NEW YORK and TEL AVIV, Israel - Gauzy Ltd. (NASDAQ: GAUZ), a leader in light control technology, has announced a strategic partnership with Ferrari (NYSE:RACE) to supply Suspended Particle Device (SPD) Smart Glass for the luxury car manufacturer's new SUV model. This collaboration marks the first time Ferrari has incorporated smart glass technology into its mass production vehicles.
The SPD light control glass, also known as Liquid Crystal Glass (LCG®), will be featured in the panoramic roofs of Ferrari's SUVs, enhancing passenger comfort and vehicle design. Gauzy's technology allows for the adjustment of glass transparency with an electrical voltage, which can reduce glare and heat from sunlight without the need for traditional sunscreens or mechanical shades.
Eyal Peso, Co-Founder and CEO of Gauzy, expressed pride in Ferrari's choice to use their LCG® technology, citing it as a testament to the product's quality and innovation. The smart glass technology is gaining traction among vehicle manufacturers for its benefits in safety, aesthetics, and maintenance convenience.
The global automotive smart glass market is projected to grow significantly, with an estimated value of $12.3 billion by 2032. Gauzy is poised to capitalize on this growth through its expertise in both SPD and Polymer Dispersed Liquid Crystal (PDLC) technologies.
Ferrari, recognized for its high-quality automotive designs, has selected Gauzy as a strategic supplier, which may influence the driving experience by offering improved visibility and control over cabin light and temperature. Gauzy's SPD LCG® aims to provide a safer and more comfortable driving experience by filtering out up to 99% of light transmission.
Gauzy, headquartered in Tel Aviv, operates globally and serves various industries, including aeronautics, automotive, and architecture. Its light and vision control products are distributed in over 30 countries.
The information in this article is based on a press release statement from Gauzy Ltd. and does not include any speculative content or subjective assessments. The partnership between Gauzy and Ferrari highlights the evolving landscape of automotive technology, focusing on enhancing the safety and comfort of vehicles through innovative solutions.
In other recent news, Gauzy Ltd. has announced significant developments in its business operations. The company's Smart-Vision® camera monitor system (CMS) has been implemented on buses operated by the Capital District Transportation Authority (CDTA) in New York, marking a significant step in enhancing road safety. In addition, Gauzy's technology will be implemented on city buses in Paris, starting with the 2024 Olympics.
The company's aeronautics business revenue for the first half of 2024 has reached approximately $20.2 million, with projections showing an aggregate revenue of $240 million over the next decade from this segment. Gauzy expects Q2 revenues to range between $24.0 million and $24.5 million, with the first half of 2024 projected to bring in revenues between $48.7 million and $49.2 million.
Analysts from Stifel and TD Cowen have initiated a 'Buy' rating on Gauzy, illustrating a positive outlook on the company's potential. Key executives in the company have also made a significant investment of $501,400, demonstrating their confidence in the company's future. These recent developments indicate a promising trajectory for Gauzy Ltd. in the near term.
InvestingPro Insights
Gauzy Ltd.'s (NASDAQ: GAUZ) partnership with Ferrari marks a significant milestone for the company, potentially opening doors to the luxury automotive market. However, investors should be aware of some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Gauzy's market capitalization stands at $165.7 million USD, reflecting its current market valuation. The company has shown strong revenue growth, with a 36.53% increase in the last twelve months as of Q2 2024, reaching $89.75 million USD. This growth aligns with the company's strategic moves in the expanding automotive smart glass market.
Despite the positive news and revenue growth, InvestingPro Tips highlight some challenges. One tip indicates that Gauzy is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of developing and scaling new technologies. Additionally, the company is "not profitable over the last twelve months," with a negative operating income of -$35.41 million USD for the same period.
The stock has also faced significant pressure, with InvestingPro Tips noting that it has "taken a big hit over the last six months." This is reflected in the -46.08% price total return over the past year. However, analysts seem optimistic about the company's future, with a fair value estimate of $21 USD per share, considerably higher than the previous closing price of $8.87 USD.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Gauzy Ltd., providing a deeper understanding of the company's financial health and market position.
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