Key Takeaways
- Baidu shares rose on Wednesday following optimistic reports about the Chinese tech company's robot taxi service.
- Dow Jones Newswires and Bloomberg Baidu's ApolloGo robotaxi business is likely to break even in Wuhan this year, according to an analyst note.
- Anticipation is also building for Tesla's upcoming robotaxi.
Baidu (BIDU) American Depositary Receipts (ADRs) rose in intraday trading on Wednesday after reports that the Chinese internet search engine's robotaxi business, Apollo Go, is getting off the ground in China.
both Dow Jones Newswires and Bloomberg Apollo Go is expected to break even in Wuhan this year, the report said, citing a note from Guotai Junan International analyst Li Muhua, who added that autonomous driving will be the key trade over the next three months, driven by the launch of Tesla’s (TSLA) robotaxi in August.
Apollo Go's operating costs are expected to drop significantly
Bloomberg Li noted that Apollo Go has begun manned tests in 11 Chinese cities and is conducting driverless tests in Wuhan, Beijing, Chongqing, Shenzhen and Shanghai. The analyst added that operational costs will be significantly lower.
Dow Jones Newswires Local media have noted that the publication of proposed regulations for self-driving cars drawn up by regulators in Beijing has further fuelled enthusiasm.
Baidu's ADRs rose 2.7% to $97.96 as of 11:34 a.m. ET on Wednesday but are still down more than 17% this year. Tesla shares, which have risen for 10 straight days, were little changed.
