Chinese Tesla rival Nio and giant Tencent partner to work on self-driving tech

Chinese electrical conveyance shaper Nio and tech elephantine Tencent agreed to enactment unneurotic connected areas including autonomous driving and high-definition mapping.

Tencent — a gaming, societal media and unreality computing titan — has signed a practice statement with Nio, 1 of Tesla's rivals successful China, arsenic the firms look to currency successful connected Beijing's absorption connected alleged caller vigor cars.

The concern could let Tencent to bash this, portion besides giving Nio the exertion backing of 1 of China's biggest firms. Tencent is already a large capitalist successful Nio, which is striving to differentiate itself from a oversea of electrical car start-ups.

It comes aft e-commerce steadfast Alibaba and Nio rival Xpeng successful August opened a computing halfway to train bundle for driverless cars.

Nio and Tencent said connected Monday they volition enactment unneurotic connected high-precision mapping systems for drivers. Nio volition besides beryllium utilizing Tencent's unreality computing infrastructure for information retention and grooming for autonomous driving. Driverless cars necessitate immense amounts of real-time information to beryllium processed successful bid to bid algorithms.

Tencent's concern with Nio gives the institution different accidental to propulsion into caller concern areas arsenic its halfway video gaming business, which has been battered by strict home regulation, continues to look headwinds.

Nio meantime is facing its ain challenges, including widening losses and unit connected margins from higher worldly costs and proviso concatenation issues.

Still, the institution delivered 31,607 vehicles in the 3rd quarter, marking a quarterly transportation grounds for the start-up.

However, China's erstwhile high-flying EV start-ups person seen their stock prices hammered this twelvemonth arsenic investors turned distant from maturation stocks and China's system faced a slew of problems.