Volvo Drops LiDAR Partner: What's Next for Self-Driving Cars?

Volvo Drops Luminar for LiDAR Sensors

Volvo has decided to part ways with Luminar Technologies, a company that supplies LiDAR sensors for autonomous vehicles. The decision comes amid supply chain issues and Luminar's failure to meet Volvo's expectations. As a result, Volvo's 2026 models, including the ES90 and EX90, will not feature LiDAR technology. This news has caused Luminar's stock to plummet to an all-time low, despite a slight pre-market trading rise.

Elon Musk's Stance on LiDAR

Elon Musk, CEO of Tesla, has long been a critic of LiDAR technology. In 2019, he called it a "fool's errand", arguing that it is too expensive and not practical for cars. Instead, Tesla relies on a camera-based approach for its Full Self-Driving (FSD) system. However, this method has faced scrutiny from experts and regulators. The National Highway Traffic Safety Administration (NHTSA) is investigating Tesla's FSD system after reviewing incidents involving traffic violations and accidents.

Other Companies Still Investing in LiDAR

While Volvo steps back from LiDAR, other companies continue to invest in the technology. Waymo, a self-driving car company owned by Alphabet (Google's parent company), uses LiDAR in its robotaxis and plans to expand services to multiple cities. Additionally, Hesai Technology, another LiDAR maker, has partnered with Li Auto, a rival of Tesla, to supply LiDAR for their vehicles.

The Ongoing Debate: LiDAR vs. Cameras

The debate over LiDAR versus camera-based systems continues. Some experts argue that LiDAR provides more accurate data for self-driving cars, while others believe camera-based systems are more cost-effective and can achieve similar results. As technology evolves, it remains to be seen which approach will prevail.