Telenav tries to reassure investors after stock plummets 45% on GM-Google deal

Telenav tries to reassure investors after stock plummets 45% on GM-Google deal

Company says no impact expected for fiscal 2020, 2021

Telenav Inc. attempted to recover from a steep stock plunge Thursday, announcing that its deal to provide navigation services to General Motors Co. will not be affected by the auto maker’s new deal with Google.

Telenav shares TNAV, -44.80% sank 45% on Thursday before being halted in the afternoon.

The selloff was sparked after GM GM, +2.30% announced a deal that would feature Alphabet’s GOOGL, +2.53% GOOG, +2.54% Google apps built directly into its vehicles’ touch-screen displays. That includes Google Maps and Google’s voice-activated digital assistant service, the Wall Street Journal reported. Many investors saw that as a direct threat to Telenav, which offers GPS navigation, search, infotainment and mobile advertising on its platforms.

Hoping to reassure investors, Santa Clara, Calif.-based Telenav said late Thursday that it has “a strong and ongoing relationship with GM, with a contract effective through model year 2025. GM’s announcement today does not alter the contract in any way.”

Telenav added that it does not expect the GM-Google deal to affect its internal operating forecasts for fiscal years 2020 and 2021, and said its guidance issued in August remains unchanged.

Telenav suggested the Google deal could have an affect in the long term though. While Telenav’s contract with GM runs through 2025, the company said it does not provide minimum volume or purchase requirements.

Separately, Telenav also announced late Thursday that it is working with Microsoft Corp. MSFT, +1.76% to provide its “intelligent connected-car solutions suite” with Microsoft’s Connected Vehicle Platform, which includes Volkswagen AG VOW, +0.26% and the Renault-Nissan Alliance RNO, -0.22% 7201, +2.48% as partners.

error: Content is protected !!