Shares of Baidu Inc. and several China-listed robotaxi companies declined on Wednesday after reports said Beijing regulators had suspended approvals for new permits for high-level autonomous driving following a major outage affecting Baidu’s fleet.
According to the report, Chinese authorities halted the issuance of new licences after dozens of Apollo Go robotaxis operated by Baidu malfunctioned in the city of Wuhan last month, leaving passengers stranded and disrupting local traffic. Regulators have asked local governments to carry out a full self-review and to step up safety monitoring to reduce the risk of similar events, the report said.
Market reactions were immediate in Hong Kong trading. Baidu shares fell by as much as about 4% during the session. Other autonomous driving names were also pressured: Pony.ai’s stock slumped 7% and WeRide declined 3%.
The suspension is reported to block companies from expanding existing fleets, launching new pilot programmes, or entering additional cities. The report did not specify how long the halt would remain in place.
The move follows a late-March incident in which more than 100 Apollo Go robotaxis suddenly stopped due to what authorities later described as a system fault. That event prompted renewed attention to operational safety in autonomous driving systems.
Regulators’ directives for local governments to conduct self-reviews and enhance monitoring suggest authorities are seeking to address safety oversight and operational control of high-level autonomous services before permitting further expansion. The immediate market impact showed investor sensitivity to regulatory actions that can directly curb business growth opportunities for robotaxi operators and related technology firms.
Context limitations: The report cited did not provide a timeline for the suspension or further details on the technical causes beyond the description of a system fault in the late-March stoppage. The report also did not give an exact count for the number of vehicles affected in Wuhan beyond describing multiple robotaxis malfunctioning.