(Reuters) – WeRide, a China-based autonomous driving startup, has been granted approval by California to test its driverless vehicles with passengers, as confirmed by a permit from the state’s utility regulator.
This development coincides with WeRide’s plans to seek a valuation of up to $5 billion through its upcoming New York IPO, despite the impending U.S. ban on vehicles equipped with China-developed systems, as reported by sources familiar with the situation.
The permit issued by the California Public Utilities Commission (CPUC) earlier this month, valid for three years, allows WeRide to transport passengers in test vehicles both with and without a driver. However, the company is prohibited from offering rides to the general public or charging any fares.
WeRide, which currently operates 12 active vehicles, will conduct its testing in San Jose and surrounding areas, according to a statement from CPUC to Reuters.
Bringing robotaxis to fruition in the U.S. has posed challenges due to regulatory obstacles, opposition from local authorities, and public concerns. Waymo, a subsidiary of Alphabet (NASDAQ:), is the sole U.S. entity running autonomous taxis without human drivers that accept payments, boasting a fleet of around 700 vehicles.
General Motors’ Cruise division (NYSE:) resumed testing with safety drivers in April following an incident where one of its vehicles struck a pedestrian last year.
WeRide, established in 2017, initially obtained permits in California to test its vehicles without passengers in 2021. The company, which also manufactures autonomous vans, buses, and street sweepers, holds driverless permits in Singapore and the United Arab Emirates.
WeRide has not yet responded to requests from Reuters for additional information.