Coffee & Cars Episode 25 Recap | WeRide

Research evidence excerpt

Coffee & Cars Episode 25 Recap | WeRide

Equity Research

Flash Comment — June 5, 2026

Autos and Auto Parts

Expert Opinion: Optimize margin w/ 3P strategy

Our Call Colin M. Langan, CFA, CPA

Ep 25 recap of Coffee & Cars w/ WeRide CSO Ren Chen. He emphasized WeRides comm'l Equity Analyst | Wells Fargo Securities, LLC

Colin.Langan@wellsfargo.com | 212-214-8228

strategy of L2-L4 tech, while integrating agnostic compute to expand their TAM. WeRide

Kosta Tasoulisprefers leveraging 3rd party networks (3P) vs. owning (1P), prioritizing profit.

Equity Analyst | Wells Fargo Securities, LLC

Kosta.Tasoulis@wellsfargo.com | 212-214-5337

Initial Thoughts

L2-L3 ADAS monetizes bridge to L4

Chen indicated WeRide's unique advantage is their commercialization of L2-L4 tech, given

the monetization bridge of L2-L3 ADAS. Moreover, WeRide's stack is compute agnostic &

able to work with the QCOM & NVDA's of the world, which offers a larger TAM. The L2-L3

tech only utilizes camera & radar, with an additional LiDAR option. This allows WeRide to

operate in more markets, compatible with various regulatory environments, according to

Chen.

3P Leads to More Profits Sooner

WeRide believes that a 3P strategy (partner w/ ride-share) is more optimal vs. 1P

strategy. For example, WeRide just announced expansion into Madrid w/ Uber. In 3P Int'l

mks, WeRide earns revenue from an upfront fee (car cost plus >35% margin), recurring

software/service fees, and/or rev-share fees. Both benefit from higher utilization w/in the

ride-share network. WeRide operates 1P strategy in China (own network), where they

prioritize higher volume platforms.

Another Cheap (Chinese) BoM

WeRide's AV is a purpose-built Geely, with a BOM cost of $40K & driving range of 334km

& fits 5 passengers, with a max speed of 120km/hr.