** U.S.-listed shares of Chinese lidar sensor maker Hesai Group ZN80y.F, HSAI.O surge 40.5% to $22.5
** Mercedes-Benz MBGn.DE will develop smart driving cars for global markets equipped with Hesai's lidar sensors, Reuters reported, citing a person with direct knowledge
** Lidar uses lasers to produce three-dimensional images of a vehicle's surroundings to help navigation around obstacles
** Hesai is China's largest lidar maker and competes with U.S.-based Luminar LAZR.O
** Stock has nearly tripled in the past 12 months
(Reporting by Padmanabhan Ananthan)
((Padmanabhan.Ananthan@thomsonreuters.com;))
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