MOMENTA-W (ASX: 06880) shares surged more than 10% in early trading. At the time of writing, the stock was up 4.67% to HK$273.6, with a turnover of HK$13.73 million.

The catalyst for the move is news that on July 20th, the mobility brand of SAIC Motor, Xiangdao Chuxing, officially launched the SAIC Robotaxi mass-production custom vehicle project. This project has now entered the substantive implementation phase, with the dedicated Robotaxi pre-installed mass-production vehicle model scheduled to make its official debut in 2027.

It is reported that in May 2025, Xiangdao Robotaxi entered into a strategic cooperation with Momenta, launching a fleet of L4-level Robotaxi vehicles in Shanghai's Pudong district based on pre-installed mass-production definitions for scalable operations.

In a research note, UBS stated that Momenta has the broadest coverage of OEMs in the industry. Its asset-light business model, coupled with strong revenue growth, is expected to provide the company with operational leverage to generate high profit margins, thereby supporting a higher price-to-sales valuation. With rapid technological upgrades and cost reductions, and driven by expanding automaker coverage, increased vehicle installations, and the Robotaxi and Robovan businesses, UBS forecasts that Momenta's revenue will achieve a compound annual growth rate of approximately 50% between 2025 and 2030, potentially reaching breakeven by 2028.