WeRide (NASDAQ: WRD) Surges 12.34% on Four-Day Rally Driven by Belgium Regulatory Breakthrough, Institutional Backing

WeRide (NASDAQ: WRD) rose 0.26% today, marking its fourth consecutive day of gains. The stock has surged 12.34% over the past four sessions, reaching its highest level since September 2025 with an intraday gain of 7.20%.

The rally follows WeRide’s recent regulatory breakthrough in Belgium, where it secured the first federal test permit for Level 4 autonomous shuttle operations. This approval allows the company to conduct public road trials in Leuven, solidifying its status as the only autonomous driving firm with permits in seven countries. The milestone underscores WeRide’s ability to navigate complex international regulatory frameworks, a critical factor for investors evaluating its long-term commercial potential.

Institutional confidence has also bolstered the stock’s performance. Notable investors, including Robert Bosch GmbH, increased stakes in the company during the first and second quarters of 2025, with combined investments exceeding $100 million. Analysts have similarly upgraded their outlook, with UBS Group initiating coverage with a “Buy” rating in August 2025. These developments highlight growing industry and investor validation of WeRide’s technology and expansion strategy.

WeRide’s financial position further supports its upward trajectory. The company reported $7.69 billion in total assets and $4.0 billion in cash reserves as of late September 2025, with liabilities totaling $627 million. This liquidity provides flexibility for R&D and market expansion. Technical indicators also suggest strong momentum, with the stock breaking above a key $10.50 resistance level and attracting sustained buying interest.

However, challenges remain. WeRide continues to operate at a loss, with a net margin of -595.64% and a return on invested capital of -119.55%. Analysts caution that profitability is unlikely within the next three years, and regulatory hurdles in new markets could delay commercial deployments. The stock’s price-to-sales ratio of 64.67 reflects high expectations, but any delays in monetizing its technology could pressure valuations.

WeRide’s global expansion into Europe aligns with its broader strategy to diversify revenue streams and reduce reliance on any single market. The Leuven trial is a key step in demonstrating the viability of its Robobus and Robotaxi services in real-world conditions. Success in Europe could accelerate partnerships with municipalities and logistics providers, driving revenue growth. Nevertheless, execution risks persist, particularly in adapting to regional regulatory and operational differences.

Investor sentiment remains mixed. While institutional and analyst support has driven recent gains, the stock’s valuation remains speculative. The market’s reaction to WeRide’s progress highlights the high-risk, high-reward nature of investing in unprofitable, high-growth tech firms. For now, the stock’s momentum reflects confidence in its regulatory achievements and global expansion, but long-term success will depend on translating these milestones into sustainable revenue.