New York, May 19, 2026, 06:02 EDT
Hesai Group (HSAI) shares traded up in U.S. premarket Tuesday. The Chinese lidar company turned a first-quarter profit, shipped more than twice as many sensors, and said it would supply its lidar tech for Mercedes-Benz Level 3 autonomous models.
The stock changed hands at $22.60 as of 6:00 a.m. ET, gaining 2.68% over Monday’s close of $22.01 ahead of the main U.S. session. Moves in premarket trade tend to be volatile because volumes are usually lower.
Hesai wants to prove lidar is going from test fleets and high-end packages to bigger production runs. Lidar stands for light detection and ranging; it uses lasers to map what’s around the car and helps driver-assistance and automated-driving tech spot obstacles.
Hesai posted a 29.6% jump in Q1 revenue, coming in at RMB680.6 million, or $98.7 million. Net income hit RMB18.3 million, up from a RMB17.5 million loss last year. Lidar shipments surged 140.9% to 471,723 units.
The company shipped 353,441 units for ADAS, or advanced driver-assistance systems, and 118,282 units for robotics. ADAS uses software and sensors for things like lane keeping, braking and highway assist, but the driver still needs to operate the vehicle.
Hesai CEO Yifan “David” Li said the company is a “strategic lidar partner and confirmed supplier” for Mercedes-Benz models set to use Level 3 autonomous driving. Hesai said the supply deal covers Mercedes in Europe and China, with production coming from its Galileo plant in Thailand. GlobeNewswire
Level 3, or conditional automated driving, means drivers can take hands off the wheel under certain conditions and do other tasks, but still need to be ready to grab control if needed. Mercedes-Benz says its Drive Pilot Level 3 uses lidar, radar, cameras and more sensors.
CFO Andrew Fan said revenue came in at roughly RMB681 million, with total shipments showing “strong, broad-based demand across both ADAS and Robotics.” Fan said the lidar business posted operating profit of about RMB42 million, pushing Hesai to a fourth straight quarter of GAAP profitability. GlobeNewswire
Hesai expects Q2 revenue between RMB850 million and RMB900 million, or $123 million to $130 million, for about 20% to 27% growth on the year. The company’s earnings call is set for 8:00 a.m. ET.
Mercedes’ move makes the competitive landscape clearer. Reuters said last year that Mercedes teamed up with lidar companies like Valeo and Luminar. Automakers usually pick more than one lidar supplier to guard against supply problems. Hesai’s bigger scale and lower costs played into Mercedes’ decision, Reuters also reported.
Stocks struggled as the Nasdaq composite closed down 0.5% Monday, tracking moves in oil and worries about the Iran war. The S&P 500 slipped 0.1%.
Risks remain. Hesai reported its gross margin down to 39.1% from 41.7% a year ago, pointing to more sales coming from lower-margin products. Revenue growth came as average selling prices dropped. The question for investors is about the margin on more volume.
Geopolitical risk is still on the table. The U.S. Defense Department put Hesai on its Section 1260H list of Chinese military companies active in the U.S. Hesai pushed back, appealing the move and saying it hasn’t made or sold any products for the military.
