Retail Buzz Builds As BYD Supplier Hesai Lands $40M Robotaxi Deal, Pops In $535M Hong Kong Debut

Retail chatter around Hesai Group picked up late Sunday after the Chinese lidar maker, and key supplier to BYD, said it had expanded a supply deal with an undisclosed U.S. robotaxi company. 

The agreement, now worth more than $40 million, runs through 2026 and puts Hesai in the driver’s seat as the exclusive provider of both long and short-range lidar sensors for the fleet.

The deal highlights how demand is growing as the robotaxi industry moves from pilot projects to large-scale rollouts. Lidar systems are essential for giving autonomous cars a clear view of their surroundings, and research firm Yole Group estimates Hesai controls 61% of the global market for lidar used in advanced Level 4 self-driving vehicles.

The announcement landed just as Hesai made its debut in Hong Kong trading. The shares jumped 7.7% to HK$229.20 from their HK$212.80 listing price in a HK$4.2 billion ($535 million) offering that drew heavyweight investors including Hillhouse and Grab. 

The move makes Hesai the first among U.S.-listed Chinese firms to secure a Hong Kong listing this year, a safeguard as the risk of delisting in America continues to hang over the sector.

Hesai’s U.S.-listed stock has already doubled in 2025, lifted by automakers rapidly adopting lidar. Earlier this year, the company deepened its ties with BYD to supply sensors for more than 10 car models scheduled to enter mass production in 2025. Those sensors will power BYD’s next-generation “God’s Eye” driver-assistance system. 

Beyond BYD, Hesai has racked up over 100 design wins across 22 automakers including Chery, Great Wall and Changan, and is preparing to expand annual production capacity to more than 2 million units next year.

Despite the momentum, geopolitical risks remain. Hesai was added to a Pentagon blacklist in 2024 over alleged military links, which the company has denied and is contesting.

On Stocktwits, retail sentiment for Hesai was ‘bullish’ amid ‘high’ message volume.

One user said it was “time to invest” in Hesai, pointing to the $40 million U.S. order and noting that the Hong Kong listing was oversubscribed 170 times, with trading expected to lift the stock further.

Another user said there was little doubt the Hesai stock would become a popular name in Hong Kong, citing the company’s strong growth and its 61% share of global lidar revenues.

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