$WERIDE-W(00800.HK)robotaxi is not a good business model.

1️⃣ It's capital-intensive and relies on scale. If viewed from an endgame perspective, robotaxi needs to have over 100,000 operational vehicles to have a chance of becoming truly profitable. With each vehicle generating 300 in daily revenue, annual revenue per vehicle is around 100,000, and the vehicle cost can be recouped in about 2 years. With 10,000 operational vehicles, the annual revenue scale is only around 1 billion, which is not enough to cover current costs. An investment of over 10 billion is required for 100,000+ vehicles, and whether further financing can be secured depends on whether the autonomous driving capability can achieve a qualitative leap in the next two years.

2️⃣ The cost side depends on the reduction of vehicle and component costs, the operation side requires scale, and the software side needs to quickly develop a dominant advantage with autonomous driving capabilities that surpass traditional automakers. All three are very difficult to achieve.