Luminar Technologies Inc (LAZR Stock) Price Forecast: Beams up as it announces a deal with a tech giant subsidiary

NASDAQ:LAZR has been one of many companies to have eventful debuts on Wall Street after completing a merger via a SPAC IPO. The lidar technology firm has hit highs of $47.80 within the first two weeks of being a publicly-traded stock but has since fallen back down to Earth. On Wednesday, shares rebounded by 8% as Luminar cleared up some miscommunication about one of its partnerships. The stock closed the trading session at $24.70 and had a trading volume that was nearly triple the daily average that Luminar has seen.

That relationship is with a subsidiary of chip giant Intel (NASDAQ:INTC) called Mobileye which is in the autonomous driving industry. The confusion came when a report surfaced revealing that Mobileye would be creating its own lidar technology which investors took as a dismissal of Luminar. On the contrary, though, both companies doubled down on their partnership and the stock reacted appropriately to this news. 

LAZR stock price forecast

The real future of Luminar, at least in investor's eyes, is the autonomous driving technology that is coming down the pipeline. The recent proposal by the Alliance for Automotive Innovation to the Biden administration had specific wording that included investments into new technologies and manufacturing infrastructure. It is clear that the future of the automotive industry revolves around electric vehicles, but investors are also putting their money into autonomous driving technology as well. Whether or not this truly comes to fruition remains to be seen, but the idea of it is certainly an enticing investment and Luminar offers an incredible opportunity at its current price levels.