Bad news for Tesla as China commits to mass producing robotaxis

A joint venture between GAC Aion and the self-driving unit of Didi Global Inc says it has secured license to mass produce robotaxis in China.

Andi to launch self-driving SUV

Andi Technology will place the said autonomous electric vehicles on sale from 2025.  The first of them will be a crossover sports utility vehicles (SUV).

The joint entity did not name the authority that issued the license on Monday. According to Zhang Xiong – deputy general manager of GAC Aion:

Andi received $149 million in funding from two affiliates of the municipal government of Guangzhou on its inception in 2023.

Why is it bad news for Tesla stock?

The news arrives only days after billionaire Elon Musk said his electric vehicles giant Tesla Inc (NASDAQ: TSLA) will reveal its robotaxi in early August as Invezz reported here.

Andi committing to mass producing robotaxis from next year, therefore, may be bad news for the half-a-trillion-dollar company based out of Austin, Texas as the launch of a self-driving taxi was broadly expected to revitalise its stock.

$TSLA is currently down more than 30% versus the start of 2024.

Last week, a Reuters report also said that the Nasdaq-listed firm has withdrawn from plans of producing a more affordable electric vehicle. Wall Street has a consensus “hold” rating on Tesla at writing.