Aug. 20 at 9:33 AM
$WRD Couple of thoughts on the PT downgrades that WeRide received from several analysts:
Concerns on R&D spending
WeRide is showing that investments in R&D are paying off. Their Adas is a good example of that. The investments in their Sweeper portfolio, clearly is addressing a market that’s on the verge of taking off in China.
While the allocation of capital in Physical Ai, seems to give WeRide the tools to monetise on their data and infrastructure beyond the AV market.
Concerns on net loss
WeRide has enough runway for the coming years. I think we are past the point of concern that WeRide would need to raise capital, in order for it to survive. However, growing a global AV company, spread over multiple domains, requires significant capital investments. WeRide is placing several bets, hedging risks, all at once. It’s a balancing act, that’s working for now. The question the market has, once several markets scale at once, can it commit the needed capital?
That’s a fair concern.
