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TuSimple conscientious objector - founding father and former CEO Xiaodi Hou is on a state of war path in the lead up to Friday ’s annual shareholder meeting that will decide the makeup of the company ’s control board of theater director .
Over the past several week , Hou has sued TuSimple for control condition of his voting rights , demandedthe company immediately liquidate and return all remaining cash to stockholder , andurged courts to blockTuSimple ’s ability to shift funds to China .
Now , Hou is push shareowner to change the gameboard , even if that means taking the fight outside the one-year group meeting . On Monday , Hou compose anopen letterto stockholders alarm them to his plans to establish a written consent operation in early 2025 to take out the current board directors and replace them with single who will bear liquidation . This means that even if the six incumbent card directors are re - elect at the forthcoming annual merging , shareholders who need to see variety will have the option to try again outside the one-year meeting cycle .
TuSimple , meanwhile , has asked shareholders ahead of the annual meeting to re - elect its subsist director as well as approve a plan to stagger the board . This second proposal , if approved , would forget any future attempt at remove all board members at once .
TuSimple ’s CEO Cheng Lu direct TechCrunch to astatementregarding Hou ’s attempt to liquidate the company . The statement outline TuSimple ’s own litigation against Hou ’s new autonomous hauling ship’s company , Bot Auto , for alleged trade secrets thieving and enunciate the liquidation of TuSimple “ would belike insulate Mr. Hou … from further judicial proceeding , while TuSimple ’s existing shareholders would potentially get only a small fraction of their initial investing . ”
“ The Company is focused on affect forward and does not conceive extermination will realise the most economic value to shareowner , ” the statement reads .
TuSimple has been embroiled in drama since the self-reliant hauling companywent populace in 2021 . This latest chapter began after the startup close down its U.S. operation anddelisted from the stock marketat the start of 2024 . TuSimple said it plan to relaunch Ab testing in China , but instead it parted ways with most of the self - drive team sooner this yr . Now , it appears TuSimple is angling to expend its U.S. investment company — investor cash that the pre - revenue , high - cost business adopt once it delisted — to devote for a young byplay social unit in AI vivification and gaming . Andshareholders like Hou are not well-chosen about it .
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“ I write to you today not just as an investor , but as a carbon monoxide gas - laminitis who has poured seven year of passion , energy , and personal dedication into arrive at TuSimple a world loss leader in independent drive , ” Hou wrote in his letter to stockholder . “ Unfortunately , under the party ’s current management and add-in of directors , the chance of achieve that vision is fading tight . Given the extensive list of issues at TuSimple under the current leading squad … I believe extermination , which could devolve $ 1.93 per share ( or more ) to stockholders , represents the most just path onwards for all of us . ”
TuSimple ’s caudex was trade Monday on the over - the - riposte securities marketplace at $ 0.40 . Hou ’s estimation of a nearly $ 2 retort per part is based on old reporting from TechCrunch that found TuSimple had roughly $ 450 million in cash stay on in the U.S. as of September .
Hou wasoustedfrom his executive positions in 2022 and resign from the table in 2023 followingaccusationsthat he was attempting to poach stave for a new venture . Hou has keep he was fire without just cause . He also said heresignedfrom the control board in protest of his successor ’s hefty salary parcel amidmass layoffsat the companionship .
At the close of November , Hou sued TuSimpleand Mo Chen , the companionship ’s co - founding father , master producer , and director , to regain control over his ballot rights . Hou has indicate that a 2022 voting arrangement granting Chen control over his Class B shares pop off in 2024 , thus reverting his voting right back to him .
TuSimple and Chen have made the slip that while Hou may be in self-control of the shares now , he still ask to vote as Chen address .
The dispute over Hou ’s 27.9 % stake wo n’t be resolve until the first quarter of 2025 , when a hearing is scheduled .
This clause , in the beginning bring out December 16 , 1:25 post-mortem PT , has been updated to admit a financial statement from TuSimple .
