NASDAQ-listed WeRide shares have soared since a filing last week revealed chip giant Nvidia had added the autonomous vehicle technology company to its portfolio of AI-related stocks.
Nvidia runs a portfolio of exciting early-stage public technology companies with deep roots in AI. In many instances, Nvidia has an existing partnership with the companies it acquires stakes in. Indeed, any company with substantive AI-related operations will likely have Nvidia chips in its technology stack.
Other holdings disclosed in Nvidia’s Form 13F filing were Arm Holdings, Applied Digital, Nebius, and Recursion Pharmaceuticals.
WeRide is a fascinating addition to the portfolio as it signals Nvidia’s recognition of the opportunity in autonomous vehicles as the adoption of the technology builds momentum.
WeRide has developed level 4 autonomous vehicle technology that is being tested and rolled out in 30 cities across nine countries, including the US, UAE and China.
Level 4 autonomous vehicles operate completely autonomously without the intervention of the driver, and these vehicles can operate without a driver in the car. There are few other companies operating level 4 AVs at any scale.
Perhaps the most notable element of its business model is that WeRide isn’t a vehicle manufacturer. Rather, it has partnered with organisations such as Nissan and Geely to bring their technology to market through a range of vehicle types.
WeRide’s autonomous vehicle product portfolio includes Robotaxis, Robobuses, Robovans, and Robosweepers, alongside advanced driver-assistance systems (ADAS).
While Nvidia’s investment doesn’t guarantee WeRide any commercial success – or even returns on the stock from this point after it more than doubled on news of Nvidia’s stake – it does underscore the momentum in the autonomous vehicle space.
Forecasters have predicted the global autonomous vehicle industry will be worth between $130bn – $13 trillion by 2030. It’s a large range, and we’re sure other consultancies and investment banks will have wildly different estimates. Nonetheless, there is a race for companies to set out of their AV stalls.
The early movers in this industry and those companies that successfully build relationships with consumers near the genesis of adoption will be well-placed to become major players in this fast-moving industry.
Tesla is a great example of the enthusiasm around autonomous vehicles. Despite Elon Musk’s interference in European politics, which played a part in sending new registrations of Teslas down 60% in Germany in January, Tesla is still worth more than $1 trillion.
The stock’s resilience can be attributed not to the hope that Tesla car sales will rebound but to the company’s autonomous vehicle and robotaxi ambitions.
“The autonomous future is here,” Musk said when he unveiled the autonomous Cybercab last year.
UK & Europe
Although much of the action is taking place in China and the United States, several companies are doing very interesting things in the UK and Europe.
Renault Group is one of WeRide’s European partners with a strategy to launch a Level 4 minibus integrated with WeRide’s technology.
London-based Wayve is developing AI end-to-end foundational models for AVs and has recently launched testing in San Francisco. Their approach has many similarities with WeRide.
AIM-listed Tekcapital is preparing for the IPO of portfolio company Guident which has developed autonomous vehicle safety technology that provides teleoperation functionality to get vehicles out of harms away.
Another example is UK-based and privately held Evie Autonomous. Evie have produced fully autonomous pods that have been deployed at Heathrow to shuttle passengers and cargo.