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While Nvidia (NVDA) is at the epicenter of the artificial intelligence (AI) megatrend, several other companies are gaining traction in this disruptive market. WeRide (WRD), valued at $5.1 billion by market cap, is one such company developing autonomous driving technology.
Shares of WeRide went public last October and have since returned 6% to investors. However, the tech stock also trades 56% below its all-time highs, allowing you to buy the dip.
Backed by Nvidia, WeRide has a major catalyst on March 10 that might positively impact its share prices in the near term. Let’s dive deeper.
WeRide Expands Global Robotaxi Footprint
On Feb. 27, WeRide, the world’s first publicly traded robotaxi company, announced its inaugural fully driverless commercial deployment in Europe, launching an autonomous bus service in France’s Drôme region in partnership with Beti Automated Mobility, Renault Group, and Macif.
The deployment marks a significant milestone in WeRide’s global expansion strategy, adding Europe to its operational footprint that already includes China, Singapore, and the Middle East.
“Our collaboration with beti allows us to execute our inaugural commercial Robobus deployment in Europe, utilizing our proven track record in the Chinese, Singaporean, and Middle Eastern markets, and ultimately reinforcing our position as a global leader in L4 autonomous driving deployment and commercialization,” said Jennifer Li, CFO and Head of International Business at WeRide.
The L4 autonomous buses will begin operations on March 10 at the Rovaltain business park near Valence TGV station, covering a 3.3-kilometer route that connects the train station, off-site parking, and a business hub serving approximately 3,000 employees across 150 companies. Each six-meter-long Robobus can carry up to eight passengers.
This European launch builds on WeRide’s recent momentum following its successful Nasdaq IPO and strategic partnership with Uber Technologies (UBER) last year. In October 2024, it introduced GXR, a next-generation Robotaxi platform developed after 1,800 days of operational experience. It features advanced autonomous driving systems and a high-performance computing platform delivering over 1,300 TOPS of AI computing power.
The French deployment is pioneering in several ways. For example, it’s the first high-level automated service connecting a railway station to a European business park, and WeRide’s L4 automation enables 40km/h speeds with dynamic obstacle avoidance capabilities.
The initial learning phase will run from March 10 to April 19, operating Monday through Friday under real passenger transport conditions. A second operating phase is scheduled to begin in July.
China Remains Key for WeRide Stock
WeRide’s European expansion follows other recent commercial milestones for the company, including the announcement of fare-charging Robobus services in China's Guangdong Province and the deployment of Robosweepers for autonomous sanitation projects in multiple Chinese cities. It has also been advancing its ADAS solutions, recently powering the Falcon intelligent driving system for EXEED, Chery Auto’s high-end brand.
WeRide’s European debut comes amid intense global competition in the autonomous driving sector. It faces challenges from other players like Waymo, which recently announced plans to expand to more U.S. cities and begin testing in Tokyo. China’s autonomous driving industry has also seen accelerated development despite U.S. restrictions on advanced AI chip exports.
For the third quarter of 2024, WeRide reported revenues of 70 million yuan ($10.0 million) and expects full-year 2024 revenues between 350 million yuan ($50 million) and 380 million yuan ($54 million) as it continues its commercial expansion across global markets. In 2023, its sales stood at $56.6 million, with a net loss of $274.6 million. WeRide ended Q3 2024 with $475 million in cash, which suggests it has enough liquidity to sustain its cash burn over the next 12 months.
Out of the two analysts covering WRD stock, one recommends “Strong Buy” and one recommends “Moderate Buy.” The average target price for the AI stock is $22, indicating upside potential of 25% from current levels.
