Aeva Technologies (AEVA) is rapidly changing its focus from simply selling advanced sensors (LiDAR hardware) to becoming a complete provider of smart city traffic systems. This acceleration is due to an exclusive partnership with D2 Traffic Technologies. This agreement brings D2’s highly experienced traffic management teams directly into Aeva, immediately giving AEVA decades of practical knowledge in handling complex intersections and urban road networks. By combining D2’s real-world operational know-how with its 4D LiDAR technology, AEVA is now positioned to sell integrated sensing, data analysis, and perception systems tailored for U.S. transportation agencies looking to modernize their infrastructure.
This partnership is crucial given the enormous size of the U.S. traffic market, which includes over 15 million intersections responsible for billions in yearly congestion costs. AEVA’s specialized Atlas Orion 4D LiDAR sensors — already approved for traffic use — provide superior measurement of distance, speed, and object detection compared to standard camera systems, especially when dealing with poor visibility or bad weather. D2’s involvement helps AEVA advance its goal of offering traffic solutions that prioritize privacy by monitoring vehicles, pedestrians, and cyclists without relying on visual images. Together, the companies plan to help agencies gather reliable, high-quality data to make roads safer and more efficient.
The push into infrastructure is strongly backed by a $100 million investment from funds managed by Apollo. This capital, structured as convertible notes, is intended to help AEVA scale up its 4D LiDAR commercialization across the transportation sector and related markets. With this significant new funding and a complete set of capabilities for managing traffic systems, AEVA is signaling a clear move into providing end-to-end traffic-management solutions just as cities are prioritizing smarter, more reliable mobility systems.
Companies Powering the Next Wave of Smart Infrastructure
Innoviz Technologies (INVZ) is expanding its role in smart infrastructure by bringing automotive-grade LiDAR into city and industrial environments. The company’s InnovizSMART Long-Range LiDAR supports advanced traffic management and security systems with precise 3D detection reaching up to 400 meters, even in challenging conditions. Innoviz Technologies is also seeing strong momentum in perimeter security testing, where its solutions have demonstrated clear performance advantages over leading conventional systems. With reliable accuracy and straightforward deployment, Innoviz Technologies is positioning itself as a key enabler of safer, smarter and more efficient urban infrastructure.
Ouster (OUST) is also becoming an important force in smart infrastructure, using its AI-powered BlueCity platform to help cities manage traffic more safely and efficiently. The company’s LiDAR-based system combines real-time 3D detection with NVIDIA edge computing, enabling smarter signal timing and reducing congestion across busy intersections. Ouster’s technology is now expanding rapidly, with Utah set to deploy BlueCity at more than 100 intersections after strong results from earlier installations. With its growing network of smart traffic systems, Ouster is positioning itself as a key player in next-generation urban mobility.
AEVA’s Price Performance, Valuation and Estimates
Shares of Aeva Technologies have more than doubled so far in 2025.
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From a valuation standpoint, AEVA trades at a forward price-to-sales ratio of nearly 26, well above the industry. AEVA carries a Value Score of F.
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See how the Zacks Consensus Estimate for Aeva Technologies’ earnings has been revised over the past 90 days.
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The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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