TuSimple co-founder and former CEO Xiaodi Hou is on a conflict path within the lead as much as Friday’s annual shareholder assembly that can determine the make-up of the corporate’s board of administrators.
Over the previous a number of weeks, Hou has sued TuSimple for management of his voting rights, demanded the corporate instantly liquidate and return all remaining money to shareholders, and urged courts to dam TuSimple’s capability to switch funds to China.
Now, Hou is pushing shareholders to vary the board, even when meaning taking the combat outdoors the annual assembly. On Monday, Hou wrote an open letter to stockholders alerting them to his plans to launch a written consent course of to take away the present board administrators and substitute them with ones who will help liquidation. This implies that even when the six incumbent board administrators are re-elected on the upcoming annual assembly, shareholders who need to see change can have the choice to attempt once more.
TuSimple, in the meantime, has requested shareholders forward of the annual assembly to re-elect its current administrators in addition to approve a plan to stagger the board. This second proposal, if authorised, would block any future makes an attempt at eradicating all board members without delay.
TuSimple didn’t reply in time to TechCrunch to remark.
Hou is pushing for a written consent solicitation as a result of it might permit shareholders to take away administrators outdoors the annual assembly cycle with the help of a majority of the excellent voting energy, he argued within the letter.
TuSimple has been embroiled in drama because the autonomous trucking firm went public in 2021. This newest chapter started after the startup shut down its U.S. operations and delisted from the inventory market at the beginning of 2024. TuSimple stated it deliberate to relaunch AV testing in China, however as an alternative it parted methods with many of the self-driving crew earlier this 12 months. Now, it seems TuSimple is angling to make use of its U.S. funds – investor money that the pre-revenue, high-cost enterprise acquired as soon as it delisted – to pay for a brand new enterprise unit in AI animation and gaming. And shareholders like Hou usually are not blissful about it.
“I write to you today not just as an investor, but as a co-founder who has poured seven years of passion, energy, and personal commitment into making TuSimple a world leader in autonomous driving,” Hou wrote in his letter to shareholders. “Unfortunately, under the company’s current management and board of directors, the chance of achieving that vision is fading fast. Given the extensive list of issues at TuSimple under the current leadership team…I believe liquidation, which could return $1.93 per share (or more) to stockholders, represents the most equitable path forward for all of us.”
TuSimple’s inventory was buying and selling Monday on the over-the-counter securities market at $0.40. Hou’s estimation of an almost $2 return per share relies on earlier reporting from TechCrunch that discovered TuSimple had roughly $450 million in money remaining within the U.S. as of September.
Hou was ousted from his govt positions in 2022 and resigned from the board in 2023 following accusations that he was trying to poach employees for a brand new enterprise. Hou has maintained he was fired with out simply trigger. He additionally stated he resigned from the board in protest of his successor’s hefty pay bundle amid mass layoffs on the firm.
At the tip of November, Hou sued TuSimple and Mo Chen, the corporate’s co-founder, chief producer and director, to regain management over his voting rights. Hou has argued {that a} 2022 voting settlement granting Chen management over his Class B shares expired in 2024, thus reverting his voting rights again to him.
TuSimple and Chen have made the case that whereas Hou could also be in possession of the shares now, he nonetheless must vote as Chen directs.
The dispute over Hou’s 27.9% stake received’t be solved till the primary quarter of 2025, when a listening to is scheduled.
