AEVA vs. LAZR: Which LiDAR Stock Is the Better Bet Now?
Expanding Momentum and Industrial Diversification: Aeva Technologies has seen a surge in activity throughout 2025, fueled by developments beyond the core automotive market. The company's 4D LiDAR, built on Frequency Modulated Continuous Wave (FMCW) technology, provides real-time velocity and depth data — setting it apart from traditional time-of-flight (ToF) systems. This technological edge is helping AEVA broaden its reach into industrial applications, where precision and reliability are critical, and opens doors to a wider array of end markets.Big Wins With Tier-One Players: AEVA's partnership pipeline is robust. A Fortune 500 tech company recently committed up to $50 million — $32.5 million in equity and $17.5 million in manufacturing support — and is expected to act as AEVA's Tier 2 supplier for a top-10 global passenger OEM. The program could scale to multiple models, positioning Aeva Technologies to lock in long-term supply agreements. Management also highlighted a signed letter of intent from that OEM, signaling a potential production award as early as late 2025.Industrial Expansion and Capacity Building: Unlike many LiDAR players that are heavily reliant on automotive production ramps, AEVA is making a smart push into high-margin industrial sectors. It has secured over 1,000 orders for its Eve 1 precision sensor and is working with customers like SICK AG and LMI Technologies, which serve a combined addressable market of roughly 2 million units annually. Aeva Technologies is targeting 100,000 units in annual production capacity by the end of 2025.
Strategic Liquidity Moves and Deleveraging: Luminar has taken deliberate steps to reinforce its balance sheet. Through repurchasing $50 million of its 2026 convertible notes using a mix of cash and equity, and securing a $200 million capital facility from institutional investors, Luminar has improved its liquidity runway through at least the end of 2026. With roughly $400 million in total liquidity and a reduced debt load of $135 million, Luminar is better positioned to fund the transition to its new Halo platform without relying on near-term revenue inflection.Halo Platform Offers a Streamlined Path Forward: The company's pivot to a single, unified LiDAR system — Halo — is gaining momentum. OEMs are migrating away from Luminar's legacy Iris system, opting instead for the Halo architecture, which promises quicker deployment, lower development costs, and greater commercial scalability. Prototypes are already in customer hands, with a formal launch expected in late 2026 or early 2027. This shift could position Luminar as a volume-ready LiDAR supplier capable of capturing significant market share in ADAS and safety systems.Solid Industrial and Automotive Partnerships: Luminar's agreements extend beyond passenger vehicles. Its LiDAR will be featured in Caterpillar's off-highway trucks, targeting quarry and aggregate operations, offering validation in demanding environments. Automotive-wise, it's already live on the Volvo EX90 and will soon be featured on the Volvo ES90, representing the only high-performance LiDAR system standard on global production vehicles.
Aeva Technologies has climbed nearly 240% year to date, largely fueled by new industrial and OEM partnership announcements. The rapid upswing reflects growing market optimism, though it raises questions about how much near-term success is already priced in. On the other hand, LAZR is down around 31% this year, weighed by commercialization delays and cash flow concerns. Still, if it can deliver on its Halo roadmap, the current valuation could present an attractive opportunity.
Image Source: Zacks Investment Research
Valuation is where the contrast becomes stark. AEVA currently trades at a forward sales multiple of approximately 31.6, signaling aggressive investor expectations for future growth. LAZR, on the other hand, trades at just 1.6X forward sales, offering a more grounded valuation despite its early production wins and robust capital runway. This gap suggests that AEVA's stock price may already be baking in a lot of future success, while LAZR may present a value opportunity.
Image Source: Zacks Investment Research
Both companies are still in the red but are showing signs of improvement. Analysts forecast AEVA's EPS to improve by 21.7% in 2025 and another 12.2% in 2026, driven by early industrial revenues and potential automotive ramp-ups.
Image Source: Zacks Investment Research
Luminar, however, is expected to post a stronger recovery with a 53.6% EPS improvement in 2025, followed by 7.5% in 2026. These forecasts imply that LAZR could deliver stronger bottom-line leverage as revenues scale from existing programs.
