Shares of WeRide (WRD 0.16%) are up this week. The company's stock spiked 9% as of 2:19 p.m. ET but was up as much as 16.8% earlier in the week. The jump comes as the S&P 500 rose 1.5% and the Nasdaq Composite rose 1.5%.
The Chinese company's stock jumped after it announced a major expansion into Saudi Arabia in partnership with the ride-hailing giant Uber Technologies.
NASDAQ: WRD
Key Data Points
WeRide is launching in Saudi Arabia
The company announced earlier in the week that it will be launching operations in Saudi Arabia, marking a major expansion of its business in the Middle East. Its robotaxis will be available to the public via Uber by the end of the year.
WeRide also launched its Robosweeper S1 -- an autonomous sanitation vehicle -- in Riyadh. The company says it is the first "monetized autonomous sanitation project in Saudi Arabia and the Middle East" and expects to further expand the program in the coming year.
Image source: Getty Images.
WeRide announced a major stock repurchase program
The news of the Saudi Arabia launch comes just weeks after WeRide announced that its board had approved a substantial share repurchase program of up to $100 million over the next 12 months. The move shows leadership is confident in the company's future and will help drive value for stockholders.
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 still operates deep in the red, 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.
