TuSimple CEO fired over improper ties to Chinese firm Hydron

TuSimple, partly owned by UPS, would make self-driving vans, a technology that may well be among the innovations to enable reduce extended-run inflation in the transportation sector.

Source: TuSimple

Self-driving truck startup TuSimple has fired its CEO, Xiaodi Hou, just after an inner investigation observed improper dealings and doable tech transfer to a Chinese agency led by TuSimple’s now-departed co-founder, the corporation said Monday.

The San Diego-primarily based startup’s functions chief, Ersin Yumer, will provide as interim CEO and president while TuSimple’s board of directors lookups for a everlasting successor. Hou was also the company’s main technological innovation officer.

Shares of TuSimple have been down extra than 40% in early investing pursuing the news.

TuSimple reported in a regulatory filing Monday that dependent on an investigation by its board of administrators, it believes some of its staff used paid out hours in 2021 performing for Hydron, a Chinese startup developing autonomous hydrogen-run vans. Those staff members shared confidential data with Hydron prior to a nondisclosure agreement was signed, TuSimple claimed.

The board’s investigation commenced in July and is ongoing, the business mentioned.

The company’s marriage to Hydron is beneath investigation by the Federal Bureau of Investigation and the Securities and Exchange Commission, in accordance to a report Monday by The Wall Avenue Journal. Investigators are analyzing regardless of whether TuSimple’s management failed to make demanded disclosures about its transactions with Hydron and whether the dealings harmed TuSimple traders, in accordance to the report.

TuSimple did not straight away answer to a ask for for remark on the report of federal probes.

Hydron was established in 2021 by Mo Chen, a co-founder of TuSimple who had previously served as its government chairman. Hydron to begin with introduced plans to construct electrical trucks run by hydrogen gas cells in North The united states, but its operations have so significantly been mostly in China.