TuSimple Co-Founder Calls for Liquidation Amid Business Shift

Analytics

TuSimple Co-Founder Calls for Liquidation Amid Business Shift

TuSimple co-founder Xiaodi Hou has launched another autonomous trucking startup. In a surprising legal move, he's also urging for the liquidation of his former company, TuSimple, and the distribution of $450 million to shareholders, the largest being himself.

Suits on 3 Coasts

In separate legal actions filed in San Diego and Delaware, Hou alleges that co-founder Mo Chen and CEO Cheng Lu are attempting to relocate TuSimple's substantial funds to China. The company has reportedly reoriented its operations from autonomous trucking to AI-generated content for video games.

Hou claims this strategic shift marks a significant departure from the company's original mission, a shift made without shareholder consent, which he detailed in a letter to TuSimple’s board.

Xiaodi Hou, co-founder of TuSimple, calls for the company's liquidation and the return of $450 million to shareholders. (Photo: Bot Auto)

Hou, who founded TuSimple in 2015 with Canadian entrepreneur Chen, has been vocal about his dissatisfaction following his ousting as CEO in late 2022 during a contentious board disagreement.

TuSimple has sued Hou in Texas, claiming misappropriation of proprietary technologies as he established his new venture, Bot Auto.

Cheng Lu Cheng Lu, CEO of TuSimple, dismissed Hou’s actions as a disgraced CEO's outburst. (Photo: TuSimple)

Boardroom Drama and a Wind-Down

The board removed Hou as CEO in 2022, citing poor judgment for allegedly allowing workers to assist another startup, Hydron Motors, without board notification. Chen, the founder of Hydron, returned to a leadership role shortly after.

Mo Chen Mo Chen, co-founder of TuSimple, holds 59% of the voting rights. (Photo: Hydron)

Once a leader in driverless trucking, TuSimple's stock has plummeted, becoming a penny stock, after layoffs and the winding down of its U.S. operations last year.

Hou Wants His Super-Voting Rights Restored

With his startup in Houston, Hou is testing driverless trucks while growing frustrated with TuSimple’s board’s decisions. He seeks a restraining order in federal court to block cash transfers to China and demands a restoration of his 29.7% super-voting rights, aiming for a shareholder meeting delay.

Hou insists on the company's liquidation and equitable distribution of proceeds to all shareholders, which would require giving up his super-voting power.

Check out the Truck Tech Episode No. 92, tracking Bollinger's electric truck production, and subscribe to Truck Tech for more updates.

Explore more on Truck Tech and subscribe for weekly insights.

More posts from News

News

FMCSA Active ELD Revoke List and the Importance of Compliance

The Federal Motor Carrier Safety Administration (FMCSA) plays a crucial role in ensuring the safety and reliability of commercial motor vehicles on American roads. As part of their oversight, they mandate the use of Electronic Logging Devices (ELDs) to monitor drivers’ hours of service (HOS) and ensure compliance with federal regulations. However, not all ELDs meet the necessary compliance standards. When a device no longer complies with FMCSA regulations or fails to meet performance standards, it is placed on the **FMCSA ELD Revoked List**. Below, we explore some of the key reasons why an ELD might be revoked and provide a table of current revoked devices.
Regulatory Compliance
Enhanced Safety
Read More

News

How ELDs Improve Fleet Management

In this guide we will explore the various features of ELDs and how they contribute to optimising fleet operations.

News

Why Are ELDs Mandatory For Commercial Trucks?

In this article we will explore the key features and benefits of ELDs, as well as the challenges that drivers and fleet operators may face during implementation.
Laptop

Register and get free access to the system

Registration to get free access to the system for a week and assess its capabilities by yourself

OR
Laptop

Schedule a video call meeting with our manager

Schedule a video call meeting with our manager to see the system in action and understand how it works