By Chris Wack


Hesai Group shares were down 30% to $4.09 on Thursday after the company learned it had been added to U.S. Defense Department's list of "Chinese Military Companies."

The stock closed Wednesday's session down 7%, and is down 58% in the past three months.

The technology company said it believes this inclusion is "unjust, capricious and meritless."

Hesai said its lidar radar technology is for civilian use only, and it doesn't sell its products to any military in any country.

"Our lidars have never been designed or validated to military specifications," the company said. "All of Hesai's lidar products are classified as EAR99 by the Bureau of Industry and Security of the U.S. Department of Commerce, which indicates that the products are not suitable for any military application."

Hesai said it doesn't expect it will cause any significant disruption to its business. The list only prevents the Defense Department from purchasing products from included entities. To its knowledge, Hesai hasn't sold any products to the Defense Department or any other military parties in the past.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

02-01-24 1400ET