© Reuters. TuSimple (TSP) Plunges on SEC, FBI Probe Report; CEO Exit
By Senad Karaahmetovic
Shares of TuSimple (NASDAQ:) are down 13% in pre-open Monday after the self-driving truck maker announced that it terminated Xiaodi Hou, the Chief Executive Officer, President, and Chief Technology Officer of the Company.
Moreover, TuSimple removed Mr. Hou from the company’s board. Ersin Yumer, EVP of Operations, will serve as interim CEO and President while the company searches for a new CEO.
TuSimple’s actions came after the Wall Street Journal reported over the weekend that U.S. authorities are investigating whether the company defrauded investors by financing and transferring technology to China-backed Hydron startup. The investigation is led by the FBI and Securities and Exchange Commission and Committee on Foreign Investment in the U.S.
According to the WSJ, the investigation is focused on whether Chief Executive Xiaodi Hou failed to properly disclose the relationship with Hydron.
Hydron was started earlier this year by TuSimple’s co-founder, Mo Chen. The startup plans to develop, manufacture, and sell a portfolio of autonomous-ready trucks powered by hydrogen fuel cells, Chen told the media.
TuSimple’s board of directors has been investigating the relationship between the company’s management and Hydron in recent months.
“Transparency, good judgment and accountability are critical values to our Company. We take these values extremely seriously,” said Brad Buss, the new Chairman of the Board, in a press release today.
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