Hesai Inc. - HSAI
The one list they did not want to make
The Pentagon this morning updated their list of companies that it accuses of working with the Chinese military. Much to their misfortune, Hesai (HSAI) made the list.
Here is a Reuters story.
And of course, here is HSAI’s response.
With the stock down upwards of 30% or so this morning, investors apparently do not believe the “we do not expect it will cause any significant disruption to out business” fantasy. I would think every western auto OEM out there (or at least the domestic ones) is currently calling second sources (to the extend their designs allow for one) to secure some supply, and the idea that HSAI is going to be winning any domestic design wins in the future deserves a second look.
I first highlighted HSAI back on December 19th when the stock closed at $8.87. Though the company being added to the Pentagon’s “companies to avoid” list wasn’t part of the original thesis, I will take today’s news as an opportunity to move along to other ideas. Today the stock is 50%+ lower and will be removed during my next interest list update.