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Will Consumer Push for Safer Cars Accelerate AEVA's Growth?

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Key Takeaways

  • 70% of Americans want autonomous cars to use both cameras and LiDAR for safety.
  • 71% of people favor making dual-sensor systems a legal requirement.
  • AEVA's FMCW LiDAR detects velocity and range with precision and avoids interference.

In the world of autonomous vehicles, a clear divide has emerged. On one hand, companies like Waymo and Zoox champion a multi-sensor approach, using a combination of cameras and LiDAR. On the other hand, tech giant Tesla ((TSLA - Free Report) ) has doubled down on a camera-only system, believing it's the key to a cheaper, more scalable solution. However, recent data suggests that consumers are siding with the LiDAR camp, which could be a big win for companies like Aeva Technologies ((AEVA - Free Report) ).

The data is striking: 70% of Americans believe autonomous vehicles should use both cameras and LiDAR for safety. In contrast, only 3% support the camera-only approach championed by Tesla. This isn't just a preference; 71% of people want the government to make it a legal requirement. This widespread consumer preference for redundant systems could lead to a shift in the industry, putting AEVA in a strong position.

As consumer trust in a camera-only approach wavers, companies like AEVA, which specializes in advanced LiDAR technology, stand to benefit. The market may be shifting from a simple cost-benefit analysis to a safety-first mindset. With consumers pushing for more robust systems and expressing skepticism about Tesla's strategy, companies that provide a dual-sensor solution, like AEVA, could see increased demand from automakers who want to give customers what they are asking for.

AEVA’s LiDAR technology stands out with its unique Frequency Modulated Continuous Wave (“FMCW”) system. This allows it to simultaneously detect both velocity and range with high precision. An added benefit is its immunity to interference, a crucial feature for ensuring reliable performance in complex real-world driving environments.

LiDAR Market Snapshot

Ouster ((OUST - Free Report) ) offers a combination of high-resolution LiDAR sensors and powerful perception software. This advanced technology is designed to boost safety and efficiency across various industries. Ouster focuses on a scalable manufacturing process and provides solutions globally. With its comprehensive ecosystem, Ouster is well-positioned to meet the growing demand for LiDAR.

Meanwhile, Luminar Technologies’ ((LAZR - Free Report) ) LiDAR technology is the first to be a standard feature on a global production vehicle, like the Volvo EX90. Luminar uses a unique 1550nm wavelength to offer advanced safety features, aiming to prevent accidents and save lives. Luminar is focused on democratizing safety, bringing its LiDAR to consumer cars and helping drivers today.

AEVA’s Price Performance, Valuation and Estimates

Shares of Aeva Technologies have surged 190% so far in 2025.

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From a valuation standpoint, AEVA trades at a forward price-to-sales ratio of over 25, well above the industry. AEVA carries a Value Score of F.

Zacks Investment Research Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for Aeva Technologies’ earnings has been revised over the past 60 days.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #4 (Sell).

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

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