Robotaxi Rollout Is Paying Off For WeRide

Core Viewpoint - WeRide Inc. is making significant strides towards profitability, driven by a substantial increase in robotaxi revenues and a reduction in net losses [2][4][5]. Financial Performance - WeRide's third-quarter revenues surged 144% to 171 million yuan ($24 million) compared to the same period last year, with robotaxi revenues increasing by 761% to 35.3 million yuan, now constituting 20.7% of total turnover [4][16]. - The company's net loss for the third quarter decreased by nearly one-third to 307 million yuan from 1.04 billion yuan year-over-year, although the adjusted loss rose slightly to 276 million yuan from 240 million yuan [5][6]. - For the first nine months of the year, WeRide's revenue increased by 68.2% to 371 million yuan, while net losses narrowed to just under 1.10 billion yuan from 1.92 billion yuan in the same period of 2024 [6]. Market Position and Competition - WeRide's gross margin improved significantly, jumping 26.4 percentage points to 32.9%, positioning it favorably compared to competitors like Pony.ai, which reported a smaller revenue increase and a widening loss [5][7][8]. - Both WeRide and Pony.ai are incurring losses that exceed their revenues, highlighting the intense competition in the robotaxi market [8]. Expansion and Regulatory Approvals - WeRide has achieved a landmark approval for fully driverless taxis in Abu Dhabi, marking the first city-level permit for autonomous robotaxis outside the U.S., allowing operations without in-vehicle safety officers [9][10]. - The company operates over 150 autonomous vehicles in the Middle East and aims to expand its fleet to tens of thousands by 2030, covering approximately 50% of Abu Dhabi's urban core [10]. - In Europe, WeRide received a robotaxi permit for Zurich, Switzerland, with services expected to launch in 2026, enhancing its credibility in the global market [11]. Technological Advancements - WeRide is investing in technology development, partnering with Bosch to create an advanced driver-assistance system, which is nearing mass production [12]. - The company has begun manufacturing an end-to-end L2+ solution that incorporates advanced L4 technologies, potentially paving the way for self-driving features in consumer vehicles [13]. Stock Performance - Following the earnings announcement, WeRide's U.S.-listed shares rose 14.7% to close at $8.26, although they remain down about 40% year-to-date [14]. - The Hong Kong-listed shares increased by 1.75% to HK$20.88, still approximately 16.4% below the listing price [14].