Key Stats for WeRide Stock
- Price Change for WeRide stock: 15%
- $WRD Share Price as of Nov. 24: $8.26
- 52-Week High: $44
- $WRD Stock Price Target: $16.17
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What Happened?
WeRide (WRD) stock surged almost 15% yesterday after the Chinese autonomous driving company reported impressive third-quarter results, with strong revenue growth and improved profitability.
The company also announced a historic milestone: securing the world’s first city-level fully driverless robotaxi commercial permit outside the United States in Abu Dhabi.
Revenue jumped 144% year-over-year to RMB 171 million ($24 million), driven by explosive growth across multiple business lines.
Product revenue soared 428% to RMB 79 million ($11.1 million), while robotaxi revenue skyrocketed 761% to RMB 35 million ($4.93 million). The robotaxi business now accounts for 21% of total revenue.
More importantly, WeRide stock is benefiting from significant improvements in profitability. The company’s net loss narrowed by 71% to RMB 307 million ($43.22 million), or about $0.15 per ADS, compared to a loss of $2.08 per ADS in the same quarter last year.
Gross margin expanded dramatically to 33%, up from just 5% a year ago, as the company’s operating expenses were cut in half.
CEO Tony Han called the Abu Dhabi permit a “landmark authorization” that demonstrates regulators’ confidence in WeRide’s technology.
The company has already launched a driverless robotaxi service through Uber in Abu Dhabi, with vehicles completing up to 20 trips per day in a 12-hour shift.
That level of utilization puts the company on track to achieve unit economic breakeven.
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What the Market Is Telling Us About WeRide Stock
The rally in WeRide stock reflects investor optimism about the company’s path to profitability and its global expansion strategy.
Unlike competitors focused solely on one market, WeRide is deploying autonomous vehicles across 11 countries and more than 30 cities worldwide.
The company now operates over 1,600 Level 4 autonomous vehicles globally, including nearly 750 robotaxis.
CFO Jennifer Li emphasized that removing the in-car safety officer in Abu Dhabi is “a critical milestone from a financial perspective” that will enable the robotaxi service to achieve unit economic breakeven.
WeRide expects to extend service hours to 24/7 next year and increase daily trips to 25 per vehicle, which would drive strong profitability.
WeRide’s business model in international markets differs from its operations in China. Domestically, the company owns and operates vehicles on its WeRide Go platform.
Internationally, it partners with platforms like Uber and Grab, generating revenue from three streams: ride-fare revenue share, annual licensing fees, and vehicle sales. This asset-light model allows faster fleet scaling without ballooning the balance sheet.
The company also highlighted its unique competitive advantage: the ability to operate at both the L4 (fully autonomous) and L2++ (advanced driver assistance) levels.
WeRide recently launched production of its WePilot 3.0 end-to-end ADAS system with Bosch, which CEO Han says is “totally comparable” to Tesla’s Full Self-Driving system.
This dual approach creates a “double flywheel” where data from mass-production vehicles improves robotaxi performance, and vice versa.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
