WeRide autonomous vehicle built to carry 10 passengers on a public road.

EXCLUSIVE: Chinese robotaxi startup WeRide gets approval to carry passengers in California

by with No Comment Tech

WeRide autonomous vehicle built to carry 10 passengers on a public road.

Image Credits: WeRide

Chinese autonomous vehicle company WeRide has received the green light to test its driverless vehicles with passengers in California. 

The step comes as WeRide begins the process to go public on the U.S. stock market at a nearly $5 billion valuation. The timing also coincides with reports that the Commerce Department is considering a ban on Chinese connected vehicles — which include autonomous vehicles — due to national security concerns. 

As of August 2, WeRide holds two permits from the California Public Utilities Commission: A drivered pilot permit and a driverless pilot permit. Both allow WeRide to test its vehicles on public roads while carrying passengers — the former with a human safety driver behind the wheel, and the latter without one. The permits do not yet allow WeRide to charge passengers for rides, and the service isn’t available to the general public. 

WeRide did not respond to requests for further details, including whether it has started transporting passengers in its autonomous vehicles. A spokesperson from the CPUC told TechCrunch WeRide is permitted to test in San Jose and nearby areas, and that the company has 12 active vehicles on its equipment list today.

WeRide has been testing its vehicles autonomously without passengers on public roads in San Jose since 2021 after receiving permits from the California Department of Motor Vehicles. 

The company’s rollout in California has been slow. In 2023, WeRide’s vehicles drove just 42,391 miles autonomously in the state, per DMV data. By comparison, Waymo drove over 9 million autonomous miles. 

WeRide has shared little about its plans for commercializing in California. Its CPUC permit notes that WeRide is “limited to the use of vehicles seating fewer than 16 people, including the driver.” This stipulation — which isn’t in Waymo’s, Cruise’s or Zoox’s permits — could be in regards to WeRide’s different vehicle types. In addition to a robotaxi, WeRide has also built a robobus, which seats up to 10 passengers. 

WeRide touts itself as the first autonomous driving company in the world that is operating and testing in 30 cities across seven countries. The startup holds permits to drive autonomously on public roads in four countries: China, Singapore, the UAE and the U.S. Aside from its robotaxi and robobus, WeRide is also working on a robovan (for goods delivery), a robotic street sweeper and ADAS for OEMs.

EXCLUSIVE: Chinese robotaxi startup WeRide gets approval to carry passengers in California

by with No Comment Tech

Image Credits: WeRide

Chinese autonomous vehicle company WeRide has received the green light to test its driverless vehicles with passengers in California. 

The step comes as WeRide begins the process to go public on the U.S. stock market at a nearly $5 billion valuation. The timing also coincides with reports that the Commerce Department is considering a ban on Chinese connected vehicles – which include autonomous vehicles – due to national security concerns. 

As of August 2, WeRide holds two permits from the California Public Utilities Commission approved two permits: A drivered pilot permit and a driverless pilot permit. Both allow WeRide to test its vehicles on public roads while carrying passengers – the former with a human safety driver behind the wheel, and the latter without one. The permits do not yet allow WeRide to charge passengers for rides, and the service isn’t available to the general public. 

WeRide did not respond to requests for further details, including whether it has started transporting passengers in its autonomous vehicles. A spokesperson from the CPUC told TechCrunch WeRide is permitted to test in San Jose and nearby areas, and that the company has 12 active vehicles on its equipment list today.

WeRide has been testing its vehicles autonomously without passengers on public roads in San Jose since 2021 after receiving permits from the California Department of Motor Vehicles. 

The company’s rollout in California has been slow. In 2023, WeRide’s vehicles drove just 42,391 miles autonomously in the state, per DMV data. By comparison, Waymo drove over 9 million autonomous miles. 

WeRide has shared little about its plans for commercializing in California. Its CPUC permit notes that WeRide is “limited to the use of vehicles seating fewer than 16 people, including the driver.” This stipulation – which isn’t in Waymo’s, Cruise’s or Zoox’s permits – could be in regards to WeRide’s different vehicle types. In addition to a robotaxi, WeRide has also built a robobus, which seats up to 10 passengers. 

WeRide touts itself as the first autonomous driving company in the world that is operating and testing in 30 cities across seven countries. The startup holds permits to drive autonomously on public roads in four countries: China, Singapore, the UAE and the U.S.. Aside from its robotaxi and robobus, WeRide is also working on a robovan (for goods delivery), a robotic street sweeper, and ADAS for OEMs.

China’s autonomous vehicle startup WeRide seeks US IPO at $5B valuation

by with No Comment Tech

WeRide Robotaxi fleet

Image Credits: WeRide

WeRide, a Chinese autonomous vehicle company, is officially gearing up for a U.S. public debut, over a year after China started easing its effective ban of foreign IPOs. The company is seeking a valuation as high as $5.02 billion in its initial public offering.

WeRide expects to raise about $96 million from its offering, or $111.3 million if its underwriters exercise their over-allotment option in full, assuming an IPO share price of $17 per American Depository Share (ADS). The company is offering 6.45 million ADSs at a price range of $15.50 and $18.50 per share, so it could even raise as much as $119.4 million in the IPO.

