TuSimple Files for IPO: Self-Driving Truck Startup Goes Public

TuSimple Files for Initial Public Offering

TuSimple, a developer of self-driving truck technology, has submitted an application for an initial public offering (IPO). The company benefits from backing by a diverse group of investors, including The Traton Group – Volkswagen AG’s heavy-truck division – as well as Navistar, Goodyear, and freight carrier U.S. Xpress.

This move represents a conventional approach to becoming a publicly traded company. It contrasts with the recent trend among startups in the electric and autonomous vehicle sectors, which have frequently opted to merge with special purpose acquisition companies (SPACs).

IPO Details and Underwriters

The precise number of shares offered and the anticipated price range for the IPO remain undefined, as indicated in the regulatory filing. TuSimple plans to list its common stock on the Nasdaq Global Select Market using the ticker symbol “TSP.” Morgan Stanley, Citigroup, and J.P. Morgan are serving as the lead underwriters for this proposed offering.

Financial Status and Funding

According to the company’s S-1 filing, TuSimple has historically funded its operations through the issuance of redeemable convertible preferred stock and loans from its stockholders. As of the filing date, the company reported liquidity resources of $310.8 million in cash and cash equivalents, excluding $1.5 million in restricted cash. These resources primarily consist of bank deposits and certificates of deposit.

Operational Losses and Revenue Growth

The S-1 document reveals that TuSimple experienced a loss from operations totaling $177.9 million in 2020. This figure more than doubled the $84.8 million loss recorded in the prior year. The company also reported operational losses of $45 million in 2018. Its accumulated deficit reached $405.2 million by December 31, 2020.

Net loss attributable to common stockholders increased to $198.8 million in 2020, compared to a loss of $145 million in the preceding year.

Despite these losses, the company’s revenue demonstrated growth, rising to $1.8 million in 2020 from $710,000 the previous year.

Company Background and Operations

Founded in 2015, TuSimple was among the earliest companies to focus on autonomous trucking technology. It now operates within a growing industry that includes competitors such as Aurora, Embark, Kodiak, and Waymo. While the company’s initial team and early investors originate from China, a significant portion of its operations are based in the United States.

TuSimple maintains its global headquarters in San Diego, California, and operates an engineering center and truck depot in Tucson, Arizona. A recently established facility in Texas supports its autonomous trucking routes, which always include a human safety operator. The company also has a presence in Beijing and Shanghai.

Shareholder Structure

Despite its U.S. operations and partnerships, a substantial portion of TuSimple’s shares are held by Chinese investors, as detailed in the S-1 prospectus. Key stockholders of Class A shares include Sun Dream Inc (20%), Composite Capital Master Fund (7.28%), and Navistar (6%). Navistar is currently owned by Volkswagen Group’s The Traton Group.

TuSimple’s co-founders, Mo Chen and Xiaodi Hou, hold 9.1% and 8.5% respectively in Class A shares. They each control 50% of the Class B shares.

CFIUS Review

Sun Dream, controlled by Charles Chao – also chairman of Sina, which owns Weibo – has prompted a review by the Committee on Foreign Investment in the United States (CFIUS), as disclosed in the S-1 filing. CFIUS will conduct a 45-day review of the investment.