Hesai Group (HSAI) Covered Calls

Hesai Group is a global leader in three-dimensional light detection and ranging (LiDAR) solutions, providing the critical sensing technology for autonomous mobility. Based in Shanghai, the firm develops high-performance LiDAR sensors that enable machines to perceive and understand their surroundings with high precision. By integrating proprietary chipsets with advanced manufacturing, the company serves the automotive, robotics, and industrial automation markets.

You can sell covered calls on Hesai Group to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for HSAI (prices last updated Fri 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Hesai Group (HSAI) is a dominant force in the global LiDAR market, recognized for its massive manufacturing scale and technological leadership. The company is a primary supplier to many of the world’s leading electric vehicle (EV) and autonomous driving companies. By utilizing a proprietary "LiDAR-on-a-chip" architecture, the firm has successfully reduced the cost and complexity of 3D sensing, making it a standard safety feature for mass-market passenger vehicles.

Physical AI and 2026 Capacity Expansion

In early 2026, the company announced a major strategic shift toward becoming a key enabler of "Physical AI." This initiative focuses on providing the "eyes" and "intelligence" for robots that interact with the physical world. To support this vision, the firm is doubling its annual production capacity from 2 million to over 4 million units in 2026. This expansion is anchored by its "Maxwell" intelligent manufacturing center in Shanghai and a new facility in Bangkok, Thailand, ensuring a reliable global supply chain for international customers.

A key milestone for 2026 is the series production launch of the ATX LiDAR, which has already secured over 6 million unit backlogs from multiple global OEMs. The ATX is a revamped, high-performance sensor that offers ultra-high resolution at a price point—approximately $150—designed for high-volume vehicle integration. Additionally, the company is ramping up its robotics division, expecting shipments to double in 2026 following a massive 10-million-unit backlog for robotic lawn mower applications.

Competitive Landscape

The LiDAR sector is highly competitive, with the company vying for global leadership against both digital-first startups and established Tier-1 automotive suppliers. Key competitors include:

1. Ouster, Inc.: A leading provider of high-resolution digital LiDAR sensors. They compete by offering a simplified digital CMOS architecture and recently expanded their software capabilities through the acquisition of StereoLabs to target the Physical AI market.
2. Innoviz Technologies Ltd.: A Tier-1 supplier focused on solid-state LiDAR for the automotive industry. They compete by securing long-term production contracts with major European and North American OEMs, emphasizing their high-performance perception software.
3. Aeva Technologies, Inc.: A company that specializes in Frequency Modulated Continuous Wave (FMCW) 4D LiDAR. They compete by providing instantaneous velocity data, which is critical for high-speed autonomous trucking and advanced safety systems.
4. MicroVision, Inc.: A developer of MEMS-based laser scanning technology. They compete in the automotive safety market, focusing on low-latency, high-resolution sensors for advanced driver-assistance systems (ADAS).

Strategic Outlook and Financial Position

The firm is prioritizing "Global Market Diversification" in 2026, targeting a mid-teens increase in international revenue through new partnerships in Southeast Asia and Europe. Strategic efforts are also directed toward the "JT" series for robotics, which achieved over 200,000 cumulative deliveries by early 2026. This segment is expected to be a primary driver of margin expansion as the firm leverages its automated production lines to lower unit costs.

Financially, the company achieved a major milestone by reporting GAAP profitability for the full year 2025, with net income of approximately $62 million. Entering 2026, the firm maintains a robust balance sheet with over $1.3 billion in net assets. Management has authorized a significant share repurchase program, signaling confidence in their ability to maintain a 40% gross margin while funding the $28 million "Physical AI" R&D initiative through 2027.

Want more examples? HRZN Covered Calls | HSBC Covered Calls