Hesai Technology Plans to Challenge Inclusion on “Chinese Military Companies” List
- None.
- None.
Insights
The inclusion of Hesai Technology on the U.S. Department of Defense’s list of 'Chinese Military Companies Operating in the United States' has significant legal and regulatory implications. The designation can trigger a series of restrictions on investments and may affect the company's ability to operate in the U.S. market. The company's decision to challenge this action legally suggests potential for a precedent-setting case that could influence future designations and the process by which they are made. It is crucial to monitor the lawsuit's progress, as it may impact not just Hesai but other foreign entities facing similar situations. The legal process may also reveal details about the criteria and evidence used for such designations, which could be vital information for investors and companies in the sector.
Being listed as a 'Chinese Military Company' by the DoD can lead to decreased investor confidence and potential divestment, affecting Hesai's stock performance and market valuation. Investors typically look for stability and clear regulatory environments and such a designation introduces uncertainty. The market will also be observing the company's ability to maintain its customer base and attract new business amidst these allegations. If Hesai's products are indeed for civilian use only, as stated by CEO Yifan 'David' Li, there may be a market overreaction creating a discrepancy between the company's actual performance and its stock price. This situation presents a critical juncture for Hesai, where clear communication and transparency with stakeholders become paramount to mitigate market concerns.
From a financial perspective, the implications of being added to the DoD list could be far-reaching for Hesai. Restrictions stemming from the designation may impede the company's access to capital and its ability to conduct business with U.S.-based entities, which could adversely affect its revenue streams and growth prospects. The announcement of the lawsuit indicates that Hesai is prepared to allocate resources to legally contest the designation, which could lead to increased legal expenses. However, if the lawsuit is successful, it could potentially restore investor confidence and stabilize the company's financial outlook. It is essential to analyze the company's financial health, including cash reserves and debt levels, to assess its capacity to withstand potential short-term disruptions.
PALO ALTO, Calif., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Hesai Technology Co., Ltd. (Nasdaq: HSAI) (“Hesai” or the “Company”) today responded to the Company’s inclusion on the U.S. Department of Defense’s (DoD) list of “Chinese Military Companies Operating in the United States.”
Yifan “David” Li, CEO of Hesai, stated, “DoD added Hesai to its list of “Chinese Military Companies Operating in the United States” without any explanation or justification, and we intend to file a lawsuit challenging this action. We believe this inclusion is unjust, capricious, and meritless. Hesai is not a military company. Hesai products are for civilian use only and have never been designed or validated for military use. This baseless inclusion undermines fair competition and ultimately imperils Americans’ safety by delaying and impeding the adoption of technology that could otherwise reduce the number of vehicle accidents and save lives.”
“Our inclusion on this list follows a one-year media smear campaign based on unsubstantiated, baseless and false allegations about Hesai lidars’ potential involvement with military use and surveillance. Additionally, we faced an intensive lobbying effort on Capitol Hill against us, all orchestrated by lidar competitors with the aim of exploiting anti-China sentiment in the U.S. to handicap the undisputed market leader for unfair commercial advantage. Nonetheless, Hesai remains undaunted in our commitment to developing market-leading lidar technologies that reduce accidents, save lives, and make global transportation safer for everyone, and will defend its freedom to do so.”
About Hesai Technology
Hesai Technology (Nasdaq: HSAI) is a global leader in lidar solutions. The company's lidar products enable a broad spectrum of civilian applications, including passenger and commercial vehicles with Advanced Driver Assistance Systems (ADAS), autonomous driving vehicles, and robotic applications such as last-mile delivery robots and Automated Guided Vehicles (AGVs). Hesai seamlessly integrates its in-house manufacturing process with lidar R&D and design, enabling rapid product iteration while ensuring high performance, high quality, and affordability. Hesai has established offices in Shanghai, Palo Alto, and Stuttgart, with customers spanning over 40 countries.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations and other statements regarding the Company’s future financial and operational performance, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; the trends in, expected growth and the market size of the ADAS, autonomous mobility and robotics industries; the market for and adoption of lidar and related technology; the Company’s ability to produce high-quality products with wide market acceptance; the success of the Company’s customers in developing and commercializing products using its solutions, and the market acceptance of those products; the Company’s ability to introduce new products that meet its customers’ requirement; the Company’s expectations regarding the effectiveness of its marketing initiatives and the relationship with its third-party partners; competition in the Company’s industry; the Company’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to the Company’s industry; the Company’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
For media inquiries, please contact:
Hesai Group
Jason Wallace, Vice President of Global Marketing
Email: jason.wallace@hesaitech.com
FAQ
Why is Hesai Technology Co., Ltd. (HSAI) in the news?
What is CEO Yifan 'David' Li's response to the inclusion?
What does Hesai believe about the inclusion?
Is Hesai a military company?
What is the ticker symbol for Hesai Technology Co., Ltd.?
