American Self-Driving Truck Startup Fires CEO Over Chinese language Ties

TuSimple, a San Diego-based self-driving trucking startup, stated Monday that it had eliminated its CEO, Xiaodi Hou, in connection along with his suspicious ties to a different autonomous trucking agency in China. The revelation has triggered the corporate’s share costs to fall dramatically.

The startup, which in 2021 turned the primary firm to function a self-driving truck on public roads in America with no people aboard, stated that an investigation launched by its board confirmed that a few of its workers had spent paid hours working for Hydron Inc., a startup engaged on related initiatives, albeit largely in China, experiences Reuters.

The investigation revealed that TuSimple had additionally shared confidential data with Hydron. The corporate stated it has not been in a position to decide the worth of the knowledge leaked to the Chinese language startup.

Learn: US Postal Service Companions With TuSimple To Check Autonomous Semis

Hydron was being evaluated as a possible authentic tools producer by TuSimple, which can also be tied to Traton, Navistar, UPS, and the U.S. Postal Service. Hou’s ties to the Chinese language startup weren’t delivered to the eye of audit and authorities safety committees throughout that course of, although.

The elimination of its CEO got here after the Wall Avenue Journal reported that Hou was being investigated by the FBI, the Securities and Trade Fee, and the Committee on Overseas Investments attributable to his connections to Hydron.

In a submit on WeChat, Hou confirmed that he had been ousted as chairman and CEO of TuSimple, however denied wrongdoing, claiming that the transfer had been dedicated “with out trigger.”

“It’s so unfair to let politics get in the best way of the dream we have been pursuing collectively,” wrote Hou.

On account of the scandal, TuSimple’s share costs fell sharply, as the corporate misplaced 50 cents per share. That was, nevertheless, smaller than the 56-cent per-share loss anticipated by analysts.