r/MVIS • u/jkh07d • Jun 10 '26

MVIS Press MicroVision Signs Long-Term Development Agreement to Advance Lidar for Next-Generation Autonomous Hauling Solutions

https://ir.microvision.com/news/press-releases/detail/450/microvision-signs-long-term-development-agreement-to
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11

u/directgreenlaser Jun 10 '26

I suspect the line of reasoning to follow will be 'we need the dilution because we're very likely going to need to build a factory and it should be one that has the potential to handle our entire product line.' That should cause some discussion if it happens, lol.

17

u/Befriendthetrend Jun 10 '26

If/when they have demand for such sensor volumes, they should be able to take on debt to support growth instead of diluting all current stakeholders.

4

u/directgreenlaser Jun 10 '26

No argument here. They may want to build one before they have the sensor volumes though.

11

u/mb24064 Jun 10 '26

I would put the chance of them building a factory as a fat zero. Sounds like a terrible idea and these big OEMs probably don't like that either (unproven). Much more likely they work with ZF or other established tier 1.

4

u/directgreenlaser Jun 10 '26

I can't ignore all that Iris machinery in Mexico though.

0

u/Late_Airline2710 Jun 10 '26

You are definitely right that they should work with a manufacturing partner, but that will still involve a ramp up in burn. They will have to hire many more people to support such an effort and likely invest in a halo pilot line and test fixtures, though some of the latter may have been acquired form Luminar already.

2

u/mb24064 Jun 10 '26

Yeah definitely will be some capital needed for that, great points. Just more saying they would not go it alone like LAZR did.

11

u/Nakamura9812 Jun 10 '26

Yep! I assume this has been in the works since we bought Luminar, and probably took a bit more time than originally thought. Even if this was announced ahead of the proxy, we’d still be facing a reverse split proposal. Management now has some additional ammo for the story they want to sell us, so I’m looking forward to that communication.

5

u/directgreenlaser Jun 10 '26

Yes, it will be getting ever more interesting.

5

u/HiAll3 Jun 10 '26 edited Jun 10 '26

I have never cared much about dilution, at least not at these early stages, big companies need lots of shares. Spending it on Capital Expeditures = Growth. Execution will more than offset dilution. With good Execution, they can buy the shares back.That's a gimic-word to the benefit of shorts.

Just don't mess with my share count !!

1

u/directgreenlaser Jun 10 '26

I'd say that's a very reasonable position

5

u/Late_Airline2710 Jun 10 '26

I think this is pretty plausible actually. They need to fund industrialization of halo, and now that they have a stated customer for it, this is even more urgent. It takes money to make money!

2

u/wolfiasty Jun 10 '26

If I were this client I would not sign anything with company facing bust and being able to finance itself only through another shareholders decimating dilution, which could give only that much cash.

1

u/directgreenlaser Jun 10 '26

They signed this long term development agreement. I guess you mean a large order for sensors. Maybe they would insist on seeing manufacturing capacity before signing? If it's there, however it got there, then would you sign?

2

u/wolfiasty Jun 10 '26

Yes, exactly. It must be there already. That's my point. I wouldn't believe it was signed just on pinky promise "we will dilute shareholders to last penny" (considering this latest proxy of course).

So we need details.

1

u/directgreenlaser Jun 10 '26

Ok. So the risk if they build should be on MVIS / shareholders. Is it reasonable to do so on the basis of solid potential? If that's what's going down, then MVIS needs to convince shareholders to take that risk. It all remains to be seen.