Vehicle technology firm Luminar Technologies (LAZR) has filed for Chapter 11 bankruptcy in the Southern District of Texas after losing a major contract with automaker Volvo AB (VLVLY) in November. As part of the filing, Luminar agreed to sell its Luminar Semiconductors division to Quantum Computing (QUBT) for $110 million. However, this deal is still open to higher or better offers as part of the ongoing sale process.
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In addition, the company said it will use $25 million in cash it already has to keep operations running during the sale. Interestingly, Luminar was once considered one of the most promising companies in the LiDAR space. In fact, Luminar became known for its long-range, high-resolution LiDAR sensors built using 1550 nm architecture. The company built its sensors from the chip level and formed early partnerships with automakers like Volvo and Mercedes-Benz (MBGAF).
Unfortunately, it faced major challenges, such as high cash burn, execution problems, and slower-than-expected adoption of advanced driver-assistance systems (ADAS). As a result, Luminar never reached profitability, and by late 2025, it warned that it might not survive without new funding or a strategic deal. Moreover, following the bankruptcy news, shares of LAZR have plunged by more than 60% at the time of writing.
The Outlook Is Bleak
Turning to Wall Street, analysts have a Moderate Sell consensus rating on LAZR stock based on one Hold and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, these analysts haven’t assigned a price target.
