Hesai Group (HSAI) Faces Investor Scrutiny After Blue Orca Takes Aim – Hagens Berman
SAN FRANCISCO - Shares in Hesai Group (NASDAQ: HSAI) fell almost 8% on March 18, 2025 after activist investment firm Blue Orca Capital published an adverse report on Hesai that questioned whether company insiders took advantage of reports that Mercedes-Benz will develop smart driving cars for global markets with Hesai’s lidar sensors.
Hagens Berman is investigating Hesai’s disclosures and urges investors who purchased Hesai American Depositary Shares and suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/hsai
Contact the Firm Now: [email protected], 844-916-0895
Hesai Group (HSAI) Investigation:
The investigation is focused on the propriety of Hesai’s disclosures about its financial reporting and news about its purported deal with Mercedes-Benz, which the latter has not yet been confirmed.
Blue Orca Capital published the results of its investigation into Hesai and raised serious concerns about Hesai’s disclosures, financial reporting, business operations and insider trading.
More specifically, Blue Orca concluded that Hesai is a “scam actively lying to investors, the Department of Defense, and a United States federal court[.]”
According to Blue Orca’s in-depth research, while Hesai has attempted to escape its designation as “‘a Chinese military company’ by insisting that it has no involvement with the Chinese military[]” “we found clear smoking-gun photographic and video evidence that Chinese military vehicles are outfitted with Hesai LiDAR systems.”
Blue Orca also said that it does not trust Hesai’s financial disclosures because, in part, revenues in its opinion “do not appear to be consistent with the purchasing volumes of its largest customer.” Blue Orca opined that despite Hesai’s recent claim that it had finally become profitable, “the only reason Hesai turned a ~$20 million net profit in Q4 2024 was because it received a one-time $20 million break fee payment from its largest customer, who undisclosed to customers, terminated its contract with Hesai.”
As to the Reuters reports of a deal with Mercedes-Benz on or about March 11, 2025, Blue Orca observed that “oddly, Mercedes did not confirm the deal” and “the Reuters article which identified Mercedes simply referred to an anonymous source.” Blue Orca also said with respect to the reported “deal” that “just a few weeks ago, the Mercedes Chief Technology Officer told investors that Mercedes will not use LiDAR in its advanced driving assistance systems to be offered in China this year because it was not necessary.”
Then, on March 13, 2025, after the price of Hesai shares skyrocketed over 33% on reports over the purported Mercedes-Benz deal, insiders and co-founders Li Yifan (CEO), Xiang Shaoqing (Chief Technology Officer), and Sun Kai (Chief Scientist) filed planned sales of their Hesai holdings totaling about $62.58 million.
“We are concerned about potential issues about Hesai’s transparency with investors,” said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.
If you invested in Hesai and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Hesai Group investigation, read more »
Whistleblowers: Persons with non-public information regarding Hesai should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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