Report: Tesla's Buying LiDAR Sensors After All

Chris Teague
by Chris Teague

Most of the media and internet pundits have been zeroed in on Tesla’s layoffs and what they could mean for the automaker and industry at large, but there’s another reported change in its operations that could signal a significant shift in how its vehicles are built. After CEO Elon Musk’s poo-pooing of LiDAR technology, Tesla now appears to be buying the sensors and has become a primary customer of a major supplier.


Luminar Technologies recently reported that Tesla was its largest LiDAR customer in the first quarter of 2024, with the automaker accounting for more than ten percent of its revenues during the first three months of the year. The technology uses lasers to build a picture of a vehicle’s surroundings, but Tesla has moved to camera/vision-based tech in its most recent builds.


While neither is perfect, the general consensus is that a combination of sensors, including camera, LiDAR, and other tech, is the best path forward. LiDAR is significantly more expensive than cameras alone, likely driving Tesla’s decision to cut it from production.


Reports of this move come as Tesla faces increased regulatory scrutiny for its driver assistance features, though much of its troubles come from how it monitors drivers’ behavior rather than external sensor functionality. It’s more likely that the automaker will employ LiDAR in its upcoming Robotaxi initiative, which is expected to be revealed in August.


Tesla would be well-served to consider employing LiDAR sensors in its consumer vehicles as well. Volvo will roll out the first Luminar sensors in the upcoming XC90, and criticisms of how vehicles read the world around them will only become more intense as time goes on. The automaker could use a win, and anything that helps convince regulators that it's focused on safety would be helpful to its cause.


[Image: kovop via Shutterstock]


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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • MaintenanceCosts MaintenanceCosts on May 08, 2024

    More or less an admission that the radar-only cars will never do anything that could reasonably be marketed as "Full Self-Driving."

  • AZFelix AZFelix on May 08, 2024

    I have always wondered if the poor ability of Tesla cars in detecting children was due to their using camera only systems. Optical geometry explains that a child half the height of an adult seems to have the same height as that same adult standing twice as far away from the viewer.

    • See 2 previous
    • AZFelix AZFelix on May 08, 2024

      @D Tesla does use multiple cameras and if the system uses an effective parallax depth calculating program it would determine distances to objects. Tesla has stated that their algorithm also uses object recognition as a key component of its driving software. This is where problems could arise since it would be told or 'learn' what an average human shape and size is. The potential for confusion occurs if the distance calculation process either lags or does not have enough data to correlate how far away the person is from the car. Thus a child standing nearer to the car is 'determined' to be an adult further down the car's direction of travel and by the time depth/distance calculations have enough information a collision is unavoidable.

  • FreedMike Man...a storm like this doing a direct hit on a major metro area is going to be an absolute catastrophe. God help the folks down there.
  • Kwik_Shift_Pro4X When I learned of the Kei trucks, particularly the Subaru Sambar, it was compelling, but too risky and costly in the end. My local Subaru dealer wouldn't support it.
  • MrIcky Having worked several catastrophes for insurance, the following "The bottom line is that if the insurance agency can find ways not to cover the car, they probably won’t." just isn't the way it works. The insurance company will have some drop off areas where cars will be brought. The adjuster will check for water height and draw a line at the high water point with a posca marker. If that line is generally over the electronics- bam, it's totaled, if you have comprehensive they look up your car on KBB and/or NADA by mileage and write a check. Most comprehensive vehicle policies look almost exactly the same-at least for "standard" carriers. If the water line isn't over the electronics, then it generally goes to a shop to get tested. You aren't going to get gamed for a car in a cat loss scenario because there just isn't time to f'with it. After a Houston flooding event I worked 16 hour days for 2 weeks under a big tent like you'd set up for a wedding and went over nearly 100 cars/day taking pictures and sorting them into total or check with mechanic "piles". Most people who had totaled vehicles had a check within 20 minutes of me looking at their car. Buildings on the other hand have all sorts of different terms (commercial or consumer) with regard to how the wind or water entered your building and whether coverage applies.
  • Theflyersfan Well, Milton just went from a tropical storm to 175mph in less than a day so this guy means business. Even if it weakens a little bit, it'll expand and pretty much all of Florida south of Jacksonville is going to feel something. Everyone who saw that disaster in the NC/VA/TN mountains before Helene's landfall is either from the future or a liar (and that includes the insurance companies) because heavy rain started well before the storm arrived and then the crazy thing just sat in that general area. My part of Kentucky - it didn't stop raining for almost five days. And now this nuclear bomb of a hurricane. I understand Florida has a high percentage of homeowners without insurance because they can no longer afford it. My parents have a home near Naples and they carry extra flood and wind coverage and that costs well over five digits per year. Home renovations about 8-9 years ago gave them the chance to make hurricane-proof changes like lashing the roof and hurricane windows. It survived the direct hit from Irma and the heavy punch from Ian so they worked. After this storm, I don't know how Florida will totally recover. Much like California and the earthquakes and firestorms, there might have to be a "Come to Jesus" talk with the perils of living in Florida. I'm already making plans to head down there post-storm if the roads or airport is open in the days following landfall to help cleanup and rebuild any part of the home that might need it. In the short term, if it hasn't happened already, gas prices are probably going to rocket upwards as the oil rigs in the Gulf shut down and prepare. And if this storm directly hits Tampa/St Pete, it's going to be game over in those cities for a while. And imagine if the storm at this power was aiming towards New Orleans or Miami.
  • Jalop1991 "...leaving Doherty and his passenger to be pulled from the wreck by passersby." Or not. I would get a HUGE laugh out of seeing a video of passersby with their phones whipped out, recording it and doing nothing else.
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