Will Tencent Give WeRide the Edge in the Robotaxi Race?

Autonomous driving startup WeRide WRD is shifting into high gear with Tencent Cloud as its co-pilot. The two companies have expanded their strategic partnership to fast-track the commercial deployment of WeRide’s Level-4 robotaxi services and boost their reach across global markets.This move builds on a previous collaboration in April 2024. Now, the focus is broader—bringing self-driving technology to everyday users through Tencent’s platforms like WeChat and Tencent Maps. Users will be able to hail a WeRide robotaxi directly from Tencent’s Smart Transportation Mini Program.Notably, WeRide saw its revenues decline roughly 10% last year to $49 million. By tapping into Tencent Cloud’s vast infrastructure and data capabilities, WeRide aims to strengthen both its R&D and commercial operations.With Tencent’s cloud and mapping services, WeRide plans to tailor autonomous driving solutions for international markets, where it already holds a first-mover edge. Localized, compliant cloud services will help the company scale up its overseas presence more efficiently and reliably.Additionally, the companies will co-develop a data-driven platform that integrates cloud computing and advanced mapping tools. This platform will support end-to-end data compliance and accelerate the mass production of smart driving technologies.This expanded alliance with Tencent positions WeRide to move faster and further in the competitive autonomous mobility space, both in China and beyond. As the race to commercialize robotaxis intensifies, having Tencent’s digital ecosystem and cloud power could be a game-changer.Competitors in the Robotaxi SpaceWeRide’s deeper collaboration with Tencent is sure to catch the attention of its rivals like Alphabet’s GOOGL Waymo and Baidu BIDU.Alphabet’s self-driving unit, Waymo, is the leading force in the U.S. robotaxi domain. The company has been operating fully driverless rides in Phoenix, San Francisco, Los Angeles and Austin. Alphabet is betting big on autonomous tech through Waymo, investing heavily in safety, mapping, and in-house AI to maintain its lead. Waymo is providing over 250,000 paid Robotaxi rides each week.In China, Baidu has firmly established itself as a powerhouse in the robotaxi space. Its autonomous ride-hailing service, Apollo Go, now boasts a global fleet of 1,000 vehicles—a major milestone that highlights its growing scale and ambition. As of May, Apollo Go had handled over 11 million ride orders and extended its presence to 15 cities across China. While it continues to grow its Robotaxi footprint at home, Apollo Go is now setting its sights on international markets, signaling Baidu’s intent to become a global player in the self-driving race.The Zacks Rundown for WRDShares of WeRide have declined 28% year to date against the industry’s growth of 3.2%. Image Source: Zacks Investment ResearchFrom a valuation standpoint, WRD trades at a forward price-to-sales ratio of 9.68, way above the industry. It carries a Value Score of F. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for WeRide’s 2025 and 2026 earnings implies a year-over-year uptick of 64% and 51%, respectively. Take a look at how estimates have been revised over the past 90 days. Image Source: Zacks Investment ResearchWeRide stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report WeRide Inc. (WRD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks