Autonomous trucking company TuSimple’s stock soared 28% Monday after the company narrowly avoided being delisted from the Nasdaq stock exchange. TuSimple stock closed at $1.06 per share.
TuSimple reported last week that it received a delisting notice from Nasdaq for failing to file its earnings report on time. The exchange was scheduled to suspend trading in TuSimple shares on May 15. The company confirmed to TechCrunch that it has asked Nasdaq for an extended stay and is currently pursuing an appeal. TuSimple continues to be publicly traded pending a hearing on Nasdaq. It’s not clear if a date has yet been set for the hearing, but it is expected to take place in the next 45 days, according to a regulatory filing.
The company didn’t respond in time to say when it expects to announce earnings for the last two quarters and for the full year 2022. TuSimple last reported earnings for the quarter ended September 30th. The Firm recently hired UHY LLP to join its new independent firm We Registered as an Accounting Firm for the year ended December 31, 2022 to get back on track.
TuSimple was once at the forefront of the AV industry but has been plagued by internal drama, including multiple leadership upheavals culminating in the ouster of co-founder Xiaodi Hou, an SEC investigation, the loss of Navistar as a partner, and a December reorganization 25% of employees were laid off.
The self-driving truck company went public in April 2021 after receiving strategic investments from various big names including Traton Group, Navistar, Goodyear and US Xpress. TuSimple’s stock price peaked at $62.58 in July 2021, but that has since plummeted 98%.
Although the founding team and early financiers came from China, the company has positioned itself as a US company headquartered in San Diego. The company came under regulatory scrutiny for its ties with China, leading to TuSimple working to divest its China business. This also led to the firing of then-CEO Hou, who was accused of facing simultaneous investigations by the FBI, SEC and CFIUS into TuSimple’s relationship with Hydron, a hydrogen-powered trucking company headed by Mo Chen, the other co-founder of TuSimple.
Hou denied the reasons for his dismissal, including alleging that Hou was trying to poach staff for a new company. The founder told TechCrunch he has disagreements with current CEO Cheng Lu over Lu’s compensation package and the company’s shift to focus on Tier 2 autonomy rather than solely Tier 4 autonomy.
Level 4 is a designation by the Society of Automotive Engineers (SAE) means the vehicle can handle all aspects of driving under certain conditions without human intervention. With level 2 systems, where two main functions are automated, there is still a human driver on the ball.
