LiDAR manufacturer Hesai Technology believes that the future popularity of their core products in electric vehicles can be compared to that of airbags, and their third-quarter report proves that this is not just empty talk.
On November 26, Hesai Technology announced its third-quarter financial report, showing that LiDAR sales increased threefold year-on-year, with revenue growing by 21% to $76.9 million, and it is expected that revenue will further increase to $100 million this quarter, with deliveries reaching 1 million units by 2025.
On the same day, Hesai Technology's stock rose 44% to $6.86 per share, setting a record for the largest single-day increase.
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In order to further promote the application of LiDAR in electric vehicles, Hesai Technology announced plans to halve the price of its core products next year.
The company's CEO, Li Yifan, stated:
<blockquote>
&#34;We are entering a stage where millions of cars sold each year will be equipped with LiDAR.&#34;
</blockquote>
Founded in 2014, Hesai Technology quickly grew to become the world's largest LiDAR supplier and went public on NASDAQ in 2023. Currently, Hesai Technology holds about 37% of the global LiDAR market share.
<h2>Core Product Prices to Be Halved Next Year</h2>
In recent years, Hesai Technology has benefited from the rapid development of driver assistance systems, a technology viewed by Tesla and Chinese automakers as key to the future of mobility.
Hesai Technology's next-generation LiDAR product, ATX, is designed specifically for advanced driver assistance systems (ADAS). By using self-developed chips and improving factory operational efficiency, this product will be priced below $200 next year, only half the current price of the AT128 model.
CEO Li Yifan stated that after the price is halved, even economical electric vehicles priced below 150,000 RMB (approximately $20,000) will show interest in LiDAR.
Li Yifan also mentioned that for electric vehicles priced above this range, the adoption rate of LiDAR could rise to 40%. According to data from the automotive parts trading platform Gaishi Automotive Network, the current adoption rate of LiDAR in electric vehicles and plug-in hybrid vehicles in China is about 24%.
Although Musk has repeatedly denied LiDAR technology, preferring to use real-time cameras and artificial intelligence, many automakers still believe that LiDAR can enhance the safety of autonomous vehicles.
Li Yifan stated that LiDAR sensors can scan the road for problems and activate the car's brakes or airbags before the driver is even aware of the danger.
<blockquote>
&#34;We should view LiDAR as the beginning of the popularization of standard safety components in electric vehicles... It is crucial to introduce this technology into every car to save lives.&#34;
</blockquote>
Li Yifan also stated that while achieving fully autonomous driving may take years or even longer, the adoption of this technology will start in closed areas such as ports and will quickly expand

HSAI

CEO Li Yifan stated that after the price of lidar is halved, even economy electric vehicles priced below 150,000 yuan will show interest in lidar. For electric vehicles with higher prices, the adoption rate of lidar may rise to 40%

- Hesai Technology predicts that the adoption of its core lidar products in electric vehicles will become as common as airbags, supported by a recent report showing a threefold increase in lidar sales and a 21% revenue growth to $76.9 million in Q3.  
- The company plans to halve the price of its core products next year, aiming to make lidar accessible even for budget electric vehicles, with expectations of reaching 1 million units delivered by 2025.  
- Despite skepticism from some industry leaders, Hesai's CEO emphasizes the importance of lidar for enhancing the safety of autonomous vehicles, advocating for its integration as a standard safety component.

Hesai's Q3 revenue surged, with stock price soaring 40% in one day! Core product prices will be halved next year!