AI smart autonomous vehicle production preparation speed
Stock prices fly high, soar 67% within a month
[뉴스핌 베이징 = 최헌규 특파원] Baidu, the No. 1 search engine in China, is spurring the automobile business by officially proclaiming the establishment of a smart electric vehicle company on the 11th.
The stock market reflected expectations for entry into the automobile business, and Baidu’s share price rose 67% within a month. In addition, the stock price of Jiri Motors, a traditional automobile company, is also showing a surge due to the good news of a joint venture with Baidu.
According to the Chinese media and automobile industry, on the 11th, Baidu officially announced the establishment of a smart car company and decided to start researching and developing and producing. Baidu attracted Geely as a joint venture partner for the smart electric vehicle business.
In the future, Baidu Motors decided to develop a comprehensive automobile business that encompasses all areas such as smart car design, R&D, production, manufacturing, and sales service. Baidu announced that it will produce smart cars that combine artificial intelligence (AI), advanced Internet technology, and autonomous driving capabilities.
Baidu announced that it has established a cooperation system with more than 70 differential car companies and 600 models of car types for the smart electric vehicle business.
Since the news of Baidu’s entry into the smart car business on December 15, 2020, the stock price of Baidu in the U.S. stock market rose 67% to $240.25 in less than a month as of January 8, and the market cap has also exceeded $80 billion.
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| [뉴스핌 베이징 = 최헌규 특파원] On January 11, 2021, Baidu, the number one search portal in China, officially declared the establishment of a smart car company. [사진=바이두] . 2021.01.11 [email protected] |
An official from the stock market said, “With the recent advancement of various Internet companies such as e-commerce, Baidu was threatened with the status of a leading Internet company called’BAT (Baidu Alibaba Tencent)’, and it was in a situation where the investment interest was shifted.” It is paying attention to see if it will be the turning point of a new leap forward.”
Although Baidu is accelerating through the establishment of businesses, Tesla, which has dominated the Chinese market, is enduring, and fierce competition with local new energy automakers such as Wei Lai (NIO) Xiaofeng (小鵬) Li Xiang (理想). As expected, the future of the business is not so easy.
Meanwhile, Baidu’s establishment of a smart car business has been a significant boost to the earnings improvement and stock price outlook of Geely Motors, a joint venture. The stock price of Geely Motors, which is listed in Hong Kong, rose 20% to HK$33.85 as of the closing price on January 8.
Analysts in the auto sector in the securities industry said that Geely’s entry into the new energy car business is a good thing, and the sales target for 2021 is also increasing by 16% to 1.35 million units. The company’s profit is expected to reach 4-6% in 2021-2022.
At the same time, investment institutions have sharply raised the target price of Geely Automobile stocks. Transportation Bank International raised its target price for Geely by 51% from HK$25.4 to HK$38.5. Kwangda Securities also raised its target price to HK$31.92.
Beijing = Correspondent Heon-kyu Choi [email protected]