Image Source: Zacks Investment Research
AEVA and LAZR are both navigating the early stages of LiDAR commercialization, each with unique strengths. AEVA stands out with fresh momentum, strategic wins across verticals, and rapid industrial expansion. However, its stretched valuation and continued cash burn temper near-term upside. LAZR, on the other hand, offers better valuation support and a clearer path toward high-volume deployment through its streamlined Halo platform and strong balance sheet.Both stocks currently carry a Zacks Rank #2 (Buy), reflecting optimistic earnings outlooks and improving investor sentiment. In the end, the choice comes down to investor preference: AEVA for early-stage hypergrowth and vertical diversification, or LAZR for strategic discipline and deeper institutional backing. Either way, both are well worth investing in the LiDAR race. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Luminar Technologies, Inc. (LAZR) : Free Stock Analysis Report
Aeva Technologies, Inc. (AEVA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 hours ago
- Yahoo
Can AEVA's 4D Push Outpace INVZ's Automotive LiDAR Wins?
Aeva Technologies AEVA and Innoviz Technologies INVZ are the two key players in the world of LiDAR. Think of LiDAR as the "eyes" for self-driving cars, smart cities and factory robots. Both companies are trying to grab a piece of a multi-billion-dollar market, using advanced sensor technology for both cars and other industries. As the self-driving sector heats up and investors look for real-world business success, comparing AEVA and INVZ helps us see where the stronger opportunities truly they are aiming for similar markets, their strategies are different. AEVA stands out with its special "4D LiDAR" technology, which can not only "see" objects but also instantly tell how fast they are moving. The company is quickly expanding into profitable areas like infrastructure and industrial on the other hand, focuses on solid, "automotive-grade" LiDAR and has strong relationships with big car manufacturers. It is also earning money from upfront engineering work while waiting for mass production to begin. Both stocks have seen big jumps over the past 12 months, but their financial health and stock prices tell different stories. It's a good time to compare them side-by-side to see which might be a better investment. The Case for AEVA Stock AEVA's strategy of looking beyond just self-driving cars is starting to pay off. The company has landed big projects, like equipping Tampa International Airport with its 4D LiDAR, making it one of the largest airport LiDAR projects in the U.S. Plus, partnerships with groups like Sandia National Laboratories for nuclear security show that AEVA's technology works well outside the crowded world of autonomous vehicles. These wins imply potential for steady income and less reliance on those long, drawn-out car industry contracts. This sets AEVA apart from Innoviz, which still relies heavily on the auto sector for its is also showing big ambition by planning to increase its manufacturing capacity to 200,000 LiDAR units per year by 2026. Their role as the exclusive 4D LiDAR supplier for Daimler Truck's Torc Robotics division gives them a strong foothold in self-driving trucks. However, unlike Innoviz, which already has a high-volume pipeline with Volkswagen and Mobileye, AEVA's major car-related income is still mostly in the future. It depends on whether it can successfully ramp up production over several years and deliver at a large biggest challenge for AEVA right now is its financial health. In other words, the market is betting on huge growth that hasn't happened yet. AEVA's revenues for the first three months of 2025 were $3.4 million, tiny compared to Innoviz's $17.4 million. Also, AEVA is burning through a lot of cash, over $30 million every quarter. While the company has backing from big investors and strategic funding, AEVA needs to turn its partnerships into steady income to justify its high stock price. The Case for INVZ Stock Innoviz's strong partnerships with major car companies like Volkswagen, Mobileye, and BMW are central to why investors might like this stock. For instance, Volkswagen's ID. Buzz robotaxi program will use nine InnovizTwo LiDARs per vehicle, with shipments starting in 2025. This shows real potential for high sales volume soon. These deep relationships with car manufacturers provide clear income certainty into 2026-2027 and put Innoviz ahead of AEVA when it comes to getting their automotive products to market. While AEVA's wins in trucking and infrastructure are promising, it doesn't have the same immediate, high-volume production also has a financial cushion from its $95 million backlog of upfront engineering work (called NRE). This provides a steady stream of income until mass production really gets going. In the first three months of 2025, Innoviz's revenues soared 2.5 times compared to last year, hitting $17.4 million. This was largely driven by profitable engineering services, which also pushed their gross profit margins to a healthy 40%. While AEVA is pursuing high-profile pilot projects, Innoviz is already making money from engineering work at a larger scale. Plus, Innoviz has cut its operating expenses by 34% compared to last year and burns less cash, strengthening its financial position compared to AEVA, even