Steve Girsky, the man responsible for the merger with hydrogen-electric start-up Nikola is now in talks to invest in self-driving trucks start-up TuSimple. This is as per four people who are familiar with the talks around the deal.
Currently, both Girsky and TuSimple have declined to comment.
Girsky’s deal with TuSimple to close by mid-October
As per unnamed sources, the capital for the investment would come from Girsky’s VectorIQ LLC along with a consortium of investors. He runs the consulting and investment company with its managing partner Mary Chan. The deal is set to close by mid-October.
It was reported in June that TuSimple was looking for a capital of $250 million from investors. This self-driving truck start-up also hired Morgan Stanley to assist in raising funds. Since then, it has already received backing from UPS, Sina, Traton Group, and Mando Corp., who announced a partnership with Navistar.
VectorIQ’s advisory services in self-driving, electrification, and like services
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Girsky had recently been in the news because of Nikola, where he is serving as the executive chairman. He succeeded Nikola’s founder Trevor Milton in September after the latter’s fallout from a stinging report by a Hindenburg Research. The firm accused Nikola of fraud.
Girsky has always had an interest in mobility-related companies. Also, VectorIQ is known to be a specialist in connecting large corporations with start-ups that deal with self-driving technology, electrification, cybersecurity, and mobility-as-a-service.
TuSimple’s fleet of 40 driving trucks used for testing and carrying freight
TuSimple’s backing from Girsky is unrelated to his interests in Nikola as an executive chairman. Nikola is yet to commence production of its Class 8 trucks.
TuSimple was founded in 2015 and since then has operations in China, Tucson, San Diego, and Arizona. Its’ main focus is autonomous vehicle technology that will enable the Class 8 truck to operate without a human driver. Currently, TuSimple has a fleet of 40 self-driving trucks in the US, which it uses for testing and carrying freight between Texas and Arizona.
TuSimple closes a deal with Traton Group to develop self-driving trucks
In July, this autonomous vehicle start-up had announced its plans to develop and start production of semi-autonomous driving trucks by 2024, by a partnership with Navistar. In September, TuSimple entered in an agreement with Volkswagon AG’s heavy-truck business Traton Group to develop self-driving trucks. It offered Traton Group a minority stake in the company.
Neither company revealed the financial terms of the partnership or the minority stake percentage details. According to an unnamed source, Traton made a direct capital investment in Tu Simple.