Hesai Technology's ETX and FTX: Engineering the Future of L3 Autonomous Driving and a New Era for HSAI

The autonomous vehicle revolution is no longer a distant promise—it's a rapidly unfolding reality. At the heart of this transformation lies lidar, the sensor technology that provides the “eyes” for self-driving systems. Hesai Technology (HSAI) has emerged as a pivotal player in this space, with its recent breakthroughs in L3 autonomous driving lidar—specifically the ETX and FTX platforms—positioning it as a must-watch stock for investors betting on the next phase of mobility innovation.

ETX: Redefining Long-Range Perception for L3 Systems

Hesai's ETX lidar represents a quantum leap in automotive-grade sensing. Designed explicitly for L3 autonomous driving, ETX leverages the company's proprietary photon vector technology to deliver a 400-meter detection range at 10% reflectivity—a critical capability for scenarios where split-second decisions are required. Its 32 mm optical window enables seamless behind-the-windshield integration, a design choice that not only enhances aerodynamics but also aligns with automakers' push for minimalist, futuristic vehicle aesthetics.

What sets ETX apart is its angular resolution of 0.05° × 0.05°, eight times that of Hesai's earlier AT128 lidar. This granularity allows L3 systems to distinguish between objects with unprecedented precision, reducing false positives and improving decision-making in complex environments. For investors, the significance of ETX lies in its alignment with regulatory and consumer trends: as L3 adoption accelerates, automakers will prioritize lidar solutions that balance performance, cost, and design flexibility. Hesai's multi-year nomination from a leading European OEM—set to begin mass production by late 2026—underscores the platform's commercial viability.

FTX: The Solid-State Revolution for Blind Spot Coverage

While ETX focuses on long-range detection, Hesai's FTX lidar addresses a critical vulnerability in autonomous systems: blind spots. As the world's widest-FOV fully solid-state lidar, FTX offers an 180° × 140° field of view, doubling the resolution of previous generations while reducing the exposed optical area by 40%. This design not only minimizes interference from environmental factors like rain or dust but also enables real-time tracking of fast-moving objects from the rear and sides—essential for safe lane changes and automated parking.

The strategic value of FTX is amplified by Hesai's partnerships with AGC and Saint-Gobain, two industry leaders in windshield manufacturing. These collaborations are accelerating the feasibility of behind-the-windshield integration, a key enabler for L3 adoption. By addressing both long-range and wide-angle perception, Hesai's Infinity Eye B solution (which combines ETX and FTX) creates a holistic sensor suite tailored for L3 systems. This integration reduces the need for multiple lidar units, cutting costs and complexity for automakers—a win for both Hesai and its clients.

Strategic Partnerships and Market Capture

Hesai's success isn't just about hardware—it's about ecosystem building. The company has secured design wins with major Chinese automakers (BYD, Xiaomi, Leapmotor, etc.) and a top European OEM, signaling its global relevance. These partnerships span both ICE and EV platforms, ensuring Hesai's technology remains relevant across the automotive transition.

Financially, Hesai is on track to ship 1.2–1.5 million lidar units in 2025, targeting nearly half of the ADAS and robotaxi markets. Its fourth-generation platform, featuring the Intelligent Point Cloud Engine (IPE), further strengthens its competitive edge by processing 24.6 billion samples per second and filtering out 99.9% of environmental noise. This level of performance, combined with in-house ASIC design and vertical integration, allows Hesai to scale production while maintaining cost efficiency—a rare combination in the lidar sector.

Why HSAI is a Must-Watch Stock

For investors, Hesai's trajectory is compelling. The company is not only solving technical challenges in L3 adoption but also aligning with macro trends: the shift to EVs, the rise of ADAS, and the growing demand for scalable, cost-effective lidar. Its partnerships with both Chinese and European OEMs provide a diversified revenue stream, while its proprietary technology stack ensures long-term differentiation.

However, risks remain. The lidar market is highly competitive, with players like Velodyne and Luminar vying for market share. Regulatory delays in L3 adoption could also slow growth. Yet, Hesai's first-mover advantage with ETX and FTX, coupled with its aggressive production targets, positions it to outperform peers.

Conclusion: A Strategic Bet on the Future of Mobility

Hesai Technology is not just a supplier—it's a catalyst for the next phase of autonomous driving. By redefining lidar performance with ETX and FTX, and securing strategic partnerships with industry leaders, HSAI is building a moat around its position in the L3 ecosystem. For investors with a medium- to long-term horizon, Hesai represents a high-conviction opportunity to capitalize on the convergence of AI, robotics, and automotive innovation. As mass L3 adoption looms, HSAI's stock is poised to reflect its role as a market leader.