PALO ALTO, Calif. - In a significant move for the autonomous driving sector, Hesai Technology (NASDAQ: HSAI) has been named the exclusive supplier of long-range lidar sensors for Leapmotor (HK:9863)'s forthcoming vehicle platform, slated for mass production in 2025. The deal expands on the existing strategic partnership between the two firms, underscoring Leapmotor's confidence in Hesai's lidar technology for its next-generation intelligent driving projects.
The partnership will see Hesai's AT128 ultra-high-definition long-range lidar integrated into multiple new models from Leapmotor, enhancing advanced driver-assistance systems (ADAS) with features such as Navigation Assist Pilot (NAP) and Navigation Assisted Cruise (NAC). These technologies are already present in the Leapmotor C-series intelligent driving edition models, which began sales in Europe on September 23rd. Leapmotor has established over 200 dealerships across 13 European countries and aims to increase its presence to 500 sales points by the end of 2025.
This collaboration is expected to fortify Hesai's position in the lidar market and support Leapmotor's ambition to accelerate the adoption of ADAS technology globally. The financial terms of the agreement have not been disclosed.
The information for this report is based on a press release statement from Hesai Technology.
In other recent news, Hesai Group, a dominant entity in the automotive LiDAR technology sector, has reported a promising financial performance in its second quarter 2024 earnings conference call. The company's quarterly revenue stood at RMB 458.9 million, with LiDAR shipments crossing the 86,000 units mark. Hesai Group anticipates achieving profitability by the fourth quarter, as stated by the company's CEO, Dr. David Li.
The company has retained its leading market position, holding a 37% share of the global LiDAR market and a 74% share of the global robotaxi LiDAR market in 2023. Hesai Group's technology has been instrumental in completing over 6 million robotaxi rides in collaboration with Baidu (NASDAQ:BIDU)'s Apollo Go.
The company has secured exclusive agreements with prominent EV makers and design wins with 19 leading OEMs globally. Hesai Group projects stronger performance in the second half of 2024, with estimated Q3 revenue between RMB 450 million and RMB 500 million.
These recent developments highlight Hesai Group's strategic advancements and robust market position, setting the stage for anticipated growth and profitability in the forthcoming years.
InvestingPro Insights
Hesai Technology's recent deal with Leapmotor comes at a crucial time for the company, as reflected in its financial metrics and market performance. According to InvestingPro data, Hesai's revenue growth stands at 13.11% over the last twelve months as of Q2 2023, indicating a positive trajectory that aligns with its expanding partnerships in the autonomous driving sector.
However, the company faces challenges. An InvestingPro Tip reveals that Hesai is not profitable over the last twelve months, with an operating income margin of -30.93%. This underscores the importance of the Leapmotor deal in potentially improving Hesai's financial health.
Despite these challenges, another InvestingPro Tip highlights that Hesai holds more cash than debt on its balance sheet, suggesting financial stability that could support its expansion plans and R&D efforts in lidar technology.
Interestingly, while Hesai's stock has shown a strong return over the last month with a 16.28% price increase, it has experienced significant volatility. The stock price has fallen by 51.18% over the past year, indicating that investors should closely monitor how this new partnership impacts Hesai's market performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Hesai Technology, providing deeper insights into the company's financial health and market position.
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