Another blow for self-driving trucks as former industry leader abandons the US

Trending 5 months ago

When TuSimple went nationalist successful 2021 it was flying precocious arsenic nan starring self-driving trucks developer successful nan United States. Now — aft a drawstring of soul controversies and nan nonaccomplishment of a captious business pinch motortruck shaper Navistar — TuSimple is exiting nan U.S. altogether.

The publically traded institution said successful a regulatory filing Monday that it’s laying disconnected nan mostly of its U.S. workforce and trading assets present arsenic it exits nan state for Asia. About 150 U.S. workers, aliases 75% of unit successful nan country, will beryllium laid off. The remaining 50 workers will upwind down TuSimple’s U.S. operations, including nan waste of assets, and assistance pinch nan company’s displacement to nan Asia-Pacific region, according to nan filing.

Once nan restructuring is complete, TuSimple will person bout 700 full-time labor globally.

With TuSimple’s exit, fewer self-driving motortruck companies remain, including Aurora and Kodiak Robotics.

A twelvemonth ago, TuSimple was exploring a different business scenario. The company, already struggling pinch executive shakeups and a delisting warning, lost its business pinch Navistar to co-develop autonomous trucks. About 25% of unit were laid disconnected soon aft and TuSimple said it was successful nan process of trading disconnected its Asia-focused business.

Six months later, TuSimple reversed course, doubling down connected its operations successful China and Japan while it began exploring strategical alternatives for its U.S. business, including a sale. The move was an about-face for TuSimple, a institution that adamantly identified itself arsenic an American institution pinch operations abroad, contempt its founding squad and earliest backers coming from China.

Without a buyer, TuSimple is now forced to upwind down its U.S. operations and waste disconnected immoderate assets.

TuSimple estimates it will incur one-time charges of astir $7 cardinal to $8 cardinal successful relationship pinch nan restructuring plan, pinch astir of nan rate utilized for severance payments, worker benefits and related costs. The mostly of nan restructuring charges will beryllium recorded successful nan 4th fourth of 2023, nan institution said.

Source Technology