China-linked Ecarx signs $750 million robotaxi deal with US startup amid Tesla competition

Ecarx Holdings Inc., a company backed by Chinese billionaire Li Shufu, said it reached an agreement to deliver robotaxis to US startup May Mobility Inc., in a deal it valued at about $750 million.

Under the deal, Ecarx would deliver thousands of self-driving cars and design the computing platforms and sensor suites for the vehicles, according to a statement on Tuesday. That should help halve the all-in cost of May Mobility’s autonomous vehicles by 2028, it said.

Though America restricts the import of Chinese car technology, Ecarx has made moves to become compliant with US Information and Communications Technology and Services rules, a company spokesperson said. The vehicles and sensors will be built outside of China, the spokesperson said.
China’s dominance in electric vehicle supply chain and development of advanced driver assistance technology have boosted local robotaxi companies such as Baidu Inc., Pony AI Inc. and WeRide Inc. They have expanded globally and scaled their robotaxi fleets quickly as the cost of their vehicles is relatively low compared with those of rivals in the US.

For smaller players such as May Mobility, turning to a partner that has gained know-how from China is a quick way to grow its robotaxi fleet as competition with Alphabet’s Waymo and Tesla heats up. Waymo has also partnered with Zeekr, a premium EV brand under Geely Automobile Holdings Ltd. to produce its latest generation of robotaxi called Ojai.

Although Ecarx’s headquarters are now established in London and Singapore, the Nasdaq-listed company has roots in China and counts Li, the founder of the Geely auto empire, as its largest shareholder.