WeRide (文远知行), trading under the symbol “WRD,” recently listed on the NASDAQ at an initial offering price of $15.5 per American Depositary Share (ADS). Assuming underwriters fully exercise their overallotment options, the company will issue a total of 8,903,760 ADS. Combined with a previously disclosed $320 million private placement, the IPO could raise up to $458.5 million in total funding.

WeRide's opening price matched its offering price at $15.5 but surged over 20% during trading hours, closing at $16.55, a 6.77% increase over the offering price. When calculating market capitalization, WeRide considers only the shares outstanding, excluding unexercised employee stock options (ESOPs). The current outstanding share count stands at approximately 738 million ordinary shares (equivalent to roughly 246 million ADS). WeRide's ESOP proportion is relatively high, with about 207 million unexercised shares (equivalent to 69 million ADS if exercised). The total fully diluted share count would be about 968 million ordinary shares (approximately 323 million ADS), with a pre-IPO valuation of $5 billion. If the IPO raises a total of $458.5 million, WeRide’s fully diluted post-IPO valuation would be approximately $5.46 billion.

WeRide's founder and CEO, Tony Han, stated, “After seven years of hard work and perseverance, WeRide embarks on a new chapter. We deeply appreciate the trust and support of our investors, clients, employees, and partners! Together, we’ve reached this important milestone. This successful listing marks a new beginning, and WeRide will continue to drive technological innovation, delivering safe, comfortable, and convenient autonomous driving products and services to users across more countries and regions.”

With this listing, WeRide has officially become the world’s first publicly traded universal autonomous driving company and the world’s first Robotaxi stock.

On October 11, at Tesla's “WE, ROBOT” event, the Cybercab autonomous taxi made its debut, featuring Tesla's characteristic cyberpunk design. The two-seater vehicle is equipped with Tesla’s full-featured FSD autonomous driving and is expected to go into production in 2026.

Four days later, WeRide launched its next-generation mass-produced Robotaxi, the GXR. Building on more than 1,800 days of public Robotaxi operation experience, the GXR is equipped with WeRide's proprietary full-scenario L4 autonomous driving software and hardware system, which reportedly enables it to handle complex scenarios such as rush-hour traffic, mixed pedestrian-vehicle environments, and nighttime highway driving.

Founded in 2017, WeRide’s core business spans L2 to L4 autonomous driving products and services, including Robotaxis, Robobuses, Robovans, autonomous sanitation vehicles, and Advanced Driver-Assistance Systems (ADAS). According to WeRide’s prospectus, from 2021 to the first half of 2024, the company recorded revenues of RMB 138 million, RMB 528 million, RMB 402 million, and RMB 150 million, respectively, with net losses of RMB 1.007 billion, RMB 1.298 billion, RMB 1.982 billion, and RMB 882 million, totaling over RMB 5.1 billion in net losses over three and a half years. Adjusted net losses were RMB 426 million, RMB 401 million, RMB 501 million, and RMB 316 million.

Despite revenue declines and significant losses, WeRide continues to “burn cash” on R&D, which represents a substantial portion of its costs. During the reporting period, R&D expenditures reached RMB 443 million, RMB 759 million, RMB 1.058 billion, and RMB 517 million, respectively, totaling RMB 2.777 billion, or about 54.07% of cumulative losses.

According to Frost & Sullivan, the Robotaxi market is expected to become commercially viable around 2026, with a projected global market size of $290 million in 2025, expanding to $66.6 billion by 2030. China is anticipated to become the largest Robotaxi market, with expected market sizes of $200 million in 2025 and $39 billion by 2030.

With funding challenges temporarily alleviated, WeRide now faces a series of significant tests.

First, compared to major players like Baidu and Tesla, WeRide still has considerable gaps in R&D capabilities and data application, making it difficult to compete directly with these giants. Benefiting from advantages in entry timing, technical team depth, and financial strength, Baidu’s Apollo and Tesla’s Autopilot have undergone multiple rounds of optimization and iteration, achieving high levels of maturity and stability. WeRide’s technical advantage lies primarily in specific applications, such as operating autonomous taxis on urban roads, but it still lacks comprehensiveness and depth in technology, particularly in sensor technology and algorithm optimization, requiring further R&D innovation.

Ultimately, WeRide’s challenge in breaking into the mainstream market stems from its lack of a strong “ally” with a foothold in the mainstream passenger vehicle market. In contrast, Pony.ai’s solutions have already been integrated into some Toyota and Lexus models, Momenta has established relatively deep partnerships with Mercedes-Benz and GAC Aion, and Haomo’s Hpilot intelligent driving system is installed in several models under Great Wall Motors.

Currently, WeRide’s primary partners include Yutong, a bus manufacturer, and Bosch, an automotive supplier. Although WeRide’s solutions have been deployed on Yutong buses and Chery Xingji Yuan vehicles, the scale and benchmark effect are far behind those of its competitors.

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