Autonomous trucking company TuSimple experienced a significant increase in its stock price, rising by 28% on Monday. This surge came after the company narrowly avoided being delisted from the Nasdaq stock exchange. TuSimple's stock closed at $1.06 per share.
Last week, TuSimple reported that it had received a delisting notice from the Nasdaq due to its failure to file its quarterly report on time. The stock exchange had planned to suspend trading of TuSimple shares on May 15. However, the company has requested an extended stay of the suspension and is currently in the process of appealing the delisting notice. TuSimple will continue to trade publicly until it has a hearing with the Nasdaq. The date for the hearing has not been confirmed yet, but it is expected to take place within the next 45 days, according to a regulatory filing.
There is no information available regarding when TuSimple expects to report its earnings for the last two quarters and the full-year 2022. The company's most recent earnings report was for the quarter ended September 30. To help resolve its reporting delays, TuSimple has hired UHY LLP as its new independent registered public accounting firm for the fiscal year ended December 31, 2022.
TuSimple, once a leader in the autonomous vehicle industry, has faced internal challenges, including executive upheavals that resulted in the removal of co-founder Xiaodi Hou, an investigation by the Securities and Exchange Commission (SEC), the loss of Navistar as a partner, and a restructuring in December that led to a 25% reduction in staff.
The company went public in April 2021 after receiving strategic investments from major players such as Traton Group, Navistar, Goodyear, and U.S. Xpress. TuSimple's share price reached its peak in July 2021 at $62.58, but it has since plummeted by 98%.
Despite its Chinese roots in its founding team and early backers, TuSimple has positioned itself as a U.S. entity with its headquarters in San Diego. The company faced regulatory scrutiny due to its connections with China, prompting TuSimple to divest its China business. This situation also led to the dismissal of former CEO Xiaodi Hou, who was accused of being under investigation by the FBI, SEC, and CFIUS regarding TuSimple's relationship with Hydron, a hydrogen-powered trucking company co-founded by Mo Chen, another co-founder of TuSimple.
Hou disputed the reasons for his firing, which included allegations of attempting to recruit staff for a new company. He stated that he had disagreements with current CEO Cheng Lu over Lu's compensation package and the company's decision to shift its focus from Level 4 autonomy to Level 2 autonomy.
Level 4 autonomy refers to a designation by the Society of Automobile Engineers (SAE), indicating that a vehicle can handle all aspects of driving in specific conditions without human intervention. On the other hand, Level 2 systems automate two primary functions but still require a human driver to be present at all times.