Luminar (LAZR) Plunges 41.94% Intraday, 76.61% in Four Days Amid Bankruptcy Filing, Asset Sales

Luminar Technologies (LAZR) fell to a record low on Dec. 18, with an intraday drop of 41.94% as the stock plunged 76.61% over four trading days. The selloff follows the company’s Chapter 11 bankruptcy filing and plans to sell core assets, signaling a dramatic shift in its financial and strategic direction.

The company initiated bankruptcy proceedings in the Southern District of Texas on Dec. 15, seeking to liquidate its semiconductor unit for $110 million and auction its LiDAR business. A Texas judge approved $25 million in cash collateral to fund operations, but the firm warned of Nasdaq delisting and a pivot to over-the-counter trading. The collapse of a key partnership with Volvo, which terminated its framework agreement citing supply constraints, further accelerated liquidity challenges, pushing Luminar to prioritize creditor claims over shareholders.

With over $450 million in unsecured and secured debt, Luminar’s restructuring prioritizes first-lien creditors, leaving little room for equity recovery. The stock’s trajectory is now tied to bankruptcy court decisions, auction outcomes, and creditor negotiations, with delisting and reduced liquidity compounding risks for investors. Analysts note that traditional valuation metrics are irrelevant, as the company’s survival hinges on asset sales and a reorganization plan favoring secured lenders. The delisting process, already underway, underscores the stock’s speculative nature, with most value likely flowing to creditors rather than shareholders.