Supply: JHVEPhoto/shutterstock.com
Yesterday, Luminar Applied sciences (NASDAQ:LAZR) introduced that it has achieved a key milestone. It’s been a troublesome begin to the yr for the lidar tech innovator, however yesterday introduced thrilling information.
On April 13, the corporate reported that it has efficiently constructed out and introduced up its new high-volume manufacturing facility with important automated know-how. Positioned in Monterrey, Mexico, the manufacturing facility has already begun transport out the Luminar Iris censors it has produced to the corporate’s “lead international high-volume sequence manufacturing buyer.”
In a firm video, Luminar famous that the power is the results of efforts it has been making since 2016. LAZR hasn’t risen in response to the information, however when markets regulate, it should seemingly reverse course. This information marks a key milestone for Luminar for the yr forward of steering.
What’s Taking place With LAZR Inventory
Whereas LAZR inventory hasn’t pulled into the inexperienced in the present day, it has tried exhausting to come back shut. As of this writing, it’s down simply 0.17% for the day after making quite a few makes an attempt to rally. A part of this is because of normal destructive market momentum. Fellow lidar producers resembling Innoviz Applied sciences (NASDAQ:INVZ) and Aeva Applied sciences (NYSE:AEVA) are each deeper into the crimson in the present day than Luminar. Nevertheless, the latter is up nearly 2% for the week after displaying some progress yesterday. And this current manufacturing facility replace offers buyers extra purpose to guess on it than ever.
That’s to not say that LAZR didn’t have already got a lot to supply. Luminar has a world attain that spans america, Mexico and Thailand. Previously yr, it has introduced offers with auto business giants resembling Volvo (OTCMKTS:VLVLY) and Mercedez-Benz (OTCMKTS:MBGYY). Elon Musk has publicly criticized lidar know-how however as InvestorPlace has reported, there’s ample proof to recommend that Luminar has the know-how to assist different automakers overtake Tesla (NASDAQ:TSLA) within the driverless race.
Now the corporate is best positioned to proceed increasing its market share. In a assertion launched by Luminar, CEO Austin Russell laid out what this new facility will imply, stating:
“Industrialization is the elemental problem to allow and scale with our excessive quantity sequence manufacturing wins. The profitable bring-up of the automated manufacturing facility is a significant milestone and continues to indicate we are able to execute. This allows a rise in capability by properly over an order of magnitude as in comparison with our present, handbook line to fulfill our rising automaker necessities on quantity.”
The Highway Forward
Luminar’s new facility is operated by Celestica, its manufacturing accomplice. In response to Luminar’s assertion, it should have the capability to supply as many as 250,000 sensors per yr, a quantity that might in the end be expanded to 500,000 per yr. The corporate is betting large on the way forward for automated work as a method of streamlining manufacturing in try to fulfill the projected rising demand for lidar know-how. If this pays out, and there’s no purpose to suspect that it received’t, LAZR inventory may skyrocket within the coming months.
LAZR inventory remains to be recovering from a troublesome yr, throughout which it has shed greater than 50% of its worth. Nevertheless, steps like this are precisely what buyers ought to need to see. They exhibit that the corporate is targeted on progress and is doing what it takes to garner an even bigger share of a booming market.
On the date of publication, Samuel O’Brient didn’t maintain (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Pointers.
