The company is also making progress with its commercialization plans, as it began producing sample versions of lidar sensors at a contract manufacturing facility in Monterrey, Mexico, with mass production likely to begin by the end of 2022. Luminar has production program partnerships with OEMs including Volvo, Daimler Trucks, and China’s largest auto company SAIC besides holding another 14 opportunities at advanced stages. Automakers are pivoting at a faster than expected pace to electric vehicles, and self-driving technology, which is increasingly viewed as a default feature in premium EVs, should stand to gain traction. Secondly, a couple of other lidar stocks went public earlier this year, including Ouster and Innoviz, and this also likely reduced demand for Luminar stock, which was previously one of the few options available for investors looking to play the self-driving market.Īlthough valuing Luminar stock is somewhat tricky, given that it hasn’t started commercial operations yet, we think the risk-to-reward prospects are looking better following the big sell-off. Firstly, investors have been rotating away from high-growth, futuristic stocks, such as Luminar, into cyclical stocks to play the post-Covid re-opening. The decline is driven by a couple of factors. Luminar (NASDAQ: LAZR), a company that develops lidar sensors for use in self-driving cars, has seen its stock decline by over 40% year-to-date and currently trades at levels of about $18 per share.
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