Dahua Car Startup Raises $290 Million But Questions Abound

By Charles Rollet, Published Dec 03, 2018, 01:56pm EST

Dahua’s electronic car startup LeapMotor raised $290 million in funding this year, it said in an announcement [link no longer available]. However, this news raises questions about why Dahua is investing time and resources in a field so different from security.

In this post, we examine:

  • Leap Motor background including Dahua ownership
  • Crowded China electrical car market
  • The probability of manufacturer success in this market
  • Government role in subsidizing electric cars
  • Dahua / Leap's big claims including security / surveillance integration
  • Dahua and Leap jointly developing AI autopilot chip
  • Dahua touting its success in video surveillance as a justification for electric car entrance

Leap ***** **********

**** *****, ******* ** 2015, ** ****** ***** by ***** ******, ***** founder ** ******, *** a *** ***** *** Dahua **********. (***** ******** ******** ****.)

************ ***** *****’***** ************* ******, **** ***** *** attracted ******** ** ******* from ****-******* ******* ******* firms **** ******* ******’* Sequoia *******. (*****’* *** ************ ****** $63 *******.)

********* ** *** ****** announcement [**** ** ****** available], **** ***** ******* to ***** * ***** of $*** ******* ****** the *** ** **** year, ****** *** *&* and ********* ********. *** first ******** ***, *** S01, ** ****** ** enter *** ****** ** January ****.

*** *** [**** ** longer *********] ** ***** marketed ** * ***************-********, cloud-connected ******** *** **** a *********** ********* ****** and ** **** *** keys ****** ** ****** and **** ***********.

Leap ***** ****** ******* ******

***** ** **** ********** in ***** ***** *** prospects ** ******** ******* [EV] ******, ****** *** to ******* ******* ********** subsidies ******* * ***** of ******** **** *** scene.

***** *** ******** ** ** ********* ** ***** ***, ******* by $** ******* ** government ********* **** *** last * ***** *** $47 ******* **** ** the ********. *** ****** Chinese ** ********* ***** ******** **** ** 1%.

“***** ***, *** ***** growth ** **** [*** energy ********] ** *** a ****** ****** *** government-guided ********, **** ****** stimulated ** *********", *** Chinese *** ********* **** *******.

**** ***** ****** ** benefit ******** **** **** subsidies: ********* ***** ********, *** ***’* ******* price ***** **** **** around $**,*** ** $**,*** thanks ** ****.

Prospects ******* ****** ******

***** *****'* ****** ******** EV ****** *** ********** discussed ****** *****, **** Motors ** ***. *** companies **** ********** ********* in ****'* ****** ** Chinese ************ ******* ******** ******, ******* ******** ******* [link ** ****** *********],***,** *****, ********. ***** ******** *** all ****** ** ***** much ****** *** ******-***** than *****, **** ******* (which****** ********) *** ******* (***** ****** ***.)

*** **** ** ************ about **** ***** ****** questions ***** *** *******'* success ** * ******* market. **** ****** **** can ** ***** ***** to **** * '****-***-***' approach ****** *** ****** of *** ***. **** sentiment *** ******** ** one ****** ** * ******* car *****, *** ***** **** *** S01’s ****** ***-***** ****** was “********” ***** *** car's ******** ************ ***** be "*** ********** *** the ***** ** *******."

AI ********* **** ***** **-*******

******* **** *******, ** July ****, ***** *** Leap ********* [**** ** longer *********] ***** *********** of ** ** ********* chip, ********* **** ****:

** ******* **** ******** industry ***** ***** ** jointly ******* ** ********* chips, *** ***** ** conduct **** ******* ***** in *** ****** ******* of ****... *** *** will ***** ****** ********* driving's **** ******** ******** and ********* **********, *** realize ***** ********* ****** perception, ********-****** *** ********* layer ************.

