Why WeRide Stock Blasted More than 10% Higher Today

Autonomous driving specialist WeRide (WRD 10.32%) cruised to a big gain on the stock market Friday, with its shares closing up by over 10% in value. The investor enthusiasm for the company was understandable, as it secured a new license to test its technology. With that gain, the stock trounced the S&P 500 (^GSPC 0.49%), which inched up by 0.5% that trading session.

Driverless pilot

Early that morning, WeRide announced that its Robobus autonomous vehicle had been granted a test permit for Level 4 autonomy in Belgium. (The Society of Engineers devised a scale ranging from Level 0 — momentary driver assistance, to Level 5 — full automation. Level 4 is high automation.)

The license permits WeRide to test its Robobus on public streets along an 8-kilometer (5 mile), nine-stop stretch between the municipalities of Heverlee and Leuven. Operations will be coordinated between the company, public transport agency De Lijn, the Leuven government, and a mobility consulting firm called Espaces-Mobilites.

WeRide didn’t hesitate to mention that this makes the company the first one in the world to hold autonomous operating licenses in seven countries. Besides Belgium, that lineup consists of the U.S., France, China, the United Arab Emirates, Singapore, and Saudi Arabia.

More where that came from

In the press release touting its new permit, WeRide added that once the testing is completed within the next few months, De Lijn will operate an autonomous shuttle along the same route. The term for this will be mid-November through January of next year.

WeRide quoted CEO Jennifer Li as saying that the pilot program gives it a chance “to demonstrate our technology in real-world conditions on public roads while setting a strong precedent for future autonomous vehicle testing across Europe.”