Luminar: Navigating Around The Difficult Near Term Headwinds

Summary:

• Luminar’s Q3 2024 results were mixed, with an 8.6% revenue decline. This drop is attributed to a re-negotiated non-automotive contract, not affecting future growth reliant on LiDAR system adoption.
• Sensor sales increased quarter over quarter, boosted by Volvo’s EX 90 production, a key catalyst for Luminar’s sustained revenue growth.
• Despite current challenges, Luminar’s long-term prospects remain promising, with Volvo ramping up EX 90 deliveries in late 2024 and early 2025.
• I believe that Luminar’s and Volvo’s partnership has the potential to continue expanding until all or most of Volvo’s models come equipped with LiDAR.

I have written about Luminar (NASDAQ:LAZR) in the past few weeks, and it hasn’t exactly worked out. The company’s stock has taken a beating since my last few articles, going so far as doing a reverse stock split. But despite the

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