TuSimple probed by FBI over alledged ties to Chinese-backed start-up truck Hydron
By Will Pulson - 22nd November 2022
TruSimple fleet
USA / China - NASDAQ-listed self-driving truck start-up, TuSimple Holdings Inc of San Diego, California, is being investigated by the FBI, the US Securities and Exchange Commission (SEC) and the Committee on Foreign Investment, over its alleged relationship with Chinese-backed start-up, Ontario, California-based Hydron Inc, according to reports in the USA in late October.
News of the investigation sent shares in TuSimple plunging 45% in a day to USD2.58. {Edit: The stock price, which reached a high of USD62.58 on July 2, 2021 (just weeks after its IPO of USD40.00/share on April 15, 2021) was already way off this high at USD6.31 on October 28, 2022}. The probe will look to establish whether the company’s executives - including CEO Xiaodi Hou - breached fiduciary duties and securities laws by failing to properly disclose the relationship with Hydron.
