Hesai Group (NASDAQ: HSAI), a leading provider of lidar technology for autonomous driving, saw its stock soar 5.11% in Wednesday's trading session, continuing its upward momentum from the previous day. This surge follows Tuesday's impressive 17.77% gain, which was triggered by news of a significant collaboration with Baidu.

The recent rally is primarily attributed to Baidu's announcement of deploying 1,000 unmanned vehicles in Dubai, all equipped with Hesai's lidar technology. This deployment stems from an exclusive agreement signed between Hesai and Baidu Apollo in July 2024, aimed at facilitating level 4 autonomous driving in Dubai's complex urban environment. Hesai CEO David Li emphasized the crucial role of their lidar technology in achieving safe and efficient autonomous vehicle operations, particularly in intricate urban settings.

Investors continue to show enthusiasm for Hesai's growth prospects and its strategic positioning in the autonomous driving market. The company's recent groundbreaking for its first overseas factory, aimed at mitigating risks related to geopolitics and tariffs, has further bolstered investor confidence. As the autonomous vehicle industry gains traction globally, Hesai's partnerships and technological advancements appear to be driving sustained investor interest and stock price appreciation.