Polestar (NASDAQ:PSNY) stock is trading 9% higher today after the electric vehicle (EV) company announced that it would further integrate Luminar’s (NASDAZ:LAZR) light detection and ranging (lidar) technology into the Polestar 3 and upcoming Polestar 5. Unlike Tesla (NADSAQ:TSLA), which chooses not to utilize lidar in its vehicles, Polestar is making the choice to have the technology power future models in a significant manner.
Polestar CEO Thomas Ingenlath had the following to say about the news:
“Luminar is at the forefront of long-range LiDAR technology and this closer collaboration will allow for greater innovation in our cars to come. We look forward to combining our R&D and product design expertise to deliver truly stunning LiDAR integration and capabilities for the Polestar brand.”
The Polestar 3 and 5 will be equipped with Luminar’s long-range Iris lidar and software. In addition, sales of the Polestar 3 equipped with lidar will be accelerated so that customers in initial markets, such as in Europe and North America, will be able to place orders for vehicles equipped with the technology. Deliveries for these vehicles are expected to take place next year.
PSNY Stock: Polestar Furthers Collaboration With Luminar
Customers in Australia will be eligible to place Polestar 3 orders equipped with lidar later this month. Meanwhile, customers in China will be allowed to place these orders in mid-April. Finally, the company says all other markets will be eligible for orders at a “later date.” Orders of the Polestar 3 without lidar are expected to be delivered during the fourth quarter of 2023 as scheduled.
During Q4 2022, Polestar delivered a total of about 21,000 vehicles, bringing the full-year preliminary delivery figure to 51,500 vehicles, up an impressive 80% year-over-year (YOY). For 2023, Polestar expects to deliver about 80,000 vehicles, signifying growth of almost 60%. Sales this year are expected to be driven by the Polestar 2 in the first half of 2024, then by the Polestar 3 when deliveries open up in Q4 2023.
Meanwhile, Polestar expects to report Q4 earnings on March 2 before the markets open. The average analyst price target for PSNY stock currently sits at $10.50. The most recent update is attributable to Citi’s Itay Michaeli, who has a price target of $12 and expects the company to reach free cash flow breakeven status by 2025.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.