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Why Luminar's Mercedes-Benz Deal Is So Significant

TheMotleyFool

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Why Luminar's Mercedes-Benz Deal Is So SignificantPhoto, wide shot, wide-angle lens, Hotel, Midday, harsh overhead sunlight, directional sunlightt, photo by Ansel Adams: https://img.midjourneyapi.xyz/temp/d14bb504-852b-4d13-a69a-8cec9d4eb799.png

News that lidar start-up Luminar (NASDAQ: LAZR) has secured a deal with -- and an investment from -- German luxury-car stalwart Mercedes-Benz sent Luminar's stock soaring on Thursday: As of 2:30 p.m. ET, it was up about 17.1% from Wednesday's close.

The stock price surge might actually be justified. Luminar's intense focus on making automotive-grade units that can be mass-produced at relatively low cost has helped it stand out amid a crowded field of lidar start-ups.

The auto industry has already taken notice. Luminar last year announced deals with other automakers, including Volvo and China's SAIC.

Source Fool.com

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