When most people think of “Robotaxi,” Tesla (TSLA) probably pops into mind. And that makes sense. Tesla has been all about self-driving cars as a key part of its growth plan. Yet, as the rollout of Robotaxi has begun in Austin, Texas, some Wall Street folks are still hoping for more. They’re looking for Tesla to deliver a more established footprint and Robotaxis that work with fewer restrictions.
The thing is, the autonomous driving market—it’s huge and global. Plenty of startups are competing in this space, and one that caught my attention is a Chinese company called Weride (WRD). So, let’s take a look at what’s happening with them.
Weride launched not too long ago, and its stock has followed a familiar path for early-stage companies in high-growth sectors.
The stock initially soared past $40 per share in March but then fell below $10. Right now, it’s hovering around $8, which seems like an interesting entry point for investors keeping an eye on Weride.
Lately, WRD has seen a rise after it became the first to secure an autonomous logistics vehicle license in Guangzhou, China. Previously, it had received a permit for its Robovan W5 model, and this recent road testing approval might really set the stage for commercialization.
Interestingly, one of the key players behind this project might be overlooked by some investors.
Nvidia (NVDA), an AI giant, is among the main backers. This partnership could help them not just in hardware and software sales but also in the broader commercialization of the technology. It’s like a double win for them.
Sure, WRD stock has a long way to go before satisfying Nvidia’s investment criteria. However, there are solid reasons to think that Jensen Huang’s company made an insightful investment choice. So, I think it’s worth monitoring WRD to see if it’s nearing the bottom.
Weride is still in its early days in the Robotaxi scene, which means its revenue numbers have been negative for the last three quarters.
In its most recent quarter, Weride reported a loss of $0.18 per share, an improvement from a loss of $1.24 two quarters prior.
Analysts project an overall loss of $0.68 per share for the fiscal year, which is actually a positive indication compared to earlier losses.
Now, it raises some big questions about how quickly they can scale, what kind of demand there is from Chinese consumers, and whether global investors are ready to dive back into Chinese firms. But these questions don’t have clear answers, and that might keep WRD stock a bit volatile in the near term.
It’s worth noting that, according to BarChart, analyst coverage on Weride is limited, with only three analysts on record. The positive side is, they’re all optimistic—two “strong buy” and one “moderate buy” rating suggest that there’s some solid foundation for growth.
The consensus price target sits at $17.67, implying that the stock could potentially more than double next year. Given that the stock traded near $45 in the past, targeting $17 seems achievable.
Even in the scenario where the stock reaches its low price target of $13, there could still be decent benefits for investors. With a market cap around $2.3 billion, it might be time to take a closer look at WRD stock.
