Is AEVA's Record Q2 Revenues the Spark for Lasting Growth?

Core Insights - Aeva Technologies reported record Q2 2025 revenues of $5.5 million, marking a sequential increase of over 60% and exceeding expectations, driven by product shipments and early-stage development program revenues [1][9] - The company raised its full-year growth forecast, now expecting a revenue increase of 100-110%, up from previous expectations of doubling revenues [1][9] Company Performance - Aeva's growth trajectory is supported by demand for its LiDAR products in automotive and industrial sectors, with significant visibility from long-term contracts, such as with Daimler Truck [2] - The company is experiencing a standard ramp-up towards broader commercialization, with gross margins improving to the expected range of 35-45% at scale [2] - Aeva sees potential for larger contracts in the automotive sector, estimating that a few full-scale programs could yield annual revenues between $400 million and $500 million [3] Peer Trends - Ouster reported Q2 revenues exceeding $35 million, a 30% year-over-year increase, marking its tenth consecutive quarter of revenue growth [4] - In contrast, Luminar Technologies experienced a sequential decline in Q2 revenues to $15.6 million, a 5% drop attributed to reduced production volume estimates and a strategic exit from non-core businesses [5] Valuation and Market Performance - Aeva's shares have increased approximately 264% over the past six months, while the industry has seen a slight decline of 0.3% [6] - The company trades at a forward price-to-sales ratio of over 26, significantly above the industry average, and carries a Value Score of F [7]