TuSimple Touts Plan to ‘Remove Driver From Middle Mile’ in Pitch to Sell $100M in Stock
San Diego, CA – TuSimple, an autonomous trucking technology company intent on disrupting the trucking industry and displacing truck drivers, is going public.
On Tuesday, the California-based self-driving truck startup announced it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering (IPO) of shares of its Class A common stock.
While the number of shares to be offered and the price range for the proposed offering have not yet been determined, TuSimple’s filing indicates it is seeking to sell $100 million in shares as part of its IPO.
TuSimple intends to list its common stock on the Nasdaq Global Select Market under the ticker symbol “TSP.”
Morgan Stanley, Citigroup and J.P. Morgan will act as lead book-running managers for the proposed offering, the company said.
TuSimple’s filing also put forward its go-to-market strategy.
At the heart of the company’s pitch are promises to alleviate the so-called “driver shortage” and deliver “significant cost savings” by replacing truck drivers, particularly those who are involved in transporting “middle mile truck freight.”
“We believe that autonomy addresses the fundamental supply and demand imbalance facing the truck freight industry today,” TuSimple said. “We believe that removing the driver from middle mile truck freight will provide shippers, carriers, and railroads with significant cost savings and allow them to reallocate scarce driver resources to first and last mile routes.”
Further, TuSimple touted its autonomous trucking technology with having completed nearly 3 million road tested miles in states such as Arizona, New Mexico and Texas.
“We believe that we are the first and only company to… achieve Level 4 (L4) autonomous semi-trucks driving on both highways and surface streets as well as the first company to autonomously haul a paid freight load,” TuSimple said. “We also believe it is critical for L4 autonomous semi-trucks to travel on surface streets as well as highways to carry freight from terminal to terminal to minimize drayage costs and operational inefficiency. As a result, we also focus our autonomous capabilities on navigating surface streets in order to provide terminal to terminal transportation rather than requiring a highway ‘off-ramp’ location farther from our users.”
The company says, so far, it has more than 5,700 truck order reservations.
Earlier this year, mega carriers such as Werner Enterprises, Schneider National, and U.S. Xpress each bought an undisclosed ownership stake in TuSimple.
Goodyear Tire & Rubber Company has also announced plans to buy an ownership stake in the company.