Shares of WeRide (WRD -2.56%) flew higher on Tuesday. The company's stock spiked 18.2% as of market close. The jump comes as the S&P 500 rose 2%, and the Nasdaq Composite rose 2.4%.
The autonomous driving company's stock jumped after it announced its expansion into Saudi Arabia.
WeRide in Saudi Arabia
The Chinese company announced today that it will launch operations in Saudi Arabia in partnership with Uber, where its robotaxis can be hailed. The company has already begun testing its vehicles in the country, and full operations are expected before the end of the year. The move into Saudi Arabia marks a significant expansion for the company and puts it on track to be one of the first companies operating commercially on a large scale in the Middle East.
The announcement comes after a major share repurchase program was announced
WeRide announced earlier this month that its board had approved a substantial share repurchase program of up to $100 million over the next 12 months. The move will help drive value for stockholders and shows the company leadership is confident in the company's future.
Image source: Getty Images.
WeRide CFO Jennifer Li said of the decision, "The adoption of the share repurchase program reflects our confidence in our business fundamentals, financial health, and long-term outlook, and underscores our commitment to delivering value to shareholders."
WeRide is ahead of the pack
WeRide is finding success early among a field of many autonomous vehicle competitors in the race to bring autonomous technology to market. However, stiff competition remains from major players like Tesla and Alphabet-backed Waymo.
While WeRide operates deep in the red, that is likely to change since it's not unusual for a company in its position and with the launch of commercial operations to have a negative balance. For those with patience and a high risk tolerance, I think WeRide is a good pick.
