GM will implement AI in cars and launch autonomous driving. Is this a threat to Tesla?

General Motors has announced the introduction of Google's Gemini AI in its cars and the launch of a driver assistance system in the Cadillac Escalade IQ electric car in 2028. These solutions will allow the company to start competing with Tesla, Barron's believes. On Wednesday, October 22, when GM announced these innovations, its shares renewed the record reached just the day before thanks to a strong report.

GM is set to launch a raft of software innovations for its vehicles over the next three years, including an embedded voice assistant based on Google's Gemini artificial intelligence, as well as a new driver assistance system capable of largely unmanned driving. The announcements were made Wednesday, Oct. 22, by the automaker's CEO Mary Barra and other top executives at GM Forward, an event focused on software development. The company unveiled other initiatives that "transform the car from a means of transportation to an intelligent assistant," CNBC writes.

Investors warmly received the presentation: GM shares rose in trading on Wednesday by 1% to $67.3, despite a 0.9% drop in the broad market. As a result, the carmaker's shares reached a new all-time high for the second day in a row - on Tuesday, the quotes jumped by 15.7% at once, showing the best growth since March 2020, after the publication of a strong quarterly report and an increase in the forecast for the year.

GM said Google's AI system, on which the company's multimedia platform is based, will launch as early as next year. It will allow drivers to "talk to the car as naturally as a fellow traveler".

"Our goal is to create a car that knows you, cares about you and anticipates your needs before you even voice them," said GM Chief Product Officer Sterling Anderson. He also called the centralized computing platform a "core element" of the company's strategy to expand the functionality of its vehicles. The platform will be based on Nvidia processors, launching with the Escalade IQ model in 2028, and will take a similar approach to Tesla, Barron's emphasizes.

A new eyes-off driving feature will also be introduced in 2028; it will appear in Cadillac Escalade IQ models and will initially be available only on highways, but should later start working in the city. GM's approach to creating a driver-assistance system also looks a lot like what Tesla is aiming for, with Full Self-Driving, which is available for $99 a month, still requiring constant human supervision, Barron's notes.

In addition, GM plans to more aggressively introduce "cobots" - robots that work in conjunction with humans - and expand the range of solutions within its GM Energy division.

In the third quarter, GM's adjusted earnings fell 5.4% to $2.8 per share. However, by this indicator, the automaker exceeded analysts' consensus forecast of $2.27, Bloomberg writes . Net income fell 57% to $1.3 billion. Revenue fell slightly - by 0.3%, dropping to $48.6 billion.

At the same time, the company has markedly improved its forecast for the full year 2025: adjusted earnings before interest and taxes (EBIT) are now expected to be $12-13 billion. For comparison, the previous forecast was in the range of $10-12.5 billion. Adjusted earnings per share, according to GM estimates, will be between $9.75 and $10.5 (against the previous $8.25-10).

GM's optimism is due to rising sales of high-margin gasoline-powered SUVs and pickup trucks - models that bring the company more profit per vehicle, Bloomberg notes. Additionally, relaxed federal emissions requirements and duty exemptions on imported parts, extended by Donald Trump's administration through 2030, have helped. As CEO Mary Barra noted, this allows GM to use foreign parts to assemble cars in the U.S., reducing costs and increasing business profitability.

This article was AI-translated and verified by a human editor