What happens to stocks if AI loses momentum?
SHANGHAI - U Power Limited’s (NASDAQ:UCAR) strategic partner UNEX EV has signed a Letter of Intent with DiDi Mobility Information Technology to deploy battery-swapping vehicles for ride-hailing and car rental services in Mexico, according to a press release statement.
The agreement aims to promote sales of UNEX EV’s UOTTA battery-swapping vehicles to drivers registered on DiDi Mobility’s fleet platform in Mexico. The collaboration also covers spare parts sales and maintenance services.
Under the potential definitive agreement, UNEX EV would provide battery-swapping vehicle models suitable for the Mexican market and establish a supply chain for vehicles, parts and services. Both companies plan to collaborate on battery recycling and utilization to extend battery life.
DiDi Mobility, a subsidiary of mobility technology platform DiDi Global Inc (OTC:DIDIY), will support market expansion by encouraging drivers on its platform to transition to new energy vehicles. With a market capitalization of $25.8 billion and revenue growth of 6.16% over the last twelve months, DiDi has established itself as a dominant player in the global mobility sector. According to InvestingPro analysis, the company maintains a strong financial health rating and holds more cash than debt on its balance sheet, positioning it well for this expansion.
Mexico’s transportation sector accounts for nearly 25% of national greenhouse gas emissions, with over 90% coming from road transport. The country’s ride-hailing market reached $2.2 billion in 2024 and is projected to grow at a 13.2% compound annual growth rate to $7.5 billion by 2033, according to data cited in the announcement.
Johnny Lee, CEO and Chairman of U Power, stated that the company is "thrilled to support the cooperation between UNEX EV and DiDi Mobility" and looks forward to "serving local ride-hailing drivers and car rental customers with efficient, recyclable, and green vehicles."
U Power describes itself as a provider of AI-integrated energy solutions that connect electric vehicles with energy infrastructure.
In other recent news, Didi Global has reported a notable increase in its first-quarter revenue, reaching 53.3 billion yuan, which represents an 8.6% rise compared to the previous year. The company also announced a significant boost in its adjusted Ebitda, which surged by 82% year-over-year to 3.1 billion yuan. Additionally, Didi Global’s adjusted Ebita climbed to 2.4 billion yuan from last year’s 965 million yuan. In a separate development, Goldman Sachs initiated coverage on Didi Global with a Buy rating and set a price target of $7.20. The investment bank highlighted Didi’s strong position in the global mobility market and its leadership in autonomous driving technology as key reasons for its positive outlook. Furthermore, Didi Global has committed to further developing its AI capabilities, indicating a focus on technological advancement. These recent developments provide investors with important insights into the company’s current performance and future direction.
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