Shares of Baidu sank 4.5% to $120.10 after China imposed a nationwide freeze on new autonomous vehicle permits — a direct response to a mass malfunction of Baidu's driverless taxi fleet that stranded passengers on the streets of Wuhan. The suspension strikes at the heart of the company's most important growth bet, raising urgent questions about how long the freeze will last and what it means for billions in planned investment.
Over 100 Driverless Cars Froze in Rush-Hour Traffic, and the Fallout Is Industry-Wide. Dozens of Baidu's robotaxis suddenly stopped in Wuhan last month, stranding passengers and disrupting traffic.
The affected vehicles froze simultaneously on busy roads and elevated ring roads, leaving passengers stranded for up to two hours while in-vehicle emergency systems failed to function.
At least three collisions involving other road users were subsequently reported. This wasn't a single car glitch — it was a correlated, system-wide failure, the kind of risk regulators fear most.
Beijing Hit the Brakes on the Entire Industry, Not Just Baidu. The suspension prevents self-driving companies from adding new robotaxis to their fleets, starting new test projects, or expanding to new cities.
According to Nikkei Asia, a final decision is not expected before the end of May. Rivals Pony.ai and WeRide dropped 6% and 3% respectively in Hong Kong, despite both companies confirming their existing fleets continue to operate normally. The freeze effectively caps growth for an industry that was racing to scale.
Wuhan Was Baidu's Crown Jewel — and It's Now Offline. Apollo Go is China's largest commercial robotaxi operator, with more than 1,000 fully driverless vehicles deployed in Wuhan alone and 20 million cumulative rides recorded nationally as of February 2026.
Baidu's Wuhan operations remain suspended pending investigation.
The business had been approaching unit-economic profitability in cities like Wuhan — meaning the one city where Baidu was proving the business model is now dark.
The Global Expansion Pipeline Just Got Riskier. Baidu has recently announced partnerships with Uber and Lyft to bring its vehicles to London. Footage of stranded robotaxis blocking Chinese highways is unlikely to reassure regulators in these new markets.
Analysts had projected Apollo Go would add $1.2 billion in annual revenue by 2027. Every week the freeze persists delays the fleet growth needed to hit that target. With the Chinese robotaxi market estimated at $12.2 billion by 2030 , Baidu's lead is real — but so is the risk that one bad night in Wuhan rewrites the rules for the entire sector.