Amazon-Backed Velodyne Lidar Wins Quanergy Patent, Is VLDR a Buy?

Trade VLDR Stock Your Capital Is At Risk
Ollie Martin
Updated: 9 Feb 2022

Key points:

  • Amazon's $200M investment was well timed as Velodyne wins lidar-based Quanergy patent /li>
  • VLDR stock failed to move much following strong volatility earlier in the week
  • CEO confident that Velodyne's ‘intellectual property' is vital to the wider industry

Up until Monday, Velodyne Lidar remained an under-the-radar stock promising a bold vision of autonomy. Now, following a $200M investment from tech giant Amazon; the stock has suddenly stirred up some interest. Following Amazon’s investment, stock surged more than 50% in postmarket trading, with the stock now already back at early February levels. 


It might take more than Amazon’s investment into Velodyne to ensure buyers stay around, and that’s why it's interesting to see that the company has just won the patent challenge brought by competitor Quanergy. The ‘558 patent relates to a lidar-based 3D point cloud measuring system for use in robotics, industry, intelligent infrastructure, and autonomous vehicles. 

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It’s a big win for Velodyne; with the company suffering after disappointing Q3 results that showed a 43% drop in revenue over the first nine months of 2021, as well as exponentially increasing losses. 

Dr. Ted Tewksbury, CEO of Velodyne Lidar, refers to his confidence looking ahead:

“We were confident we would prevail because our company invented real-time surround view lidar and holds a number of foundational patents relative to this technology. Velodyne is an invention-driven company with intellectual property that is fundamental to the industry.”

Lidar technology is critical for the widespread adoption of autonomous solutions, but as illustrated in the company’s recent earnings report; there is currently little financial stability for a company pushing such technological boundaries. Of course, Velodyne seemed to please Amazon with its low pricing and award-winning technology, but investors should listen in to Velodyne’s upcoming earnings on February 28th for further insight into current financial operations. 

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