Entering text into the input field will update the search result below

Unknown, Undervalued: How Aeva Is Positioning Itself As A Lidar Industry Leader

Apr. 06, 2021 8:25 AM ETAeva Technologies, Inc. (AEVA)15 Comments
Cameron Wetherby profile picture
Cameron Wetherby


  • The Lidar total addressable market is expected to catapult from $4 billion in 2020 to ~$200 billion in 2030.
  • Aeva's technological superiority and key partnerships offer it a clear path to be one of the industry leaders over the next decade.
  • Our base case suggests Aeva stock is worth ~$22 per share, currently undervalued by 43%.

Investment Thesis

Lidar technology innovation has brought costs down dramatically over the past decade while simultaneously increasing its capabilities. Between the automotive, consumer products, industrial robotics, and security sectors, analysts expect the total Lidar market to rise from $4 billion in 2020 to ~$200 billion in 2030. While the main driver of this growth is expected to come from the autonomous vehicle sector, consumer products are beginning to use this technology, shining a light on Lidar's potential to change the way we live.

Aeva Inc. (NYSE:AEVA) created the first 4D Lidar on chip technology that solves the limitations associated with traditional 3D Lidar. The company's technological superiority and key partnerships offer it a clear path to be one of the industry leaders over the next decade.

Investing in Aeva does not come without risk. Industry competition is fierce, and competitors are investing heavily in R&D to increase innovation. As this industry is still in its early stages, technological innovation and M&A activity have the potential to disrupt the competitive environment.

Our base case suggests that Aeva stock is worth ~$22 per share, currently undervalued by 43%. Additionally, if the company can execute its lofty goals, we expect significant upside beyond these levels.

Lidar Technology

Lidar technology uses light pulse waves to determine the distance between objects around it. Instead of explaining how this works, I find that this picture explains it effectively.

A screenshot of a computer Description automatically generated with medium confidence

Source: Velodyne Lidar

Although Lidar was developed in the 1960s, it had limited use until coupled with GPS technology to create 3D maps of surrounding areas. Today, companies use this technology in agriculture, oceanography, construction, engineering, and data collection. However, as the world continues to move more digital, Lidar technology will play an essential role in many future industries.

Addressable Markets

The largest addressable market is the autonomous

This article was written by

Cameron Wetherby profile picture
Gen Z has made a splash in the investing world over the past year, riding the coattails of high flyers like Tesla and Bitcoin. While many of these new Robinhooders will not survive in the long run, it would be unwise for mature investors to turn a blind eye to the securities these newcomers are investing in. My goal is to sift through these investments and find the ones that actually make sense for long-term investors.

Analyst’s Disclosure: I am/we are long AEVA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Entered a long position in Aeva stock on April 5th, 2021.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.