Tesla, however, takes a very different approach. Instead of using LiDAR, its system relies entirely on cameras, aiming to lower hardware costs and maximize the efficiency of data-driven AI.

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Tesla’s current self-driving technology, known as “full self-driving” or FSD, uses just cameras, not radar or lasers known as “lidar,” to detect obstacles in front of them.

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"Lidar is lame," the CEO insisted at a Tesla autonomy day event back in 2019. "In cars, it's friggin' stupid. It's expensive and unnecessary." He's right about the price tag.

Tesla CEO Elon Musk has said that lidar sensors are a "crutch" for autonomous vehicles. Tesla accounted for "more than 10%" of Luminar's revenue in the first quarter of 2024, or a little more than ...

Luminar Technologies announced in the Q1 financial report earlier this month that Tesla was its largest customer. The divisive electric automaker purchased $2.1 million in lidar equipment.