Exclusive $40M Robotaxi Lidar Deal Could Be a Game Changer for Hesai Group (HSAI)

• Hesai Technology recently announced the expansion of its production agreement with a leading U.S.-based robotaxi company, making Hesai the exclusive supplier of long- and short-range lidars in a deal valued at over US$40 million through 2026.
• This milestone highlights Hesai’s commanding 61% share of the global Level 4 autonomous driving lidar segment and reinforces its pivotal role in enabling the mass deployment of robotaxi fleets.
• We will now explore how this expanded robotaxi supply agreement, affirming Hesai’s leading market position, could influence its investment narrative.

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Hesai Group Investment Narrative Recap

For investors in Hesai Group, the core belief hinges on the sustained growth of advanced lidar solutions as autonomous technology enters commercial deployment, particularly in robotaxi fleets. The recent expanded supply agreement with a U.S. robotaxi leader may accelerate adoption, but the most important near-term catalyst remains volume shipments in emerging markets, while ongoing dependency on a limited pool of high-value clients presents a key risk to revenue stability; overall, the impact of this announcement appears incrementally positive but not transformative.

Looking more closely, Hesai’s showcase of its ultra-long-range ETX lidar at IAA Mobility 2025 stands out as especially relevant. This product’s performance enhancements and its selection by multiple global OEMs reinforce the company’s ability to meet mass-market demands, helping align with growth catalysts such as rising adoption rates of lidar in global autonomous driving solutions.

However, in contrast, investors should be aware of the risk posed if key clients, responsible for a significant share of revenue, shift suppliers or reduce orders...

Read the full narrative on Hesai Group (it's free!)

Hesai Group is expected to reach CN¥7.5 billion in revenue and CN¥1.3 billion in earnings by 2028. This outlook implies a 44.3% annual revenue growth rate and a CN¥1.2 billion increase in earnings from the current CN¥103.1 million.

Uncover how Hesai Group's forecasts yield a $29.09 fair value, in line with its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community value Hesai Group’s shares between US$3.53 and US$54.48, signaling a wide range of perspectives. While some expect strong growth as lidar adoption rises, others may have concerns about the company’s reliance on a concentrated client base leading to potential revenue volatility.

Explore 15 other fair value estimates on Hesai Group - why the stock might be worth less than half the current price!

Build Your Own Hesai Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hesai Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hesai Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hesai Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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