Hesai Group - HSAI
Over $30M in government subsidies for the win
Given the market’s reaction to the company’s earnings release and guidance, I thought it might be worthwhile to point out a few things the market may (or may not) be considering.
Back on January 11th I put out a piece called “About that guidance they provided... and will market expectations finally live up to the hype?” Here’s the link:
During the course of that piece, I questioned how exactly the company was going to be able to make their profitability guidance based on the information they had provided in both their earnings release and their conference call.
The problem was, given their guidance for both gross margins and operating expenses, no matter how you put your financial model together there was simply no way that they were going to be able to hit their stated profitability target.
Enter government subsidies.