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Is GM's Super Cruise Keeping it Competitive in the Auto Tech Race?

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Key Takeaways

  • {\"0\":\"GM\'s Super Cruise is now offered in 23 models, with 70% of new Cadillacs shipping with the system.\",\"1\":\"GM expects over 600,000 Super Cruise users by year-end and $200M in 2025 revenues from the technology\",\"2\":\"Super Cruise growth supports GM\'s $4B in deferred software revenues and long-term expansion plans.\"}

U.S. legacy automaker General Motors (GM - Free Report) is solidifying its position in the driver-assistance game with its hands-free Super Cruise technology. Launched in 2017, Super Cruise was the first true hands-free driving system for highways in the industry.

It works on pre-mapped, divided roads using a combination of cameras, sensors, GPS and LiDAR-based maps to keep the car centered, manage speed and maintain a safe distance. While it lets one drive hands-free, it’s not fully autonomous, requiring the driver to stay alert.

Today, Super Cruise is available in 23 GM models, including the Cadillac LYRIQ, Escalade, GMC Hummer EV and Sierra. That reach is growing fast. Nearly 70% of new Cadillacs now ship with Super Cruise, and GM expects to have more than 600,000 customers using it by year-end.

Financially, this bet is paying off. GM has already booked $4 billion in deferred revenues from software platforms like Super Cruise and OnStar. The company forecasts over $200 million in Super Cruise revenues for 2025, with expectations of more than double in 2026. A solid double-digit growth rate is projected through the end of the decade.

While Super Cruise is still a small part of GM’s overall business, its expansion reflects the company’s effort to keep pace in an industry where advanced software and hands-free driving capabilities are fast becoming the norm.

The Hands-Free Showdown Heats Up

China’s NIO Inc. (NIO - Free Report) is racing ahead with its NOP+ driver-assist system. NIO’s technology enables point-to-point driving on highways and city roads in China, powered by lidar and smart chips. With NOP+ rolling out across its growing fleet, NIO is positioning itself as a serious challenger in the hands-free battle—especially in global EV markets where it is looking to expand.

NIO’s close peer XPeng Inc. (XPEV - Free Report) is betting big on its advanced XNGP system. Already active in multiple Chinese cities, XPeng’s hands-free tech handles highway and urban driving, traffic signals, and complex turns. What makes XPeng stand out is its push for map-free driving, a key step toward scalable autonomy. XPEV is clearly aiming to leapfrog legacy automakers.

The Zacks Rundown on General Motors

Shares of General Motors have increased around 30% over the past year compared with the industry’s gain of 18%. 

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, GM trades at a forward price-to-earnings ratio of 5.49, way above the industry average. It carries a Value Score of A. 

Zacks Investment Research Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for General Motors’ earnings has been revised over the past 90 days.

Zacks Investment Research Image Source: Zacks Investment Research

GM stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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