Cathie Wood’s ARK Loads Up On WeRide Stock While Tesla Loses Top Spot On Its Robotics ETF

Cathie Wood-led Ark Investment Management bought 111,400 shares of WeRide on Wednesday, extending the firm’s renewed exposure to Chinese technology stocks.

The purchase follows additional buying earlier this week, bringing Ark’s disclosed WeRide purchases over the past three trading days to at least 688,400 shares.

Ark Returns To Select Chinese Tech

The WeRide trade comes as Ark gradually rebuilds positions in Chinese companies after sharply reducing exposure during Beijing’s regulatory crackdown in 2021.

In December, trading disclosures showed the Ark Innovation ETF increased its stake in Baidu to about 614,550 shares, valued at roughly $79.9 million at the time, representing around 1% of the fund’s holdings. WeRide has also featured among Ark’s recent China-linked additions as the firm refocuses on AI and autonomous driving.

WeRide Builds Global Presence

WeRide, a Guangzhou-based autonomous driving company, operates robotaxi and self-driving services and has expanded its fleet to more than 1,000 vehicles, with driverless operations in cities including Beijing and Guangzhou.

In November, the company raised HK$2.39 billion, or about $308 million, through its Hong Kong share sale, becoming one of several U.S.-listed Chinese firms pursuing secondary listings amid ongoing delisting concerns. WeRide said proceeds from the offering would be used to advance autonomous-driving technology, scale robotaxi commercialization and support overseas expansion.

Citi Flags Near-Term Catalyst

On Monday, Citi added a “90-day upside catalyst watch” on WeRide while maintaining a ‘Buy’ rating and a $15.3 price target, which implies about 73% upside from current levels.

Citi said potential upside could come from Waymo’s possible financing round in the first quarter at an implied valuation of 280 times 2025 price-to-sales, which the firm said could re-rate WeRide’s valuation, currently equating to 34 times 2025 price-to-sales. The brokerage also said it expects improving sentiment around WeRide’s possible entry into the Southbound Stock Connect in June.

Tesla’s Position Inside Ark Shifts

Ark’s increased activity in WeRide comes as Tesla’s position in the Ark Autonomous Technology & Robotics ETF (ARKQ) has eased. Recent portfolio disclosures show Kratos Defense & Security narrowly overtaking Tesla as Ark’s largest holding in ARKQ, with Tesla now ranking second, followed by Teradyne and Rocket Lab. Tesla remains the top holding on the ARK Innovation ETF (ARKK), which is up just over 2.7% this year. 

While Ark continues to hold a sizable Tesla position, the firm recently said its long-term Tesla thesis centers on robotaxis rather than Full Self-Driving subscriptions. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for WeRide was ‘bearish’ amid ‘high’ message volume.

WeRide’s U.S.-listed stock has declined 31% over the past 12 months.

WeRide's robotaxi fleet size will likely grow to 2,000 to 3,000 by the end of this year, with the domestic market accounting for about 50%-60% of the increase, Citi analysts write in a note. Its overseas robotaxi fleet could reach 500 to 1,000 at the end of 2026, including more than 300 vehicles in Abu Dhabi, they add. The company's domestic robotaxi fleet expansion will likely start after 1Q, since the Lunar New Year holiday falls in February, Citi says. China will remain the autonomous-driving company's strategic focus, given the country's much larger addressable market than overseas markets, Citi cites management as saying. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

By Jiahui Huang

Baidu's Apollo Go received a permit to trial driverless vehicles in Dubai, as the Chinese tech company expands its robotaxi business overseas.

The company said in a statement on Wednesday that Apollo Go has received Dubai's driverless vehicle trial permit, which allows the company to operate fully autonomous vehicles on selected public roads without a human safety driver behind the wheel as soon as the first quarter of this year.

The company, which has been testing robotaxis with human safety moderators in Dubai, aims to expand its robotaxi fleet in the city to more than 1,000 fully driverless vehicles.

Baidu also launched its first overseas operations and management hub for robotaxis, Apollo Go Park, in Dubai to facilitate charging and maintenance as well as other services.

The move comes as the robotaxi industry scales up and companies look to expand overseas. Waymo of the U.S. plans to enter the U.K. market this year, while Chinese robotaxi companies are focusing on expanding in the Middle East, Southeast Asia and Europe.

The Middle East has become a popular destination for Chinese robotaxi operators, including Pony AI, WeRide and Apollo Go, thanks to supportive policies.

Chinese robotaxi company WeRide said in November that it has launched commercial operations for fully driverless robotaxis in Abu Dhabi via its partnership with Uber.

In September, Pony AI said that it was collaborating with Qatar's government-owned transportation provider Mowasalat to deploy autonomous vehicles in Doha.

Write to Jiahui Huang at jiahui.huang@wsj.com

Nvidia's new artificial-intelligence platform, open models and ecosystem should create demand for robotaxis and support global growth, Citi analysts write in a note. Citi forecasts the global robotaxi market will grow to $188.91 billion in 2034 from $4.43 billion in 2025. China's total addressable market for robotaxis will rise to $67.59 billion in 2035 compared with $39 million in 2025. Nvidia's initiatives will likely increase investors' confidence and directly benefit Pony AI and WeRide from a software angle. Automakers such as BYD, Geely Automobile, Great Wall Motor, SAIC and Xiaomi, as well as ride-hailing platform Didi, could also benefit from the robotaxi industry's growth. In terms of hardware, Chinese lidar sensor maker Hesai will benefit. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

By Jiahui Huang

Chinese autonomous-driving technology company Momenta is partnering ride-hailing platform Grab to expand its robotaxi services into Southeast Asia.

The companies said Thursday they are collaborating to bring autonomous driving technology to Southeast Asia. Momenta is rapidly developing its robotaxi technology and is moving toward a commercial launch of its robotaxi fleet, the statement said.

The move comes after Momenta recently announced its partnership with Mercedes-Benz Group to offer luxury robotaxi services in Abu Dhabi.

Momenta, which sells its autonomous driving assistance solutions to automakers, is also joining the growing competition in China's robotaxi landscape. The company said earlier this year that it will collaborate with Uber in Munich on a driverless robotaxi project, with testing expected to start in 2026.

Chinese robotaxi companies are entering a stage of large-scale commercialization with ongoing efforts to expand overseas, especially in the Middle East and Southeast Asia.

WeRide and Pony AI already have autonomous-driving shuttles for test operations in certain areas of Singapore. Baidu also told The Wall Street Journal that it would enter Singapore and Malaysia markets by the end of this year.

Grab's plans include rolling out 11 self-driving shuttles developed by Chinese robotaxi company WeRide in Singapore by early 2026. It has also partnered U.S.-based May Mobility to launch autonomous vehicle services in Southeast Asia.

Write to Jiahui Huang at jiahui.huang@wsj.com

Robotaxi companies that can adeptly navigate capital markets and local policy landscapes are likely to be the winners in scaling up, says Macquarie analyst Eugene Hsiao in a note. Currently, L4 fully autonomous robotaxi operators like Waymo, Tesla, Baidu, Pony AI and WeRide are in a race to commercialize new business models alongside partners that include major tech firms, ride-hailing platforms Uber and Didi, as well as automakers like Geely. Speed of execution is critical in sustaining their first-mover advantage and creating lasting network effects, he says. Instead of technology, the analyst sees fundraising, regulatory acceptance and partnerships as the core bottlenecks. Over the next two to three years, L2 autonomous-driving-assistance players are likely to move aggressively into the L4 space and create new alternatives, he says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)