Volvo has decided that its 2026 ES90 and EX90 models will leave out the LiDAR sensors it once planned to source from Luminar, ending a supplier relationship strained by supply troubles and unmet contractual promises. The break lands on Luminar's shares, which sank to an all-time low near ninety cents, and it reopens an old and unresolved argument about how machines should learn to see the road. Elon Musk's long-standing insistence that cameras alone can carry a car, while LiDAR is a costly detour, now sits beside Waymo's and Hesai's continued faith in laser sensing. Whether the industry conver
Volvo Drops Luminar LiDAR From 2026 Models, Reviving Musk's 'Fool's Errand' Debate
Volvo did not say whether it will use another LiDAR supplier.
Mark
Volvo dropping LiDAR sounds like a big win for Musk. Is it?
Mimi
That's how the headline frames it, but the stated reasons are about Luminar: supply chain problems and unmet contractual obligations.
Luke
Right, and that matters. Nothing in the report says Volvo concluded LiDAR doesn't work. It's a supplier dispute as described.
Mark
Does Volvo say it's abandoning LiDAR altogether?
Mimi
No. It didn't say whether it will use another supplier.
Luke
So 'vindication' is the outlet's question, not a finding. The report doesn't establish it.
Mark
What about Luminar itself?
Mimi
Its stock hit an all-time low around $0.90, though it rose 4.12% pre-market that day.
Luke
That price is a snapshot from Benzinga Pro data, not a verdict on the technology.
Mark
And the other side of the debate?
Mimi
Waymo is expanding LiDAR-based Robotaxis onto highways, and Hesai will be Li Auto's sole LiDAR supplier.
Luke
Meanwhile Tesla's NHTSA probe covers 2.88 million vehicles, but it reviews incidents; it doesn't settle which sensor approach is better.
Il Polso
- Volvo has dropped Luminar LiDAR from its 2026 ES90 and EX90, citing supply chain failures and missed contractual obligations.
- Luminar's stock has plunged to an all-time low near $0.90, leaving the company's footing in question.
- The vision-only versus LiDAR debate has flared again, with Musk's camera-only stance back under scrutiny.
- NHTSA's probe covering 2.88 million Tesla vehicles adds federal pressure to the argument.
- Volvo has not said whether it will find a replacement LiDAR supplier, so the path forward remains unclear.
Volvo has decided that its 2026 ES90 and EX90 models will leave out the LiDAR sensors it once planned to source from Luminar, ending a supplier relationship strained by supply troubles and unmet contractual promises. The break lands on Luminar's shares, which sank to an all-time low near ninety cents, and it reopens an old and unresolved argument about how machines should learn to see the road. Elon Musk's long-standing insistence that cameras alone can carry a car, while LiDAR is a costly detour, now sits beside Waymo's and Hesai's continued faith in laser sensing. Whether the industry converges on one way of seeing, or keeps several, remains an open question that this moment brings back into view.
On Tuesday, The Drive reported that Volvo's 2026 ES90 and EX90 models will ship without LiDAR. The Swedish automaker is ending its relationship with Luminar Technologies, and a Volvo spokesperson pointed to supply chain problems and Luminar's failure to meet its contractual obligations. Volvo has not said whether another supplier will fill the gap.
The market answered quickly. Luminar, trading on the NASDAQ as LAZR, touched an all-time low near $0.90, even as it climbed slightly in pre-market trading.
The news also reopened an old quarrel about Elon Musk. Years ago he called LiDAR a fool's errand and said that once vision is solved, the sensor is worthless for cars, though he admitted he had helped SpaceX build such sensors for docking. Tesla's Full Self-Driving relies on cameras alone, a choice that outside voices such as Uber's Dara Khosrowshahi have doubted. Tesla is also under federal scrutiny, as NHTSA has opened a probe covering 2.88 million vehicles.
Yet LiDAR still has committed believers. Waymo favors it for its robotaxis, and Hesai Technology has become the sole LiDAR supplier to Li Auto. Whether Volvo finds a new partner, and how the NHTSA inquiry shapes the debate, will determine where this argument goes next.
On Tuesday, The Drive reported that Volvo's 2026 ES90 and EX90 models will not come with LiDAR. The Swedish automaker is ending its relationship with Luminar Technologies, the company that supplied the sensor, and a Volvo spokesperson cited in the report gave two reasons: supply chain issues and Luminar's failure to meet its contractual obligations.
Volvo did not say whether it will offer LiDAR in its cars through a different supplier. That question is still open, and the report leaves it open.
The market reaction landed on Luminar, which trades on the NASDAQ as LAZR. According to Benzinga Pro data, the stock reached an all-time low and was priced at $0.9018, even after rising 4.12% in pre-market trading.
The news has revived an old argument about Tesla CEO Elon Musk. At an event in 2019, Musk called LiDAR a fool's errand, said it was expensive, and said anyone relying on it is doomed. He added that he didn't super hate the technology. He noted that he led the effort at SpaceX to build sensors from scratch for docking sequences. In cars, though, he called it stupid, and said that once you solve vision, LiDAR is worthless.
Tesla's Full Self-Driving system relies on cameras alone. That approach has drawn skepticism from outside experts, including Uber CEO Dara Khosrowshahi, who has said building autonomous driving on cameras is going to be very difficult. Musk, for his part, recently said Tesla's autonomous technology could be spreading faster than any technology ever, and that the company's Robotaxis in Austin would go driverless by the end of 2025.
Tesla's system is also under federal scrutiny. NHTSA recently opened a probe covering 2.88 million Tesla vehicles, after reviewing incidents of traffic violations and accidents involving cars running FSD or Autopilot.
Still, LiDAR has plenty of backers. Waymo, Alphabet's autonomous cab company and a Tesla Robotaxi rival, favors a LiDAR-based approach and announced that its Robotaxis would operate on highways in multiple cities. Separately, LiDAR maker Hesai Technology said it had agreed to become the sole LiDAR supplier to Li Auto, another Tesla competitor.
On the market side, Tesla shares slipped 1.88% to $401.25 at the close, then fell 0.72% to $398.38 by the end of the regular session. What to watch next: whether Volvo names a replacement LiDAR supplier, and how the NHTSA probe shapes the debate between vision-only and LiDAR-equipped driving systems.
Citazioni salienti
LiDAR is a fool's errand.— Elon Musk, 2019 event
Volvo will discontinue its relationship with Luminar over supply chain issues and failure to meet contractual obligations.— Volvo spokesperson, cited by The Drive (paraphrased)
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