TuSimple, the self-driving trucking startup that recently announced its exit from the U.S. market, is set to auction off ten of its autonomous big rigs later this month. The trucks, along with research and development equipment and office supplies, will be sold in two online auctions, with the first scheduled for January 23-25 and the second for February 6-8.
The decision to auction off these trucks indicates the challenges faced by autonomous vehicle (AV) startups in today’s market. Embark Technologies, for instance, was sold off and auctioned just two years after going public, while Argo AI, despite having support from Ford and Volkswagen, shut down in late 2022. Additionally, Cruise faced setbacks and operational difficulties after one of its AVs was involved in a crash.
TuSimple, founded in 2015, was among the early players in the development of fully driverless trucks for goods transportation. While positioning itself as an American startup, it received funding from China, leading to scrutiny from the Committee on Foreign Investment in the United States. The company’s Chinese shareholders prompted investigations by the FBI and the Securities and Exchange Commission. Losing a crucial deal to co-develop self-driving trucks with Navistar further affected TuSimple’s share price, which has plummeted from a high of $62.58 in July 2021 to $0.73 today.
2023 was a year of shifting priorities for TuSimple, as it initially announced plans to sell off its China business before later deciding to exit its U.S. operation altogether. Consequently, the company laid off over 150 workers in December.
As TuSimple prepares to auction off its autonomous trucks, the challenges faced by AV startups are evident. The market demands regulatory compliance, infrastructure development, and public trust to successfully navigate the road towards autonomous transportation.