TuSimple Stock To Debut After Self-Driving IPO Raises $1 Billion; Lidar Stocks Up

TuSimple stock will debut on the Nasdaq Thursday after the self-driving vehicle startup raised more than $1 billion through an initial public offering. Lidar stocks rallied.


TuSimple (TSP) said Thursday that it sold around 27 million shares and a stockholder sold about 6.8 million shares, at $40 each. It raised $1.081 billion in gross proceeds, valuing the San Diego, Calif.-based company at about $8.5 billion. Shares are set to debut on the Nasdaq under the ticker “TSP.”

TuSimple is developing an autonomous driving system as well as self-driving trucks for long-haul trucking with Navistar International (NAV) and Volkswagen (VWAGY) subsidiary Traton, both of which make commercial and heavy trucks. VW’s Traton is acquiring Navistar International for an inroad into North America.

Production of TuSimple’s self-driving trucks is set for 2024. Founded in 2015, the company counts shipping giant UPS (UPS) and the U.S. Postal Service among its backers and partners.

TuSimple uses lidar technology supplied by Aeva Technologies (AEVA), which listed Monday via a merger with a special purpose acquisition company.

The TuSimple IPO follows a string of lidar sensor makers coming public through blank-check mergers in the past year, including Luminar Technologies (LAZR), Velodyne Lidar (VLDR) and Ouster (OUST). Lidar is a core technology underpinning self-driving cars and trucks.

Self-driving vehicles could make long-haul trucking safer as well as more cost and fuel efficient, while tackling the massive driver shortage in America.

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TuSimple Stock, Lidar Stocks

As the TuSimple stock debut looms, lidar stocks rallied in premarket trading. Luminar gained 1.7% in Thursday’s stock market trading, Velodyne rose 2%, Ouster added 0.6% and Aeva edged up 0.5%.

TuSimple claims its AV technology makes it possible for heavy trucks to see 1,000 meters away. The also can operate nearly continuously, while using less fuel than trucks on the road today.

The self-driving truck startup touts creating “the world’s first and most advanced Autonomous Freight Network,” which is in use by shippers, carriers and fleets. TuSimple currently operaets in Arizona, New Mexico and Texas, with plans to expand nationwide by 2024.

Currently, TuSimple’s Level 4 driverless trucks operate with a safety driver behind the wheel to monitor the system in autonomous mode. But they don’t require constant human intervention.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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