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Nvidia Corp. (NASDAQ: NVDA) is entering the self-driving car industry in China, the world’s largest car market. This puts it on a collision course with Tesla Inc. (NASDAQ: TSLA) and perhaps local electric vehicle (EV) companies that are also working on self-driving vehicles. It is another example of Nvidia’s effort to expand the footprint of products that can use its chips.
24/7 Wall St. Key Points:
- Nvidia Corp. (NASDAQ: NVDA) is entering the self-driving car industry in the world’s largest car market.
- That puts it on a collision course with Tesla Inc. (NASDAQ: TSLA).
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Bloomberg reports that Nvidia has started adding to its engineering staff in China. It will likely work with some local EV companies, which are growing rapidly. Bloomberg says, “The company’s China-based researchers would be well positioned to work with local automakers who are looking for such technologies to enhance their offerings.”
In November, the top local EV companies outsold Tesla. Market leader BYD sold 506,804 EVs, making it number one in the market. Tesla sold 73,490, putting it in fourth place.
Chinese EV companies have started working with local companies, including the huge search operation Baidu. This gives these manufacturers local data about roads and other navigation.
As is the case with autonomous vehicles in the United States, the Chinese companies are in limited tests of a few hundred cars in a few cities.
As of October, Tesla had limited government approval to test self-driving cars, but not ones that are completely autonomous and need no driver interventions. It is too early to say if this limited approval will hamper the American company as it tries to get and hold the lead in China’s self-driving market.
One key to the self-driving future is the chips that drive the ability for cars to work without drivers. As the world’s largest AI chip company, Nvidia’s chips are essential for making these systems work.
Nvidia Price Prediction and Forecast
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