Why Is Luminar Technologies Trading Higher Today?

Luminar Technologies Inc LAZR is trading higher Monday morning following a Bloomberg report that Tesla Inc TSLA has signed a contract for the company's LiDAR technology in its vehicles.

What Happened: An Inside EVs report on May 20 suggested that Tesla is testing Luminar's LiDAR technology in its vehicles. 

Grayson Brulte, who is known as an expert in autonomous driving technology, shared an image of a Tesla Model Y that was seen testing LiDAR technology being linked to Luminar.

On Monday, Bloomberg reported Tesla has a contract to use such sensors from Luminar for testing and development, according to people familiar with the matter: "Luminar sold Tesla the sensors on that Model Y as part of an agreement between the companies."

Why It Matters: Tesla CEO Elon Musk criticized LiDAR technology during a Tesla self-driving technology event in 2019.

Price Action: Luminar traded as high as $47.80 and as low as $16.02 over a 52-week period.

Luminar spiked to around $25 per share in premarket trading Monday before pulling back. At last check Monday, the stock was up 3.76% at $22.15.