A: Hey there! Have you heard about the news with Volvo and Luminar?
B: No, I haven't. What's going on?

A: Well, it looks like Volvo has ended their contract with Luminar due to some issues. It seems that Luminar isn't meeting its obligations to Volvo.

B: Wow, that sounds serious! I heard they defaulted on loans and may even declare bankruptcy. They're trying to sell themselves or parts of the company to avoid that, but it's not looking good.

A: Yeah, they've already laid off 25% of their staff and are under investigation by the Securities and Exchange Commission too!

B: That's tough. They used to work closely with Volvo and even got help from them for some of their first production vehicles. But it seems the relationship has turned sour.

A: Exactly! It was beneficial for both companies, but Luminar faced challenges as a public company. They struggled to diversify away from Volvo and had to cut staff and outsource manufacturing. Plus, there was an ethics inquiry that led to their CEO resigning.

B: That's a lot of trouble! And it all came to a head on October 31 when Volvo decided not to use Luminar's sensors in some of their new vehicles anymore and delayed a decision on using the next-generation sensor.

A: Right, and Luminar is claiming significant damages from Volvo and has stopped spending money on those sensors. It looks like it's affecting some customer orders too.

B: I see. So what happens now? Will Volvo find another supplier or will Luminar somehow resolve this?

A: Well, we don't know yet. Volvo said their products can still deliver safety and driver support without lidar, but it might affect some customer orders. It's a waiting game for now, I guess.