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PALO ALTO, Calif. - Hesai Technology (HSAI), recognized for its research and development in lidar technology, has announced a partnership with one of the top five New Energy Vehicle (NEV) automakers in China. The collaboration focuses on integrating Hesai’s ATX lidar into the automaker’s upcoming high-end smart electric vehicles (EVs), which are slated to enter mass production soon. The announcement has contributed to Hesai’s impressive 37.5% stock gain over the past week, with the company now commanding a market capitalization of $2.87 billion.According to InvestingPro analysis, Hesai demonstrates strong financial health with a comfortable current ratio of 2.87, indicating robust liquidity to support its expansion plans.
Lidar technology, which uses laser light to create high-resolution maps of the surrounding environment, is becoming increasingly important in the automotive industry, especially for intelligent driving systems. The market for automotive lidar has shown significant growth, with installations exceeding 1.5 million units in 2024, doubling the figure from the previous year. Hesai is well-positioned to capture this growth, with analysts forecasting a 61% increase in revenue for the current fiscal year. The company maintains a healthy gross profit margin of 42.59% on its current revenue of $284.58 million.
In the Chinese EV market, where vehicles are priced above $20,000, lidar penetration reached 29% by December 2024, according to the Gasgoo Automotive Research Institute. This underscores the technology’s emerging status as a key component for vehicle safety features.
The ATX lidar by Hesai is built on a fourth-generation technology platform and boasts a redesigned opto-mechanical structure alongside upgraded laser transceiver modules. Despite its compact size, the ATX does not sacrifice performance, making it an attractive option for automakers looking to incorporate advanced intelligent driving features into their vehicles.
With plans to ramp up to an annual production capacity of 2 million units, Hesai is gearing up to meet the anticipated demand in 2025. This new design win positions the company to further solidify its presence in the global lidar market and enhance the intelligent driving capabilities of NEVs. The information in this article is based on a press release statement from Hesai Technology.
In other recent news, Hesai Group announced a significant milestone, delivering over 100,000 lidar units in December, signaling its expanding role in the automotive sensor market. The company also revealed ambitious production goals, aiming to exceed an annual production capacity of 2 million units by 2025. This development reflects Hesai’s confidence in the growing demand for lidar technology, crucial for autonomous driving systems. On the analyst front, BOCI Research initiated coverage of Hesai with a Buy rating and a $23 price target, highlighting the company’s strong position in the LiDAR market and potential for profitable growth from 2025. Goldman Sachs upgraded Hesai’s stock from Neutral to Buy, setting a price target of $18.40, citing a 35% upside potential and robust revenue growth expectations linked to new product cycles. Conversely, Morgan Stanley downgraded Hesai from Overweight to Equalweight, despite raising the price target to $15.00, due to valuation concerns following a substantial rally in the stock’s price. This mixed analyst sentiment underscores differing views on Hesai’s valuation and growth prospects. Despite these varied assessments, Hesai’s recent achievements and future plans suggest it remains a key player in the evolving lidar industry.
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