Companies around the world are trying to get their feet wet with the zero emissions vehicle craze, and now’s certainly the time, if there ever was one.
Baidu, China’s leading search engine company, has begun talks of creating a company to produce its own smart electric vehicles (EVs), according to Reuters. The company will manufacture its vehicles out of plants owned by fellow auto manufacturer, Geely.
— Reuters (@Reuters) January 7, 2021
Baidu’s new company will also be using Geely’s production platform, Sustainable Experience Architecture (SEA), to develop future products according to a source who declined to be identified.
After the plan was reported, Baidu’s shares jumped over 4% on Nasdaq. Baidu is also developing autonomous driving technology, as well as the infrastructure for internet connectivity.
The news came not long after Baidu rival Alibaba formed a joint venture with SAIC Motor Corp to make EVs, or BYD received a huge investment from China’s Didi Chuxing.
Other internet giants like Amazon, Tencent Holding Ltd, and Alphabet Inc, have also begun developing or investing into smart car startups. Along with them, Apple has also been in recent discussions about making an EV.
Whatever the Baidu EV looks like upon completion, it’s likely still at least a few years out from production. Still, now is the time to invest in the industry, more so than ever before.