Baidu Apollo Go Robotaxi Business Set to Break Even in Wuhan in 2025, Shares Surge to $97.96
Discover how Baidu's Apollo Go robotaxi is accelerating in China with expected break-even in Wuhan this year and what this means for investors and the autonomous vehicle market.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital media, leading teams in delivering impactful news coverage on major global events.
Highlights
- Baidu's shares climbed on Wednesday fueled by positive forecasts for its Apollo Go robotaxi service.
- Analyst Li Muhua from Guotai Junan International projects Apollo Go will reach break-even in Wuhan within 2024.
- Market excitement grows as Tesla prepares to launch its own robotaxi service later this year.
On Wednesday, Baidu's American Depositary Receipts (ADRs) saw notable intraday gains amid reports highlighting the rapid progress of its Apollo Go robotaxi initiative in China.
Both Dow Jones Newswires and Bloomberg quoted Guotai Junan International analyst Li Muhua, who emphasized that Apollo Go is on track to become financially sustainable in Wuhan during 2024. Moreover, the autonomous driving sector is expected to gain momentum in the next quarter, especially with Tesla's robotaxi debut set for August.
Operating Costs for Apollo Go Projected to Decline Sharply
According to Bloomberg, Li highlighted that Apollo Go has commenced manned trials across 11 Chinese cities and initiated unmanned testing in Wuhan, Beijing, Chongqing, Shenzhen, and Shanghai. These advancements are anticipated to significantly reduce operational expenses.
Further enthusiasm is fueled by Beijing regulatory authorities releasing draft regulations for autonomous vehicles, as reported by Dow Jones Newswires, signaling a supportive legal environment.
By 11:34 a.m. ET on Wednesday, Baidu ADRs increased by 2.7% to $97.96, despite a year-to-date decline exceeding 17%. Meanwhile, Tesla's stock, riding a 10-day winning streak, remained relatively steady.
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