Luminar Stock Hits All-Time Low As Volvo Axes 5-Year Lidar Deal Amid Defaults, Layoffs And Bankruptcy Warning

• Volvo ended its Iris lidar supply agreement and deferred decisions on Luminar’s next-generation Halo sensor.
• Luminar has defaulted on multiple loans, cut 25% of its workforce, and disclosed ongoing SEC and internal ethics investigations.
• The company halted spending on Volvo-related sensors, triggering a dispute with its manufacturing supplier.

Luminar Technologies' stock plunged to an all-time low on Tuesday after Swedish automaker Volvo canceled a five-year-old lidar supply agreement, escalating an already severe corporate crisis for the Florida-based sensor company.

The stock fell 4.6% to $0.87 on Tuesday, marking its fifth straight session of losses, before edging up 3.9% in after-hours trading.

Volvo Terminates Lidar Contract

Volvo said it ended its contract with Luminar to “limit the company’s supply chain risk exposure” and cited Luminar’s “failure to meet its contractual obligations” as the reason for the termination. The automaker said the decision affects Luminar’s Iris lidar sensors, previously planned as standard equipment on Volvo’s EX90 and ES90 electric vehicles. Volvo also deferred its decision on whether to include Luminar’s next-generation Halo sensor in future models, according to a TechCrunch report.

Volvo said that its vehicles are designed to deliver safety and driver-support capabilities with or without lidar, but said the decision “has an effect on some customer orders.” It did not specify whether this meant delays or configuration changes.

The move ends one of the industry's closest lidar–automaker partnerships. Volvo invested in Luminar, promoted the company’s lidar in its early automation plans, and gave Luminar credibility ahead of its 2020 SPAC listing.

Loan Defaults, Layoffs And A Potential Bankruptcy Filing

The cancellation adds pressure to a company already struggling to stay solvent. Luminar recently defaulted on multiple loans and has told investors that it may have to file for bankruptcy if it cannot reach a resolution with lenders.

The company has laid off 25% of its staff to reduce costs. It is also seeking to sell itself or parts of its business, and one potential buyer is founder Austin Russell, who resigned as CEO in May after the board launched an investigation into a “code of business conduct and ethics.” Luminar is also under investigation by the Securities and Exchange Commission (SEC), according to recent filings.

Contract Dispute Widens 

Luminar disclosed in an earlier filing that it has “made a claim against Volvo for significant damages” and has “suspended further commitments of Iris” for the automaker. After Luminar halted spending on Iris sensors for Volvo, its manufacturing supplier claimed this breach violated their own agreement, creating a secondary dispute.

Luminar said that discussions with Volvo are ongoing but that “there can be no assurance that the dispute will be resolved favorably or at all.”

Mutual Origins

The fallout marks a dramatic reversal for two companies that had worked closely for years. Volvo helped Luminar move from prototype deployments into production programs, and Luminar’s sensors supported Volvo’s automation-focused safety messaging. The collaboration also helped Russell become one of the youngest self-made billionaires when Luminar went public.

Luminar has struggled to diversify beyond Volvo, however, and has cut staff and outsourced manufacturing in recent years. 

Luminar Draws Bearish Mood On Stocktwits

On Stocktwits, Volvo’s retail sentiment was ‘neutral’ with ‘low’ message volume, while Luminar showed ‘bearish’ sentiment alongside ‘high’ activity.

While Luminar’s stock has declined 84% so far in 2025, Volvo’s U.S.-listed stock has risen 21% over the same period. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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