Ten of TuSimple’s self-driving trucks are scheduled to be auctioned off in the coming weeks, following the company’s decision to exit the U.S. market. This move comes as a surprise to many, given the company’s high-profile status as a self-driving trucking startup that went public in 2021.
Key Takeaway
TuSimple, a prominent self-driving trucking startup, is auctioning off 10 autonomous trucks and other equipment following its decision to exit the U.S. market. This move underscores the challenges faced by AV startups and the complexities of operating in this innovative yet demanding industry.
Auction Details
- The auction will be conducted in two parts: the first from January 23-25, and the second from February 6-8.
- Along with the trucks, a variety of research and development equipment as well as office supplies will also be up for sale.
- A spokesperson for the auction company has confirmed that initially, 10 trucks will be sold.
Industry Challenges
The fate of TuSimple reflects the challenges faced by autonomous vehicle (AV) startups. Several other companies in this space, such as Embark Technologies, Argo AI, and Cruise, have encountered significant difficulties, with some even ceasing operations or being forced to make drastic cutbacks.
TuSimple’s Journey
Founded in 2015, TuSimple aimed to develop fully driverless trucks for long-haul transportation. The company gained attention when it secured a contract to transport mail for the U.S. Postal Service between Phoenix and Dallas in 2019. Despite positioning itself as an American startup, TuSimple’s origins and funding can be traced back to China.
Regulatory Scrutiny and Financial Struggles
TuSimple faced challenges related to its Chinese shareholders, prompting investigations by the Committee on Foreign Investment in the United States, the FBI, and the Securities and Exchange Commission. Additionally, the company lost a crucial deal with trucking giant Navistar, which further impacted its financial standing. This led to a significant decline in its share price from a high of $62.58 in July 2021 to just $0.73 at present.
Strategic Shifts and Exit from the US Market
Throughout 2023, TuSimple underwent strategic changes, initially planning to sell off its China business before ultimately deciding to exit the U.S. market. As a result, the company laid off over 150 employees in December.
