NEW YORK (TheStreet) -- Shares of Baidu (BIDU) - Get Report were higher in late-afternoon trading on Thursday as the Chinese Internet search provider received a permit from California's Department of Motor Vehicles to test its self-driving cars in the state, according to Reuters.
The company has already tested the vehicles on Chinese roads and highways. Baidu unveiled its autonomous car in China last December.
Nvidia (NVDA) said earlier this week that it developed an artificial intelligence computer that would be used in Baidu's self-driving cars.
California is considered a prime testing ground for autonomous vehicles due to the technological innovations being made in Silicon Valley, Reuters reports.
Baidu opened an office in Silicon Valley in April and said it plans to have more than 100 researchers and engineers working there by the end of 2016.
Baidu joins several other companies who received authorization from California's DMV, including Ford (F) and Alphabet's (GOOGL) Google.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Baidu as a Buy with a ratings score of B-. This is driven by some important positives, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: