Nio And Tencent Collaborate For Self-Driving Project

• Chinese electric vehicle maker Nio Inc (NYSE: NIO) and tech giant Tencent Holding Ltd (OTC: TCEHY) collaborated on autonomous driving and high-definition mapping areas.

• Tencent inked a cooperation agreement with Nio in China, CNBC reports.

• The firms look to cash in on Beijing’s focus on new energy cars.

• Also Read: Intel Raises $861M From Its Self-Driving Technology Mobileye’s IPO, Starts Trading Today

• The partnership could allow Tencent to do this while also giving Nio the technology backing of one of China’s most prominent firms.

• Tencent is already a significant investor in Nio, striving to differentiate itself from a sea of electric car start-ups.

• Nio and Tencent will work together on high-precision mapping systems for drivers.

• Nio will also use Tencent’s cloud computing infrastructure for data storage and training for autonomous driving.

• Tencent’s partnership with Nio gives the company another opportunity to push into new business areas as its core video gaming business continues to battle regulatory headwinds.

• Nio, meanwhile, is facing challenges, including widening losses and pressure on margins from higher material costs and supply chain issues.

• In August, E-commerce firm Alibaba Group Holding Limited (NYSE: BABA) and Nio rival XPeng Inc (NYSE: XPEV) opened a computing center to train software for driverless cars.

• Price Action: NIO shares traded higher by 3.95% at $10.91 in the premarket on the last check Tuesday.

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