Kodiak Robotics IPO & Hyundai Supernal Changes - TechCrunch Mobility

TechCrunch Mobility: Updates in Autonomous Vehicle Development

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The autonomous vehicle sector is still in its developmental stages, potentially years or even decades away from full maturity. Despite consistent announcements showcasing progress, the industry retains a degree of unpredictability. Recent news highlights demonstrate both advancements and potential challenges within the public market.

Gatik Expands Autonomous Truck Deployments

Gatik, a startup focused on autonomous vehicle technology for logistics and middle-mile trucking, has announced an expanded, multi-year commercial partnership with Loblaw, Canada’s largest retailer. This collaboration will see Gatik deploy 20 autonomous trucks by the end of 2025.

These vehicles will provide driverless delivery services to Loblaw’s extensive network of stores throughout the greater Toronto area. According to co-founder and CEO Gautam Narang, the company plans to increase its autonomous truck fleet to 50 vehicles by the end of 2026.

The significance of this agreement extends beyond the fleet size. As Narang explained, the trucks will manage Loblaw’s entire regional delivery network. This entails the third-generation AV trucks operating autonomously to collect products from two distribution centers and deliver them to over 300 retail locations.

“These deliveries will encompass various brands operating under the Loblaw umbrella,” he clarified. This is a fully commercial deployment, not a limited pilot program, and it presents a complex logistical undertaking.

Kodiak Robotics Goes Public

Kodiak Robotics, another startup previously covered, is developing self-driving trucks for highway, industrial, and defense applications. This week marked the company’s debut on the Nasdaq stock exchange under the tickers KDK and KDKRW.

Now operating as Kodiak AI, the company became publicly traded through a merger with Ares Acquisition Corporation II, a special-purpose acquisition company affiliated with Ares Management. The transaction valued the startup at approximately $2.5 billion.

Kodiak secured $275 million in financing, with over $212.5 million originating from institutional investors. This included $145 million in PIPE funding and roughly $62.9 million from Ares’ trust cash. It’s worth noting that the trust cash amount was lower than initially anticipated ($562 million) due to some SPAC investors choosing to redeem their shares.

Prior to Kodiak’s public debut, founder and CEO Don Burnette discussed the rationale behind taking the company public, specifically through a SPAC. This event was a significant milestone for Burnette, celebrated with his family during the bell-ringing ceremony.

As of Friday, the stock was trading around $7.70, representing a decrease of approximately 10% from its opening price.

“Developing and scaling a groundbreaking autonomous driving company requires substantial capital investment,” Burnette stated. “We sought access to the public markets as a viable path forward, and after evaluating both traditional IPOs and SPACs, we determined that a SPAC was the most appropriate decision for the company at this time.”

Burnette also expressed strong optimism regarding the potential within the defense sector:

“I believe autonomy represents the future of ground transportation,” he said, further elaborating on the advantages for defense applications, including logistics and reconnaissance operations for ground vehicles. “Defense applications demand unstructured autonomy, and this is an area where we are developing specialized expertise.”

Supernal Leadership Restructuring

Recent reports indicated challenges at Hyundai’s electric air taxi venture, Supernal, including a pause in air taxi development and changes in executive leadership.

Further developments have now been confirmed by Hyundai Motor Group, revealing a broader reorganization within Supernal’s C-suite.

Executive Departures

Jaeyong Song, formerly chief strategy officer, and Tracy Lamb, chief safety officer, are transitioning out of their roles. This shift in leadership is part of a larger restructuring initiative.

Song’s exit is significant, considering his previous position as VP of Hyundai’s Advanced Air Mobility division – the origin point for Supernal’s establishment in 2021.

Lina Yang, who served as chief of staff to the previous CEO and formerly held the position of “Head of Intelligent Systems” at Supernal, has also departed.

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Recent Funding and Developments

Anode Technology Company, a new venture founded by the team behind the former portable battery startup Moxion Power, has secured $9 million in seed funding. This round was spearheaded by Eclipse Ventures, with partner Jiten Behl – formerly Rivian’s chief growth officer – leading the investment. The company is focused on creating mobile battery and inverter solutions for EV charging and off-grid power applications, such as construction and events.

Interestingly, Behl’s prior experience at Rivian played a significant role in his decision to invest in Anode Technology. This highlights a growing trend of industry veterans reinvesting in innovative energy solutions.

Eclipse Ventures has demonstrated considerable activity in the venture capital space this year. Beyond Anode Technology, the firm recently led a $105 million funding round for Also, a micromobility company originating from Rivian. They also welcomed Joe Fath, a seasoned investor from T. Rowe Price Group, as a partner focused on growth initiatives.

While not exclusively focused on transportation, Eclipse Ventures’ portfolio includes several companies within the sector. These include Arc, Bedrock Robotics, Reliable Robotics, Skyryse, and Wayve, demonstrating a broad interest in future mobility technologies.

