Hesai Group Shocker - 'Military Company' Label by US DoD Shakes Market Confidence

Hesai Group HSAI shares are plummeting on Thursday.

Yesterday, in a press release, the company expressed its disppointment for being added to the U.S. Department of Defense’s list of “Chinese Military Companies.” 

“We believe this inclusion is unjust, capricious, and meritless,” the company said.

According to the company, Hesai lidars are for civilian use only and have never been designed or validated to military specifications. 

All of Hesai’s lidar products are classified as EAR99 by the Bureau of Industry and Security of the U.S. Department of Commerce, which indicates that the products are not suitable for any military application.

The company does not expect the latest development to cause any significant disruption to business. 

The list only prevents the U.S. Department of Defense from purchasing products from included entities. 

“To the best of our knowledge, Hesai has not sold any products to the U.S. Department of Defense or any other military parties in the past, nor will we do so in the future,” the company added.

Hesai touted that its products are preferred and trusted by leading OEMs, manufacturers, autonomous driving companies, and robotics companies in over 40 countries. 

Price Action: HSAI shares are trading lower by 30.9% to $4.03 on the last check Thursday.