Key insights
- The increasing adoption of ADAS technology in EVs, particularly L2+ and L3 integration, signals a shift in value from traditional engine technology to software and silicon. Companies like WeRide, which have achieved mass production across multiple chip platforms, are positioned to capture significant market share. The focus is shifting towards the software standard that dominates the global EV fleet, potentially benefiting software providers over traditional car manufacturers.
Looking at 2026 delivery numbers and the sudden leap in ADAS adoption make me think about are we hitting that value inflection point? We've moved from pre-revenue was valued at $10B and now we are at in the industrial scaling where the data on L2+ and L3 integration is really hard to ignore. The narrative that gasoline cars are dead is a bit hyperbolic but we're seeing a structural shift where the value in migrating from the engine block to the silicon and the software stack, companies that are not necessarily car brans but are the software making the hardware work. For example, some ADAS providers like WeRide have managed to get their stack mass-produced across two different chip NVIDIA and Qualcomm (and they're the only provider), which is massive. It is also identifying which companies have the unit economics. The market is projected to hit $100B soon, but the real value is in the software standard that wins the most in the global fleet.