Luminar Technologies (NASDAQ:LAZR) recently revealed an exciting new partnership. The lidar technology innovator is expanding its global reach into Asia. On April 17, the company released a statement announcing it would be joining forces with TPK, a prominent electronics manufacturer.
Based in Taiwan, TPK has worked with the likes of Apple (NASDAQ:AAPL) and ironically Tesla (NASDAQ:TSLA), the company that has shunned Luminar’s technology. However, this news indicates that demand for Luminar’s services may be growing in one of the world’s top electric vehicle (EV) markets.
LAZR stock is falling today, but this news could ultimately be the catalyst it needs to turn around and pull into the green.
What’s Happening With LAZR Stock?
Since markets opened today, LAZR stock has been fairly volatile. While it is down roughly 1% as of this writing, the stock’s trajectory hints at a rally. It’s worth noting that Luminar has had an excellent week, rising more than 7% over the past five days. It’s also true that the company is still recovering from a difficult month. However, the past week has shown that Luminar is working hard to reverse course.
The TPK partnership hasn’t been the only positive catalyst lately. Luminar recently reported progress from its new facility in Monterrey, Mexico, where it achieved a key manufacturing milestone last week. Now the company is even better positioned to continue making progress and cornering the global market in its growing field. In a statement released on April 17, Luminar reflected on the recent Shanghai Auto Show and the growing demand in China for its technology:
“It is estimated that roughly half of the 20 million vehicles sold in China last year were from foreign-branded automakers, many of which are Luminar partners. Of the now more than 20 production vehicle models Luminar is designed into, the majority are also slated for the China market.”
One example of this is Volvo’s (OTCMKTS:VLVLY) new EX90 Excellence, an electric SUV unveiled at the auto show that features Iris lidar. Partnerships with companies like Volvo and Mercedez-Benz (OTCMKTS:MBGYY) have helped Luminar gain a foothold in the European EV market. Now, the company clearly has its sights set on another lucrative region — and not a moment too soon. According to data, China’s EV market is expected to reach 10 million units per year by 2025. That will likely mean an increase in demand for autonomous driving technology as well.
What Comes Next?
When a company has suffered from a difficult year, some investors may be inclined to count it out. But the autonomous driving boom is just heating up and no one should count out Luminar just yet. The company is working hard to expand its reach across the globe in anticipation of demand that’s only going to increase.
Investors should keep a close eye on LAZR stock as the company continues to focus on expanding into new markets and helping automakers achieve critical safety measures. A partnership with a company like TPK will only help make that happen.
On the date of publication, Samuel O’Brient 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.