Robotaxis moving into Munich and trials in Tokyo and London signal that autonomous driving is shifting from pilot projects to real city streets. That matters for investors because when regulation, infrastructure and competition start to line up, expectations can reset quickly and fear of missing early movers grows. This article unpacks three stocks exposed to this robotaxi news and explains how each could benefit if the trend builds from here.

The stocks below are just a starting sample, and the full screen surfaced 18 more companies with equally compelling narratives that are not covered here. If you want to quickly identify potential leaders and analyze their fundamentals side by side, head straight into the Autonomous Driving & Robotaxi Leaders screener.

WeRide (WRD)

WeRide is one of the purest plays on autonomous driving in this screener, with a business built around robotaxis, robobuses, robovans and robosweepers, plus ADAS software and its WeRide Go ride hailing app across China and Europe. The company reports all of its CN¥830.8 million or so in revenue from auto manufacturer related business, reflecting its tight link to vehicle partners rather than consumer fares alone. At a market cap of about US$2.0b, WeRide is already a sizeable AV player for investors watching how robotaxis move from pilot to everyday transport.

Investors looking for exposure to robotaxis as a long term transport shift may want to understand WeRide more closely. It is a pure autonomous driving company with operations in China, Europe and the Middle East, and management points to driverless permits and partnerships in Abu Dhabi, Switzerland and Singapore as proof that cities are willing to test real commercial services. The opportunity is that an asset light model, data reuse across robotaxis and ADAS, and a growing global footprint could eventually support more stable earnings. The flip side is high R&D spend, continued losses and intense competition from tech groups and automakers. If WeRide can turn its growing list of permits into profitable fleets at scale, the story could look very different from today.

WeRide’s asset light, permit rich story can look very different once you see how the numbers stack up across its robotaxis, ADAS and global footprint. Start with the analysis report for WeRide and see what might be hiding in plain sight.

Hesai Group (HSAI)

Hesai Group is a LiDAR specialist that supplies the 3D sensing hardware many autonomous driving and robotaxi platforms rely on, including ADAS systems in passenger and commercial vehicles and a growing range of delivery, street sweeping and logistics robots. While the company does not break out revenue by product line here, its sales footprint is global, with about CN¥2.5b from Mainland China, CN¥591 million from North America and smaller but meaningful contributions from Europe and other regions. At a market cap of roughly US$2.8b, Hesai Group sits in the mid cap bracket for investors tracking enabling hardware in the Autonomous Driving & Robotaxi Leaders theme.

Hesai Group may warrant a closer look if you want exposure to the picks and shovels of autonomous driving rather than concentrating on a single robotaxi operator. Management highlights that robotaxi related business could represent around half of 2024 revenue and that demand is building not only in China through platforms like Baidu’s Apollo Go but also through non U.S. customers and lower cost robotic use cases that can scale in volume. A key attraction is a LiDAR and robotics platform that is already scaled and profitable, with shipments in the millions and links into wider ecosystems such as Nvidia’s AV stack. The flip side is a premium valuation, funding through dilution and higher risk borrowings, plus governance that is still maturing. Together, these factors mean Hesai Group can offer exposure to a growing autonomous ecosystem but can also bring sharp volatility if AV adoption or capital markets sentiment cools.

Hesai Group’s rapid LiDAR scale up and ties into global AV ecosystems could be masking a much bigger story. Scan the full 4 key rewards and 2 important warning signs (1 is major!) before the next major robotaxi twist hits.

XPeng (XPEV)

XPeng is a smart EV manufacturer that leans heavily into autonomous driving and advanced driver assistance features, which fits neatly with the Autonomous Driving & Robotaxi Leaders theme. It designs and sells a broad line up of electric sedans, SUVs, MPVs and compact models, all built on its own SEPA 2.0 platform and XOS Tianji in car operating system. XPeng generated around CN¥75.4b from auto manufacturer related business and currently has a market cap of about US$10.7b, which puts it among the larger listed EV companies pursuing future robotaxi ready capability.

XPeng may be worth attention for investors who see potential long term value in EV software, not just the hardware and batteries. Management is focusing on its VLA 2.0 autonomous driving stack and GX Robotaxi program, with plans for pilot passenger services and overseas road tests, while also pushing into humanoid robotics through the IRON project. At the same time, the company is still loss making and relies on external funding, in a fiercely competitive Chinese EV market. If XPeng turns its stated strengths in robotaxis and physical AI into recurring software and platform revenue on top of vehicle sales, the company’s profile could differ from what investors see today.

XPeng’s push into robotaxis and physical AI hints at a very different earnings profile once software and platform revenue kick in. Scan the analyst forecasts for XPeng next, especially the part that could flip the whole story.

Seeking Alternatives Before Everyone Else?

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• Explore the next wave of automation early by scanning the 37 robotics and automation stocks where curated picks connect robotics demand with observable business traction, not just hype.

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.