Core Viewpoint - Hesai Technology has officially filed a lawsuit against its competitor, Tudatong, for patent infringement related to the newly launched "Lingque E1X" lidar product, with the case accepted by the Ningbo Intermediate People's Court in Zhejiang Province [1] Group 1: Patent Infringement Details - The lawsuit centers on the similarities between Tudatong's "Lingque E1X" and Hesai's earlier ATX product in terms of appearance, interface design, internal scanning architecture, and optical path design, both utilizing the "905nm wavelength + one-dimensional scanning" technology [2][6] - Hesai's AT series lidar, with the first product AT128 launched in 2021, has secured over 50 models from more than 15 major automakers, while the new ATX series is set for mass production in Q1 2025 [8] Group 2: Market Position and Competition - Hesai's market share in the main lidar segment increased from an average of 32.8% in the first eight months of 2025 to 46% in August alone [9] - Tudatong has historically adhered to the "1550nm wavelength + two-dimensional scanning" technology, which is more expensive but offers advantages in long-distance detection [9] - The shift in Tudatong's strategy to include both "1550nm and 905nm" products is seen as a response to market pressures, as the 905nm solution has become the mainstream choice due to its lower cost and easier mass production [9] Group 3: Financial and Operational Challenges - Tudatong is facing significant financial challenges, with losses increasing from $188 million in 2022 to $398 million in 2024, and a cash reserve of only $24.27 million against current liabilities of $97.75 million [14] - The company's reliance on a single major client, NIO, for a substantial portion of its revenue (over 90% from 2022 to 2024) raises concerns about long-term sustainability [14] - The average selling price of Tudatong's core product has declined from $879 per unit in 2022 to $704 in 2024, indicating pricing pressure in the market [14] Group 4: Industry Growth and Market Trends - The global lidar market is projected to grow significantly, with the penetration rate of lidar in smart vehicles expected to rise from 10% in 2023 to 35% by 2025, and the market size increasing from $3 billion in 2023 to $10 billion in 2025, reflecting a compound annual growth rate of 77% [13]