The analyst is bullish on OUST, AEVA, LITE, and SIVE due to potential regulatory pressure on Hesai Technology benefiting these competitors and their suppliers.
Regulatory scrutiny on Hesai Technology could remove competitors, benefiting western lidar companies OUST, AEVA, and their upstream laser suppliers LITE and SIVE.
Hesai Technology, a Chinese lidar maker faces US national scrutiny over its expanded partnership with $NVDA and lidar sensors. For $OUST, $AEVA, and Western lidar bros, this is generally positive if competitors get regulated out. Since there were warnings that: Sensors could be disabled or exploited remotely, given Hesai firmware update disabled lidar units on February 29 (as evidence). By second order effect, this is also bullish for upstream laser suppliers too like $LITE and $SIVE that are used in western lidar players.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +1.2% | +1.5% |
| 1 week | +16.6% | +16.0% |
| 1 month | — | — |
| 3 months | — | — |
| 6 months | — | — |