As automakers start to install LiDAR technology onto their vehicles, the makers of LiDAR hardware like Luminar $LAZR, Innoviz $INVZ, Outster $OUST, Velodyne $VLDR, and Aeva $AEVA will start seeing sales growth like never before.

While true self-driving will be restricted to Waymo $GOOGL and Cruise $GM, automakers installing LiDAR tech on vehicles are looking to utilizing the technology to provide more advanced hands-free driving systems in the meantime. With more people commuting to the office these days, car buyers prioritizing self-driving capabilities are flocking to $TSLA in hopes of getting the Autopilot and FSD Beta software. While those two software programs have helped differentiate Tesla from the rest of the market, as more automakers start incorporating LiDAR hardware on their vehicles, Tesla's self-driving capabilities will become inferior to the market.

For evidence of automakers starting to incorporate LiDAR tech on their vehicles, here are a few examples:

The order from automakers are starting to flood in. Overtime, the demand for LiDAR units will swell. While the majority of LiDAR players are focused on the automotive industry, Ouster is pursuing opportunities outside the auto industry. These opportunities include autonomous mining trucks and autonomous forklifts. Ouster has its own LiDAR for automotive products called DF but hasn't had any major orders from automakers yet. Some experts are optimistic on the sales success of DF because it's low cost, solid state, and digital, allowing it to stand out in the industry.

While all LiDAR stocks are expected to rise with growing enthusiasm for the industry, at the end of the day, the producer with the most orders will reap the economies of scale and reach profitability sooner. While the odds look to be Luminar's favor, we can't underestimate the potential of other competing firms.

Source: https://www.cnbc.com/2023/08/18/innoviz-luminar-ouster-likely-winners-lidar-shakeout.html