The era of robotaxis has begun in Saudi Arabia.

Uber Technologies announced that it has launched a driverless robotaxi service in Riyadh, Saudi Arabia in collaboration with WeRide. This marks the first public use of driverless vehicles on the Uber platform across the country, while WeRide is also planning to initiate an additional share offering worth 3.09 billion HK$ in Hong Kong.

This collaboration, combined with regulatory approvals, represents a significant step in entering the Middle East market. WeRide is moving this process forward with strong support from high-profile partners in alignment with Saudi Arabia's Vision 2030 expansion and commercialization goals.

The partnership between Uber and WeRide in Riyadh positions the company as a leader in autonomous transportation innovations and commercialization. To be a shareholder of WeRide, one needs to evaluate global shifts towards autonomous mobility and the company's ability to succeed at scale. This collaboration with Uber and connections with the Saudi Arabia General Director of Transport indicate real commercial progress and market acceptance through the launch of the first public robotaxi in Riyadh and the upcoming share offering in Hong Kong. This situation presents significant short-term catalysts that could enhance investor optimism.

Primary concerns include sustainable profitability, the book value relative to a high market value, and low performance compared to both competitors and market benchmarks. The development in Riyadh may reassess these concerns and catalysts, especially if the collaboration contributes to high-level growth or confirms WeRide's technology leadership. However, the core concerns regarding profitability and valuation persist. This milestone may not eliminate larger structural challenges.

Findings from our latest valuation report indicate a potential overvaluation of WeRide shares in the market. Sixteen independent investors in the Simply Wall St community shared fair value estimates for WeRide, which range dramatically from 0.39 US Dollar to 203.94 US Dollar. These differing views reflect deep disparities in expectations regarding growth and risks. Evaluating how recent distribution milestones may change these expectations is crucial.

Explore the reasons why WeRide shares may be worth less than half of the current price.

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