Hesai Group (HSAI, Financial) has taken legal action by filing a Notice of Appeal with the U.S. Court of Appeals on July 13, 2025. This move is in response to a decision by the U.S. District Court for the District of Columbia, which upheld the U.S. Department of Defense's classification of the company under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021. Hesai's CEO, Yifan "David" Li, expressed disappointment with the court's decision, asserting that the designation by the DoD is unfounded both factually and legally.
The District Court did recognize that there was no evidence tying Hesai's products to military use or indicating any connection with the Chinese military. The ruling was primarily based on the location of Hesai's R&D facilities and the hypothetical military applications of lidar technology, which Hesai argues are speculative and applicable to numerous companies in China, including international firms. Hesai maintains that its products are exclusively for civilian and commercial use, having never engaged in military development or supply. The company remains committed to defending its reputation while focusing on delivering advanced lidar solutions to its worldwide clientele and maintaining robust corporate governance as a publicly listed company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Hesai Group (HSAI, Financial) is $25.10 with a high estimate of $37.06 and a low estimate of $16.33. The average target implies an upside of 5.01% from the current price of $23.90. More detailed estimate data can be found on the Hesai Group (HSAI) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Hesai Group's (HSAI, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
HSAI Key Business Developments
Release Date: May 27, 2025
- Revenue: CNY525.3 million (USD72.4 million), a 46% year-over-year increase.
- Net Loss: Reduced by 84% year over year to CNY70.5 million (USD2.4 million).
- Gross Margin: 42% in Q1.
- Operating Expenses: Reduced by 9% year over year.
- LiDAR Shipments: Nearly 200,000 units, more than triple the volume from the same period last year.
- ATX LiDAR Shipments: Large-scale mass production commenced in Q1.
- JT LiDAR Shipments: 45,000 units in Q1, contributing to over 600% year-over-year growth in robotics LiDAR shipments.
- Q2 Revenue Guidance: Expected between CNY680 million (USD93.7 million) and CNY720 million (USD99.2 million), a 48% to 57% increase year over year.
- Q2 Shipment Forecast: Over 300,000 units, a substantial increase of almost 250% year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hesai Group (HSAI, Financial) reported a 46% year-over-year increase in total revenues, reaching CNY525.3 million (USD72.4 million), driven by exceptional shipment performance.
- The company achieved a significant reduction in net loss by 84% year over year, demonstrating strong operational discipline and cost control.
- Hesai Group (HSAI) maintained a healthy gross margin of 42% in Q1, reflecting effective cost management.
- The company secured design wins for over 120 vehicle models across 23 OEMs worldwide, highlighting its strong market position.
- Hesai Group (HSAI) is the world's largest LiDAR supplier for robotaxis, with a dominant 61% market share in the global robotaxi market.
Negative Points
- The U.S. market is projected to account for only 10% of Hesai Group (HSAI)'s total revenue in 2025, indicating limited exposure to this market.
- The company faces potential challenges from evolving tariff environments, which could impact revenue and customer demand.
- Hesai Group (HSAI) anticipates some short-term shifts in customer demand to Q3, mainly from U.S.-bound robotics LiDAR shipments.
- The blended average ASP (average selling price) is expected to decline due to the ramp-up of ATX mass production, potentially impacting revenue.
- The company is navigating a dynamic geopolitical environment, which necessitates overseas manufacturing plans to mitigate risks.
