NEW YORK - SunCar Technology Group Inc. (NASDAQ:SDA) announced today it has secured a contract to manage auto insurance for Aistaland, a luxury electric vehicle brand co-developed by Huawei, according to a press release statement.
The company now serves as the exclusive insurance partner for all Huawei luxury EV partner brands. SunCar currently works with five other Huawei partner brands.The contract win helped drive a 16.75% stock gain over the past week, though shares remain down 57% over the past year. According to InvestingPro analysis, the stock appears undervalued at current levels, with the company projected to achieve profitability this year after posting revenue growth of nearly 13% over the last twelve months.
SunCar will develop customized insurance solutions for Aistaland that integrate into Huawei’s Qiankun intelligent vehicle system. The company will use its vehicle database and Doubao’s large language model to build AI models for calculating vehicle and driver risk, matching insurance policies, predicting maintenance needs, and reducing claims costs.
The company will provide services through its network of 48,000 automotive service providers, including underwriting process management, claims processing, roadside assistance, and maintenance support.
"Successfully winning the bid for Aistaland’s auto insurance business is high recognition of the strength of the Company’s AI technology and luxury EV service capabilities," said Zaichang Ye, Chairman and CEO of SunCar.
SunCar has established auto insurance partnerships with more than 20 EV brands including Tesla, Xiaomi, NIO, XPeng, Li Auto, Zeekr, Avatr, Lotus, IM Motors, Leapmotor, HIMA, and Aistaland.
Founded in 2007, SunCar operates AI cloud-based platforms that connect drivers with auto services and insurance coverage options in China through a network of sales partners.
In other recent news, SunCar Tech Group released its audited fiscal year 2025 results, reporting revenue of $489.3 million. This figure was slightly below the preliminary revenue of $498 million that the company had preannounced in early March. Additionally, the company’s adjusted EBITDA for the fiscal year 2025 was reported at $11.0 million. SunCar Tech has reiterated its expectation for approximately $600 million in revenue for 2026. In light of these developments, BTIG has adjusted its price target for SunCar Tech, lowering it from $6.00 to $5.00, although the firm maintained a Buy rating on the shares. These recent developments provide important insights into SunCar Tech’s financial performance and future expectations.
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