On October 25, WeRide was successfully listed on the Nasdaq in the United States. The initial public offering (IPO) was priced at US$15.5 per share, with a market value of US$5.3 billion, becoming the largest IPO of a Chinese company in the United States since 2021.

On the first day of listing, WeRide's stock price rose by more than 20% at one point, and finally closed at US$16.55 per share, an increase of 6.77%.

Company Profile & Technical Advantages

Founded in 2017 and headquartered in Guangzhou, WeRide focuses on the research and development of L4 autonomous driving technology, that is, a highly automated vehicle system. The "WeRide One" platform aims to promote the popularization of smart travel. At present, the technology has been applied to multiple scenarios such as autonomous taxis, minibuses and freight vehicles, showing broad business prospects.

WeRide has also obtained driverless operating licenses in markets such as China, the United Arab Emirates, Singapore and the United States, becoming the only company approved in these four markets at the same time.

Technological Breakthroughs & Development History

WeRide has shown rapid development potential in the field of autonomous driving technology. The company completed unmanned driving tests in closed venues only 39 days after its establishment and successfully carried out open road tests within 81 days, setting the fastest record in the industry.

Han Xu, founder and CEO of WeRide, has a deep background in computer vision and machine learning. He has worked at Google and Baidu. The company aims to use technology to improve travel safety and save time.

WeRide has established a strategic partnership with Bosch, a world-renowned automotive parts supplier, to jointly develop intelligent driving software and form a diversified autonomous driving product line to meet the commercialization needs of the market.

Financial Performance & Gross Profit Growth

According to WeRide's prospectus, the company achieved significant revenue growth from 2021 to 2023, with revenue increasing from US$138 million in 2021 to US$528 million in 2022, and is expected to reach US$400 million in 2023. In the first half of 2024, WeRide's revenue reached $150 million, and its gross profit margin increased year by year to 45.7%.

Although the R&D investment in autonomous driving technology is huge and the commercialization process may take a long time, WeRide continues to increase its investment in technology and R&D. The stable financial performance and high gross profit margin show the company's profitability and confidence in future development. Qiming Venture Partners, an early investor, is deeply involved in the company's development process.

Market Challenges & Opportunities

Although self-driving technology is popular in the market, full commercialization still faces many challenges. Analysts pointed out that the technology needs to meet high standards in safety and stability, especially in extreme weather, complex intersections and unpredictable pedestrian behavior scenarios, the technical performance still needs to be improved.

At present, the Chinese government actively supports self-driving technology and speeds up the trial approval speed, which is more relaxed than the US policy, attracting many Chinese companies to test the waters in the local market. At the same time, the proposal put forward by the Biden administration of the United States intends to ban the use of Chinese-made software and hardware in US self-driving cars, which may make Chinese self-driving companies face more policy challenges in the US market.

Market Prospects & Expansion

With Tesla (TSLA) and other companies launching new self-driving taxis and freight trucks, the commercialization prospects of WeRide and its technology have attracted much attention. Rival Pony.ai (PONY) has also applied for a Nasdaq listing this month and received financial support from Toyota (TM).

Industry experts pointed out that if WeRide's stock price continues to rise after its listing, it will provide significant incentives for Pony.ai and other Chinese self-driving companies, and promote more companies to go public in the United States. Although it will take several years for self-driving technology to achieve full commercialization, with the strengthening of policy support and the continued growth of market demand, the implementation of self-driving technology will become stronger.