Additional Notable Deals

Rapido, a prominent ride-hailing service in India, has seen its valuation double to $2.3 billion following a secondary share sale by Swiggy. This transaction occurred shortly after Rapido initiated a pilot program for food delivery, directly competing with Swiggy’s established business.

Telo, the developer of a compact electric truck, has raised $20 million in a Series A funding round. The round was co-led by Yves Béhar, a designer and Telo co-founder, and Marc Tarpenning, a co-founder of Tesla and current member of Telo’s board. Further investment was provided by Salesforce CEO Marc Benioff, alongside early-stage funds like TO VC, E12 Ventures, and Neo.

The U.S. government is exploring the possibility of acquiring a stake of up to 10% in Lithium Americas. This potential investment is tied to renegotiating the terms of a $2.26 billion loan from the Department of Energy. GM holds a substantial investment in the Canadian company, which is developing a large-scale lithium mine in Nevada, projected to be the largest in the Western Hemisphere.

Recent Developments in the Automotive and Tech Industries

The transportation sector experienced a surge in cybersecurity incidents this week. Stellantis disclosed a data breach impacting customer personal information, stemming from unauthorized access to their Salesforce database. Simultaneously, disruptions at airports in Brussels, Berlin, Dublin, and London Heathrow were caused by a cyberattack targeting check-in systems provided by Collins Aerospace, beginning last Friday. A suspect has been apprehended by the U.K.’s National Crime Agency in relation to this ransomware attack. Furthermore, Jaguar Land Rover announced a continuation of production halts at its facilities for another week, as they address the consequences of a recent cyberattack.

Advancements in Battery Technology

Sila, a company specializing in battery materials, has commenced operations at its Moses Lake, Washington facility. This represents a significant step toward the development of electric vehicles with extended range and quicker charging capabilities. The facility is the first large-scale production plant for silicon anodes in the Western Hemisphere. Initial production capacity will support battery material needs for between 20,000 and 50,000 EVs, with potential for expansion to supply materials for up to 2.5 million vehicles.

Shifts in Electric Vehicle Production

Several automakers are reassessing their commitments to electric and electrified vehicles. Honda has decided to discontinue U.S. production of the Acura ZDX electric vehicle, which was being manufactured by General Motors in Tennessee, as reported by CNBC. Additionally, Stellantis has withdrawn plans to produce a 4xe plug-in hybrid Jeep Gladiator in North America by the end of 2025. The question remains: which EV will be next to see its production halted?

Safety Investigations and Regulatory Actions

The National Highway Traffic Safety Administration has initiated an investigation into Rivian, focusing on potential issues with the seat belts in their electric delivery vans. These concerns relate to a possible increase in crash risk. Tesla, conversely, has requested the Environmental Protection Agency to maintain existing vehicle emissions standards, diverging from other major automakers advocating for relaxed regulations.

Emergency Alerts and Production Commitments

TuneIn, an audio streaming service, is partnering with the Federal Emergency Management Agency to deliver critical emergency alerts directly to drivers. Volvo Cars has reaffirmed its dedication to U.S. manufacturing. The company intends to continue investing in its plant located near Charleston, South Carolina, and plans to expand the facility to accommodate the production of a hybrid vehicle by the end of the decade.

Autonomous Vehicle Developments

Waymo has introduced “Waymo for Business,” a new service enabling companies to establish accounts for their employees to utilize robotaxis in cities such as Los Angeles, Phoenix, and San Francisco. Zoox, owned by Amazon, has petitioned federal regulators for an exemption. This exemption would permit the commercial deployment of their uniquely designed robotaxis, which operate without conventional controls like steering wheels or pedals.

A Resurgence: Austin Russell's New Venture

Recent developments confirm the reappearance of Austin Russell, the founder of Luminar, in the technology landscape.

Russell was unexpectedly removed from his position as CEO of the lidar company he established back in May. The circumstances surrounding his departure have remained unclear, attributed only to a “code of business conduct and ethics inquiry” conducted by the board of directors.

Throughout this period, Russell maintained silence, despite continuing to hold a position on Luminar’s board. He did not sign any filings submitted to the U.S. Securities and Exchange Commission following his removal.

Introducing Russell AI Labs

This week marked Russell’s return to the forefront as the co-founder of a new entity, Russell AI Labs. The company is positioned as a platform dedicated to supporting and developing groundbreaking AI and advanced technology firms.

Despite the challenges faced at Luminar, Russell appears to have retained significant influence and the capacity to forge impactful partnerships.

Joining Russell as co-founders are Markus Schäfer, currently serving as CTO and a board member at Mercedes-Benz Group AG, and Murtaza Ahmed, formerly a managing director at Goldman Sachs and a partner within SoftBank’s $100 billion Vision Fund and $5 billion Latin America Fund.

Significant Investment in Emergence AI

Russell AI Labs announced its launch alongside a substantial investment.

The startup has acquired a $300 million stake in Emergence AI, a company specializing in agentic AI technology.

This initial investment signals Russell AI Labs’ commitment to backing innovative companies at the cutting edge of artificial intelligence.