In a surprising shift, Tesla, known for its layoff strategies, recently invested approximately $15 million (around 1.25 Billion INR or 1517 million yuan) in Luminar, a major lidar technology supplier.
Despite Elon Musk’s previous criticism of lidar as unnecessary and likening it to a useless appendix, Tesla has become Luminar’s largest customer for the quarter, significantly aiding the struggling lidar company.
Luminar, a leading player in the lidar industry and publicly traded on the U.S. stock market, has seen its market value plummet by 80% recently and has been forced to downsize and transform to reduce costs.
This partnership highlights a significant change in Musk’s stance, who has heavily criticized lidar in the past, emphasizing a vision-based approach for Tesla’s autonomous driving technology.
In the first quarter, Tesla’s purchases accounted for over 10% of Luminar’s total revenue of $21 million. Despite a 5% decline in revenue from the previous quarter due to reduced sales to non-automotive customers, Tesla’s substantial orders have offset these losses, showcasing the electric car giant’s unexpected support.
This collaboration could signal a strategic shift for Tesla, aligning with rumors of Musk considering lidar integration as part of a confidential deal reported by Bloomberg two years ago.
Despite Tesla’s public denial of integrating lidar into its autonomous driving systems, the company continues to evaluate its technology against other sensors to calibrate its systems. This ongoing speculation aligns with Tesla’s anticipated launch of an autonomous taxi service on August 8, possibly explaining the sudden purchase of lidar units.
However, Luminar is not solely reliant on Tesla. Following a challenging period in the capital markets and a downturn in the lidar industry due to a cooling interest in autonomous driving, Luminar’s CEO, Austin Russell, announced a 20% workforce reduction and a shift to outsource manufacturing, aiming to transition to a lighter asset model.
This move is expected to save the company over $400 million in the next five years, reducing costs and potentially speeding up the introduction of next-generation products.
As the industry evolves, the debate between vision-only and lidar-augmented autonomous driving solutions continues. With advancements and cost reductions in lidar technology, it’s becoming an increasingly attractive option for companies seeking to enhance their autonomous driving systems.
This shift may force Tesla and other automakers to reconsider the integration of lidar to maintain competitive in the rapidly advancing field of autonomous driving.
Keep visiting for more such awesome posts, internet tips, lifestyle tips, and remember we cover,
“Everything under the Sun!”
Follow Inspire2rise on Twitter. | Follow Inspire2rise on Facebook. | Follow Inspire2rise on YouTube
