Latest news with #Hesai
Yahoo
5 days ago
- Automotive
- Yahoo
Beyond Tesla: Under-the-radar stocks that could capitalize on the $1.2 trillion autonomous driving market
Driverless vehicles are no longer a moonshot, and it's not just Tesla (TSLA) or Google's (GOOG) Waymo that investors should have their eyes on. 'You need semiconductors, you need sensors, and then the final piece of the jigsaw is software,' Bank of America analyst Martyn Briggs told Yahoo Finance. 'All of those components are enabling autonomous vehicles to become a commercial reality.' The firm estimates the autonomous driving market at $1.2 trillion by 2040. Investors looking for value beyond the big names could consider companies in sensors and semiconductors. Bank of America's top picks in sensors, which help autonomous vehicles "see," include Aptiv (APTV), Denso (DNZY), Allegro (ALGM), Hesai (HSAI), RoboSense (XEDSF), and Nexteer (NTXVF). Picks for semiconductors, which power an AV's "brain," go beyond AI juggernaut Nvidia (NVDA). Other top names include Qualcomm (QCOM), Infineon (IFNNF), NXP Semi (NXPI), and STMicro (STM). Many of the companies boast big-league partnerships or industry-leading positions. Nexteer's largest US client is General Motors (GM), while Hesai leads the global automotive LiDAR market with over 30% share, followed by RoboSense (24%). Mercedes-Benz ( recently teamed up with Hesai to incorporate its LiDAR sensors into its intelligent driving vehicles, marking one of the first instances a non-Chinese carmaker has used Chinese tech. Other notable wins for Hesai include advanced driver assistance systems design contracts with Great Wall (GWLLY), Zeekr (ZK), and Geely (GELYF). Nvidia, Qualcomm, and Infineon are at the forefront of AI and 5G, while Horizon Robotics (HRZRF) is growing rapidly in China. The company's advanced driving and advanced driving assistance systems are used in 290 models across 42 brands, including all top 10 Chinese automakers. Yet these names are valued at significantly lower forward price-to-earnings multiples compared to the top autonomous driving name, Tesla, which trades at a whopping 163x. Another potential robotaxi player, Uber (UBER), trades at 34x. On average, the aforementioned BofA sensor picks trade at 33x, while the semiconductor names trade at 34x. A key debate in autonomous driving remains. Cars could solely rely on cameras and AI, like Tesla, or use a hybrid approach with LiDAR and radar, as seen with Waymo. George Gianarikas, managing director of Canaccord Genuity, said multiple sensor technology has long-term potential. In contrast, Tesla founder Elon Musk has claimed fewer sensors and the use of smarter cameras can outperform the human eye while reducing system complexity. He's gone as far as calling LiDAR technology "lame." The ultimate winners in the autonomous driving space may hinge on which approach dominates. 'If Tesla is right and all you need is a camera, others could be left behind,' Gianarikas said. 'But most companies today are betting on a mix of sensors; that's where the investment opportunity is right now.' Mobileye (MBLY), he added, is a key player. However, companies like Mobileye and Horizon Robotics primarily bundle autonomous driving software with their chips. Their stocks have dropped as automakers are increasingly developing self-driving software in-house. "They'll buy the chip from Nvidia or Qualcomm, but they don't want to outsource the whole brain," said Tom Narayan, autos analyst at RBC Capital. Despite the dip, investors looking to buy need to "consider whether the long-term growth thesis for these companies still holds." Still, there's potential upside for these companies if safety regulations push for standardized systems, said Narayan. He sees further long-term value in companies like Aptiv, which offers customizable hardware and software bundles that automakers can integrate into their own systems. On the sensor side, stocks of Chinese LiDAR makers Hesai and RoboSense have rallied, driven by strong domestic demand and scale. 'The vehicles of the future will do more with less,' Gianarikas noted. 'And the companies enabling that shift may quietly become some of the most important stocks in mobility.' Francisco Velasquez is a Reporter at Yahoo Finance. You can reach him via LinkedIn and X. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Nikkei Asia
6 days ago
- Automotive
- Nikkei Asia
China's Hesai appeals US court ruling supporting blacklist inclusion
Hesai Group's Shanghai headquarters. The company's Nasdaq shares jumped last month after Xiaomi reported that its newest electric vehicles which are installed with Hesai sensors received more orders than expected. © Reuters WATARU SUZUKI SHANGHAI -- Hesai Technology, the Chinese producer of light detection and ranging (LiDAR) sensors used in vehicles, said Monday it has appealed a U.S. court ruling that upheld the Department of Defense's decision to include it on a military blacklist. The department added Hesai in January 2024 to Section 1260H, which is a list of entities it claims are affiliated with the Chinese military. The company was removed from the list in October, only to be immediately added again, according to court filings. Hesai challenged the designation in court, arguing it was "arbitrary and capricious" and insisted that it did not have military links.
