On Tuesday, Alibaba stocks dropped as it headed a $300 million investment to startup DeepRoute.ai.
The e-commerce giant declined 1.60% or 2.69 points to $165.41 per share.
Moreover, Alibaba plunged after it reached $168.10 per share yesterday.
Alibaba’s investment emphasizes its goal to get a secure position in the industry of autonomous vehicles.
DeepRoute.ai is known to develop software and hardware for autonomous driving.
The Shenzhen-based startup, with its partners CaoCao and DongFeng Motors, operates a fleet of autonomous taxis.
According to DeepRoute.ai, the funding will proceed to develop its technology and extend its robotaxis.
Furthermore, the company’s long-term strategy is to create medium-duty trucks.
Subsequently, the plan could enhance shipments and freight transport.
Currently, DeepRoute.ai operates 70 taxis and plans to expand in between 150 to 160 units.
In addition, Alibaba also invested in startup AutoX, which backs electric vehicle maker Xpeng.
Moreover, Alibaba plans to develop self-driving trucks through its own logistic arm Cainiao.
The tech giant’s initiative follows the trend in booming China’s autonomous driving industry.
Likewise, internet giant Baidu and ride-hailing firm Didi invested in driverless vehicles.
Consequently, Pony.ai and WeRide also allocated funds in the said industry.
Recently, WeRide launched Robovan for urban logistics.
Then, Pony.ai plans to develop autonomous trucks.
Meanwhile, China’s regulatory clampdown persists, contributing to the recent loss of tech giants.
Tencent Holdings Ltd. fell 1.84% or 9.00 points to $469.40 per share.
Moreover, the government ruled out that Alibaba and Tencent should stop blocking each others’ links.
Also, the authorities emphasized that noncompliance with the measure would cause them a regulatory action.
China’s prolonged scrutiny led to a sharp drop in the valuation of most huge companies.
Chinese Stocks Slide as Alibaba Drops
Furthermore, Chinese stocks slid as the tech giant Alibaba dropped.
The Shanghai Composite index tumbled 1.42% or 52.77 points to $3,662.60 per share.
Then, Befar Group reached the index bottom as it edged down 8.27% or 1.02 points to $11.32 per share.
Likewise, Fangda Special Steel Technology dropped 7.06% or 0.71 points to $9.35 per share.
Moreover, the Shenzhen Composite index plummeted 0.54% or 79.74 points to $14,626.08 per share.
Beijing Forever Technology Co Ltd sharply lost 10.78% to 1.51 points $12.50 per share.
Consequently, Changgao Group A inched down 9.94% or 0.83 points to $7.52 per share.
Similarly, Hong Kong’s Hang Seng index fell 1.21% or 311.58 points to $25,502.23 per share.