By Hyunjoo Jin

San Francisco (Reuters). Luminar Technologies Inc, a self-driving sensors maker that will enable automated driving on the highways of its future-generation vehicles, has announced that Mercedes-Benz is partnering with Luminar Technologies Inc.

Thursday saw Luminar share prices rise 18% to $15.89 Luminar stated that Mercedes-Benz would have 1.5million shares in Luminar. The shares will vest when certain milestones are reached.

Austin Russell, CEO of Luminar, stated Wednesday that vehicle autonomy is “really going mainstream with Mercedes”, but did not give a timeline for implementing the technology into Mercedes vehicles.

According to him, the pair would create “true autonomy” capabilities that keep drivers from the loop while simultaneously improving safety features such as auto braking.

Although regulatory and technological obstacles remain, automakers from Tesla to General Motors Co (NYSE 🙂 have set their sights on creating autonomous vehicles for consumers.

Alphabet’s Waymo and Cruise are among the tech firms that have self-driving trucks or taxis for commercial uses such as ride-hailing and delivery.

General Motors will work with Cruise Self-Driving Unit, which is majority owned by General Motors to bring about a personal autonomous car as soon as the middle of next decade, said Chief Executive Mary Barra.

To achieve truly autonomous consumer vehicles, you need to manufacture hardware, software and all the other systems necessary. Russell explained that this is entirely different from the work done by robo-taxi firms.

It is difficult to produce mass-produced lidars, and ensure that they meet the strict requirements of automakers.

It’s a totally different type of business, going from being a scientist and technology company to becoming an auto corporation.

Lidars are used to determine the distance between the sensor’s target and its object. They are essential for autonomous driving. Tesla however has claimed that the sensor is unnecessary and too costly.

Volvo Cars and Luminar announced earlier in the month that an electric utility vehicle will feature a hands-free drive system.