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In the first quarter of 2026, Hesai Group reported net revenues of CNY 680.56 million, returned to profitability, and disclosed its role as Mercedes-Benz's lidar partner and confirmed supplier for Level 3 autonomous models in Europe and China, supported by its new Galileo manufacturing center in Thailand.
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An interesting aspect of this announcement is how Hesai is pairing its Mercedes-Benz lidar supply role with new technologies like the Picasso 6D full-color SPAD-SoC, signaling a push beyond core hardware into broader spatial intelligence solutions.
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Next, we'll examine how Hesai's newly confirmed lidar supply role for Mercedes-Benz could influence the company's existing investment narrative and outlook.
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Hesai Group Investment Narrative Recap
To own Hesai, you have to believe lidar will remain central to advanced driver assistance and that Hesai can turn design wins into durable, profitable volume. The Mercedes-Benz Level 3 supply role and Q1 2026 return to profitability support the near term catalyst of growing global OEM adoption, while the biggest current risk still looks like margin pressure from aggressive pricing and capital intensive capacity expansion, which this news does not remove.
Among recent developments, the company's Q2 2026 guidance for net revenues of RMB 850 million to RMB 900 million, implying roughly 20% to 27% year over year growth, feels especially relevant. It reinforces how management is framing demand momentum around programs like Mercedes-Benz and newer platforms such as the Picasso 6D SPAD-SoC and Kosmo SGI, which together could matter for both the lidar shipment story and Hesai's shift toward broader spatial intelligence offerings.
Yet in contrast to the growth story, investors should also be aware of how rising competition and aggressive pricing could eventually...
Read the full narrative on Hesai Group (it's free!)
Hesai Group's narrative projects CN¥8.1 billion revenue and CN¥1.4 billion earnings by 2029. This requires 38.5% yearly revenue growth and an earnings increase of about CN¥1.0 billion from CN¥435.9 million today.
Uncover how Hesai Group's forecasts yield a $30.36 fair value , a 50% upside to its current price.
Exploring Other Perspectives
Lowest estimate analysts took a harsher view, assuming revenue of about CN¥7.3 billion by 2029 and margin compression, highlighting how geopolitical and technology risks could reshape the Mercedes-Benz win's impact.
Explore 9 other fair value estimates on Hesai Group - why the stock might be worth over 2x more than the current price!
Reach Your Own Conclusion
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
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A great starting point for your Hesai Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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Our free Hesai Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hesai Group's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HSAI .
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