TuSimple Fires CEO Xiaodi Hou Amid Investigation

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Self-driving truck expertise developer TuSimple introduced it terminated Xiaodi Hou, the corporate’s CEO, president and chief expertise officer, and eliminated Hou from his place as chairman and as a member of the federal government safety committee, efficient Oct. 30.

Shares of TuSimple Holdings plunged, crashing by as a lot as 47.5% on Oct. 31.

The corporate reported these actions had been taken in reference to an ongoing investigation led by the audit committee, which prompted the board of administrators to conclude {that a} change of CEO was vital.

A separate report from The Wall Avenue Journal stated that federal investigators have launched an investigation into whether or not TuSimple executives improperly shared proprietary expertise with a start-up primarily based in China.

Federal investigators from the FBI and the Securities and Alternate Fee are probing whether or not executives improperly shared proprietary expertise with Hydron, a start-up primarily based in China and launched by Mo Chen, one in all TuSimple’s co-founders, in accordance with the Journal. Hou denied any wrongdoing in a WeChat put up, in accordance with Reuters.

Hou had solely been CEO since March, when he was elevated to the place from Chief Know-how Officer as a part of a deliberate succession, changing Cheng Lu within the function and Chen as chairman.

The San Diego-based TuSimple named Ersin Yumer as interim CEO. He’s presently its government vp of operations throughout the government search.

“I stay up for working with the board and the gifted TuSimple group to proceed to maneuver the corporate ahead,” Yumer stated in an announcement. “The management group firmly believes in the advantages of our expertise and is dedicated to the corporate’s commercialization roadmap.”

The corporate employed Russell Reynolds Associates to establish a brand new chief government officer with related expertise. — Transport Matters

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