Hey Guys,
With Tesla pulling sensors left right and center, you have got to laugh. Tesla believes video cameras alone are the answer. Last year, Tesla removed the radar from the Model 3 and Model Y, replacing it with a cameras-only computer vision system built with Nvidia's CUDA parallel computing platform called Tesla Vision.
Now, in late 2022, Tesla has announced(Opens in a new window) that ultrasonic sensors (USS) are being removed from its electric vehicles, with the knock-on effect being some Autopilot features will be temporarily disabled.
The rest of the world are adding sensors, and LiDAR being the chief among them. In an epic stock correction for tech stocks, this may be a good time to survey the damage and pick some of the winners for LiDAR stocks.
Research Dive estimates that the global automotive lidar sensor market will likely deliver close to $2.5 billion in revenue by 2026. Such an increase would mean a compound annual growth rate (CAGR) of 39% between 2018 and 2026. While full autonomy is taking maybe a decade longer than we thought, it’s still coming and inevitable.
A LiDAR system emits frequency modulated continuous wave (FMCW) laser pulses that are reflected off objects in the environment and detected by a receiver. It isn’t just used for self-driving cars, but robotics, drones and so forth.
LiDAR stocks (LiDAR: light detection and ranging) have been on financial experts’ radar for some time, but it’s only recently that their market cap has taken such a tumble as to make them discount worthy. I’m always up for a discount personally.
Let’s list some names so you can come back to see Substack’s Ticker and how they performed on any given day, just bookmark this page. We can assume some of these companies will be acquired by the likes of auto makers, Amazon and others, while others will better diversify their business model. This is the rank more or less of how I see them currently:
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