Chinese technology stock Hesai Group (NASDAQ:HSAI) was soaring on Tuesday, rising nearly 50% to become the day’s top gainer.
The manufacturer of light detection and ranging (lidar) sensors for the automobile and robotics industries signed a major deal with a large European automaker.
Hesai will provide advanced ultra-long-range automotive lidars for a leading European OEM (original equipment manufacturer). Several news outlets, including Reuters, which broke the story, identified the OEM as Mercedes Benz (ETR:MBGn).
Hesai’s lidar sensors will be in the OEM’s upcoming platform, including both internal combustion engine (ICE) and electric vehicle (EV) models.
In a release, company officials said this multi-year program with the OEM will last into the next decade, calling it the largest global program for the automotive lidar industry.
“This long-term partnership is a resounding endorsement of our unrivaled performance and quality,” said Hesai CEO and Co-Founder David Li. “Meeting the rigorous standards of a market leader, our quality has become our namecard—a powerful symbol of excellence and a vote of confidence in our visionary future. We are immensely proud to empower the future of mobility, with our state-of-the-art lidar technology playing a pivotal role in conventional and electric vehicle platforms. This design win illustrates the importance of lidar technology for the future of advanced intelligent driving systems, helping to enhance safety, prevent accidents, and save lives.”
Stock is up 314% over the past year
The company has secured 120 design wins from 22 automotive OEMs. Last December, Hesai became the first lidar company to deliver more than 100,000 units in a single month.
In 2024, the company had nearly 502,000 lidar shipments, up 126% year-over-year. In the fourth quarter, it had about 222,000 – a 153% increase year over year.
Overall, it saw revenue grow 28% in Q4 and had earnings of RMB1.08 per share, up from a net loss of RMB1.11 per share in the same quarter a year ago.
Hesai Group is rated a consensus buy among analysts with a forward P/E of 1.11 and a price-to-sales ratio of 7.74. Investors should always be cautious investing in small-caps, but this is certainly a major development for a firm that’s already a leader in its niche. Put this one on your watch list.
The stock is up 62% year-to-date and 314% over the past 12 months, trading at nearly $25 per share.