Almost one year after its Nasdaq debut, pioneering Chinese autonomous vehicle (AV) developer WeRide (NASDAQ:WRD) has endured a rollercoaster ride that’s left investors queasy.
Priced at $15.50 per American Depositary Share (ADS) in its initial public offering, the stock has tumbled roughly 25% to around $11.53 per share amid broader market jitters and sector headwinds. Harsher still, shares languish 74% below the stratospheric peak of $44 per share they hit in February. That’s when Nvidia (NASDAQ:NVDA) unveiled a $24.7 million, 1.7 million-share stake that ignited a trading frenzy, doubling the stock’s value in days.
Nvidia’s early backing, rooted in a 2017 partnership powering WeRide’s AI-driven fleet with its DRIVE Hyperion platform, briefly crowned WRD stock as the AV darling. Yet, the hype has faded, leaving Nvidia’s investment nursing an almost 20% paper loss at current prices.
On Friday, though, signs of life returned as WRD surged 10% after announcing its Robobus snagged Belgium’s first federal Level 4 autonomy test permit. Once testing wraps, the vehicle will shuttle passengers along an 8 kilometer Leuven-Heverlee loop for two months, partnering with local transport operator De Lijn and the City of Leuven.
“This test permit is an important step…allowing us to demonstrate our technology in real-world conditions on public roads while setting a strong precedent for future autonomous vehicle testing across Europe,” WeRide CFO and Head of International Jennifer Li said.
With this European foothold, NVDA’s steadfast support, and shares trading at a steep discount, is WeRide poised for a comeback — or just another AV road hazard?
A Grand Vision to Reshape Urban Mobility
At its core, WeRide aims to revolutionize transportation by deploying Level 4 (L4) autonomous tech — vehicles that navigate complex environments in defined areas without human drivers.
Founded in 2017, the company leverages its proprietary WeRide One platform, a modular system blending AI, sensors, and Nvidia-fueled computing for everything from ride-hailing to sanitation.
The goal is to slash urban congestion, emissions, and costs while scaling to a $10 trillion global AV market by 2030. CEO Tony Han envisions “safer, smarter, and more sustainable” cities, where AVs handle 24/7 operations without fatigue. With over 1,800 vehicles tested or deployed, WeRide’s data trove — millions of miles logged — fuels iterative improvements, positioning it as a first-mover against rivals like Alphabet‘s (NASDAQ:GOOG)(NASDAQ:GOOGL) Waymo and Tesla‘s (NASDAQ:TSLA).
Developing a Global Footprint
WeRide’s international swagger, however, is what sets it apart, with AV permits in a league-leading seven countries: China, Belgium, France, UAE, Saudi Arabia, Singapore, and the U.S.
Operations span over 30 cities across 11 nations, blending dense Asian hubs with Western outposts. In Europe, the fresh Belgian nod joins France’s March L4 driverless permit and Switzerland’s robotaxi launches in Furttal.
Middle East expansions include holding a nationwide self-driving license in UAE since 2023. In partnership with Uber Technologies (NYSE:UBER), WeRide piloted robotaxis in Abu Dhabi and Dubai and began rolling out service this summer. Saudi Arabia’s recent approval also greenlights nationwide robotaxi operations by year-end, tapping into Riyadh’s booming economy.
In the U.S., testing in California and Arizona lays the groundwork for a commercial push, but Asia remains WeRide’s home base. China’s Guangzhou boasts the world’s first 24/7 fully driverless robotaxi fleet, while Singapore’s robosweepers clean streets profitably. This mosaic of geographies offsets the risks of being solely China-centric, while also diversifying revenue amid regulatory challenges.
From Robotaxis to Robosweepers
Although robotaxis dominate WeRide’s business — with 50 units growing potentially to hundreds for Uber’s Middle East fleet — in Shenzhen, a new L4 Robobus line ferries passengers driverlessly in Luohu District and robovans shuttle goods in Guangzhou’s ports. Robosweepers — autonomous street cleaners — generate steady cash in Dongguan and Zhengzhou.
Second-quarter earnings showed revenue jumping 60% year-over-year to $17.8 million (robotaxi revenue surged 837%), with net losses narrowing slightly to $56.7 million on R&D expenditures. Partnerships, though, amplify WeRide’s scale: Uber’s $100 million infusion helped fuel expansions to 15 cities; a partnership with Renault Group for miniBus service at the French Open and elsewhere; and Zurich Airport is testing robobuses for operation.
Still, regulatory delays, high capital expenditures, and competition have thwarted WeRide’s steady ascent. Even so, its dominant share of China’s robotaxi market as the industry first-mover suggests it has traction.
Key Takeaways
WeRide’s story blends bold innovation with brutal volatility, but at $11.53 per share, it’s a speculative buy for AV believers. Nvidia’s endorsement and the Belgian breakthrough indicate it still has momentum, but with the hype from the AI chipmaker’s investment long since faded, the risks it faces remain: geopolitical friction, ongoing losses, and a $3 billion market valuation dwarfed by better-financed peers.
For diversified, risk-tolerant portfolios, WRD offers upside potential in a sector projected to hit $650 billion by 2035, but more conservative investors should steer toward stabler AV plays like Uber, Alphabet, or even Nvidia itself. WeRide is not above hitting more potholes, but at this discount, it’s worth a test drive.
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