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

Volvo recently decided to cut ties with Luminar Technologies, a company that makes LiDAR sensors for self-driving cars. This move comes after Luminar struggled to meet Volvo's expectations and supply chain issues. Volvo's 2026 models, like the ES90 and EX90, won't have LiDAR technology. This decision has caused Luminar's stock to drop to an all-time low, even though it saw a small rise in pre-market trading. Elon Musk, the CEO of Tesla, has been a vocal critic of LiDAR technology for years. Back in 2019, he called LiDAR a "fool's errand" and said it was too expensive and not practical for cars. Musk believes that cameras are the way to go for self-driving technology. Tesla uses a camera-based approach for its Full Self-Driving (FSD) system. However, this approach 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. While Volvo is stepping back from LiDAR, other companies are still investing in the technology. Waymo, a self-driving car company owned by Alphabet (Google's parent company), uses LiDAR in its robotaxis. Waymo plans to expand its services to multiple cities. Additionally, Hesai Technology, another LiDAR maker, has partnered with Li Auto, a rival of Tesla, to supply LiDAR technology for their vehicles. 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 that camera-based systems are more cost-effective and can achieve similar results. As the technology evolves, it will be interesting to see which approach prevails.