Geely to Acquire TuSimple’s Asia-Pacific Business
Chinese automotive maker Geely plans to buy the entire stake of autonomous driving company TuSimple’s Asia-Pacific business. The Zhejiang-based firm has made an offer to TuSimple’s headquarters in the United States, but details such as the purchase price have not been released, Chinese media outlet AI4Auto reported on August 20.
TuSimple had been looking for buyers for its Asia-Pacific business, according to people familiar with the matter. Based on the existing cooperation between Geely and TuSimple, Geely submitted a non-binding offer letter to acquire TuSimple’s Asia-Pacific business, including, but not limited to, the related subsidiaries to operate or support such business and its related assets.
In February this year, TuSimple reached an agreement with U.S. authorities to transfer some technical oversight of its self-driving trucking operations to the U.S. government. It will also adopt a technology control plan to limit access to the company’s self-driving data in China, including the source code and algorithms.
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Therefore, some market analysts believe that Geely’s acquisition, if successful, will enable TuSimple to completely solve the regulatory restrictions brought upon the company by the US authorities. TuSimple reported revenue of $2.6 million in the second quarter of 2022, up 73% year over year. Its net loss narrowed to $109 million during the period.
Established in 1986, Geely owns Lynk&Co, Polestar, Proton, Lotus, Zeekr and more well-known auto brands. TuSimple, launched in 2015, provides driverless trucks around the world. It was originally founded in Beijing and San Diego, California, USA, and later expanded to Shanghai and Hebei Province in China, and Arizona, USA. On April 15, 2021, it was listed on the Nasdaq in the United States, becoming the world’s first listed driverless technology enterprise.