Innoviz Technologies announced on Monday that one of the largest vehicle manufacturers in the world has selected it to become its direct LiDAR supplier across multiple brands. While the name of the manufacturer was not revealed, it is believed to hold around a 10% share of the global auto market and sells millions of vehicles a year.
The selection, which is Innoviz’s third major design win, follows more than two years of extensive diligence and qualification, and will increase Innoviz’s forward-looking order book by $4 billion to $6.6 billion.
Monday’s news explains why Innoviz’s share price surprisingly surged by 10% on Nasdaq on Friday on a day when most other shares fell. The new deal will be spread out over eight years, starting from 2025.
Innoviz recently unveiled a new generation of its LiDAR, Innoviz 360, with improved resolution and 360-degree peripheral vision, designated for trucks, buses, and autonomous vehicles operating in logistics centers. Innoviz has a manufacturing contract with BMW and it works with major suppliers such as the Austrian company Magna International and the American company Aptiv. Innoviz lost about $158 million in 2021. Innoviz, founded and managed by Omar Keilaf, merged with the SPAC Collective Growth Corporation last year.
“We are expecting the scope of this deal to grow even further as additional car brands within the group adopt our platform. In addition, we anticipate more car makers to follow this decision in their autonomous vehicle programs,” said Keilaf.
Innoviz currently employs 430 people and plans to recruit additional employees to support the development and manufacturing required with the new deal.
Innoviz was the first Israeli company to complete a SPAC last year, going public at a valuation of $1.4 billion and raising $371 million. The company has seen its share price plummet since and is currently traded at a valuation of just over $540 million.
While the company registered negligible revenue of $5 million in 2021, its deal with BMW is expected to generate significant income before the end of the year. Innoviz predicted revenue of $200 million in 2024 and $500 million in 2025, prior to the SPAC merger, an outlook that is expected to significantly increase following the latest deal.