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 going through an appeals process. 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 should take place within the next 45 days, according to regulatory filings.
There is no information available regarding when TuSimple expects to report its earnings for the last two quarters and for the full year of 2022. The company's most recent earnings report was for the quarter ended September 30. In an effort to get back on track, TuSimple has recently 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 that have impacted its operations. These challenges include multiple executive upheavals, culminating in the removal of co-founder Xiaodi Hou, as well as an SEC investigation, the loss of Navistar as a partner, and a restructuring that resulted in a 25% reduction in staff in December.
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, reaching $62.58, but it has since plummeted by 98%.
Despite having a founding team and early backers from China, TuSimple has positioned itself as a U.S.-based entity with its headquarters in San Diego. The company has faced regulatory scrutiny due to its connections with China, which prompted TuSimple to divest its China business. This situation also led to the firing 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 led by TuSimple's other co-founder, Mo Chen.
Hou disputed the reasons for his termination, 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 shift in focus from Level 4 autonomy to Level 2 autonomy. Level 4 autonomy refers to a vehicle's ability to handle all driving aspects in specific conditions without human intervention, while Level 2 systems still require a human driver to be present.