Hesai Group (NASDAQ: HSAI), a leading Chinese LiDAR manufacturer, saw its stock surge 5.71% in pre-market trading on Monday following the announcement of a significant contract expansion with a prominent U.S.-based robotaxi company.

The company revealed that it has secured a LiDAR supply agreement valued at over $40 million, cementing its position as the sole provider of both long-range and short-range LiDAR products for the unnamed U.S. robotaxi firm. This expanded partnership, with deliveries scheduled through the end of 2026, underscores Hesai's growing influence in the autonomous driving sector.

This latest deal comes just days after Hesai announced another exclusive LiDAR order from Motional, the U.S. autonomous driving company backed by Hyundai Motor. The string of high-profile contracts highlights Hesai's dominant market position, with the company claiming a 61% share in the global L4 autonomous driving segment for LiDAR technology. Investors appear to be responding positively to Hesai's continued success in securing major clients in the competitive autonomous vehicle market, driving the stock's pre-market rally.