On top of that, certain investors have already agreed to purchase shares worth $320.5 million in a concurrent private placement. For example, Alliance Ventures, the venture arm of the Renault Nissan Mitsubishi Alliance, has agreed to buy $97 million worth of shares. Other investors include JSC International Investment Fund, Get Ride, and Beijing Minghong, according to a regulatory filing.

The filing comes after Bloomberg reported that WeRide is seeking up to $400 million in its IPO and private placement, citing sources familiar with the matter. About $100 million of that would come from the IPO and around $200 million to $300 million in the placement.

WeRide did not respond in time to comment.

If and when WeRide goes public, this will be the largest IPO by a Chinese company on the U.S. stock market since Geely-owned luxury EV startup Zeekr began selling shares on the New York Stock Exchange in May. Zeekr’s stock has fallen 48% since its debut. 

WeRide initially filed confidentially to go public in the U.S. in March 2023. The AV company has raised a total of $1.39 billion at a $5.11 billion valuation, per PitchBook data. But WeRide hasn’t raised a private round since 2022, and VCs have pulled back from writing large checks for autonomous vehicle companies with long roads to profitability. If WeRide hopes to scale and stay competitive, it’ll need to access the public markets. 

The company holds permits to operate autonomously in China, the UAE and Singapore. It also has permits to test with a driver and without a driver in California, and is actively testing in San Jose. Aside from a publicly accessible robotaxi operation, WeRide is working on a driverless robobus, robovan (for goods delivery) and robosweeper. The company also offers advanced driver assistance systems and plans to sell them to OEMs. 

WeRide’s revenue for the first six months of 2024 was $20.7 million, which is lower than the first half of 2023’s revenue of about $25.5 million, according to a regulatory filing. That’s on a loss of $121.3 million for the first half of 2024, and of $100.9 million in the first half of 2023. 

Per WeRide’s filing, the company plans to spend 35% of the proceeds from its IPO on R&D; 30% on commercialization and operation of its autonomous driving fleets, as well as marketing activities to expand to new markets; 25% on capital expenditures like the purchase of test vehicles; and the remaining 10% for general corporate purposes.

WeRide isn’t the only Chinese AV company that’s looking to try its luck on the U.S. markets. Pony.ai, one of its main competitors, is also reportedly preparing for a U.S. IPO again, after its previous efforts fell apart in 2021. Pony was eyeing a public debut at a $12 billion valuation through a SPAC merger, but put it on hold as it struggled to gain assurances from Beijing that it wouldn’t become a target of a crackdown against Chinese firms going public on foreign exchanges. 

This article has been updated to include WeRide’s estimated valuation, the total amount it hopes to raise, and information about investment from private placement. This article was originally published August 9 at 10:15 am PT.

WeRide Robotaxi fleet

China’s autonomous vehicle startup WeRide prepares for a US IPO

by with No Comment Tech

WeRide Robotaxi fleet

Image Credits: WeRide

WeRide, a Chinese autonomous vehicle company, is officially gearing up for a U.S. public debut, over a year after China started easing its effective ban of foreign IPOs. 

WeRide registered 1 billion American Depository Receipts (ADRs) at a maximum price of $0.05, with the aggregate offering coming in at $50 million, per a Friday filing with the Securities and Exchange Commission.  

ADRs represent shares in a foreign company that are traded on U.S. stock exchanges, and offering them is a strong indication that WeRide is ready for a U.S. IPO.

The filing comes after Bloomberg reported that WeRide is seeking up to $400 million in its IPO and private placement, citing sources familiar with the matter. About $100 million of that would come from the IPO and around $200 million to $300 million in the placement. If Bloomberg’s sources are correct, that means the $50 million of ADSs could represent a portion of the IPO, or WeRide could be issuing more shares at a later date. 

WeRide did not respond in time to comment.

If and when WeRide goes public, this will be the largest IPO by a Chinese company on the U.S. stock market since Geely-owned luxury EV startup Zeekr began selling shares on the New York Stock Exchange in May. Zeekr’s stock has fallen 48% since its debut. 

WeRide initially filed confidentially to go public in the U.S. in March 2023. The AV company has raised a total of $1.39 billion at a $5.11 billion valuation, per PitchBook data. But WeRide hasn’t raised a private round since 2022, and VCs have pulled back from writing large checks for autonomous vehicle companies with long roads to profitability. If WeRide hopes to scale and stay competitive, it’ll need to access the public markets. 

The company holds permits to operate autonomously in China, the UAE and Singapore. It also has permits to test with a driver and without a driver in California, and is actively testing in San Jose. Aside from a publicly accessible robotaxi operation, WeRide is working on a driverless robobus, robovan (for goods delivery) and robosweeper. The company also offers advanced driver assistance systems and plans to sell them to OEMs. 

WeRide’s revenue for the first six months of 2024 was $20.7 million, which is lower than the first half of 2023’s revenue of about $25.5 million, according to a regulatory filing. That’s on a loss of $121.3 million for the first half of 2024, and of $100.9 million in the first half of 2023. 

WeRide isn’t the only Chinese AV company that’s looking to try its luck on the U.S. markets. Pony.ai, one of its main competitors, is also reportedly preparing for a U.S. IPO again, after its previous efforts fell apart in 2021. Pony was eyeing a public debut at a $12 billion valuation through a SPAC merger, but put it on hold as it struggled to gain assurances from Beijing that it wouldn’t become a target of a crackdown against Chinese firms going public on foreign exchanges.