Connect with us

Bussiness

Baidu Gets a Boost on Suggestions Its Robotaxi Business Is Taking Off

Published

2 months ago

on

Baidu Gets a Boost on Suggestions Its Robotaxi Business Is Taking Off

Key Takeaways

  • Baidu shares got a boost Wednesday from reports of optimism about the Chinese tech firm’s robotaxi.
  • Dow Jones Newswires and Bloomberg pointed to a note by an analyst who said Baidu’s Apollo Go robotaxi business will likely break even in Wuhan this year.
  • Excitement is also building over Tesla’s upcoming release of its robotaxi.

American Depositary Receipts (ADRs) of Baidu (BIDU) advanced in intraday trading Wedesday on reports the Chinese internet search engine’s Apollo Go robotaxi business is set to take off in that country.

Both Dow Jones Newswires and Bloomberg cited a note by Guotai Junan International analyst Li Muhua that indicated Apollo Go is expected to break even in Wuhan this year. The note added that autonomous driving will be a key trade over the next three months, boosted by the launch of Tesla’s (TSLA) robotaxi in August. 

Apollo Go Operating Costs Expected To Fall Significantly

Bloomberg said Li pointed out that Apollo Go has begun manned tests in 11 Chinese cities, and is running unmanned driving tests in Wuhan, Beijing, Chongqing, Shenzhen, and Shanghai. The analyst added that operating costs will fall significantly.

Dow Jones Newswires noted that local media sites have released drafts of rules for autonomous vehicles put together by a Beijing regulatory agency, further adding to the enthusiasm.

Baidu ADRs were up 2.7% to $97.96 as of 11:34 a.m. ET Wednesday but are down more than 17% this year. Tesla shares, which have been on a 10-day winning streak, were little changed.

Related Topics:
Continue Reading