What's the real prospect of Robotaxi? In Dolphin Research's view, the feasibility of this model nationwide depends on three key factors:

a) Cost structure: The combined cost of base vehicle and L4 autonomous driving hardware (including lidar) must continue to decrease to below 200,000 RMB;

b) Regulatory framework: First, expanding road access for autonomous ride-hailing vehicles; Second, relaxing the safety operator-to-vehicle ratio - current regulations mandate one safety operator per three vehicles. Significant regional variations exist, with Shanghai still requiring one operator per vehicle and maintaining limited approved routes.

c) Social impact: Similar to the community group-buying rationale, both ride-hailing and community groups have become crucial employment channels amid China's manufacturing upgrade and low-end industry relocation. Widespread adoption of autonomous ride-hailing within 1-2 years would require careful government consideration of blue-collar employment impacts.

Therefore, Dolphin Research maintains cautious optimism about Robotaxi's long-term potential while advising short-term valuation prudence. $Baidu(BIDU.US)