South China Morning Post
12-07-2025
- Automotive
- South China Morning Post
Chinese lidar maker Hesai loses lawsuit against US government for blacklisting
The US District Court for the District of Columbia on Friday ruled that the US Defence Department's finding that Hesai contributes 'to the Chinese defence industrial base' is supported by substantial evidence reflecting lidar's military application, national security concerns around Chinese lidar makers and Hesai's cooperation with Chinese agencies. Hesai, whose lidar sensors help self-driving cars and driver-assistance systems gain a three-dimensional map of the road, was added to the list early last year, along with over a dozen other companies. Hesai makes lidar – for light-detection and ranging – sensors used in self-driving cars and driver-assistance systems. Photo: Handout The company challenged the designation and has said its has no connection 'to the Chinese military or any other military body', and its products are 'strictly for commercial and civilian use'. The court, however, ruled that an entity contributes 'to the Chinese defence industrial base' if it produces a technology that has substantial military application, even if the product has commercial uses and is not directly supplied or used by the Chinese military. The defence department and Hesai did not respond to requests for comment.
Yahoo
13-06-2025
- Business
- Yahoo
IPO Stock Of The Week: Robotaxi Leader Hesai Poised To Hit New Buy Point After 323% Move
IPO Stock Of The Week and robotaxi leader Hesai is approaching a new buy point in today's stock market following a powerful move since November 2024.
The Star
30-05-2025
- Automotive
- The Star
Chinese lidar maker Hesai zeroes in on South-East Asia for first overseas plant
China's Hesai Group, the world's largest maker of automotive lidar sensors, plans to open its first plant outside the mainland in Southeast Asia next year. Chief financial officer Andrew Fan said on Wednesday the Shanghai-based company recently signed a land lease for the factory, with construction set to start later this year and production in late 2026. He did not give details. The factory will supply light detection and ranging sensors – which employ laser beams to measure distances to objects – to international marques that design and assemble smart vehicles, he added. 'From the end of 2026 or early 2027, Hesai will rely on the plant in Southeast Asia to serve some of our international clients,' Fan said. 'We are building overseas plants to implement our go-global strategy.' The company's announcement came after Hesai on Tuesday reported a 46.3 per cent jump in first-quarter revenue to 530 million yuan (US$73.6 million), while its net loss narrowed 84 per cent to 17.5 million yuan. Fan said the company would generate a profit of 200 million yuan to 350 million yuan for the full year on the back of surging demand for lidar sensors by smart-car and robot makers. Hesai – whose clients include Li Auto, China's largest maker of premium electric vehicles (EVs), and Geely, owner of Volvo Cars – would deliver 1.5 million units to customers this year, he added. Last month, CEO David Li Yifan said that the company would increase its manufacturing capacity fourfold this year to 2 million units, from about 502,000 units in 2024. Fan said an escalating EV price war on the mainland would have minimal impact on Hesai's revenue. 'We firmly believe people's rising awareness about safety and rapid technology advancement in making cars more autonomous will result in stronger demand for lidar sensors,' Fan said. 'Carmakers and consumers need reliable hardware and software to ensure driving safety. They will not try to save costs on driver assistance systems.' The company also plans to set up factories in Europe, where Hesai has formed partnerships with several top carmakers to develop advanced driver assistance systems, a preliminary technology for autonomous driving. In March, Hesai announced that its products would be used in the next-generation cars of a 'leading European' assembler over the next decade, which Reuters reported was Mercedes-Benz. It was the first time that a major European carmaker had picked a Chinese lidar supplier. Hesai's overseas expansion is the latest example of Chinese automotive supply-chain vendors showcasing their superiority in technology and manufacturing. Chinese car-component makers, from EV battery producers like Contemporary Amperex Technology (CATL) to automobile safety glassmaker Fuyao Glass, were being welcomed by developed markets like Europe to establish factories, according to analysts. 'Chinese technology is spreading rapidly in the global auto industry and that [trend] has become more visible,' said Paul Gong, head of China automotive research at UBS. 'The rise of the Chinese auto sector is not only reflected in Chinese-branded cars, but also in its influence on global carmakers amid their transition to EVs and smart mobility.' On May 20, CATL completed the world's largest stock sale this year, raising HK$41 billion (US$5.23 billion), with its Hong Kong shares climbing 16.4 per cent on their trading debut. The company said it would use the proceeds to construct plants overseas. - SOUTH CHINA MORNING POST
