Aeva Brings 4D LiDAR Chips to the Stock Market

By Thomas Price Friday, November 27, 2020

Technological advancements have continued to make strides despite the hindrances and setbacks that may have been in play due to the ongoing COVID-19 pandemic. For a company like Aeva, that is precisely what has happened. By creating the first-ever 4D Light Detection and Radar (LiDAR) chip, the business immediately became a very valuable commodity that was still under private ownership. However, Aeva’s status has recently changed after a business combination with InterPrivate Acquisition Corporation, officially putting the company on the New York Stock Exchange. The question then becomes, how valuable are 4D LiDAR chips, what is the value of the combined business of Aeva and InterPrivate, and what should investors be looking for before purchasing the stock?

Aeva and LiDAR Chips

LiDAR chips have become increasingly valuable in the coming years as the technology has become utilized by more and more industries. LiDAR uses pulsing lasers in order to detect and measure ranges and distances to Earth. This essentially boils down to charting out topographic and bathymetric maps using lasers, which provides a 3D image of the charted area. This technology is mostly used in helicopters, airplanes, and, more recently, automobiles. The colloquial name for this practice is 3D Laser Scanning; however, this nickname may have to be changed due to the breakthrough technology developed by Aeva. While traditional LiDAR chips use Time of Flight technology to measure depth and reflectivity, Aeva’s chips use a new version of the Frequency Modulated Continuous Wave, which can measure depth, reflectivity, inertial motion, and velocity.

Using Frequency Modulated Continuous Wave technology, Aeva’s 4D chips use significantly less power than similar versions of this kind of tech, including Time of Flight technology. The 4D chips developed by Aeva are also at an industry-leading cost. Another major point of importance for these chips is the affordable cost for large scale commercialization of the silicon. These factors are all major positives for investors and businesses looking to create wide-scale adoption of the technology, which is always an issue for newer technologies.

Aeva’s Investments and Business Combination

The sizable interest in Aeva had generated a serious amount of revenue in the form of investment and business. Through the business combination with InterPrivate Acquisition Corporation, Aeva will provide up to $363 million in gross proceeds. This breaks down into two major sections. The first of these sections comes from the $243 million held in trust directly from InterPrivate. The additional $120 million will come from fully committed common stock, with the major investors being Adage Capital and Porsche SE. When combined with InterPrivate, the new company will have an equity value of $2.1 billion and will become a publicly-traded company on the New York Stock Exchange in the first quarter of 2021. The symbol the company will be traded under is going to be AEVA. Beyond simply the numbers, however, there are two major signs from this news that should leave investors feeling positive for when the stock eventually goes public.

The first is slightly vaguer, though entirely reassuring. It comes in the form of an announcement from Aeva stating that 100% of the net proceeds from the business combination will be used exclusively to speed up the expansion and commercialization of their products and company, including the 4D LiDAR chips. Adding to this is the more concrete news of the production partnership between Aeva and ZF. ZF will be responsible for part of the manufacturing and distribution of the 4D LiDAR chips to Aeva’s many different global clients.

Final Conclusions

Aeva’s business combination with InterPrivate Acquisition Corporation gives the company many different unique opportunities. With the significantly larger capital, Aeva can ramp up production of its breakthrough technology, which should provide a major boost of revenue. At the same time, becoming a publicly-traded company in 2021 could also lead to a boost in the market cap. As investors gain more confidence in the company, its value could soar, giving them even more money to spend on growth and expanded production of their 4D LiDAR chips. Given the backing from companies such as Porsche SE, it is clear there is strong commercial potential with a wide market.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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