Tesla's Party Could Be Crashed By Baidu As Chinese Rival Considers Global Robotaxi Expansion

Baidu Inc. BIDU is reportedly considering expanding its robotaxi unit, Apollo Go, into international markets. This move comes as the company’s CFO, Rong Luo, transitions to a new role within the company.

What Happened: Baidu’s Apollo Go is in discussions with several companies to potentially expand its robotaxi services to global markets in the near future, reported CNBC, citing a source familiar with the matter. The specifics of the expansion, such as the timing and regions, are yet to be disclosed.

Baidu did not immediately respond to Benzinga's request for comment.

Baidu is a significant player in the Chinese robotaxi market, with regulators in certain regions allowing commercial operations of self-driving taxis, a significant shift from previous regulations that only permitted internal testing.

Meanwhile, Tesla Inc TSLA is gearing up for its highly anticipated robotaxi event, scheduled for Thursday. In a separate move, WeRide, another Chinese robotaxi developer, recently announced a partnership with Uber to integrate its cars onto the ride-hailing giant’s platform in Abu Dhabi.

See Also: Rivian’s Production Guidance Cut Spurred By Miscommunication With Atlanta-Based Supplier, Resulting In Shortage Of Critical Copper Windings For Its Motor: Report

Why It Matters: Baidu’s move to expand its robotaxi services internationally comes at a time when the company’s stock is facing challenges. During Tuesday's session, Baidu’s shares took a hit, dropping by 6.7% to $106.75, as Chinese planning officials reportedly fell short of investor stimulus expectations.

However, Baidu’s robotaxi unit has been making strides in its domestic market. In August, Goldman Sachs analyst Lincoln Kong noted that Baidu’s robotaxi unit was getting closer to scalable adoption, with unit economics breakeven in sight.

Despite Baidu’s progress, Tesla is still expected to dominate the robotaxi market, according to Ark Invest analyst Tasha Kenney.

Back in March, Baidu made headlines for launching China’s first 24/7 robotaxi service, a significant milestone for the company’s autonomous ride-hailing service platform Apollo Go.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote