Unitree's Stock Price Drops About 45% After IPO, Market Value Falls to $36 Billion

Chinese robotics manufacturer Unitree saw its stock price drop approximately 45% from its peak on the first day of trading on the Shanghai STAR Market. The market value, which once reached $66 billion, has now fallen to $36 billion, raising concerns about bubble risks and retail investor losses. On its debut, the stock surged 460%, significantly higher than the average first-day gain of 226% for new Chinese stocks over the past three years, but it has since declined for three consecutive days, with some stabilization observed on Tuesday. Unitree is one of the world's leading manufacturers of quadrupedal and humanoid robots, capable of performing actions such as running, dancing, and martial arts, but its commercialization progress has been limited, facing competition from companies like Tesla and Boston Dynamics. The prospectus indicates that the adjusted net profit for the first quarter of 2026 is expected to decline by 53% year-on-year to 40 million yuan, with signs of profit slowing in the first half of the year. Analysts point out that investors, driven by the "narrative of technological revolution," reflected market sentiment in the first-day performance, and the discrepancy between the IPO pricing and opening price suggests a misalignment for at least one party; some institutions believe that robotics companies require significant R&D investment, and orders have not yet been realized on a large scale, making it unwise to focus solely on short-term profits, similar to the early electric vehicle industry.