(Bloomberg) -- China’s Hesai Group, the world’s largest maker of lidar sensors used in driver assistance systems, is on a growth trajectory that won’t be stopped by geopolitics, according to Chief Executive Officer David Li. 

The Nasdaq-listed company’s shares surged a record 44% in New York trading on Tuesday after it reported a 21% jump in third-quarter revenue to $76.9 million and forecast further growth to $100 million this quarter. Shipments more than doubled from a year earlier, and Li said that growth will continue, with deliveries expected to rise to 1 million units in 2025.  

Founded in 2014, Hesai has grown rapidly to become the world’s largest supplier of lidars — short for light detection and ranging — a remote sensing technology that helps vehicles navigate their surroundings. The company commands about 37% of the global market and listed on the Nasdaq in 2023. 

“Lidar is like the eyes of the autonomous vehicle,” Li said in interview with Bloomberg Television on Wednesday. “It’s a life-saving device.”

Hesai is poised to benefit even more from the fast development of advanced driving-assistance systems, a technology that Tesla Inc. and Chinese automakers see as the future of mobility. 

While Tesla Chief Executive Officer Elon Musk has repeatedly dismissed lidar technology in preference of real-time cameras and AI, many in the auto industry see lidar as improving the safety of autonomous cars. 

For example, Li said, the sensors can scan the road for problems and activate a car’s brakes or airbags before a driver is even aware of an issue. “It’s enormously important to bring such technology to every vehicle on the road to save lives,” he said. 

While true autonomous driving may take years, if not longer, to achieve, Li said he sees adoption starting from confined areas such as ports and expanding quickly from there. 

Li also hit back at a US decision to place Hesai on a Chinese Military Company blacklist — which names companies the Department of Defense alleges have contributed to civilian military efforts by the People’s Liberation Army — a move which has weighed on the shares. 

Hesai was added to the list in January, briefly removed in August and then reinstated in October. The company has started legal action against the Pentagon, Li said in the interview.

“We have zero connection to the Chinese military,” Li said. “We believe we were wrongly added to this list,” he added, saying the sensors have no capability to transfer data. “It is scanning the road, but there’s no way it should be a concern for national security, data security or even privacy in the sense that it doesn’t capture facial features.” 

--With assistance from Huiao Cui and Joanne Wong.

©2024 Bloomberg L.P.