TuSimple CEO fired over improper ties to Chinese language agency Hydron

Self-driving truck startup TuSimple has fired its CEO, Xiaodi Hou, after an inner investigation discovered improper dealings and doable tech switch to a Chinese language agency led by TuSimple’s now-departed co-founder, the corporate mentioned 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 expertise officer.

Shares of TuSimple fell sharply following the information, closing down over 45% on Monday.

TuSimple mentioned in a regulatory submitting Monday that based mostly on an investigation by its board of administrators, it believes a few of its staff spent paid hours in 2021 working for Hydron, a Chinese language startup creating autonomous hydrogen-powered vans. These staff shared confidential data with Hydron earlier than a nondisclosure settlement was signed, TuSimple mentioned.

The board’s investigation started in July and is ongoing, the corporate mentioned.

In an announcement posted to LinkedIn on Monday, Hou mentioned that he was eliminated “with out trigger” and that he’s assured he might be “vindicated” in time.

“I’ve been utterly 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 need to be clear that I essentially deny any ideas of wrongdoing.”

The corporate’s relationship to Hydron is below investigation by the Federal Bureau of Investigation and the Securities and Alternate Fee, in line with a report Monday by The Wall Avenue Journal. Investigators are inspecting whether or not TuSimple’s management did not make required disclosures about its transactions with Hydron and whether or not the dealings harmed TuSimple buyers, in line 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 instructed CNBC that he wished to be an “evangelist” for the potential of autonomous trucking.

“Who’s the very best particular person to guide this firm? It is me! As a result of I’m a relentless decision-making machine who’s backed by the technical background,” Hou mentioned 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 government chairman. Hydron initially introduced plans to construct electrical vans powered by hydrogen gasoline cells in North America, however its operations have to date been principally in China.

TuSimple will report its third-quarter outcomes on Monday after the market closes however has delayed its convention name to Tuesday morning.