BAIDU’S shares jumped by the most in more than a year on signs of growing popularity for its robotaxi Apollo Go in China.
The stock rose as much as 13 per cent in Hong Kong to HK$97.15 before paring. The number of shares traded was more than twice its daily average for the past year. This follows an 8.5 per cent surge in its US ADRs on Tuesday (Jul 9).
China’s Internet search leader is investing in generative artificial intelligence (AI) and autonomous driving to diversify its business as the nation’s economic growth slows and impacts advertisements. Traders are betting that robotaxis will get another push after the capital Beijing announced this week that it will support them for ride-hailing and car rental fleets.
“Autonomous driving will turn into a key trade in the coming three months, aided by Tesla’s launch of its robotaxi next month,” Guotai Junan International analyst Li Muhua said. “Baidu’s Apollo Go is expected to break even in Wuhan in 2024 and be profitable in 2025 with an increase in its fleet in the city.”
Tesla was recently granted approval to test its advanced driver-assistance system on some Shanghai streets, according to a source familiar with the matter, Bloomberg reported last month.
More tests
Apollo has started manned test in 11 Chinese cities, and is conducting unmanned auto driving test in Beijing, Wuhan, Chongqing, Shenzhen and Shanghai, Li said. Operating costs will drop significantly, the analyst added. Baidu said in May that Apollo Go should turn profitable by 2025.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Baidu needs the lift, with its stock down more than 17 per cent this year, compared with a 3 per cent gain in the benchmark Hang Seng Index, as the company reported slowing revenue in the latest quarter.
China’s Ministry of Industry and Information Technology said in late November that it will allow pilot road tests for selected self-driving cars in designated areas. BLOOMBERG
