Hesai Group - HSAI
About that guidance they provided... and will market expectations finally live up to the hype?
Shares of HSAI are no stranger to readers of this Substack. Back in December 2023 I published a “quick take” on the name and wondered whether a variety of difficulties in the EV market would have some sort of an impact on their sales going forward. Click the link below to read all about it.
For those new to the story, HSAI is a provider of “light detecting and ranging (LiDAR) solutions” primarily to the automotive industry. Their LiDAR products enable various levels of driver’s assistance modes up to and including fully autonomous mobility as popularized by the fledgling robotaxi industry.
Hesai Group (HSAI - $15.66)
Shares Outstanding: ~140M
Starting in 2024, as seen in the chart above, the company faced a virtual onslaught of problems, causing the company’s share price to implode and hover in the $4-$5 range for much of the year. The problems included:
China-based EV maker and HSAI lead customer Li Autos delaying shipment of some new EV models out to 2025.
Prices for LiDAR sensors continued their rapid decline.
The US Department of Defense added HSAI to a list of companies affiliated with the Chinese military (which was subsequently removed, only to be added back a month later).
After being on hiatus for a year for rising incidents`, GM shuts down their funding of the “Cruise” robotaxi service, which utilizes HSAI technology.
As the share price crashed, I removed the name from my interest list, but the short interest spiked just as the bad news started to flow, only to completely reverse by the end of the year. What caused that reversal?