Hesai Clarifies No Military Ties After Being Wrongly Named on Defense Department's 'Chinese Military Companies' List
Portfolio Pulse from Benzinga Newsdesk
Hesai Technology Co., Ltd. (NASDAQ:HSAI) has clarified that it has no military ties after being mistakenly added to the U.S. Department of Defense's 'Chinese Military Companies' list. Hesai emphasizes that its lidar products are solely for civilian use and have never been designed for military applications. The company is publicly traded and privately owned with an independent corporate governance structure. Hesai's products are classified as EAR99, indicating non-suitability for military use, and the company does not expect significant business disruption from this listing as it does not sell to the U.S. Department of Defense or any military entities.
February 01, 2024 | 7:55 am
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Hesai Technology Co., Ltd. has been wrongfully listed as a 'Chinese Military Company' by the U.S. Department of Defense, but the company has clarified its civilian-only focus and expects no significant impact on its business.
Although being added to the 'Chinese Military Companies' list could be seen as negative, Hesai's quick clarification and emphasis on its civilian-only business model, along with the statement that it does not expect significant business disruption, should mitigate any potential negative impact on its stock price in the short term.
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