FAST NEWS: TuSimple Announces Management Changes In Preparation For Commercialization
The latest: Autonomous truck company TuSimple Holdings Inc. (TSP.US) announced Tuesday that Chief Financial Officer Patrick Dillon will leave the group to pursue other opportunities. Eric Tapia, its global controller and principal accounting officer, will temporarily take on the role of the while the company carries out a search for a new CFO. In addition, the company has added two new management positions, as Ersin Yumer will be promoted to executive vice president of operations and Lei Wang will be promoted to executive vice president of technology.
Looking up: TuSimple is reconfirming it is on track to meet or outperform previously announced 2022 Adjusted EBITDA guidance. So, the changes in management do not appear to be a problem for the company, but rather a preparation for the next phase of commercialization.
Take Note: An analyst at Morgan Stanley says the changes in management at the company may pose some business execution risks in the near-term.
Digging Deeper: Founded in 2015, TuSimple is an autonomous driving company that has chosen to avoid fierce competition in the passenger car market by focusing on heavy trucks, which are easier to commercialize. Earlier this year, it claimed to have completed the world’s first fully unmanned test of a heavy truck on the open road, with the goal of bringing the technology into mass production by 2024. TuSimple is focusing on commercialization, and on June 10 launched Hydron, a company focused on developing, designing, manufacturing and selling hydrogen-powered trucks with autonomous driving technology, with the first generation of Hydron trucks expected to be delivered in the third quarter of 2024.
Market Reaction: Shares of TuSimple jumped 5.5% to close at $7.32 in New York on Tuesday, but remained close to their 52-week lows.
Translation by Jony Ho
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