Shares of autonomous vehicle software company Luminar Technologies (LAZR) are surging today after it announced a new partnership with Caterpillar (CAT). Indeed, Caterpillar will use Luminar’s advanced LiDAR technology for its next generation of autonomous vehicles. The collaboration focuses on integrating two of Luminar’s Iris LiDAR sensors into Caterpillar’s Cat off-highway trucks, which will be part of the Cat Command system designed for quarry and aggregate operations.
LiDAR, which stands for Light Detection and Ranging, plays a key role in helping autonomous machines navigate and detect obstacles. It works by sending out laser pulses that bounce off nearby objects, creating a detailed 3D map of the surrounding area. Caterpillar’s new trucks will have a customized LiDAR integration system developed specifically for their use. Interestingly, the company already has a strong track record in autonomous operations, as its trucks have covered more than 334 million kilometers and hauled over 9.3 billion tonnes of material without a driver.
Both companies seem excited about the partnership, with Caterpillar CTO Jaime Mineart highlighting the benefits of autonomy for safety and efficiency, while Luminar CEO Austin Russell called the collaboration a step toward the next industrial revolution. It is worth noting that Luminar has been seeing a string of good news lately after a YouTube video that compared its LiDAR system to Tesla’s self-driving technology concluded that Luminar’s technology outperformed Tesla’s.
Which Autonomous Vehicle Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that LAZR stock has more room to run than CAT. In fact, LAZR’s price target of $26.75 per share implies almost 315% upside versus CAT’s 13.3% upside potential.
