TuSimple And Navistar End Self-Driving Truck Development Deal

TuSimple Holdings Inc TSP and Navistar agreed to terminate their co-development under the 2020 Joint Development Agreement.
"I decided to return as TuSimple's CEO to address the challenges ahead and to set us on a path to long-term stability. We have proven our technology works, and I'm committed to addressing the concerns of stakeholders. I firmly believe in this company and its ability to improve the safety and efficiency of the trucking industry through world-class autonomous driving technology," said TuSimple CEO Cheng Lu.
In 2020, Illinois-based Navistar purchased a minority stake in TuSimple and forged a deal to co-develop heavy-duty self-driving trucks by 2024, Reuters reports.
The trucks would have operated at Level 4 autonomy, where vehicles can operate without a driver under set conditions.
TuSimple also received nearly 7,000 orders for self-driving trucks from companies including DHL Supply Chain, Schneider National, Inc SNDR, and U.S. Xpress Enterprises, Inc USX.
San Diego, California-based TuSimple, which in October said it plans to focus on the initial commercialization of its trucks in 2023, did not elaborate on reasons for scrapping the deal.
TuSimple co-founder Mo Chen took control of the self-driving trucking company as federal authorities investigated TuSimple's relationship with Chen's other startup, a Chinese hydrogen-trucking company.
Chen had 59% of the voting power, giving him control as of November 9, a day before the company announced it had ousted its board of directors.
Chen acquired the stake through stock purchases using his family trust and British Virgin Islands-based entities.
TuSimple's newly appointed CEO, Cheng Lu, said, "We have a strong sense of urgency to put our company back on track and regain trust from all stakeholders."
Price Action: TSP shares closed higher by 2.26% at $2.26 on Monday.

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