WeRide Receives Approval to Test Driverless Vehicles with Passengers in California, Prepares for $5 Billion IPO Amidst Potential Ban on Chinese Connected Vehicles
Chinese autonomous vehicle company WeRide has been given the green light to test its driverless vehicles with passengers in California as it gears up for a nearly $5 billion initial public offering (IPO) on the U.S. stock market. This development coincides with reports that the Commerce Department is considering a ban on Chinese connected vehicles, including autonomous vehicles, due to national security concerns.
WeRide currently holds two permits from the California Public Utilities Commission, allowing it to conduct drivered and driverless pilot tests on public roads with passengers. However, the company is not yet permitted to charge passengers for rides, and the service is not available to the general public. WeRide has been testing its vehicles autonomously without passengers in San Jose since 2021.
Despite its slow rollout in California, WeRide boasts of being the first autonomous driving company operating and testing in 30 cities across seven countries. In addition to its robotaxi and robobus, the company is also working on a robovan for goods delivery, a robotic street sweeper, and ADAS for OEMs.
Analysis:
Investing in WeRide could potentially yield high returns given its innovative approach to autonomous driving technology and its presence in multiple countries. However, investors should be mindful of the regulatory challenges the company may face, particularly in light of the potential ban on Chinese connected vehicles. It is essential to closely monitor WeRide's progress and compliance with regulations to make informed investment decisions.