Luminar Technologies Surged Today on Potential Trade Protections

Shares of Luminar Technologies (NASDAQ: LAZR) jumped as much as 17.9% in trading on Tuesday after news broke that the Biden administration proposed new restrictions on Russian and Chinese vehicle software. Shares are up 15.4% near the close of the trading day.

The U.S. Department of Commerce has proposed banning vehicle software that comes from China or Russia, as well as the hardware that could enable autonomous driving. This could put protections around not only the U.S. auto industry, but also the software that enables autonomous driving.

There's an arms race going on in autonomous driving, and Chinese companies, in particular, are aggressively improving their capabilities. But security and economic concerns have caused the U.S., Canada, and Europe to all implement hefty tariffs on Chinese vehicles, and that may now extend to software.

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Source Fool.com