WeRide to raise robotaxi investment despite heavy losses

WeRide Inc. plans to increase investment in its global robotaxi expansion efforts despite ongoing losses, according to CEO Tony Han.

The Chinese autonomous driving company reported a net loss of 406.5 million yuan (US$56.4 million) for the quarter ending June 30, a slight decrease from the previous year.

Revenue rose 61% to 127.2 million yuan (US$17.6 million), while operating expenses, including R&D, rose 42%.

WeRide holds self-driving permits in six countries, including China, the US, and Saudi Arabia. Its US-listed shares have declined over 30% this year.

The company did not comment on reports regarding a possible secondary listing in Hong Kong.

Chinese autonomous driving firms like WeRide, Pony.AI, and Baidu’s Apollo Go are expanding in the Middle East, Europe, and Southeast Asia, although largely excluded from the US. Meanwhile, Waymo has started testing in Tokyo, and Tesla’s testing remains in the US.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Robotaxi unit economics show promise despite company-wide losses

WeRide’s aggressive spending strategy makes more sense when examining the underlying business metrics rather than just headline losses.

The company’s robotaxi revenue surged 836.7% year-over-year to $6.4 million in Q2 2025, now representing 36.1% of total revenue1. This rapid growth occurred while WeRide expanded operations to 10 cities across six countries2.

More telling is that WeRide’s gross margin improved to 28.1% while maintaining $570.6 million in cash reserves2. This suggests the core robotaxi service is approaching viable unit economics even as the company invests heavily in expansion infrastructure.

The pattern is similar to other platform businesses where early losses mask improving fundamentals at the service level. WeRide’s willingness to “spend and build out our sales network” reflects confidence that individual market profitability can eventually offset corporate-level investment costs.

2️⃣ Geographic restrictions create international opportunities for Chinese robotaxi firms

WeRide’s international focus stems from a fundamental market access challenge that’s reshaping the global autonomous vehicle landscape.

Chinese robotaxi companies are “largely shut out of the US” but have signed deals with Uber to deploy vehicles in Middle East markets, while making inroads in Europe and Southeast Asia[original article]. WeRide specifically tripled its Abu Dhabi fleet since December 2024 and launched fully driverless services in Saudi Arabia1 3.