By Michael Elkins
Luminar Technologies (NASDAQ:LAZR) has surged nearly 26% Wednesday after the automotive technology company announced a sweeping expansion of its partnership with Mercedes Benz (OTC:DDAIF) to safely enable enhanced automated driving capabilities across a broad range of next-generation production vehicle lines as part of the automaker’s next-generation lineup.
After two years of close collaboration between the two companies, Mercedes-Benz now plans to integrate the next generation of Luminar’s Iris lidar and its associated software technology across a broad range of its next-generation production vehicle lines by mid-decade.
“Mercedes’ standards for vehicle safety and performance are among the highest in the industry, and their decision to double down on Luminar reinforces that commitment,” said Austin Russell, Founder and CEO of Luminar. “We are now set to enable the broadest scale deployment of this technology in the industry. It’s been an incredible sprint so far, and we are fully committed to making this happen – together with Mercedes-Benz.”
“In a first step we have introduced a Level 3 system in our top line models. Next, we want to implement advanced automated driving features in a broader scale within our portfolio,” said Markus Schäfer, Member of the Board of Management of Mercedes Benz Group AG and Chief Technology Officer, Development & Procurement. “I am convinced that Luminar is a great partner to help realize our vision and roadmap for automated and accident-free driving.”
This multi-billion dollar deal is a milestone moment for the two companies and the industry and is poised to substantially enhance the technical capabilities and safety of conditionally automated driving systems.
Shares of LAZR are up 25.94% near end-of-day trading on Wednesday.