Luminar nasdaq Lazr Stock Soars on Tesla Connection

Luminar (NASDAQ: LAZR) Stock Soars on Tesla Connection

Luminar Technologies (NASDAQ: LAZR) stock jumped about 19% in intraday trading Wednesday following the revelation that Tesla is its largest customer for lidar sensors.

Luminar (LAZR) announced on Tuesday that Tesla (NASDAQ: TSLA) was its largest sensor customer in Q1, accounting for over 10% of its $21 million revenue during that period. This disclosure comes amidst an ongoing debate surrounding Tesla’s utilization of Luminar’s lidar sensors in its vehicles.

It’s worth noting that Tesla’s electric vehicles currently sold do not incorporate lidar technology, leaving questions about where exactly Tesla is integrating these sensors. 

Tesla CEO Elon Musk has previously criticized the use of lidar sensors, branding them as “expensive appendices” and deeming lidar technology as futile. In a 2019 statement, Musk bluntly stated, 

“Lidar is a fools’ errand. And anyone relying on Lidar is doomed.”

Lidar, an acronym for light detection and ranging, emits light pulses that bounce off objects, enabling self-driving systems and driver-assistance software to construct a three-dimensional map of the road. Despite Musk’s skepticism, many self-driving companies and experts view lidar as a critical component, particularly in low-light conditions.

Social Media Buzz: Lidar Sensors on Tesla Vehicles

Tesla has progressively removed other sensors like radars and sound sensors in recent years, opting to rely primarily on cameras for its Autopilot and Full Self-Driving software. However, photos circulating on social media depict Tesla vehicles with lidar sensors mounted on their roofs, fueling speculation about potential integration into Tesla’s autonomous driving systems.

In response to these speculations, Tesla stated, “We regularly test our proprietary technologies against other sensors to calibrate our camera, sonar, and radar system,” denying explicit plans to incorporate lidar into its Autopilot system.

Elon Musk remains steadfast in his vision for self-driving cars, with plans to unveil a robotaxi in August. However, Tesla faces competition from rivals like GM’s Cruise, although some have scaled back investments in self-driving technology due to significant challenges, including technological and regulatory hurdles.

Meanwhile, Luminar reported a first-quarter loss of $10.46 million. The Florida-based company recently announced plans to streamline operations, including a reduction in workforce by approximately 20% and scaling back in-house manufacturing as part of restructuring efforts.

Luminar (NASDAQ: LAZR) Stock Movement

LAZR stock surged 18.79% to close at $1.96 on Wednesday. Its value increased by 32.43% this week. Trading activity has witnessed 60,670,703 (60.67 million) shares changing hands, well above the average daily volume of 8.91 million.