WeRide Inc. reported a record first-quarter revenue of RMB114.1 million ($16.5 million), marking a 57.6% year-over-year surge, driven by strong sales of robotaxis and Level 4 autonomous vehicles. Despite the top-line growth, the company's American depositary shares fell 7.1% in premarket trading to $7.16, as investors focused on persistent losses and escalating research and development spending.
Financial Highlights and Market Reaction
Product revenue more than doubled to RMB20.5 million, while service revenue climbed 49% to RMB93.7 million. Gross profit stood at RMB39.6 million, with gross margin holding steady at 34.7%. However, operating loss remained high at RMB431.0 million, only a marginal 1.2% improvement from the prior year. Net loss widened to RMB389.1 million from RMB385.1 million, as R&D expenses rose 11.5% to RMB363.3 million.
Robotaxi Fleet Expansion
As of April 30, WeRide's global robotaxi fleet reached approximately 1,300 vehicles, with nearly 1,000 operating in China. During the first quarter, each vehicle averaged over 17 daily orders, peaking at 28. The number of registered robotaxi users in China nearly doubled year-over-year, signaling growing consumer adoption.
International Ambitions and ADAS Push
Beyond China, WeRide is expanding into Singapore through a collaboration with Grab, offering fully autonomous paid robotaxi services in Dubai with Uber and the Roads and Transport Authority, and planning to deploy 1,200 robotaxis across Abu Dhabi, Dubai, and Riyadh by 2027. The company is also advancing its advanced driver-assistance systems (ADAS), with its WRD 3.0 software securing production design wins for nearly 30 vehicle models, including partnerships with GAC and Chery.
Industry Challenges and Regulatory Landscape
The broader robotaxi sector faces headwinds as investors shift focus from fleet size to revenue generation and cost control. Recent setbacks include Waymo's recall of nearly 3,800 robotaxis due to a software flaw, and China's suspension of new autonomous-vehicle permits following a Baidu Apollo Go outage. WeRide stated its services were unaffected by the regulatory pause.
Financial Position and Outlook
WeRide ended March with RMB6.22 billion in cash, time deposits, restricted cash, and financial assets, providing a substantial runway. CEO Tony Han highlighted "continued progress" in autonomous driving technology, while CFO Jennifer Li emphasized that product revenue growth of 116% underpinned overall gains, with R&D investment remaining a priority. The market will closely watch whether commercial ride revenue, vehicle sales, and ADAS deals can outpace cash burn in the coming quarters.