What happened<\/p>\n
Shares of lidar-sensor maker Luminar Technologies (NASDAQ:LAZR) were on the rebound on Wednesday morning, trading higher after it clarified the details of its deal to sell lidar units and software to Intel (NASDAQ:INTC) subsidiary Mobileye.<\/p>\n
As of 10 a.m. EST, Luminar's shares were up about 10.3% from Monday's closing price.<\/p>\n
Luminar's stock price got clobbered on Tuesday after Reuters reported that the CEO fo Mobileye, a key Luminar client, said that his company might develop its own lidar units in-house.<\/p>\n
Understandably, that report led to concerns among Luminar investors. But it turns out it was something of a false alarm. In a statement released before the market opened on Wednesday, Mobileye and Luminar clarified that they are still very much doing business together, and there's no plan to change that.<\/p>\n
Luminar's Hydra lidar system was developed from the start for automotive applications. Image source: Luminar Technologies.<\/p>\n
Specifically, Luminar is still providing its technology to Mobileye's autonomous-vehicle program, which is aiming to launch a Level 4 self-driving taxi service in 2022. The companies, which have been working together for nearly two years, signed a deal in November in which Luminar agreed to supply lidar units to Mobileye at a price of less than $1,000 each once production is up to scale.<\/p>\n
To sum up: Yes, Mobileye is toying with developing its own lidar units in-house. But it's not a definite thing, those units wouldn't be ready before 2025, and Luminar is and will continue to be Mobileye's lidar supplier in the meantime.<\/p>\n
I think auto investors are right to view Luminar as one of the top lidar companies in the automotive space as of right now -- and to view lidar as a technology that's critical to self-driving vehicles as well as to the next generation of advanced driver-assist systems.<\/p>\n
This is a hot industry, the competition is fierce, and Tuesday won't be the last time that a lidar stock makes an abrupt move up or down on breaking news. Investors who keep that in mind -- and stay focused on the larger picture -- could do well here.<\/p>\n
<\/p>\n
Read more from the original source:<\/p>\n
Why Luminar Technologies Stock Jumped This Morning - The Motley Fool<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" What happened Shares of lidar-sensor maker Luminar Technologies (NASDAQ:LAZR) were on the rebound on Wednesday morning, trading higher after it clarified the details of its deal to sell lidar units and software to Intel (NASDAQ:INTC) subsidiary Mobileye. As of 10 a.m. EST, Luminar's shares were up about 10.3% from Monday's closing price. Continue reading