Reports that Apple (NASDAQ:AAPL) is making progress with self-driving car technology with an eye toward 2024 production of a passenger vehicle has shares of potential suppliers to the “iCar” surging this morning. That could be what is behind the double-digit jump in the price of Velodyne Lidar (NASDAQ:VLDR) stock.
VLDR stock was up almost 12% following the opening bell, after adding almost 23% on Monday.
Reuters reported yesterday that Apple would use outside partner suppliers for components of its EV system, including LiDAR sensors, which help self-driving cars get a 3D view of the road.
What’s the VLDR Stock Story?
VLDR stock began trading in October after closing a deal with special purpose acquisition company (SPAC) Graf Industrial, a transaction that combined two of the year’s hottest investment trends: special purpose acquisition companies and electric vehicle-related manufacturers.
The company started off this week with the announcement that it had joined Qualcomm’s (NASDAQ:QCOM) Smart Cities Accelerator Program to promote using LiDAR technology in urban solutions. Participation will mean Velodyne will work more closely with Qualcomm Technologies and solution developers to create relevant applications.
At the time of its SPAC merger, Velodyne said that while self-driving cars are a focus, it has also been expanding its business out into new markets, including cities that are upgrading their infrastructures. This can help with the creation of smart intersections, sidewalks and other such devices.
The Bottom Line
If you’re already holding Velodyne Lidar stock, you may want to take some profits at these levels. SPACs have been hot. EV-related stocks have also been sizzling. VLDR stock could go higher, but a prudent investor would look to avoid getting burned.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.