Benzinga | Apr 12, 2021 12:15PM EDT

Huawei Targets Over $1B On Self-Driving, EV Technologies R&D, Amid Claims Of Beating Tesla: Bloomberg

* The Chinese telecom company, Huawei Technologies Co, aims to invest over $1 billion on researching autonomous-driving and electric-car technologies, intensifying competition with Tesla Inc (NASDAQ: TSLA), Xiaomi Corp (OTC: XIACF) (OTC: XIACY), NIO Inc (NYSE: NIO) and XPeng Inc (NYSE: XPEV), Bloomberg reports.

* Huawei's autonomous-driving technology has already beaten Tesla's in some domains by enabling cars to independently cruise for over 1,000 kilometers (621 miles), as per Rotating Chairman Eric Xu.

* Huawei will partner with three automakers, primarily to manufacture autonomous cars carrying the Huawei name as a sub-brand. Huawei aimed to limit its partners and get its logo onto cars, using Intel Corp's (NASDAQ: INTC) attention-seeking approach to its microprocessors on PCs, which would embrace its autonomous driving technology. Huawei will forge partnerships with BAIC Group, Chongqing Changan Automobile Co, and Guangzhou Automobile Group Co.

* Huawei plans to capitalize on China's 30 million annual car addition to earn an average of 10,000 yuan per car.

* Huawei was emerging from the former President Trump initiated embargo on its smartphone, chipmaking, and 5G networking businesses with negligible signs of respite from current President Biden. These prompted Huawei to explore new growth areas like smart agriculture, health care, and electric cars. The company also aims to grab a pie of the rapidly evolving fields of connected vehicles, homes, and workplaces.

* Huawei aims to compete with Apple Inc (NASDAQ: AAPL) to Xiaomi, betting on the green, autonomous, and connected vehicle segment. EV sales in China can jump over 50% in 2021 from cleaner automobiles and cost reduction.

* Huawei's info and entertainment features are available in Mercedes-Benz sedans. Huawei has partnered with BAIC BluePark New Energy Technology Co to develop smart car systems and showcase Arcfox ?S HBT in the April Auto Shanghai.

* Last month Xiaomi disclosed investment plans worth $10 billion over the next ten years on EV manufacturing. Search giant Baidu Inc (NASDAQ: BIDU) and Geely Automobile Holdings Ltd (OTC: GELYF) (OTC: GELYY) are reportedly working on a vehicle manufacturing partnership.