Hesai Technology CEO David Li confirmed that the company has entered into a partnership with a major European firm, but did not go into specifics. US-listed shares of Hesai, which manufactures Lidar sensors for driver assistance systems, earlier surged on a report that Mercedes-Benz will develop smart cars using its technology. Li also spoke to "Bloomberg: The China Show" about the company's latest results and the impact of a US Pentagon blacklisting.