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Will Luminar Technologies Need To Raise $1B In Capital? This Bearish Analyst Answers

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The Luminar Technologies Conundrum: Navigating Choppy Waters

An Analyst’s Grim Outlook


When the opening bell chimed on Wednesday, shares of Luminar Technologies Inc LAZR were in a tailspin.

Not a harbinger of smooth sailing, as BofA Securities curtails volume projections due to model launch delays and tempered expectations for LIDAR-equipped vehicles.

The Analyst’s Bearish Stance: John Babcock’s latest diagnosis prescribes a bitter pill for Luminar Technologies, shifting the rating from Neutral to Underperform and docking the target price from $3.50 to $1.20.

The Analysis: EV headwinds could hit Luminar hard, as muted demand stems from cost concerns, range anxiety, and waning EV value propositions, posited Babcock.

Intel from the 2024 BofA Auto Summit unveils a troubling trend: OEMs pump the brakes on EV launches, hinting at a bumpy road ahead.

β€œGiven mounting expenses, EBITDA and cash flow breakeven may be a mirage till 2029/2030, rather than the 2027/2028 horizon previously envisioned,” Babcock grimly forewarned.

In a grim denouement, Luminar Technologies stares down the barrel of a potential $1 billion capital infusion by 2025 – a dose that could unkindly thin out the shareholder herd, according to Babcock.

Market Response: Luminar’s shares took an 8.59% nosedive to $1.76 when the closing bell tolled on that fateful Wednesday.

A snapshot from Luminar itself, capturing the tumultuous landscape.

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