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Aurora Innovation (AUR) Signs Charger Deal, Is The Stock Still A Bargain?

Simply Wall St · 4d ago

Why Aurora Innovation’s Charger Logistics deal matters for investors

Aurora Innovation (AUR) just signed a memorandum of understanding with Charger Logistics, where the carrier plans to buy up to 500 Aurora Driver-powered trucks. This agreement highlights fresh commercial interest in its autonomous freight platform.

The non binding deal follows an earlier Charger agreement from July and focuses on Aurora’s Driver as a Service model. The company has indicated that this model is intended to support its efforts toward deploying 30,000 driverless trucks by 2030.

Investors have rewarded Aurora Innovation with a 32.3% year to date share price return to US$5.12, yet the 30 day share price return is down 15.2%. This suggests the recent Charger Logistics MOU and earlier 2030 targets are being weighed against shifting risk perceptions after a roughly flat 1 year total shareholder return, a very large 3 year total shareholder return, and a 48.5% decline in total shareholder return over 5 years.

Scan 55 AI infrastructure stocks to find companies that could benefit if Aurora Innovation’s autonomous freight push increases demand for the backbone technology behind self driving logistics.

Aurora Innovation has a fresh MOU in hand and a share price that has cooled over the past month. Does that recent pullback offer a reasonable entry, or does patience make more sense once you look at valuation next?

Most Popular Narrative: 58% Undervalued

Aurora Innovation last closed at $5.12, while the most followed narrative points to a fair value of about $12.05. This frames the recent pullback as a move that widened the gap between price and that narrative estimate.

Planned deployment of second and third generation hardware, including a more durable kit designed for 1 million miles and roughly 50 percent lower unit cost, may reduce cost of revenue and support a path to positive gross margins and improving net margins as volumes scale.

See why 30 investors see Aurora Innovation as 58% undervalued.

Result: Fair Value of $12.05 (UNDERVALUED)

Still, the narrative can crack if Aurora Innovation’s very small US$5 revenue base and sizeable US$900 million net loss persist longer than analysts expect.

Find out about the key risks to this Aurora Innovation narrative.

Next Steps

Mixed signals around Aurora Innovation’s valuation and fundamentals create real debate for you as a shareholder. Act while the picture is fresh and weigh both sides with the 2 key rewards and 2 important warning signs.

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