Self-driving truck startup TuSimple fires its CEO over improper ties to a Chinese firm

Self-driving motortruck startup TuSimple has fired its CEO, Xiaodi Hou, aft an interior probe recovered improper dealings and imaginable tech transportation to a Chinese steadfast led by TuSimple's now-departed co-founder, the institution said Monday.

The San Diego-based startup's operations chief, Ersin Yumer, volition service arsenic interim CEO and president portion TuSimple's committee of directors searches for a imperishable successor. Hou was besides the company's main exertion officer.

Shares of TuSimple were down much than 40% successful aboriginal trading pursuing the news.

TuSimple said successful a regulatory filing Monday that based connected an probe by its committee of directors, it believes immoderate of its employees spent paid hours successful 2021 moving for Hydron, a Chinese startup processing autonomous hydrogen-powered trucks. Those employees shared confidential accusation with Hydron earlier a nondisclosure statement was signed, TuSimple said.

The board's probe began successful July and is ongoing, the institution said.

The company's narration to Hydron is nether probe by the Federal Bureau of Investigation and the Securities and Exchange Commission, according to a report Monday by The Wall Street Journal. Investigators are examining whether TuSimple's enactment failed to marque required disclosures astir its transactions with Hydron and whether the dealings harmed TuSimple investors, according to the report.

TuSimple didn't instantly respond to a petition for remark connected the study of national probes.

Hydron was founded successful 2021 by Mo Chen, a co-founder of TuSimple who had antecedently served arsenic its enforcement chairman. Hydron initially announced plans to physique electrical trucks powered by hydrogen substance cells successful North America, but its operations person truthful acold been mostly successful China.