TuSimple

TuSimple Holdings, Inc. is an American autonomous trucking company, based in San Diego, California, with offices in Arizona, Texas, and China. It was founded in 2015 by Xiaodi Hou and Mo Chen.[1]

TuSimple Holdings, Inc.
TuSimple
TypePublic
Nasdaq: TSP
IndustryTrucking
Founded2015 (2015)
FounderMo Chen
Headquarters
San Diego, California
,
USA
Websitewww.tusimple.com

History

TuSimple was founded in September 2015 by Mo Chen and Dr Xiaodi Hou, who graduated from the California Institute of Technology.[2] The company initially operated in two facilities: one in Beijing, China and one in San Diego, California.[2]

Partnerships

In August 2019, UPS announced its purchase of a minority share in TuSimple and that it has been performing tests on a 100-mile stretch of highway in Arizona.[3]

In early 2020, TuSimple announced a partnership with automotive supplier ZF to assist in the mass production and commercialization of autonomous vehicles.[4] As part of the deal, ZF aided in the development of sensors for autonomous vehicles systems.[4] TuSimple's Chief Product Officer Chuck Price stated that the partnership is “an important milestone to bringing their autonomous vehicles to market”.[4]

In July 2020, TuSimple and the freight truck manufacturer Navistar International Corp. formed a partnership, intending to integrate autonomous systems into their freighters.[5] Sale of these fully self-driving trucks was targeted for 2025, but the partnership was mutually dissolved in December 2022.[5]

In September 2020, TuSimple announced that it reached an agreement with Traton Group, a commercial truck manufacturer based in Germany, to jointly develop trucks with autonomous technology.[6] Traton Group aimed to begin testing heavy duty autonomous vehicles in Germany and Sweden, but they did not provide a timeline for this goal.[6]

Research

In late 2019, a study was conducted by the University of California San Diego on the fuel consumption of TuSimple autonomous vehicles.[7] According to the study, TuSimple trucks showed a reduction in fuel consumption of 10% to 20%, with larger reductions occurring in areas with higher amounts of traffic.[7]

Road testing

In early 2022, the company announced that it had completed 550 miles of autonomous operation without humans in the vehicle on a route between Phoenix and Tucson, Arizona.[8] This milestone distinguishes the company from its competitors, which require the presence of human safety drivers to take over when necessary.[8] The company stated that it is the first company to "operate fully driverless heavy-duty trucks."[8]

On May 26, 2022, the Federal Motor Carrier Safety Administration and the U.S. National Highway Traffic Safety Administration launched an investigation of an April 6, 2022 accident in which one of the company's autonomous trucks crashed into a concrete barrier while on Interstate 10 near Tucson.[1] Company officials blamed the accident on "human error," but former employees and experts in the field of autonomous vehicles suggest that there were issues with the company's technology.[1] The investigation was closed in March 2023 and did not result in penalties.[9] The company issued a statement that the National Highway Traffic Safety Administration declined to open a separate probe.[9]

The company also announced that it planned to expand autonomous freight services to Texas by the end of 2023.[8]

Financial health

Initial financial backers included Volkswagen, United Parcel Service, and U.S. Xpress Enterprises.[1] In April 2021, the company raised over US$1 billion in an initial public offering, leading to a valuation of almost $8.5 billion.[10] The company was reportedly the first autonomous trucking company to go public on the NASDAQ composite index.[1]

In the first half of 2022, TuSimple reported $220.5 million in losses and $4.9 million in revenue.[5]

In December 2022, TuSimple shifted its focus away from production of autonomous trucks and road-testing its self-driving systems, which previously constituted the majority of its Arizona operations.[5] As a result, TuSimple dismissed around a quarter of its workforce, amounting to at least 350 employees.[11] TuSimple representatives estimated that the downsizing would cost them between $10 and $11 million.[11]

TuSimple's stock also reported a 75% decrease from October 2022 and a 96% drop from their 2021 initial public offering price.[5]

Leadership changes

Cheng Lu previously served as TuSimple's CEO from September 2020 to March 2022 before he was ousted by Xiaodi Hou.[12]

In October 2022, Hou was fired after an internal investigation related to a possible technology transfer to a Chinese company Hou started.[13] After Xiaodi Hou's termination, TuSimple's Chief Operations Officer, Ersin Yumer, was named interim CEO.[13]

In November 2022, in response to Hou's firing, co-founders Chen and Hou fired TuSimple's board of directors and reappointed Cheng Lu as CEO.[12]

In March 2023, Hou resigned from TuSimple's board of directors, stating a disagreement with his planned compensation and the company's shift in focus from level 4 to level 2 autonomy.[12] This claim was disputed by Cheng Lu, who affirmed that TuSimple is still working toward level 4 autonomy and accused Hou of poaching employees.[14][12]

Technology

TuSimple uses a combination of LiDAR, radar, and HD cameras to detect vehicles and obstacles up to 1,000 meters away.[15] Each truck consists of a computer that is connected to the TuSimple servers.[16] Each of these servers, which are used to identify cars on the road and their speeds, contains as many as 100 A.I. models. The models receive data from the cameras’ LiDAR and radar equipment and use it to build a live 3D model of the road.[16]

