Cutting-edge automotive tech company files Chapter 11 bankruptcy

The self-driving car seems like something promised to Americans by generations of science fiction shows and movies. It seems like attainable technology, but giving up human control of cars also means changing perceptions on acceptable A new study from the Society for Risk Analysis, published in Risk Analysis Journal, shows that people hold robots, or at least automated driving systems to a higher standard than they do humans."The public will not accept this new technology unless it is shown to be safer, approximately four to five times as safe as human-driven vehicles," according to the research. "Despite the conveniences self-driving vehicles would bring to individuals, such as the ability to watch a movie, read a book, sleep or surf the internet, the public will be much less likely to accept, or even tolerate, self-driving vehicles if they have the same risk level as human driving, according to the research."People want very safe self-driving carsThe results show that the respondents believe that self-driving vehicles should be four to five times as safe as human-driven vehicles. Current global traffic fatal risk is estimated at 17.4 per 100,000, which is 350 times greater than the frequency accepted by 50% of the respondents for self-driving vehicles. The tolerable risk is that self-driving vehicles be four to five times as safe, meaning they should be able to reduce 75-80% of current traffic fatalities. Source: Insurance Journal It's an attainable goal, but the expectations make it a challenge to reach, and now, a leading player helping make this dream happen has filed for Chapter 11 bankruptcy protection.LiDAR helps self-driving cars stay on the roadYou essentially can't have self-driving cars without LiDAR."LiDAR, which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances) to the Earth. These light pulses — combined with other data recorded by the airborne system — generate precise, three-dimensional information about the shape of the Earth and its surface characteristics," shared the National Ocean ServiceThe LiDAR technology has multiple uses besides self-driving cars."LiDAR systems allow scientists and mapping professionals to examine both natural and manmade environments with accuracy, precision, and flexibility. NOAA scientists are using LiDAR to produce more accurate shoreline maps, make digital elevation models for use in geographic information systems, to assist in emergency response operations, and in many other applications," the government agency shared.More Bankruptcy:Luxury retail chain files Chapter 11 bankruptcyAirline cancels all flights in bankruptcy, passengers strandedPopular fashion retailer files for Chapter 11 bankruptcyMajor sports gambling company files for Chapter 11 bankruptcyFord CEO Jim Farley sees the technology as crucial, although it's not the only way to bring about self-driving cars.'We really believe that Lidar is mission critical," Farley said, according to TechRadar. Self-driving cars are generally still in the testing stage.Shutterstock LiDAR leader files for Chapter 11 bankruptcyLuminar has been a market edge leader in the self-driving car space."Luminar’s LiDAR technology is the world’s first and only high-performing lidar technology to be included as standard on a global production vehicle, the Volvo EX90. In March 2025, Volvo Cars unveiled the second vehicle in their line-up to feature Luminar technology, the Volvo ES90," the company shared on its website.That was not enough to prevent the company from being forced to file for Chapter 11 bankruptcy protection.Luminar Technologies has initiated voluntary Chapter 11 bankruptcy cases in the U.S. Bankruptcy Court for the Southern District of Texas."The company has entered chapter 11 with the support of approximately 91.3% of its first lien noteholders and approximately 85.9% of its second lien noteholders to facilitate value-maximizing sale processes for its lidar business, LiDARCo, and for the equity of its Luminar Semiconductors. Inc. (LSI) subsidiary. LSI is not a debtor in Luminar’s chapter 11 cases, and its operations are expected to be unaffected by the chapter 11 filing," Wall Street Online reported.Prior to initiating these Chapter 11 cases, the Company agreed with Quantum Computing Inc. (QCi) for QCi to purchase the equity of LSI for cash consideration of $110 million (subject to customary adjustments), subject to higher or better offers under the sale process the company plans to undergo during the Chapter 11 bankruptcy process. Luminar Chapter 11 bankruptcy key pointsVoluntary Chapter 11 Filing: Luminar Technologies, Inc. has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate a value‑maximizing sale process for its lidar business and related assets, according to Stock Titan.Support from Noteholders: The filing is backed by a large majority of holders — approximately 91.3 % of first‑lien and 85.9 % of second‑lien noteholders — who have agreed to support the Chapter 11 process, GuruFocus reported.Sale of Luminar Semiconductor Equity: Luminar has reached an agreement for Quantum Computing Inc. (QCi) to purchase the equity of its Luminar Semiconductor, Inc. (LSI) subsidiary for about $110 million in cash, subject to higher or better offers through the bankruptcy sale process.Use of Cash and Operations: Luminar expects to use about $25 million of cash on hand under a cash‑collateral order to fund the Chapter 11 process and support ongoing operations during the restructuring and sale process. Operational Continuity: The company plans to continue delivering LiDAR products and services to customers and will file typical “First Day Motions” to ensure wage payments, vendor obligations, and customer commitments continue during bankruptcy. Stock TitanStrategic Goal: The Chapter 11 process is being used as a structured legal framework to optimize asset sales and reorganize the company’s balance sheet rather than immediately liquidate operations. Source: Stock Titan. Luminar Chapter 11 bankruptcy summaryLuminar Technologies, Inc. has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate a value-maximizing sale of its LiDAR business. The filing is supported by a majority of first- and second-lien noteholders, and the company has reached an agreement for Quantum Computing Inc. to acquire Luminar Semiconductor for $110 million in cash. Luminar will continue operations during the restructuring, ensuring customer commitments and vendor payments are maintained. The Chapter 11 process allows the company to optimize asset sales and restructure its balance sheet under court supervision. Full details on the filing are available via MarketScreener, and official docket updates can be tracked on PacerMonitor.Related: Popular credit card shuts down, leaving holders with uncertainty