Hesai Group (NASDAQ: HSAI), a global leader in lidar technology, saw its stock surge 5.63% in pre-market trading on Thursday. The significant uptick comes on the heels of a major announcement regarding a partnership with autonomous mobility company Pony.ai.

Hesai revealed that its long-range, automotive-grade AT128 lidar has been chosen as the primary lidar solution for all three mass production models of Pony.ai's new seventh-generation Robotaxi. Each vehicle will be equipped with four of Hesai's AT128 lidar sensors, underscoring the critical role of Hesai's technology in enabling advanced autonomous driving capabilities. This selection for Pony.ai's next-generation autonomous fleet marks a significant milestone in the partnership between the two companies.

The collaboration highlights Hesai's strong position in the autonomous driving industry. The AT128 lidar, with its impressive specifications including a 120° ultra-high-resolution field of view and a 200-meter detection range, enables comprehensive 360° obstacle detection. This partnership not only validates Hesai's technology but also positions the company for potential growth as autonomous driving continues to advance. Investors appear to be reacting positively to this news, seeing it as a strong indicator of Hesai's future prospects in the rapidly evolving autonomous vehicle market.