst Jeff Windau. He highlighted the potential for customer loyalty and recurring revenue if customers value the feature, leading to higher renewal rates and brand loyalty.