Luminar Technologies shares plunge 21.45% intraday after filing for Chapter 11 bankruptcy and selling semiconductor unit.

Luminar Technologies (LAZR) plummeted 21.45% intraday following its Chapter 11 bankruptcy filing, delisting from Nasdaq, and loss of its key Volvo contract. The company announced plans to sell its semiconductor unit for $110 million to raise cash, signaling a strategic retreat from innovation amid severe financial distress. Nasdaq’s delisting decision, effective December 24, shifted trading to the less liquid Pink Limited Market, exacerbating downward pressure. Analysts highlighted that the stock’s recent volatility reflects speculative retail-driven momentum rather than fundamental recovery, with liabilities far outweighing assets. The collapse of Luminar’s primary revenue stream and restructuring uncertainty have eroded investor confidence, triggering a sharp selloff as traders anticipate further declines amid heightened liquidity risks.