China’s leading LiDAR manufacturer, Hesai Technology, has denied allegations of links to the Chinese military following a report from short-seller Blue Orca Capital. The company is currently challenging the U.S. Defense Department’s decision to list it as a supplier to China’s military.
Hesai, the global leader in LiDAR technology, supplies laser sensors to major Chinese automakers, including BYD. Its Nasdaq-listed shares dropped about 10% on Tuesday after Blue Orca Capital released a report claiming the company misled investors about its military connections.
“We strongly disagree with the allegations in the Blue Orca report and are of the view that they are without merit,” Hesai said in a statement. The company insists it has no ties to China’s military and is committed to ethical business practices.
Hesai sued the U.S. government last year after being placed on the Pentagon’s list of companies with alleged military connections. A hearing for its case was scheduled for Thursday in the District Court of the District of Columbia.
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The Blue Orca report includes images of Chinese military tanks appearing to use Hesai’s LiDAR technology, citing footage from state-run media and defense industry exhibitions. It also referenced concerns from former U.S. President Donald Trump about Chinese tech firms with military ties posing national security risks.
Hesai CEO David Li rejected the accusations, saying the Defense Department “falsely accuses us of associating with the Chinese military.” He added that the Pentagon had not claimed Hesai was owned or controlled by the military or directly sold products to military bodies but cited concerns over China’s “military-civil fusion” strategy.
Hesai supplies LiDAR to Amazon’s Zoox robotaxi service and previously worked with General Motors' Cruise unit before GM scaled back its autonomous vehicle ambitions last year.
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Despite the controversy, Hesai recently reported a 14 million yuan ($1.9 million) profit for 2024, reversing a 241 million yuan loss in 2023.
Source: With input from agency