TuSimple is falling apart and likely will be gone soon. The Wall Street Journal reports it is in such bad shape that it will cut half its workforce. It has reduced its efforts to test its first autonomous truck product. Its stock has been hammered down to $1.55 from a 52-week high of $38.89. There is nothing left of the company to salvage.
TuSImple’s CEO was thrown out recently, and several federal agencies are probing its business operations. TuSimple will focus on building software now. That is not enough to keep it viable in a highly competitive sector.
To add to TuSimple’s challenges, it is eating through cash. It lost $221 million in the most recent quarter. Even if the company’s management were not in turmoil, its financial situation would destroy it.
TuSimple gets added to several small autonomous EV and autonomous driving companies that have, or will fail. There were simply too small and did not have enough cash to compete with larger tech companies and vehicle manufacturers. Autonomous driving is a Holy Grail of the future of the car business. The fact is that even Google founded Waymo has struggled with product success. Tesla’s product is crude and in its infancy. Large car companies have not been able to launch sophisticated products either.
Perhaps the best example of the difficulty of creating self-driving cars is Tesla. It is arguably the most advanced designer of vehicles in the world. It has what it calls an “auto-pilot and full self-driving capacity.” It recently said the service might be a failure.
TuSimple will falter the way EV company Rivan and Faraday Future have. What once appeared as promising systems cannot be built at a rate that will allow them to compete in the market. Cash on their balance sheets has become a major issue. TuSomple joins the list of dying companies and will be dead soon.
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