DETROIT (Reuters) - General Motors ( GM ) needed to exit its Cruise robotaxi business, most Wall Street analysts agreed on Wednesday, but the automaker's decision to do so was still a disappointing end for an operation that GM had touted as a potential $50 billion revenue generator by 2030.

The largest U.S. automaker on Tuesday pulled the plug on Cruise after evaluating the continued investments needed in a competitive space, executives said, adding they intend to fold some of Cruise's talent into GM to continue development of driver assistance systems.

"We consider the news a step in the right direction for GM, as we think investors were losing patience with its hefty spending (~$10B) related to robotaxi development with very little to show for its investment," Garrett Nelson, analyst at CFRA Research wrote.

GM shares jumped 3% after-hours on Tuesday immediately after the announcement, but gave back those gains during Wednesday's regular session and were down about 1% in late afternoon.

Nelson said the announcement was "a black eye for the credibility of GM management that, as recently as last year, told investors the Cruise business could generate $50 billion in annual revenue by 2030."

For the year to date, GM has far outpaced its competitors. Its stock is up 45% for 2024, while Ford's is down 14% and Stellantis is down 37%.

GM CEO Mary Barra was already scheduled to speak with reporters Wednesday evening. She will likely face questions on cost-cutting moves the automaker is taking as it navigates turbulence in EV demand, changing technology and a new presidential administration.

"This is the latest in the series of decisions that GM has announced which underscore our focus on having the right technology for the future of our company and the industry and reflects our commitment to execute with speed and efficiency," Barra told analysts Tuesday.

GM recently scaled back plans for electric vehicles, sold a stake in one of its joint venture battery plants and recorded a $5 billion loss on its China business as it restructures. GM is now doubling down on its core business: making gasoline-powered pickup trucks and other large vehicles.

Cruise's competitors - including Alphabet's Waymo, Baidu ( BIDU ) and Tesla - are well funded, and may have better technology, analysts said. Waymo, which is expanding its autonomous ride-hailing services, is still losing billions of dollars per year.

Barclays noted Alphabet, which has over $100 billion in earnings annually, can absorb costs associated with Waymo's development. GM, however, is expected to record earnings of $14 billion to $15 billion for 2024.

"It's clear from Waymo that an AV robotaxi business is best owned by an entity with deep pockets," Barclays said.