Back to top

Image: Bigstock

Here's Why Aeva Technologies' $50M Deal Really Matters

Read MoreHide Full Article

Key Takeaways

  • Aeva Technologies secured a $50M deal, including $32.5M equity and $17.5M for product and manufacturing scale.
  • The Fortune 500 partner will serve as a Tier 2 manufacturer for a major passenger OEM program of AEVA.
  • AEVA plans to scale to 100,000 units annually by late 2025.

Last month, LiDAR sensor maker Aeva Technologies (AEVA - Free Report) inked a $50-million strategic collaboration with a Fortune 500 technology firm. Not just a typical venture investment, the deal includes $32.5 million in equity and $17.5 million earmarked for joint product development and manufacturing ramp-up. But more importantly, the partner will serve as AEVA’s Tier 2 manufacturer for a major passenger OEM program, signaling operational alignment, not just financial interest.

This collaboration could dramatically reshape Aeva Technologies’ execution capabilities. With plans to scale production to 100,000 units annually by late 2025, AEVA gains manufacturing muscle while keeping overhead in check. It also helps streamline supply chains at a critical moment in the company’s growth arc.

AEVA’s core technology — FMCW LiDAR that measures distance and speed at the same time — now has strong backing from a major player. In a capital-intensive industry, this combination of funding support and manufacturing alignment gives AEVA room to scale with less operational strain, allowing the company to expand more efficiently and stay focused on execution.

How Does AEVA’s Capital Strategy Stack Up Against LAZR and OUST?

Luminar Technologies (LAZR - Free Report) made headlines with its next-gen Halo platform and secured $200 million in new funding, but it continues to shoulder much of the manufacturing burden internally. Without a dedicated Tier-2 partner like Aeva has secured, Luminar may face longer timelines and higher production costs. 

Ouster (OUST - Free Report) , on the other hand, ended Q1 with $171 million in cash and no debt, giving it financial headroom. However, Ouster has not disclosed any large-scale external manufacturing alliances either. Compared to Luminar and Ouster, Aeva Technologies’ strategy blends funding and production scale more tightly, giving it a potential edge in speed and efficiency.

AEVA’s Price Performance, Valuation and Estimates

Shares of Aeva Technologies have surged around 360% year to date.

Zacks Investment Research Image Source: Zacks Investment Research

From a valuation standpoint, AEVA trades at a forward price-to-sales ratio of over 40, way above the sector. AEVA carries a Value Score of F.

Zacks Investment Research Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Aeva Technologies’ 2025 revenues implies a 90% jump year over year.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Luminar Technologies, Inc. (LAZR) - free report >>

Ouster, Inc. (OUST) - free report >>

Aeva Technologies, Inc. (AEVA) - free report >>

Published in