TLDRs;
- Baidu stock fell 2.23% to $132.38 despite Apollo Go’s global expansion momentum.
- Apollo Go aims to enter the UK and Germany by 2026, pending regulatory approvals.
- The service has completed 14M+ rides and is active in 16 global cities.
- Partnerships with Lyft and regional regulators support Baidu’s growth model, though profitability challenges remain.
Baidu, Inc. ($BIDU) stock slipped 2.23% to $132.38 in Friday’s mid-day trading session, reflecting ongoing investor caution over the company’s aggressive spending on its autonomous driving business.
The decline comes despite significant progress by Baidu’s Apollo Go division, which continues to expand globally and record strong user adoption.
Market watchers point to the tension between Baidu’s short-term profitability challenges and its long-term growth ambitions in the autonomous vehicle sector. While Apollo Go has demonstrated operational profitability per vehicle in some Chinese cities, the division overall has yet to reach break-even.
Apollo Go Targets Europe’s Largest Markets
Against this backdrop, Baidu is doubling down on international expansion. The company confirmed plans to bring Apollo Go, its autonomous ride-hailing service, to the UK and Germany next year, pending regulatory approval.
This move would mark Baidu’s boldest entry into the European market, placing it head-to-head with established players like Waymo and Cruise.
By focusing on two of Europe’s largest economies, Baidu is signaling its intent to position Apollo Go as a serious contender in the global robotaxi race.
Expanding Footprint Across Continents
Apollo Go’s expansion into Europe builds on momentum from other regions. Earlier this month, the service secured 50 new trial licenses in Dubai, effectively doubling its fleet there to around 100 vehicles.
In Hong Kong, regulators granted an additional pilot license allowing Apollo Go to operate in the Southern District, adding to trials already running in North Lantau and Tung Chung.
At home, Apollo Go continues to scale rapidly. As of August 2025, the service had provided over 14 million public rides across 16 cities, covering more than 200 million kilometers of autonomous driving. In the second quarter alone, Baidu delivered 2.2 million fully driverless rides, up 148% year-over-year.
Meanwhile, Baidu is also in discussions with government officials in Australia and Southeast Asia, exploring new market opportunities in regions that have shown openness to autonomous vehicle pilots.
Partnership Model Fuels Global Growth
One of Apollo Go’s defining strategies is its partnership-driven approach. Instead of directly owning massive fleets, Baidu is teaming up with existing ride-hailing companies such as Lyft to tap into their infrastructure and customer bases.
This model enables Apollo Go to scale more efficiently and reduce capital costs, a stark contrast to U.S. rivals that manage fleets directly.
Analysts suggest this could help Baidu gain market share quickly in international markets, though questions remain about whether the strategy will translate into sustained profitability. Manufacturing advantages, such as the RT6 autonomous vehicle costing under $30,000 to produce, may further support cost-efficient scaling.
Investor Outlook and Long-Term Potential
Despite Friday’s dip, many analysts view Apollo Go as a key growth catalyst for Baidu’s future. The global robotaxi market is forecasted to grow from $400 million in 2023 to $45.7 billion by 2030, and Baidu’s early lead in autonomous ride-hailing positions it strongly to capture market share.
For investors, the challenge lies in balancing near-term stock volatility with the long-term upside of Apollo Go’s expansion.
If Baidu secures regulatory approvals in Europe and scales successfully through partnerships, the payoff could be significant. But until the division consistently generates profits, BIDU shares are likely to remain sensitive to investor sentiment and broader tech market trends.