though both face the risk of issuing more AEVA, Innoviz is also expanding into non-automotive markets such as smart cities and safety systems, which broadens its potential customer base. However, INVZ's heavy reliance on engineering income raises questions about how sustainable that revenue is until actual product volumes from car programs truly pick up in 2026. Scaling up manufacturing with their partner Fabrinet and transitioning to full production carries risks. Still, compared to AEVA, Innoviz has a more established revenue base and tighter control over its spending, offering more predictable short-term results and less speculative upside. Price Performance Over the past year, Aeva Technologies' stock has skyrocketed more than 500%, showing a lot of excitement around its new deals and expansion into different markets. Innoviz is up 138%, a smaller but still significant gain that's supported by actual revenue growth and success with car manufacturers. This difference suggests AEVA's rally is more driven by investor sentiment and hopes for the future, while Innoviz's stock performance aligns more closely with its current business results. Image Source: Zacks Investment Research Valuation Comparison Aeva Technologies' stock currently trades at a very high 45 times its expected future sales, making it look very expensive. Innoviz, in contrast, is valued at just over 3 times its expected future sales. This huge difference in valuation shows that the market is much more skeptical about AEVA's ability to quickly turn its partnerships into massive revenues compared to Innoviz's more modest and arguably more realistic expectations. Image Source: Zacks Investment Research Revenue Outlook As per the Zacks Consensus Estimate, AEVA's revenues for 2025 will be just over $17 million. While this shows projected 90% growth, it's starting from a very small base. Image Source: Zacks Investment Research Innoviz, on the other hand, is expected to bring in $60 million in revenues in 2025, which is more than triple Aeva Technologies' forecast. Innoviz is also projected to see stronger growth into 2026 as its car programs ramp up. Image Source: Zacks Investment Research Conclusion Both AEVA and Innoviz are chasing a massive opportunity in LiDAR technology. Aeva's expansion into infrastructure and its high-profile partnerships show exciting potential. However, its very high stock price and significant cash burn increase the risk if the company don't execute flawlessly. Innoviz, with its stronger ties to major car manufacturers, a more substantial current revenue base, and disciplined cost control, offers more grounded and predictable short-term these factors, Innoviz appears to be the better stock right now. Its combination of clear visibility into automotive sales, smart financial management, and a lower stock price makes it the more balanced choice in a sector that's still figuring out which companies will truly come out on top. INVZ currently carries a Zacks Rank #3 (Hold), while AEVA has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aeva Technologies, Inc. (AEVA) : Free Stock Analysis Report Innoviz Technologies Ltd. (INVZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
12 hours ago
- Yahoo
Pony.ai launches around-the-clock Robotaxi service in China
has started a 24/7 Robotaxi operation in China's Guangzhou and Shenzhen cities. This marks an expansion from a 15-hour service window to round-the-clock availability in the company's development strategy within the country. The company has also increased its Robotaxi testing period to 24 hours a day in Beijing city of China, building upon its foundation of more than 50 million kilometres of autonomous testing globally. These tests, which span various traffic and lighting conditions, are said to be crucial for assessing the system's real-world performance. employs a multi-sensor fusion architecture that combines a 128-beam light detection and ranging (LiDAR), eight-megapixel cameras, and four-dimensional (4D) millimetre-wave radar. These will deliver 360-degree perception in low-light or nighttime conditions, where traditional vision-only systems may falter. The company's use of LiDAR and radar provides essential redundancy, enhancing the detection of low-contrast objects and mitigating the effects of headlight glare. This ensures safer navigation on the roads that are dimly lit or unlit. The advanced autonomous driving software stack, built on the "PonyWorld foundation model and virtual driver" architecture, is deployed in the seventh-generation Robotaxi fleet. It enables the precise detection of road elements and pedestrians up to 650 meters away, even in adverse weather conditions, due to a sensor self-cleaning system. In April 2025, collaborated with Tencent Cloud and Smart Industries Group, the cloud business division of Tencent Holding, to advance autonomous driving technology. The following month, the company entered a strategic collaboration with Dubai's Roads and Transport Authority (RTA) to bring its advanced robotaxi fleet to the region, marking a step in the company's worldwide expansion efforts. " launches around-the-clock Robotaxi service in China" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Wire
14 hours ago
- Business Wire
Subaru Selects HPE to Accelerate AI Development for Next-Generation Eyesight Driver Assist System
