Hesai Group's (HSAI.US) exclusive LiDAR agreement helped it rise 36%!

Shares of Hesai Group (HSAI.US) jumped 36.47% on Tuesday, closing at US$13.92, as investors reacted positively to the company's exclusive LiDAR agreement with Great Wall Motor and Changan Auto. According to reports, the Shanghai-based Hesai Group announced that the two automakers would soon receive its latest ATX LiDAR devices, and would become Changan Auto's exclusive long-range LiDAR supplier, with an estimated order volume of over 1.5 million units for its compact LiDAR models in the next few years, covering more than 10 Changan Auto models.

It is worth noting that China Merchants Securities (International) recently released a research report stating that with the development of the new energy vehicle industry, smart driving as a core application scenario provides a growth foundation for upstream incremental parts. LiDAR, as a high-precision sensor, plays a crucial role in the automotive perception architecture.

With the technology cost reduction and large-scale production of Chinese manufacturers, the cost of LiDAR in vehicles has dropped rapidly, making it more likely for more carmakers to consider equipping them, driving the industry towards a trillion-dollar market space. China Merchants Securities (International) initiated coverage of Hesai Group and gave it a "buy" rating.