TuSimple, partly owned by UPS, makes self-driving vehicles, a know-how which may be among the many improvements to assist decrease longer-run inflation within the transport sector.
Supply: TuSimple
Self-driving truck startup TuSimple has fired its CEO, Xiaodi Hou, after an inside investigation discovered improper dealings and attainable tech switch to a Chinese language agency led by TuSimple’s now-departed co-founder, the corporate stated Monday.
The San Diego-based startup’s operations chief, Ersin Yumer, will function interim CEO and president whereas TuSimple’s board of administrators searches for a everlasting successor. Hou was additionally the corporate’s chief know-how officer.
Shares of TuSimple fell sharply following the information, closing down over 45% on Monday.
TuSimple stated in a regulatory submitting Monday that primarily based on an investigation by its board of administrators, it believes a few of its workers spent paid hours in 2021 working for Hydron, a Chinese language startup creating autonomous hydrogen-powered vehicles. These workers shared confidential data with Hydron earlier than a nondisclosure settlement was signed, TuSimple stated.
The board’s investigation started in July and is ongoing, the corporate stated.
In an announcement posted to LinkedIn on Monday, Hou stated that he was eliminated “with out trigger” and that he’s assured he shall be “vindicated” in time.
“I’ve been fully clear in each my skilled and private life and I absolutely cooperated with the Board as a result of I’ve nothing to cover,” Hou wrote. “I wish to be clear that I basically deny any options of wrongdoing.”
The corporate’s relationship to Hydron is below investigation by the Federal Bureau of Investigation and the Securities and Trade Fee, in keeping with a report Monday by The Wall Avenue Journal. Investigators are inspecting whether or not TuSimple’s management didn’t make required disclosures about its transactions with Hydron and whether or not the dealings harmed TuSimple buyers, in keeping with the report.
A consultant for TuSimple declined to touch upon the specifics of the Journal’s report.
Hou co-founded TuSimple in 2015 and have become its CEO in March of this yr. Shortly after taking the highest job, he informed CNBC that he needed to be an “evangelist” for the potential of autonomous trucking.
“Who’s the very best individual to steer this firm? It is me! As a result of I’m a relentless decision-making machine who’s backed by the technical background,” Hou stated in an interview with CNBC on March 30.
Hydron was based in 2021 by Mo Chen, one other co-founder of TuSimple who had beforehand served as its govt chairman. Hydron initially introduced plans to construct electrical vehicles powered by hydrogen gas cells in North America, however its operations have up to now been largely in China.
TuSimple will report its third-quarter outcomes on Monday after the market closes however has delayed its convention name to Tuesday morning.