Autonomous driving technology company WeRide has plenty of room to grow as a result of its early-mover advantage in the global self-driving market, according to Morgan Stanley, which brought the firm public in an IPO last month at $15.50 a share .
Morgan Stanley estimates the global autonomous driving market size will jump to $1.745 trillion in 2030 from $93 billion in 2025.
"WeRide is a pure play in global L4+ autonomous driving," Hsiao wrote in a 38-page report on Tuesday note.
Level 4 autonomous driving describes when a vehicle can drive in most circumstances without a human driver, one step below the top-most Level 5 designation for a fully automated vehicle .
To be sure, the threat of tighter regulation on driverless vehicles is a downside risk for the stock, and Morgan Stanley forecasts WeRide's earnings and cash flow will remain "volatile" in the near term, Hsiao noted.
Persons:
Morgan Stanley, Tim Hsiao, WeRide, Uber, Hsiao, — CNBC's Michael Bloom
Organizations:
WeRide
Locations:
Guangzhou, China, U.S, UAE, Singapore