Tesla has become the largest customer of lidar technology firm Luminar, accounting for over 10% of the company’s revenue in the first quarter of 2024, reports TechCrunch.
This amounts to slightly more than $2 million, as revealed in Luminar’s recent earnings report today. This disclosure comes despite Musk’s previous statements dismissing lidar sensors as a “crutch” for autonomous vehicles and describing reliance on the technology as a “fool’s errand.”
During Tesla’s “Autonomy Day” event in 2019, Musk criticized lidar technology as costly and unnecessary, likening it to “having a whole bunch of expensive appendices.” Despite these views, Tesla’s substantial procurement from Luminar indicates a significant role for lidar in its operations.
Tesla has been observed using lidar and other sensors on some of its test vehicles, hinting at an ongoing partnership with Luminar that dates back to 2021, although specifics of the deal remain undisclosed.
Luminar’s financial performance has shown a 5% decline in revenue from the last quarter of 2023, primarily due to reduced sensor sales to non-automotive customers. However, this downturn was mitigated by robust sales to Tesla. On a brighter note, Luminar reported a 45% increase in revenue year-over-year. The company is backed by a stake from Mercedes-Benz.
The lidar maker also announced a major restructuring just days before releasing its earnings report, planning to reduce its workforce by 20% and outsource much of its lidar sensor production to scale the business. This strategic move aligns with Luminar’s efforts to adapt to changing market demands and enhance operational efficiency.
Tesla’s Autopilot and Full Self-Driving (FSD) add-on has transitioned to become fully-reliant on cameras and neural nets, no longer needing radar. Tesla will unveil its Robotaxi on August 8, 2024.
