“There was a great economic expansion in the past few years, so everybody was enthusiastic, and then whether it is inflation or the Ukraine war, all of these things happening have caused investors to change their mindset,” Cepton CEO and co-founder Jun Pei told Automotive News. “And they really are looking at the value that you’re creating in the business operation, and that’s actually what’s happening in the last six to nine months.”
Lidar companies have had a tough go over the past two years with Ouster and Velodyne merging. AEye, a lidar company backed by financial services giant Cantor Fitzgerald, had its valuation slip 25 percent to $1.5 billion from $2 billion after a merger last year with a Cantor special purpose acquisition company.
Cepton, founded in 2016, won a contract from GM in 2021 to supply the automaker with advanced driver-assist systems. The contract is expected to bring Cepton $250 million in revenue. Japanese lighting supplier Koito, an early investor in Cepton, is licensing the company’s technology for installation into GM’s vehicles. Koito has the technical and manufacturing capability to install Cepton’s lidar technology, which looks like a square with two lights that is embedded in the headlight.
At CES, Cepton will display a Ford F-150 outfitted with its lidar technology. It will be the first time a headlamp installed with Cepton’s lidar technology by Koito will be publicly displayed. But the demonstration does not signal a Cepton deal with Ford, Pei said.
Cepton is in discussions with multiple automakers about 2023, but nothing has been finalized, Pei noted.
“I feel confident that we’re going to stand out in this industry, eventually providing the value to the investors that will really factor into our stock performance in the long run,” Pei said. “I’m not so deterred by the current fluctuations in the marketplace.”