TuSimple calls itself a leader in the self-driving truck market. The company was founded in 2015, and by the end of October 2018 it had raised a total of $83 million in investments.
History
2023:30% staff cut
On May 18, 2023, TuSimple, a company specializing in the development of technologies for unmanned trucks, announced a restructuring, during which the number of personnel will be reduced by about a third.
It is reported that changes in the organizational structure are dictated by the current macroeconomic situation and the crisis in the United States. TuSimple is forced to look for ways to reduce costs and improve its financial situation: one measure is to reduce staff. Filings with the U.S. Securities and Exchange Commission (SEC) said the layoffs would affect 30% of the company's global workforce, or roughly 300 employees. We are talking exclusively about the American unit.
 | We believe that this is the right decision that will help us work towards achieving our goals, while maintaining a positive balance of funds, - said in a statement issued by the company. |  |
TuSimple expects one-time costs as part of the reorganization to range from $12 million to $13 million. The money will go to relying payments and compensation to employees, as well as related costs. The company expects to register the main losses in the second quarter of fiscal 2023.
TuSimple also noted in a statement that the company is no longer considering selling its business in the Asia-Pacific region - the company spoke about the corresponding possibility in March 2022. After the reorganization, TuSimple will focus on the further development of autonomous freight transportation technologies. In particular, work will continue on the creation and implementation of the fourth-level autopilot: such cars will be able to move independently in most situations, and the driver's participation will be minimized.[1]
2022:25% staff cut due to US crisis
On December 21, 2022, it became known that TuSimple, a technology company for unmanned trucks, was forced to cut a quarter of its staff due to an unfavorable macroeconomic situation.
It is reported that the layoffs will affect approximately 350 people (25% of the state). This will reduce costs, which is vital for the company amid the ongoing crisis in the United States. TuSimple is in the process of selling its Asia-focused business, so the cuts will only affect American employees. TuSimple has workers in San Diego, Arizona and Texas. It is not yet clear which units will be reorganized and whether this will affect only a certain region. Restructuring will cost about $10-11 million.
| | It is no secret that the current economic situation is not easy. We must take care of our capital and work as efficiently as possible. Although I deeply regret the consequences for the victims, I believe this is a necessary step, as TuSimple continues the path to commercialization, "said Chen Lu, President and CEO of the company. | |
The downsizing is part of a larger program to restructure TuSimple. The company carried out a series of personnel changes, faced numerous federal investigations and a sharp drop in the stock price. TuSimple also terminated a deal with Navistar to jointly develop self-driving trucks. In addition, CEO Xiaodi Hou was removed in October 2022: an internal investigation found that during his leadership, some employees maintained contacts and shared confidential information with the Chinese hydrogen truck company Hydron.[2]
2021: Going public on the Nasdaq
In mid-April 2021, the manufacturer of unmanned trucks TuSimple went public and raised $1.08 billion. The owners managed to sell almost 34 million shares for $40 each, resulting in a market value of $8.49 billion.
In total, TuSimple sold 33.8 million shares on the Nasdaq exchange, with 27 million shares offered by TuSimple and 6.8 million shares by Chinese sponsor Sun Dream, the group's largest shareholder. The underwriters were Morgan Stanley, Citigroup and JPMorgan.
TuSimple says its self-driving truck technology will one day change the market. The company's customers have ordered over 5,700 self-driving trucks based on an AI platform scheduled to launch in 2024, with 70 self-driving trucks already being tested on US and Chinese roads.
However, in the field of trucks with AI, TuSimple will face fierce competition, including from the manufacturer, electric vehicles Tesla as well as from the Chinese manufacturer. XPeng One of the key competitors of TuSimple in the field of cargo transportation is Aurora, among whose partners are listed, and Volvo. Hyundai Amazon
TuSimple has also established strong ties with electric car manufacturers, including Volkswagen through a partnership with its trucking subsidiary Traton. Together with TuSimple, Traton plans to begin widespread use of unmanned trucks in Europe.
