TuSimple Terminates CEO Over Improper Ties to Chinese language Agency By Investing.com

(Up to date – October 31, 2022 5:03 PM EDT)

UPDATED: TuSimple launched an announcement, Monday regarding the termination of CEO Dr. Xiaodi Hou. “The unbiased administrators unanimously decided that it was needed and in the very best curiosity of the shareholders to terminate Xiaodi Hou. Basically, we misplaced belief and confidence in Dr. Hou’s judgment, decision-making, and skill to steer the corporate as CEO. This determination, which was made in reference to an ongoing investigation that was initiated by our Board’s Audit Committee in July, was made unbiased of any media protection.” — The Unbiased Administrators of the Board of TuSimple.

Electrical car firm TuSimple (TSP) introduced right this moment that the corporate’s board of administrators has terminated Dr. Xiaodi Hou, the Chief Government Officer, President and Chief Expertise Officer of the Firm, and eliminated Dr. Hou from his place as Chairman of the Board and as a member of the Authorities Safety Committee, efficient as of October 30, 2022.

The board has additionally introduced that Dr. Ersin Yumer, TuSimple’s Government Vice President of Operations, has agreed to function interim Chief Government Officer and President of the Firm whereas TuSimple begins its govt search. Brad Buss, TSP’s Lead Unbiased Director, might be Chairman of the Board. The Board can also be actively engaged within the search so as to add new unbiased members to the Board.

These actions have been taken following an inside investigation that discovered improper dealings and attainable tech switch to a Chinese language agency led by TuSimple’s now-departed co-founder. The continuing investigation led by the Audit Committee of the Board led the Board to conclude {that a} change of Chief Government Officer was needed.

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 vehicles. These staff shared confidential data with Hydron earlier than a nondisclosure settlement was signed, TuSimple mentioned.

“I wish to thank Xiaodi for his many contributions to TuSimple. His information and imaginative and prescient have been invaluable to the event of TuSimple’s industry-leading know-how and the expansion of the Firm. As we glance forward, I’m delighted that Ersin has agreed to assist us shepherd the Firm by the subsequent phases of its growth.” mentioned Brad Buss. “Transparency, logic and accountability are important values to our Firm. We take these values extraordinarily significantly.”

“I sit up for working with the Board and the gifted TuSimple Crew to proceed to maneuver the Firm ahead.” mentioned Dr. Yumer. He added, “The management crew firmly believes in the advantages of our know-how and is dedicated to the Firm’s commercialization roadmap.”

The corporate’s relationship to Hydron is below investigation by the Federal Bureau of Investigation and the Securities and Change Fee.

TuSimple will launch its third quarter 2022 monetary outcomes on Monday October 31, 2022, after the market closes.

Shares of TSP are down 42.31% in mid-day buying and selling on Monday.

By Michael Elkins | Michael.Elkins@streetinsider.com