Hesai Group announced that Li Auto has selected it as the exclusive lidar supplier for every model in Li Auto’s next‑generation assisted‑driving platform, covering the L, i, and MEGA vehicle lines. The announcement came the same day the company released its Q3 2025 financial results, underscoring the strategic importance of the partnership.
Hesai’s Q3 2025 revenue reached RMB 795 million ($112 million), a 47% year‑over‑year increase driven by robust demand for its high‑performance lidar solutions and a favorable product mix. Net income rose to RMB 256 million ($36 million), turning a loss into a profit thanks to disciplined cost management and the elimination of non‑recurring engineering services that had weighed the prior year. Shipments climbed 229% year‑over‑year to 441,398 units, reflecting strong adoption across both consumer and commercial segments.
The company’s non‑GAAP earnings per share of $0.28 beat analyst expectations by $0.17, a margin that reflects effective cost control, operational leverage, and a shift toward higher‑margin lidar models. The beat was amplified by a 4% decline in raw material costs and a 3% increase in average selling price, which together offset the impact of higher logistics expenses.
Management raised its full‑year GAAP net income guidance to a range of RMB 350 million–RMB 450 million, up from the previous outlook of RMB 300 million–RMB 400 million. The adjustment signals confidence in sustained demand for lidar, improved gross margins, and the expected revenue contribution from the new Li Auto partnership. The company also reiterated its guidance for revenue growth, citing continued expansion in the autonomous driving market and the rollout of its next‑generation lidar platform.
The exclusive supply agreement with Li Auto is a long‑term, multi‑vehicle contract that secures a steady revenue stream and strengthens Hesai’s foothold with a leading new‑energy OEM. Li Auto’s commitment to standardizing lidar across all new models—having already delivered over 1.46 million vehicles as of October 31 2025—positions Hesai to capture a significant share of the rapidly growing autonomous driving market. The deal also aligns with industry trends toward multi‑lidar setups for Level 3 autonomy, providing a tailwind for Hesai’s product roadmap.
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