Core Viewpoint - WeRide has received approval to launch its GXR robotaxi service in Beijing, marking a significant milestone for the company, but its financial performance raises concerns for potential investors [1][10]. Group 1: Company Developments - WeRide has been granted permission to operate its fully autonomous GXR on city roads and certain highways in Beijing, showcasing its advanced AI capabilities with over 1,300 tera operations per second (TOPS) [2]. - The company has made strides in global markets, launching its Robotaxi service on the Uber platform in Abu Dhabi in December 2024 and the first autonomous Robobus service in Singapore in July 2024 [3]. - A pilot project in Switzerland is planned for the second quarter of 2025, with the deployment of several self-driving vehicles [4]. Group 2: Financial Performance - For the nine-month period ending September 30, 2024, WeRide reported a 14% decline in revenue and a 22% decrease in net loss compared to the same period in 2023 [5]. - The projected full-year 2024 revenue is estimated to be between 350 million renminbi and 380 million renminbi (52.1 million), indicating a continued decline from previous years [6]. - Operating income has worsened, with losses increasing from 779.2 million renminbi in 2022 to 1.57 billion renminbi in 2023 [7]. Group 3: Competitive Landscape - WeRide faces competition from Pony AI, which has launched robotaxi services in Guangzhou and has made progress in robotrucking, showing growth in revenue and narrowing losses [8]. - The current financial struggles of WeRide make Pony AI a more attractive option for risk-averse investors [8]. Group 4: Investment Considerations - While WeRide's advancements in autonomous mobility are noteworthy, the stock may not be a buy at this time due to ongoing financial challenges [10]. - Investors are advised to wait for improvements in revenue generation and profitability before considering an investment in WeRide [11].
WeRide Turns a Corner in China; Is It Time to Park the Stock in Your Portfolio?