Luminar Technologies has filed for Chapter 11 bankruptcy after losing a major contract with Volvo. As part of the filing, the company agreed to sell its semiconductor division to Quantum Computing for $110 million, with the deal still open to higher offers. Luminar will use $25 million in cash to keep operations running during the sale. The company had faced challenges such as high cash burn and slower-than-expected adoption of advanced driver-assistance systems (ADAS), leading to its downfall. Shares have plummeted by over 60% after the bankruptcy news.
The company was once considered promising in the LiDAR space, known for its long-range sensors built using 1550-nm architecture. However, it failed to reach profitability and warned of potential survival issues by late 2025 without new funding or a strategic deal. Wall Street analysts have a Moderate Sell consensus rating on LAZR stock, with one Hold and one Sell assigned in the past three months.
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Source: https://www.tipranks.com/news/luminar-technologies-lazr-plunges-60-after-filing-for-bankruptcy