This comes as no surprise to us. In fact, we expect many more deals like this one to be announced in the coming years.
Eventually, Luminar’s LiDAR sensors will become nearly ubiquitous in the auto sector, which will send LAZR stock much higher.
LAZR Stock: The Story Is Simple
Self-driving cars need LiDAR to succeed.
The vision-only approach, contrary to what Tesla would like to believe, is flawed for many reasons.
For one, cameras don’t work in adverse conditions. Low-light environments and poor weather don’t affect LiDAR the same way they affect cameras, which rely on actually seeing what’s in front of them.
The data density of computer vision — the information each pixel contains — is also not ideal for self-driving vehicles. A lot of real-time information is packed into each pixel, and then all these pixels are thrown into a machine learning algorithm that needs to produce instantaneous response results. This is like asking LeBron James to win basketball games one-on-five. It’s asking too much of the technology.
Because of this, back in April, Luminar poached a key executive from Tesla on the grounds that he believed Luminar’s technology was safer.
LiDAR Will Enable the Self-Driving Future
Every car will one day be self-driving. When that future does arrive, nearly all those cars will have LiDAR sensors.
But LiDAR is tough to make.
This is scientifically dense laser tech. It’s not something auto makers will be capable of creating in-house. Even if they could, it’s something best left to companies like Luminar that specialize in LiDAR. If the tech isn’t perfect, people could lose their lives as a result.
That isn’t something auto makers will want liability for. And as a result, they’ll outsource their LiDAR, meaning LiDAR companies stand to make a lot of money in the future.
The Bottom Line on LAZR Stock
And in the LiDAR space, there’s one king: Luminar.
Luminar is led by someone we have personally met and who may be one of the smartest people on the planet.
And he has attracted a team of the most talented self-driving engineers. Together they’ve built a world-class LiDAR that doesn’t just perform better than every other LiDAR tech out there, it also costs far less.
Other LiDAR systems can cost tens of thousands of dollars, up to even $75,000. Luminar’s LiDAR system goes for less than $1,000.
We see this LiDAR being in every car in the future. Luminar’s partnership with Volvo is just the beginning.
Which is why LAZR stock is one of those names you buy today and hold for the long haul. Because, in that long haul, Luminar will score you enormous gains.
But Luminar is just one of my top picks in for hypergrowth.
In fact, in my free e-letter, Hypergrowth Investing, I cover emerging megatrends and high-risk, high-reward stock picks each and every day. By becoming a subscriber, you’ll never have to pay a dime and will always get high-quality information on a number of market themes and picks that could make you a ton of money over the near- to long-term.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.