S&P 500 cuts losses as Nvidia climbs ahead of results
PALO ALTO, Calif. - Hesai Technology (NASDAQ:HSAI), recognized for its lidar technology, has announced its role in Apollo Go’s expansion into Dubai, marking a significant step in the adoption of autonomous driving solutions. The collaboration, stemming from an exclusive agreement with Baidu Apollo signed in July 2024, will see the deployment of 1,000 vehicles equipped with Hesai’s lidar, aiming to facilitate Level 4 (L4) autonomous driving in the city’s complex environment. With a market capitalization of $1.94 billion and projected revenue growth of 65% for FY2025 according to InvestingPro data, Hesai continues to strengthen its position in the autonomous driving market.
The initiative builds on Apollo Go’s success in China, where the company’s RT6 robotaxis have reduced operational costs by 60% compared to prior models. Hesai’s CEO, David Li, emphasized the importance of their lidar technology in achieving safe and efficient autonomous vehicle operations, particularly in intricate urban settings. The company maintains strong financial health with a current ratio of 2.87 and an impressive gross profit margin of 42.59%.
Apollo Go’s expansion into Dubai is a continuation of their fully driverless operations which have been active across several Chinese cities. The company has achieved over 150 million kilometers of safe driving and has provided in excess of 10 million rides to the public.
This deployment in Dubai is expected to underscore Hesai’s influence in the global autonomous mobility market, as their technology supports the transition of L4 autonomous driving from experimental to commercial stages.
The information for this article is based on a press release statement.
In other recent news, Hesai Technology has announced a significant partnership with Chery Automobile to integrate its ATX Lidar into Chery’s new energy iCAR brand, with mass production slated for the fourth quarter of 2025. This collaboration aims to enhance the safety and navigation features of iCAR vehicles. Additionally, Hesai has partnered with one of the top five New Energy Vehicle automakers in China to integrate its lidar technology into high-end smart electric vehicles. In the realm of financial analysis, BOCI Research has initiated coverage of Hesai with a Buy rating and a price target of $23, citing the company’s leadership in the global LiDAR market and potential for profitable growth starting in 2025. Goldman Sachs has also upgraded Hesai’s stock from Neutral to Buy, setting a price target of $18.40, with expectations of a 35% upside. The firm anticipates significant revenue growth from Hesai’s next-generation ATX product cycle beginning in 2025. Meanwhile, Hesai is facing scrutiny after Blue Orca Capital released a report naming the company as a new short idea, questioning the legitimacy of its business and financial disclosures. The report alleges misleading information regarding Hesai’s involvement with the Chinese military and financial statements, which has raised investor concerns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.