Hesai Group's stock soared after announcing factory plans

Hesai Group's stock surged 12.63 percent on Monday, closing at $22.30. Investors reacted positively to the announcement that the company will build its first overseas factory. This move aims to protect against rising trade tensions between the United States and China. The news about the factory comes as Hesai seeks to expand its production capabilities outside of China. Company officials believe this strategy will help mitigate risks related to tariffs and geopolitical issues. Hesai's Chief Financial Officer noted that clients are looking for ways to reduce these risks. In addition to the factory news, Hesai recently secured a significant deal with a European original equipment manufacturer (OEM) for advanced lidar systems. This partnership is expected to last several years and is notable within the automotive lidar industry. Hesai also gained a contract with one of China's largest electric vehicle makers to supply lidar technology aimed at improving smart driving features. This combination of developments has positioned Hesai as a leading performer on the stock market at the start of the week. Overall, while Hesai shows potential for investors, some experts believe there are AI stocks that could offer even better returns in a shorter timeframe.