TOKYO--(BUSINESS WIRE)-- HPE (NYSE: HPE) today announced that Subaru selected HPE Cray XD670 servers to orchestrate its image recognition technology and AI. This rollout supports Subaru's vision of increasing customer value and improving preventive safety — one of the key pillars of the car manufacturer's comprehensive philosophy. HPE Cray XD670 servers featuring industry-leading and energy efficient direct liquid cooling is expected to accelerate the optimization of AI algorithms, model training, and inferencing for the next-generation EyeSight driver assist system currently under development. Subaru is recognized by customers and industry organizations 1 globally for its outstanding safety performance. Powered by AI, the next-generation EyeSight is being developed as part of Subaru's commitment to achieving zero fatal traffic accidents by 2030 2. The next-generation EyeSight system aims to enhance vehicle safety in diverse real-world scenarios by simultaneously measuring the precise distance to objects and classifying them using AI, using images captured by stereo cameras. Subaru has been providing its stereo camera–based image recognition technology for over 35 years and is now fusing it with the latest AI technologies to deliver greater value to customers to enhance preventive safety. The on-premises deployment of HPE Cray XD670 servers supports this effort by improving the computing power of Subaru's AI development environment. 'Subaru has an unwavering dedication to developing high-performing vehicles while pursuing the highest level of safety with a goal to eliminate fatal traffic accidents. The remarkably low rear-end collision rate of EyeSight-equipped vehicles stands as a powerful testament to that dedication,' said Hirokazu Mochizuki, senior vice president and managing director for HPE Japan. 'The HPE Cray XD670 is a high-performing GPU-accelerated server and ranks at the top of computer vision and LLM workloads performance benchmarks. We are honored that Subaru has chosen HPE Cray XD670 to support Subaru's AI initiatives and further bolster the safety capabilities of the EyeSight technology.' Subaru's vast repository of research data and accumulated technical expertise is a major advantage in the development of advanced driver-assistance systems (ADAS), and SUBARU Lab was established in December 2020 as a strategic hub to strengthen ADAS related in-house software development and AI-based image recognition. Researchers and engineers at SUBARU Lab are rigorously pursuing solutions to real-world driving risks, collecting video data by driving on roads around the world. This image data is used to optimize AI algorithms and train inference models that run on HPE Cray XD670 servers powered by NVIDIA H200 GPUs with NVIDIA NVLink connectivity for up to four GPUs. 'At Subaru, we pursue comprehensive vehicle safety through five key areas of our All-Around Safety philosophy: Primary Safety, Active Safety, Preventive Safety, Passive Safety, and Connected Safety. Subaru's unique value lies in delivering peace of mind to our customers—a commitment that goes beyond just safety, and one that drives us to advance the development of cutting-edge technologies with a strong sense of urgency,' said Takashi Kanai, Deputy Chief of SUBARU Lab, and General Manager of ADAS Development Department. 'With the energy-efficient HPE Cray XD670 that delivers twice the performance compared to the existing system, we now have an on-premises environment that allows us to maximize our use of GPU resources, which we expect to speed the development of our AI models.' The HPE Cray XD670 system features direct liquid cooling for optimal energy efficiency and performance and is powered by eight NVIDIA H200 GPUs to deliver exceptional capabilities for AI model training and inferencing. HPE Cray XD670 achieved top rankings in the MLPerf Inference v5.0 benchmarks, an industry effort driven by MLCommons to help the industry standardize performance evaluation of AI technologies. Subaru also selected HPE Tech Care Service for faster access to HPE experts, and intuitive self-help tools via the HPE Support Center. This support experience enables reduced downtime, streamlined operations, and unlocks greater value from the investment in HPE. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at About Subaru Corporation Subaru Corporation strives to deliver 'Enjoyment and Peace of Mind' to its customers by focusing on the core value of 'people-oriented car manufacturing.' With a strong commitment to safety, quality, and innovation, Subaru continues to evolve as a company that delivers happiness to all. The company operates globally with a focus on automotive and aerospace businesses, and is dedicated to contributing to a sustainable society through its products and corporate activities. For more information, visit 1 Subaru's vehicles have earned high safety ratings from third-party assessment organizations around the world, including ANCAP (Australasian New Car Assessment Program), Euro NCAP (European New Car Assessment Programme), IIHS (Insurance Institute for Highway Safety, U.S.), JNCAP (Japan New Car Assessment Program), and NHTSA (National Highway Traffic Safety Administration, U.S.). 2 Refers to the elimination of fatalities involving occupants of Subaru vehicles, as well as pedestrians and cyclists, in collisions with Subaru vehicles.
