Luminar Technologies saw a 10% decline in its shares on Wednesday following the release of its fourth-quarter results, which fell short of estimates due to a delayed production schedule for Volvo Cars’ new EX90 electric SUVs. The company had redirected its manufacturing and engineering resources to prepare for the production start of the cars, which was moved from late 2023 to mid-2024, impacting sales of its sensors.
“The EX90 production delay is likely to last until mid-2024. Volvo is targeting customer deliveries of the EX90 in late 2024,” explained Jaime Perez, an analyst at R.F. Lafferty Equity Research.
See also: Volvo’s All-Electric EX90 SUV Faces Six-Month Delay Due to Advanced LiDAR Software Complexity
Luminar reported fourth-quarter revenue of $22.1 million, missing estimates of $27.34 million. Additionally, the adjusted loss per share of 20 cents fell short of expectations.
“Commercial progress has been slower than we expected, but certainly not only at Luminar but within the auto-tech ecosystem,” noted TD Cowen.
The slowdown in the adoption of electric vehicles and negative sentiment towards Advanced Driver-Assistance Systems (ADAS) due to autonomous program delays and cancellations have added to the challenges. Mobileye Global, a provider of ADAS and autonomous vehicle technology, recently stated that inventory build-up at its customers will impact growth in 2024.
See also: Polestar 4 to integrate Luminar LiDAR with Mobileye Chauffeur to Enhance Self-Driving Features
Luminar’s shares closed down 10.4% at $2.24 on Wednesday, continuing a trend from last year where the stock lost nearly a third of its value.
