Amid Tesla, Waymo And BYD Battle For Robotaxi Supermacy, Employment Worries Rise In China — Experts Say Jobs Won't Vanish In 'One Go'

Author: Benzinga Neuro | August 30, 2024 02:24am

China’s push for autonomous vehicles is causing job security fears among drivers, but experts argue that new job opportunities are emerging.

What Happened: China issued 16,000 test licenses for autonomous vehicles and opened 32,000 kilometers of public test roads on Tuesday. In June, the government approved nine domestic automakers, including BYD (OTC:BYDDY) (OTC:BYDDF) and Nio (NYSE:NIO), to test automated driving technologies on public roads, reported CNBC.

Elon Musk aims to get regulatory approval for Tesla Inc (NASDAQ:TSLA) Full-Self Driving technology by year-end. The electric vehicle maker recently delayed its robotaxi unveiling from August to October, allowing more time for prototype development.

Many Chinese social media users express concerns that autonomous driving is “snatching rice bowls” of drivers. Baidu Inc.‘s (NASDAQ:BIDU) self-driving platform Apollo Go operates around 400 robotaxis in Wuhan, aiming to increase to 1,000 by year-end. CEO Robin Li mentioned that scaling will be gradual and could take years.

Taxi drivers in Wuhan petitioned to limit Apollo Go’s service. A 16-minute robotaxi ride in Beijing costs 10.36 yuan ($1.46), about half the fare of traditional ride-hailing apps.

Experts believe autonomous mobility will mature gradually. Mohit Sharma, a research analyst at Counterpoint Research, noted that job losses will be gradual and governments could help transition drivers to new roles.

"You will not lose all the jobs in one go. It will be a slow transition phase area by area, region by region," Sharma said, according to the report.

An Apollo Go spokesperson stated the firm is committed to creating new job opportunities in monitoring, testing, and data annotation.

See Also: ‘Horror Show’ For Tesla’s Q3 Margins, Says Analyst, As Elon Musk-Led Company Extends Zero-Percent Financing To End Of Q3

Why It Matters: The rapid expansion of autonomous vehicles in China is part of a global trend, with significant implications for the job market and industry competition.

Despite the delay, Tesla is expected to dominate the robotaxi market. According to Ark Invest analyst Tasha Kenney, Tesla’s core competencies will help it compete against frontrunners like Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google-owned Waymo and Baidu. Kenney noted that Waymo’s new vehicle, developed with Geely Automobile Holdings Limited, aims to reduce costs significantly.

Meanwhile, Chinese firm WeRide has received approval to test driverless vehicles with passengers in California, adding to the competitive landscape. This approval marks a significant step in the global race for autonomous vehicle technology.

Baidu is also making strides, with its robotaxi operations nearing scalable adoption. Goldman Sachs analyst Lincoln Kong recently highlighted Baidu’s progress, noting that the company is close to achieving unit economics breakeven.

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Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Posted In: BIDU BYDDF BYDDY GOOG GOOGL NIO TSLA