Why Aurora Innovation (AUR) Stock Is Soaring Today

Aurora Innovation (AUR) stock is jumping 34% after the company reaffirmed that it would seek to launch its driverless system for trucks commercially in April and predicted that it would generate about $5 million of revenue this year. Additionally, AUR stated that an adverse ruling by the Biden administration would not impact its ability to carry out its commercial launch in April.

AUR’s Commercial Launch and Financial Outlook

AUR intends to launch its self-driving system commercially, starting with the Dallas to Houston route, in April. According to Aurora, its trucks during extensive testing, including long trips, reached an Autonomy Readiness Measure (ARM) score of 99%. The ARM score reflects the extent to which the company’s self-driving system is ready to operate trucks autonomously.

An aerial view of a fuel depot in a city with lines of trucks waiting to be loaded with fuel.

On the financial front, the company expects to generate revenue in the mid-single-digit millions range this year. Moreover, AUR is seeking to generate a gross profit in 2026.

AUR Says It Can Circumvent an Adverse Ruling

Last year, federal regulators rejected Aurora’s petition to avoid following a rule that forces trucks to have warning triangles behind them when they are stopped by the side of the road. The company sought to utilize flashing lights in such situations instead, but regulators did not approve that idea. However, CEO Chris Urmson said yesterday that the decision “has no impact on our ability to launch commercially.” He indicated that the company had found “operational” ways of reducing the ruling’s impact and “technical” means of complying with the decision but refused to offer more specific information about the issue.

While we acknowledge the potential of AUR, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of AUR but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.