Months after slashing its workforce and terminating its CEO San Diego self-driving truck company TuSimple says that it may sell off its U.S. business.
A potential sale means TuSimple, which is developing technology for fully autonomous driving semi-trucks, would sever its United States operations and continue to operate its existing arms in the Asia-Pacific markets.
The startup said it’s “evaluating strategic alternatives for its U.S. business with a goal to maximize shareholder value.” The decision to explore a possible sale received unanimous approval from TuSimple’s board.
TuSimple was founded in 2015 and is headquartered in San Diego. It also has operations in Texas and Arizona, as well as Europe and China.
“We are committed to evaluating options to drive the highest long-term value for our shareholders and are continuously exploring the commercial viability to split the operations as a way to increase value to our key stakeholders and lend stability to our employees,” said TuSimple CEO Cheng Lu in an emailed statement to the U-T on Thursday. “We have built strong, independent businesses in the U.S. and the Asia-Pacific region with independent engineering teams, technology development and code base.”
The company has laid off hundreds of workers in the past year, bringing its global workforce to 750 employees. The firm also fired its CEO, Xiaodi Hou, in October after an internal investigation found he shared confidential information with a Chinese startup without proper disclosures.
At one time, TuSimple was a flag-bearer for autonomous trucking, at least among investors. It raised $1 billion when it went public in April 2021. By June of that year, the stock reached its peak price of $59 per share.
But a series of controversies between its board and management, the resignation of its auditor, the loss of a key customer and its failure to file financial statements on time has weighed on its stock price.
TuSimple’s shares closed Thursday at $1.84, down 47 cents. In early May, Nasdaq initiated a delisting process over financial statement delays. TuSimple appealed, saying the resignation of its auditor put it in a bind.
