US-listed shares of Baidu.com (NASDAQ:BIDU) saw their largest jump in over a year on Wednesday, fueled by increased interest in its Apollo Go robotaxi service in China.
The stock surged as much as 13% in Hong Kong, following an 8.5% rise in the US.
China’s internet search giant is diversifying its business by investing in generative AI and autonomous driving amid slowing economic growth.
Analysts are watching for a significant boost in robotaxi services after Beijing announced support for ride-hailing and car rental fleets.
Apollo Go has started manned tests in 11 Chinese cities and unmanned tests in key cities like Beijing and Shanghai. Baidu anticipates Apollo Go will break even in Wuhan by 2024 and become profitable by 2025.
Apollo Moon robotaxis are part of a new generation of self-drive taxi from Baidu and BAIC group.
Despite the recent surge, Baidu’s Hong Kong-listed stock remains down over 17% this year, compared to a 2.5% gain in the Hang Seng Index.