Hesai Group (NASDAQ:HSAI) shares climbed 4.4% in premarket trading on Monday after the lidar technology firm announced an expanded production agreement with a leading U.S.-based robotaxi operator, now valued at over $40 million.
The contract covers lidar deliveries through the end of 2026, with Hesai designated as the exclusive provider of both long-range and short-range lidar systems for the autonomous fleet of the unnamed robotaxi company. This extension underscores Hesai’s growing influence in the autonomous vehicle technology sector.
Citing research from Yole Group, Hesai noted it holds a 61% share of the global Level 4 autonomous driving lidar market. Level 4 autonomy refers to vehicles capable of operating without human intervention under specified conditions.
“This expanded agreement demonstrates the confidence leading robotaxi companies place in Hesai’s technology, combining performance, high reliability, and scalable manufacturing,” said David Li, Cofounder and CEO of Hesai. “As the industry moves from pilots to scaled deployments, Hesai is proud to deliver lidar solutions that meet the highest standards of quality while enabling safe and reliable driverless mobility at scale.”
Lidar, or light detection and ranging, is critical for autonomous vehicles, offering precise distance measurements via laser light to detect objects and generate detailed 3D maps of a vehicle’s surroundings. Hesai’s portfolio includes long-range sensors for highways and short-range lidars optimized for urban environments.
Trading as an American Depositary Receipt (ADR) on Nasdaq, Hesai positions itself to benefit from the robotaxi market’s shift from testing phases to commercial deployment.
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