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, 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, 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.
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