Have you ever heard of Aeva Technologies?
The company is headquartered in the heart of Silicon Valley, in Mountain View, California. It specializes in developing LiDAR sensors for self-driving cars and robotics.
Aeva uses something called frequency-modulated continuous wave (FMCW) technology. This can measure both distance and velocity simultaneously. It is referred to as 4D LiDAR.
We think 4D LiDAR sounds pretty neat. Speculators do too. Over the last 12 months, and even with a recent selloff, Aeva’s share price is up 1,000 percent.
The only problem is Aeva doesn’t make money. It consumes it. Last year the company reported a net loss of $152.26 million. And while Aeva’s revenue is growing, the company is expected to generate negative earnings per share for the fiscal year 2025.
Yet Avena isn’t the only money-burning machine that speculators are piling into. Since hitting a low on April 7, shares of Carvana, the used car vending machine company, are up over 133 percent. Shares of Avis Budget Group are up over 250 percent since March 13. This is a company that reported a net loss of nearly $2 billion in the fourth quarter of 2024. Continue reading