**** ***** ***** ******* given **** ***** **** not **** *** *** AI *****, *** ****** on ******* ****** **** Nvidia [**** ** ****** available] *** *** ******** chips ******** *** “*********” systems.

Big ****** ** **** ** **

***** *****’* *** ****** of**** ************************** *********, ** ***** ******** Leap ***** **** **** up ** *** **** other ****** ** *** made, **** **:

  • **** ** **** ****** the “****** ** *****” and *** *** ***************, as ****** [**** ** longer *********] ** **** Motor ******** (*** ***** co-founder) *** *********
  • **** ** *** "********" a "***** *****" ****** 30% ******* **** ** most ******** ****, ***** it *** ********** *** ******** Engine [**** ** ****** available]

********* **** ****** ** startups ** ***** *** led ** *** ******* of *** **** "********** car-manufacturing" (***造车): *** **** **** great *** *** **** ever ********** ** **********.

Dahua ***** *********** ** ****

**** ***** ** ****** its ****** ******* ** Dahua’s **** ** ***** in *** ***** ************ industry, **** ***** **-******* and **** ******** *** Jiangming ****** [**** ** longer *********]:

** ****, **** ***** entered *** ******** ********, several ***** ********* ** Germany, ***** *** ***** Korea ********* *** **** than **% ** *** market ***** ** *** industry. ******* ********* *** not **** * *****. After ** *****, ******* companies **** ******* ******** 60-70% ** *** ******, and ***** ****** ***** second ** *** ****** video ************ ******.

***** **** *** ** true, ** ** ******* how **** ***** *** replicate *****’* ********** ****, and *** **** ******* cars *** *** **** complex **** *******.

***** ****** * *** video ************ ****** ** the ******* ************** ** * *** priority** ***** * ******** video ************ ******; ***** has *** **** ********** contracts ********* ***** ****** ** human ****** ******.

*******, ***** ***** *** EV **** ** ** bought ** ******** ********* *** ********** *********** ** **** ** a******* ******** ****** ******* ******.

Dahua ******

*** ** **** ****** questions *** **** ***** Leap *****’* ****** ** success *** **** ***** its ****** ** *****.

** **********, **** *****’* cars **** ***** ****** for ***** ******** ***** video ************ *** ****** control ********.

*** ** **** ***** ends ** ******* ** stagnating – * ****** possibility ***** *** ****** competitive ******* ** ****** *****’* * ****** it **** **** **** sorely-needed ********* *** ***** resources **** *****.

**’* * ****** ***** seems **** ******* ** make.

Comments (5)

Really hope this doesn't spread too far. Their cybersecurity issues and connections to the Chinese government make it seem like they could be turned into remotely-controlled weapons. Assassination would be a breeze.

Here's a gloomy scenario: you could have several thousand of these driving around your city as normal. Somebody gets named a target. All the AI autopilots start watching for someone with that face. If the target is found walking, the nearest cars start trying to ram them.

Less gloomy scenario: all your cars are mining bitcoin.

Agree: 2
Disagree
Informative
Unhelpful
Funny: 1

If it is successful then they make money.

 

I'm curious though as to the potential risk by being propped up off of government money. Maybe someone smarter than me can explain the true risk of spinning off a new brand with very similiar leadership, promising a brand new product, getting hundreds of millions of dollars from the government to develope technology the existing company could then sell, and then failing with the new company.

What collateral could be at risk from Dahua because of this new company?

Agree
Disagree
Informative
Unhelpful
Funny

I'll just wait for the Longse knockoff version at a lower price. 

Agree
Disagree
Informative
Unhelpful
Funny: 4

I think with cameras the moto of just good enough is ok but i don't that will fly well in the competitive battery auto market 

Agree: 1
Disagree
Informative
Unhelpful
Funny
Agree
Disagree
Informative
Unhelpful
Funny
Read this IPVM report for free.

This article is part of IPVM's 6,898 reports, 921 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now
Loading Related Reports