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Baidu Self Driving Car Gets Bosch and Continental On Board
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Chinese tech heavyweight Baidu Inc. (BIDU - Free Report) is ramping up its efforts in the self-driving vehicle space by teaming up with two German auto industry highfliers, Bosch and Continental.
Baidu signed a strategic partnership agreement with Bosch on Jun 1 and with Continental on May 31. However, financial details of the deals were not disclosed.
The dual collaboration is aimed at strengthening its presence in the areas of automated driving, connected cars and smart mobility by leveraging each other’s technological expertise, predominantly artificial intelligence (AI).
Bosch will also be involved in Apollo Project, Baidu’s open platform for automated driving. It will supply sensors, hardware components and the "Bosch Road Signature" for vehicle localization. The company has been engaged in developing self-driving technologies since 2011.
This is undoubtedly a bold move on Baidu’s part and comes as a surprise for its competitors. These partnerships, if successful, could boost Baidu’s shares. The stock has appreciated 8.4% compared with the Zacks Internet - Services industry’s gain of 22.8% over the last one year.
Baidu Aims to Accelerate Commercialization
It’s not surprising that Baidu wants to make a bigger splash in the self-driving space and getting two German auto industry heavyweights on its side should speed up its efforts.
The trio will aim at developing a comprehensive and reliable smart transportation system to facilitate fast commercialization of Baidu’s automated vehicles. Per a self-driving "roadmap" issued by China last year, the country aims to commercialize highly or fully automated vehicles as early as 2021.
The primary selling point for self-driving cars is increased safety due to fewer possibilities of accidents. Research suggests that automated driving will remove the chances of accidents due to human errors (such as sleep, distraction, intoxication, carelessness, brake failure or other mechanical problems). Companies like Baidu are banking on this theory for investing in this space. It could also help them handle regulatory controls.
Though the self-driving/autonomous car conversation is just getting started, a large number of players, right from tech behemoths to automakers to firms that manufacture components, are already racing for an edge.
As they do so, they realize that the path is not without its share of potholes. Thus, a number of them are opting for partnerships, which help to combine competencies of technology companies and traditional auto suppliers.
For instance, Alphabet’s (GOOGL - Free Report) Waymo has an ongoing partnership with Fiat Chrysler and has a fleet of 600 Chrysler Pacificas. It is also in talks with Honda Motors to get its technology in Honda test vehicles. Microsoft (MSFT - Free Report) is in partnership with Toyota to back its research with AI, robotics and self-driving technology. Lyft has an ongoing self-driving partnership with General Motors Company (GM - Free Report) , which is also one of its investors.
Wrapping Up
There is no doubt that the autonomous driving space will see more innovation over the next few years, both by technology companies and automakers, including smaller startups. In fact, CB Insights estimates financing in the auto tech startup sector exceeded $1 billion in 2016 and more investment will surely follow. This is one of the best places to be in because the technology is being developed. Also, early investors can sell their interest at a nice premium.
We believe the first fully-autonomous car that makes it to the market will be a collaborative effort between automakers and tech companies.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Baidu Self Driving Car Gets Bosch and Continental On Board
Chinese tech heavyweight Baidu Inc. (BIDU - Free Report) is ramping up its efforts in the self-driving vehicle space by teaming up with two German auto industry highfliers, Bosch and Continental.
Baidu signed a strategic partnership agreement with Bosch on Jun 1 and with Continental on May 31. However, financial details of the deals were not disclosed.
The dual collaboration is aimed at strengthening its presence in the areas of automated driving, connected cars and smart mobility by leveraging each other’s technological expertise, predominantly artificial intelligence (AI).
Bosch will also be involved in Apollo Project, Baidu’s open platform for automated driving. It will supply sensors, hardware components and the "Bosch Road Signature" for vehicle localization. The company has been engaged in developing self-driving technologies since 2011.
This is undoubtedly a bold move on Baidu’s part and comes as a surprise for its competitors. These partnerships, if successful, could boost Baidu’s shares. The stock has appreciated 8.4% compared with the Zacks Internet - Services industry’s gain of 22.8% over the last one year.
Baidu Aims to Accelerate Commercialization
It’s not surprising that Baidu wants to make a bigger splash in the self-driving space and getting two German auto industry heavyweights on its side should speed up its efforts.
The trio will aim at developing a comprehensive and reliable smart transportation system to facilitate fast commercialization of Baidu’s automated vehicles. Per a self-driving "roadmap" issued by China last year, the country aims to commercialize highly or fully automated vehicles as early as 2021.
The primary selling point for self-driving cars is increased safety due to fewer possibilities of accidents. Research suggests that automated driving will remove the chances of accidents due to human errors (such as sleep, distraction, intoxication, carelessness, brake failure or other mechanical problems). Companies like Baidu are banking on this theory for investing in this space. It could also help them handle regulatory controls.
Baidu, Inc. Net Income (TTM)
Baidu, Inc. Net Income (TTM) | Baidu, Inc. Quote
Partnerships a Trend
Though the self-driving/autonomous car conversation is just getting started, a large number of players, right from tech behemoths to automakers to firms that manufacture components, are already racing for an edge.
As they do so, they realize that the path is not without its share of potholes. Thus, a number of them are opting for partnerships, which help to combine competencies of technology companies and traditional auto suppliers.
For instance, Alphabet’s (GOOGL - Free Report) Waymo has an ongoing partnership with Fiat Chrysler and has a fleet of 600 Chrysler Pacificas. It is also in talks with Honda Motors to get its technology in Honda test vehicles. Microsoft (MSFT - Free Report) is in partnership with Toyota to back its research with AI, robotics and self-driving technology. Lyft has an ongoing self-driving partnership with General Motors Company (GM - Free Report) , which is also one of its investors.
Wrapping Up
There is no doubt that the autonomous driving space will see more innovation over the next few years, both by technology companies and automakers, including smaller startups. In fact, CB Insights estimates financing in the auto tech startup sector exceeded $1 billion in 2016 and more investment will surely follow. This is one of the best places to be in because the technology is being developed. Also, early investors can sell their interest at a nice premium.
We believe the first fully-autonomous car that makes it to the market will be a collaborative effort between automakers and tech companies.
Baidu shares currently carry a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>