Shares of Baidu (NASDAQ: BIDU) , the Chinese internet search giant, soared in morning trading Tuesday, up 8.8% as of 11:15 a.m. EST. The gain follows a Reuters report that Baidu is considering joining the red-hot Chinese electric-car industry and manufacturing its own electric vehicles.
Baidu has been developing its own driverless car technology for years , and it's testing out an autonomous taxi service known as Go Robotaxi. Now, reports Reuters, it is considering plugging this tech into electric cars manufactured under its own brand by a contract manufacturer such as Zhejiang Geely, Guangzhou Automobile Group (GAC), or China FAW Group -- or even forming a joint venture with an automotive company and taking for itself a majority stake.
For its part, Baidu is refusing to comment on the Reuters report, although GAC admitted it does presently have a "strategic partnership" of some sort with Baidu.
For further details see:
Why Baidu Stock Popped This Morning