Hesai Group (NASDAQ: HSAI) stock skyrocketed 50% on Tuesday after reports surfaced that Mercedes-Benz will use the Chinese lidar developer’s technology in its upcoming smart-driving cars. Reuters broke the news, citing a person familiar with the matter.
According to Reuters, the German luxury carmaker plans to equip its smart-driving vehicles with Hesai’s LiDAR sensors for global markets. This move signals a major collaboration between the two companies.
Notably, this is the first instance of a foreign automaker applying Chinese-made LiDAR technology to models sold outside China. It marks a milestone for Hesai in the international automotive sector.
Mercedes-Benz had been considering this decision for months, weighing legal and geopolitical risks, according to Reuters. These concerns stemmed from using Chinese technology in a global context.
Ultimately, the company selected Hesai, China’s largest LiDAR manufacturer, for its cost advantages and mass-production capabilities, according to the source cited by Reuters.
In a statement today, Hesai Group (NASDAQ: HSAI) announced that it has entered into a multi-year exclusive supply agreement with a major European automotive OEM (Original Equipment Manufacturer). However, it did not specify Mercedes-Benz by name. The company hailed the deal as a landmark moment.
Under the agreement, Hesai will supply high-performance, ultra-long-range LiDARs for the automaker’s next-generation vehicle platforms. This includes various models in fuel and new energy vehicle (NEV) lineups, the company said.
The deal extends through 2030 and represents the largest order to date in the front-loaded mass-production LiDAR segment for overseas markets, Hesai noted in its statement. It underscores the scale of the collaboration.
According to the company, it had partnered with 22 domestic and foreign automakers, providing LiDARs for 120 models. This latest contract further expands its footprint in the industry.