Illicit technology transfer

In October 2022, the company's CEO, Chief Technology Officer, and co-founder, Xiaodi Hou, was fired by the company's board, which cited a "loss in trust and confidence" in Hou's judgment in connection with an alleged sharing of confidential data, blueprints, and employee information with a Chinese company, Hydron Inc.[17][13][18] Hydron Inc., is a hydrogen truck startup founded by Mo Chen, who co-founded TuSimple with Xiaodi Hou.[14] Hou responded to his ouster by stating that he would be "vindicated."[13]

As of late 2022, certain TuSimple leaders were under investigation by the Federal Bureau of Investigation (FBI), U.S. Securities and Exchange Commission (SEC), and Committee on Foreign Investment in the United States (CFIUS) on suspicions of illicit technology transfer to Hydron in China.[19][20] In February 2023, The Wall Street Journal reported that a member of the CFIUS panel recommended that the United States Department of Justice bring criminal charges of economic espionage based on concerns regarding the activities of the two founders and the CEO of TuSimple.[18] At the time, a company spokeswoman denied being aware of any allegations of economic espionage against the company.[18]

References
  1. "Self-Driving Truck Accident Draws Attention to Safety at TuSimple". The Wall Street Journal. 1 August 2022. Retrieved 2022-11-01.
  2. "TuSimple - ABOUT US". 2018-12-10. Archived from the original on 2018-12-10. Retrieved 2023-04-11.
  3. "UPS buys stake in TuSimple, testing self-driving trucks in Arizona". Reuters. 2019-08-15. Retrieved 2023-04-11.
  4. Korosec, Kirsten (2020-03-26). "TuSimple partners with supplier ZF to mass produce self-driving truck tech". TechCrunch. Retrieved 2023-04-11.
  5. Somerville, Heather (17 December 2022). "WSJ News Exclusive | TuSimple Plans Layoffs That Could Cut at Least Half Its Workforce Next Week". Wall Street Journal. Retrieved 2023-04-11.
  6. Prang, Allison (23 September 2020). "Volkswagen Trucking Business Invests in Self-Driving Truck Developer TuSimple". Wall Street Journal. Retrieved 2023-04-11.
  7. Reporter, Linda Baker, Senior Environment and Technology (2019-12-18). "Study finds TuSimple trucks at least 10% more fuel efficient than traditional trucks". FreightWaves. Retrieved 2023-04-11.{{cite web}}: CS1 maint: multiple names: authors list (link)
  8. Bellon, Tina (2022-02-02). "TuSimple says it has completed 550 miles of fully driverless trucking, plans Texas expansion". Reuters. Retrieved 2023-04-11.
  9. Adler, Alan (2023-03-02). "Feds close probe into TuSimple autonomous truck crash". FreightWaves. Retrieved 2023-04-07.
  10. "TuSimple raises over $1 billion in U.S. IPO at nearly $8.5 billion valuation". Reuters. 2021-04-15. Retrieved 2023-04-11.
  11. Nishant, Niket (2022-12-21). "TuSimple to lay off 25% of workforce". Reuters. Retrieved 2023-04-11.
  12. Bellan, Rebecca (2023-03-15). "TuSimple co-founder blames exit on CEO pay and autonomy downgrade". TechCrunch. Retrieved 2023-04-07.
  13. Rosevear, John (31 October 2022). "Self-driving truck startup TuSimple fires its CEO over improper ties to a Chinese firm". CNBC. Retrieved 2023-04-07.
  14. Ohnsman, Alan. "Robot Truck Developer TuSimple Ousts CEO After Report Of Ties To Chinese Startup". Forbes. Retrieved 2023-04-07.
  15. Ackerman, Evan (2021-01-01). "Robot Trucks Overtake Robot Cars: This year, trucks will drive themselves on public roads with no one on board". IEEE Spectrum. 58 (1): 42–43. doi:10.1109/MSPEC.2021.9311454. ISSN 1939-9340. S2CID 230511577.
  16. Francesca_Cristiani (2019-04-16). "Big Rig, No Driver: How TuSimple Uses AI to Train Self-Driving Semis". Wired. ISSN 1059-1028. Retrieved 2023-04-11.
  17. O'Keeffe, Heather Somerville and Kate (31 October 2022). "TuSimple Fires CEO Xiaodi Hou Amid Federal Probes". Wall Street Journal. Retrieved 2023-04-07.
  18. Francisco, Kate O’Keeffe and Aruna Viswanatha in Washington and Heather Somerville in San (February 2023). "WSJ News Exclusive | Leaders of Self-Driving-Truck Company Face Espionage Concerns Over China Ties". Wall Street Journal. Retrieved 2023-04-07.
  19. "TuSimple Co-Founder Ousts Board That Fired Him Last Month". The Wall Street Journal. 10 November 2022. Retrieved 2022-11-11.
  20. Babu, Juby (2022-10-30). "TuSimple probed by FBI, SEC over ties to Chinese startup, the Wall Street Journal reports". Reuters. Retrieved 2023-04-07.
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