This Under-$10 Stock Just Reported a 700% Surge in Robotaxi Revenue. Should You Buy Shares Here?

Core Insights - WeRide is valued at a market cap of $2.8 billion and provides autonomous driving products and solutions across various industries, including mobility, logistics, and sanitation [1] - The company reported a significant increase in its robotaxi business, with stock rising nearly 15% following strong third-quarter results [2] Financial Performance - Robotaxi revenue surged by 761% year-over-year, while total sales increased by 144% to $24 million in Q3 of 2025 [3] - Product revenue rose by 428%, driven by increased sales of robotaxis and robobuses, and service revenue climbed by 67% due to data services and autonomous driving operations [4] - Robotaxi revenue now constitutes 21% of total revenue, up from a negligible amount a year ago, and the company achieved a gross profit margin of 33% [4] Global Expansion - WeRide operates over 1,600 autonomous vehicles across 11 countries and 30 cities, recently obtaining the first city-level fully driverless robotaxi permit outside the U.S. in Abu Dhabi [5] - The company is expanding into Switzerland with the first driverless robotaxi license and into Saudi Arabia through Uber, while also experiencing growth in China with 300 robotaxis in Guangzhou and over 100 in Beijing [6] Business Model - WeRide's business model varies between domestic and international markets; in China, it owns and operates vehicles through the WeRide Go app, while internationally, it partners with Uber and Grab, maintaining an asset-light model [7] - This strategy allows WeRide to generate revenue through vehicle sales to partners, annual licensing fees, and commissions on ride fares [7]