Technology Sector Sees Gains as WeRide Secures Belgian Autonomous Permit

WeRide (WRD) shares advanced by 17.2% on Friday, closing at $10.46, following the announcement that the company has secured Belgium's first federal test permit for Level 4 autonomous shuttle operations. This development allows WeRide to initiate public road trials in Leuven, signaling a significant step in its European expansion strategy. The market capitalization for WeRide stands at $2.98 billion.

Belgian Permit Details and Global Expansion

The permit, signed by Minister of Mobility, Climate and Ecological Transition Jean-Luc Crucke, authorizes WeRide's Robobus to operate on an 8km route with nine stops in Leuven-Heverlee. This pilot commercial shuttle service will be conducted in collaboration with local partners, including Flemish public transport operator De Lijn, the City of Leuven, and mobility consultancy Espaces-Mobilités. Initial public road testing with a safety officer is anticipated in the coming weeks, with plans for De Lijn to operate a pilot autonomous shuttle service from mid-November through January 2026, pending Flemish authorities' approval.

This achievement further cements WeRide's global footprint, making it the sole technology company to hold autonomous driving permits in seven countries: Belgium, China, France, the UAE, Saudi Arabia, Singapore, and the US. Jennifer Li, CFO and Head of International of WeRide, emphasized the strategic importance, stating, "As an AV company, our goal is always to achieve safe Level 4 fully driverless operations. This test permit is an important step on that journey."

Market Reaction and Underlying Financial Dynamics

The positive market reaction reflects increased investor confidence in WeRide's expanding operational reach and its enhanced credibility within the nascent autonomous vehicle market. The Belgian permit is perceived as a functional green light for cross-border expansion, potentially catalyzing further international partnerships and increased uptake of commercial services.

However, a detailed financial analysis reveals a complex picture. Despite aggressive expansion, WeRide remains unprofitable, with forecasts projecting continued losses over the next three years. The company anticipates a negative return on equity of -6.9% in three years. While revenue growth is robust, projected at 84.1% per annum (significantly higher than the broader U.S. market's 9.7%), this aggressive expansion incurs substantial costs. In Q2 2025, total revenue reached US$17.8 million, a 60.8% year-over-year increase, driven significantly by an 836.7% surge in Robotaxi revenue to US$6.4 million. Operating expenses, however, increased 42.5% year-over-year to $487.8 million, with research and development (R&D) consuming 65.4% of that total.

Broader Context and Industry Position

WeRide positions itself as a global leader and first mover in the autonomous driving industry, notably being the first publicly traded Robotaxi company. The company was recently named in Fortune Magazine's 2024 and 2025 "The Future 50" list and included in the Nasdaq Golden Dragon China Index. Its strategy involves significant investment in international expansion, technological innovation, and strategic partnerships to navigate the path to profitability, which analysts project could occur around 2028-2029.

The company's liquid assets are strong, with cash and cash equivalents totaling US$570.6 million as of June 30, 2025, and $4.27 billion in cash as of September 21, 2025. However, the Price-to-Sales (P/S) ratio stands high at 64.67, suggesting a potentially inflated valuation relative to its current revenue performance. Furthermore, existing shareholders have experienced significant dilution, with total shares outstanding increasing by 755% year-over-year from June 2024 to June 2025, as growth is financed through stock issuance.

Strategic collaborations, such as expanded partnerships with Uber for deploying robotaxi services in 15 additional cities and a recent venture with Grab to launch the Ai.R autonomous vehicle service in Singapore, are crucial for market entry and scaling operations. WeRide is also investing in technological advancements, including its HPC 3.0 Platform, co-developed with Lenovo and powered by NVIDIA DRIVE AGX Thor chips, aimed at reducing hardware costs.

Analyst Outlook and Forward Implications

Analyst sentiment remains mixed but generally bullish on the long-term potential. UBS initiated coverage with a "Buy" rating and a $12.00 price target. The broader consensus among analysts points to a "Buy" rating with an average price target of $22, implying a potential 112.77% increase from current levels. However, some analyses, including InvestingPro, suggest the company is overvalued at current levels, and fair value estimates vary drastically, from CNY0.39 to CNY203.94, highlighting divergent views on its future profitability.

The global robotaxi market is projected for extraordinary growth, potentially reaching $10 trillion by 2030. WeRide's strategic maneuvers, including regulatory approvals and key partnerships, position it to capitalize on this expanding market. Investors should monitor the company's progress toward achieving profitability, its ability to manage operational expenses effectively, and the impact of ongoing share dilution. The significant growth potential, juxtaposed with persistent unprofitability and a high valuation, positions WeRide (WRD) as a long-term investment opportunity with inherent volatility and risk.