Other TuSimple partners work in the transportation, rail and logistics industries. Among other things, the company has a good business relationship with the Canadian National Railway Company, the major diesel engine company Cummins and the transport services company Penske.[3]
2020
Traton Group acquires minority stake in the company
In September 2020, the German manufacturer of heavy trucks and buses, Traton Group which is a division, Volkswagen acquired a minority stake in the startup TuSimple, which specializes in technologies for autonomous cars. According to a Traton press release, the companies will develop unmanned trucks.
For TuSimple, this is the first agreement to create unmanned trucks in Europe. In July 2020, the startup entered into a similar agreement with American truck manufacturers Navistar International Corp.
Raising $215 million in the next round of funding
In 2020, TuSimple raised $215 million in the next round of funding.
2019: UPS bought stake in TuSimple and launched self-driving trucks
In mid-August 2019, United Parcel Service (UPS) announced the acquisition of a minority stake in TuSimple, as well as the use of self-driving trucks of the purchased startup. These vehicles began carrying packages up to 1,000 miles (1,609 km) between USP distribution centers in Phoenix (Arizona) and Dallas (Texas).
The pilot phase of the project is not over, but the two sides are discussing "next steps," according to a TuSimple spokesperson. Terms of the deal were not disclosed.
TuSimple uses Navistar self-driving trucks equipped with nine cameras and a range of LIDAR sensors. One of the startup's headquarters is in San Diego, California, the other is in Beijing, as the company received its main funding from Nvidia and Chinese tech firm Sina.
TuSimple should help UPS "understand the requirements for level 4 unmanned cargo transportation." The fourth level of the Society of Automotive Engineers scale for self-driving cars denotes full autonomy with the truck tied to geographic location. So far, the trucks in use still employ a driver who provides traffic safety in difficult situations and an engineer who monitors the operation of the system.
The partnership with TuSimple reflects UPS 'commitment to secure a secure future, especially amid intense competition with giants like Amazon, which is building its own delivery infrastructure. In addition to unmanned trucks, UPS uses a delivery service using unmanned aerial vehicles. In turn, TuSimple is looking for a reliable partner, given that a number of reputable companies such as Kodiak, Einride, Waymo and Daimler have also begun work on autonomous cargo transportation.[4]
2018: Unmanned trucks launched
In October 2018, TuSimple announced the start of commercial transportation using unmanned trucks. Two trucks in test mode carry consumer goods on roads connecting the cities of Tucson, Phoenix and Las Vegas.
Self-driving cars, which do not require a driver in the cab, accelerate to a maximum of 65 mph (about 105 km/h) and generate about $6,600 in revenue per week for the owner.
TuSimple, which employs more than 450 employees by the end of October 2018, plans to gradually expand its fleet of self-propelled trucks and bring it to 500 pieces of equipment in the United States and China, which in 2019 will be able to bring about 100 million yen ($14.4 million) in revenue.
| | If we succeed, then about 15 million truck drivers in China and the United States can be spared from their hard and dangerous work, "says TuSimple co-founder and CEO Chen Mo. - The United States and China have more than 10 million heavy trucks. Even if you replace them with 1% drones, this means the presence of 100 thousand cars. | |
Most likely, union organizations defending the interests of truck drivers in the United States will be wary of Chen's statements, to put it mildly. The fact is that they, on the contrary, demand a ban on testing unmanned trucks, fearing the loss of hundreds of thousands of jobs as a result of automation.
Chen Mo noted that logistics costs are growing, one truck driver costs the transport company about $70 thousand a year, and the shortage of personnel forces them to work in three shifts.
The head of TuSimple added that several companies engaged in unmanned vehicles, including transport and logistics, will be able to safely coexist on the market.[5]
Notes
- ↑ TuSimple to lay off 30% of workforce, keep China business
- ↑ Self-driving truck company TuSimple to lay off 25% of workforce
- ↑ Tesla self-driving truck rival TuSimple raises $1 billion in IPO valuing it at $8.5 billion
- ↑ UPS has been quietly delivering cargo using self-driving trucks
- ↑ This driverless tech start-up aims to replace 15 million truckers in the US and China
Stock price dynamics
| Ticker company on the exchange: | NASDAQ:TSP |
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