Hesai(US:HSAI) Jin Rong Jie·2026-01-09 09:41Core Insights - The collaboration between Hesai Technology and NVIDIA on the Hyperion 10 platform is described as a long-anticipated formal announcement, providing OEM customers with a validated, complete, and low-risk autonomous driving solution, significantly reducing integration difficulty and development risk [1][6]. Group 1: Strategic Initiatives - Hesai's "dual supply chain" strategy aims to serve the domestic market in China while establishing a factory in Thailand, expected to be operational by 2027, to meet global OEM demand and ensure compliance with local regulations [1][10]. - The company emphasizes its core strategy of leveraging scale manufacturing, vertical integration, and cost control developed in the competitive Chinese automotive market to empower various industries with standardized products [2][13]. Group 2: Market Opportunities and Competition - The Chinese automotive market is estimated to be between 25 million and 28 million vehicles, while the global market exceeds 80 million, indicating significant potential beyond the Chinese market [8]. - Hesai faces competition not only from peers but also from those who do not utilize lidar technology. The company aims to convince this group by showcasing safety data, indicating that lidar can prevent up to 90% of accidents in critical scenarios [11][12]. - The cost of lidar has dramatically decreased from over $50,000 to below $200, enabling penetration into broader markets, including affordable products like robotic lawnmowers priced around €800 [11][12]. Group 3: Future Directions - Hesai is expanding into humanoid robotics and supporting various applications, including Robotaxi, while maintaining a focus on standardized technology to empower diverse robotic applications [13]. - The company believes that the market size and profitability from emerging robotic applications may eventually surpass that of the automotive business [2][13].