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The wheels on the truck go IPOINTL

The wheels on the truck go IPO

Another autonomous vehicle (AV) company is joining the race to the public markets: this time it’s TuSimple. Its self-driving truck network, which was developed in partnership with UPS and Berkshire Hathaway, is set to be fully operational in the US by 2024.

The San Diego-based firm’s net loss grew to $199m in 2020, from $145m the year before. This IPO will give it a chance to use the capital for different purposes, such as paying off debt or investing in new technology.

TuSimple joins a whole host of companies in the auto industry (not just in the self-driving market, but in the electric vehicle market too) that are trying to accelerate their tech advancements by monetizing from the current IPO environment — including Luminar Technologies, Velodyne, and Arrival Ltd (a bus and van maker listing today on the Nasdaq).

why it matters
Big companies, like Google (GOOGL) hold the advantage of having access to lots of capital and talent to further their tech innovations (its autonomous driving project is called Waymo). Others, like TuSimple, must press the gas pedal if they want to make a capital market move before the AV and EV industries become too saturated (legacy carmakers are already speeding up!).