General Motors said Thursday in which SoftBank Vision Fund plans to invest $2.25 billion in GM Cruise Holdings, further boosting the automaker’s efforts with autonomous vehicle technology.
GM shares were up nearly 11 percent midmorning Thursday, on track for their best day since the company went public again in November 2010.
GM also will make a $1.1 billion investment in GM Cruise once the deal has closed.
The investment will be “a big recognition along with validation of the progress we’ve made over the last couple of years to get to This kind of point,” GM President Dan Ammann said Thursday in an interview on CNBC’s “Squawk Box.” “yet I also think This kind of’s a big recognition of the opportunity in which lays ahead.”
The SoftBank Vision Fund investment will be made in two tranches. The first investment of $900 million will be made when the transaction closes, while the remaining $1.35 billion investment will come when Cruise’s self-driving vehicles are ready for commercial deployment.
The deal, which will be subject to regulatory approval, will result within the SoftBank Vision Fund owning a 19.6 percent equity stake in GM Cruise.
GM said This kind of expects This kind of has the capital necessary to reach commercialization at scale beginning in 2019.
Ammann on CNBC on Thursday reiterated in which commitment, saying, “we’ve continued to make a lot of progress along with in which continues to be our objective.”
“More importantly, our ultimate decision to launch the technology fully driverless will be actually going to be gated by safety,” he added. “We need to hit the right level of safety performance, along with when we do in which we will be ready to go.”
The investment comes as rivals Tesla along with Alphabet’s Waymo unit are pushing to gain an advantage within the autonomous vehicle space.
Last year, Ford said This kind of plans to develop self-driving vehicles without steering wheels, though those vehicles are not supposed to be ready until 2021.