A very strong new player is entering the Chinese electric car market. China's giant technology firm Baidu has agreed to partner with automaker Geely to form a company for the production of electrically powered vehicles.
The CNBC news that Chinese internet company Baidu and car maker Geely have made an agreement to produce electric cars, was confirmed by both companies. Within this new autonomous venture, Geely will be responsible for the production of vehicles, while Baidu will take over the computer and technology part of the production.
Baidu, based in Beijing, will own the majority shares of the new company; Geely, on the other hand, will hold the minority share. The new venture hopes to take over part of the electric car market and challenges the American firm Tesla, which not only rivals Nio, Li Auto and Xpeng Motors, domestic electric vehicle makers who have increased deliveries in December, but also opened a factory in China last year.
Opening a factory in China has been the most important success for Tesla since it was founded. Despite the economic crisis caused by the pandemic, investors trusted Tesla's owner Elon Musk, and Musk's fortune was also eight times. Musk had become the richest person in the world with $ 2021 billion at the beginning of 200.
There are observers who share the view that the newly established company has the potential to change the position of Tesla, which sold 2020 vehicles in China in 120.
Source: China International Radio