[Auto] Luminar To Supply Laser Lidar Sensors, Software For SAIC Motor’s Electric Cars

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Laser lidar startup Luminar, founded and led by the youngest self-made billionaire tracked by Forbes, will supply high-tech sensors and software to Chinese auto giant SAIC Motor Corp. for its new line of electric R brand vehicles. Vehicles using the Silicon Valley company’s tech are slated to be on the road next year and able to drive autonomously on the highway. 

Luminar’s Iris lidar will be integrated into the roofs of R brand vehicles, and its Sentinel software, which enables highway autonomy and automated safety capabilities in urban driving, will also be used. The companies say their partnership should deliver China’s first autonomous production vehicles. Luminar will also establish an office in China to support the venture. The companies didn’t provide financial details of the supply deal. 

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Luminar founder and CEO Austin Russell JAMEL TOPPIN/THE FORBES COLLECTION
“This is really our first foray into China—and it won’t be the last,” Luminar CEO Austin Russell, 26, tells Forbes. “From a commercial standpoint, this is definitely the most significant event we’ve had in a year since Volvo.” 

Luminar’s SAIC deal, following its May 2020 plan to supply sensors and software for automated passenger vehicles that Volvo Cars will market in about two years and production programs with Daimler Trucks and Intel’s Mobileye, improve the odds that the young Palo Alto, California, tech company can begin generating meaningful revenue from next year. Nasdaq-listed Luminar booked orders potentially worth $1.3 billion at the end of 2020 in its first quarterly results report as a public company on Thursday. That figure doen’t include the SAIC deal.  

Lidar is a critical technology that helps self-driving vehicles “see” their surroundings in 3D, in daylight or at night. In contrast to early industry leader Velodyne, which uses multiple lasers in a spinning unit to create detailed “point cloud” maps, Luminar’s approach is a lower-cost single laser beam system, which it says requires less energy to operate. Its sensors work as a primary component of the hardware for self-driving vehicles that includes digital cameras, radar and a computing system. Luminar says its Iris device detects objects 250 meters ahead of a vehicle traveling at highway speed, and will cost between $500 and $1,000, depending on production volume.

“Our new R brand line of vehicles will combine the best technology with luxury and comfort, and autonomous capabilities are central to that vision,” SAIC Motor vice president Yang Xiaodong said. “The only autonomous vehicle company we seriously considered was Luminar–they are in a league of their own in lidar technology and software, uniquely enabling us to achieve our vision in series production.”

Lidar units for both the SAIC and Volvo Cars projects will be produced at a contract facility Luminar is working with in Mexico, Russell said. He declined to identify the manufacturer.

The SAIC deal will have a “meaningful” impact on Luminar’s revenue, Russell said, declining to provide details ahead of the quarterly results announcement. The company also didn’t elaborate on the project’s value in its results call.

Luminar reported revenue of just $14 million in 2020, mainly from sales of lidar sensors to automotive test fleets. Targets for 2021 include increasing its order book by more than 40% and annual revenue of between $25 million and $30 million.

Forbes estimates Russell’s net worth at $2.8 billion as of March 18, based on his ownership stake in Luminar.

Luminar shares fell 4.2% to $26.30 in Nasdaq trading on Thursday.