Baidu's stock experienced a 5.01% decline during the trading session, reflecting investor concerns over regulatory developments affecting the company's autonomous driving ambitions.
According to multiple reports, China has suspended issuing new licenses for autonomous vehicles following an incident last month where dozens of Baidu's Apollo Go robotaxis suddenly stopped in Wuhan, stranding passengers and disrupting traffic. The regulatory halt prevents self-driving companies from adding new robotaxis to their fleets, launching new pilot projects, or expanding into additional cities.
The incident alarmed authorities, who convened a meeting earlier this month to order local governments to conduct self-inspections and strengthen safety oversight. While other robotaxi firms like Pony.ai and WeRide reported normal operations, Baidu's robotaxi operations in Wuhan have been suspended pending investigation into the outage.
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