10:44 AM EDT, 03/11/2025 (MT Newswires) -- (Updates with Hesai's ( HSAI ) comment in the fifth paragraph and its stock move in the last paragraph.)

Hesai Technology (HSAI) will provide lidar sensors for smart cars that Mercedes-Benz is developing for sale in global markets, Reuters reported Tuesday, quoting an unnamed source with direct knowledge of the matter.

This would be the first time a non-Chinese automaker would use such Chinese-made technology for cars sold outside China, the report said, adding Mercedes picked Hesai ( HSAI ) for the project due to its lower costs and ability to produce at scale.

Hesai ( HSAI ) said Monday in a statement it got a multiyear contract with an unnamed European carmaker to provide automotive lidars.

The lidars are for an upcoming global platform, including both internal combustion engine cars and electric vehicles, Hesai ( HSAI ) said.

A Hesai ( HSAI ) spokesperson told MT Newswires that the company "does not comment on rumors or unverified information related to its business partnerships or arrangements."

Mercedes didn't immediately respond to a request for comment by MT Newswires.

Hesai ( HSAI ) shares jumped about 34% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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