TuSimple Shares Plunge After Robot Truck Company Spooks Market With CEO Shakeup

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The San Diego-based developer of robot truck technology unexpectedly said cofounder and CTO Xiaodi Hou, who dreamed up the company and created its core technology, was replacing Cheng Lu as CEO and chairman.

TuSimple was the first autonomous driving company to list shares publicly in the U.S. and began testing robot trucks without a human backup driver in late 2021.Shares of TuSimple, a San Diego-based developer of robot truck technology, tumbled Thursday after it unexpectedly said cofounder and CTO Xiaodi Hou, who dreamed up the company and designed its core technology, was immediately replacing Cheng Lu as CEO and board chairman.

TuSimple ended Nasdaq trading for the day at $13.25, down 22%. The stock rose about 2% in after-hours trading. The company announced the move in a press release, saying the management change is part of a “planned executive succession” as TuSimple moves toward commercial operations of its growing fleet of AI-enabled semis. Lu, who joined the company in 2018, will be an advisor to Hou, TuSimple said.“We have worked closely together to develop a clear roadmap to commercialization, and to scale our Autonomous Freight Network,” Hou said in a statement.

The company last month reported revenue of $6.3 million for 2021, mainly from hauling cargo in its test trucks, and aHou, a computer scientist who grew up in China and earned a PhD in computation and neural systems from Caltech in 2014, began developing the idea for TuSimple about seven years ago. He founded the company in 2015 with partner Mo Chen, TuSimple’s former CEO and executive chairman, who remains a member of the company’s board.“We are very familiar with Dr.

to help fund development of its technology. It also has some operations in China and because of its substantial base of Chinese investors, the company underwent a review by the Committee on Foreign Investment in the United States, or CFIUS, a group of government agencies led by the Treasury Department.

 

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