- Wednesday, October 16, 2024
Hesai Group, a technology company specializing in lidar radar technology, saw its shares plummet by 30% to $4.09 on Thursday. This drop comes after the company learned that it had been included in the U.S. Defense Department's list of "Chinese Military Companies."
Stock Performance Takes a Hit
Hesai's stock had already closed down 7% in Wednesday's session, and this recent setback has resulted in a staggering 58% decline over the past three months.
Hesai Denies Accusations
In response to its inclusion on the list, Hesai vehemently denies any wrongdoing. The company asserts that its lidar radar technology is exclusively developed for civilian use and is not sold to any military organization, domestic or international.
Adherence to Regulations
Hesai emphasizes that its lidar products conform to the guidelines set by the Bureau of Industry and Security of the U.S. Department of Commerce. These regulations classify Hesai's products as EAR99, indicating their unsuitability for military applications.
Business Impact Expected to be Minimal
Despite this setback, Hesai remains optimistic about its business prospects. The company does not anticipate any significant disruptions as a result of its inclusion on the Defense Department's list. It is important to note that this listing only restricts the Defense Department from purchasing products from the affected entities, and Hesai states that it has not previously sold any products to the Defense Department or other military parties.
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