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The latest news cycle is a good reminder that even a grizzled old reporter who thinks she has seen it all can still be surprised — and nothing lasts forever. Intrigued? Read on.
Welp, it sure is getting spicy over at TuSimple, according to several little birds.
The company disclosed last month a new business segment focused on — wait for it — AI-generated animation and video gaming. That action, our little bird network told us, has prompted backlash among some shareholders. Now it seems a fight is brewing over roughly $450 million in funds, the bulk of which remains in the United States. And arguments over the company’s mission lie at the center of it.
TechCrunch reporters Rebecca Bellan and Rita Liao chased down the story, and there are quite a few interesting details. For instance, TuSimple was beefing up its autonomous vehicle workforce in China late last year but then changed course in early 2024. Hundreds were laid off, although when asked, CEO Cheng Lu told Rebecca that these folks (about 500) resigned en masse.
Where does TuSimple go from here? There have been threats of lawsuits, although nothing new just yet. While the threats loom in the background, TuSimple is moving forward with development of an animated feature film and video game based on the science-fiction series “The Three-Body Problem.”
This whack-a-doodle pivot had me thinking: Sheesh, maybe I’ve been covering this industry simply too long.
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Deal flow in the transportation industry is a bit light this week. Here are some highlights.
Alaska Airlines completed its $1.9 billion acquisition of Hawaiian Airlines. The acquisition is yet another example of consolidation in the airline industry.
AIfleet, a trucking tech startup, raised $16.6 million in a Series B funding round led by Tom Williams at Heron Rock. Notably, Volvo Group VC participated, along with Obvious Ventures, Ibex Investors, Compound, Winthrop Square, and Cooley. The company has raised $50 million to date.
Clean Electric, an Indian battery tech startup, raised $6 million in a funding round co-led by Info Edge Ventures, Pi Ventures, and Kalaari Capital. Lok Capital and other investors also participated.
SiLC received an undisclosed investment from Honda to develop next-generation FMCW lidar solutions for all types of mobility.
ZeroAvia, a startup developing hydrogen-electric (fuel cell-powered) engines for planes, extended its Series C financing round to a total of $150 million, with an investment from Scottish National Investment Bank. The round was co-led by Airbus, Barclays Sustainable Impact Capital, and NEOM Investment Fund, with UK Infrastructure Bank joining as a cornerstone-level investor. Breakthrough Energy Ventures, Horizons Ventures, Ecosystem Integrity Fund, Summa Equity, Alaska Airlines, Amazon’s Climate Pledge Fund, and AP Ventures also participated.
Oxa, a Google-backed startup developing software for autonomous vehicles, acquired industrial logistics company StreetDrone for an undisclosed sum.
Motional president and CEO Karl Iagnemma — an early pioneer in the AV industry — has stepped down from the top leadership spot. CTO Laura Major is now interim CEO. Whether Major keeps that position is unknown. My inside sources suggest this is very much an evolving situation. Stay tuned.
Waymo and Uber expanded their relationship in a deal that is bigger than some folks might realize. Uber users in Austin and Atlanta will be able to hail Waymo robotaxis through the app in early 2025 as part of an expanded partnership between the two companies. Why so notable? For one, Uber, not Waymo, will be the operator.
Faraday Future is doling out big raises and bonuses to its CEO and its founder. Remember that this company is barely hanging on and has delivered just 13 cars in its 10-year history.
Fisker, the bankrupt EV startup, is reversing course just a few days after telling owners they would have to pay labor costs for recall repairs.
GM’s electric vehicle customers can now officially access Tesla’s Superchargers, more than a year after the automaker first announced that it would adopt its rival’s charging standard. But what about all the other non-Tesla EVs out there? Stay tuned for a list that we’ll be keeping updated.
Gogoro CEO Horace Luke resigned as an investigation into subsidy fraud continues at the Taiwanese electric scooter manufacturer and battery-swapping company.
U.K. startup Apian, Alphabet’s drone company Wing, and the U.K.’s National Health Service have launched a pilot program that will use drones to fly urgent blood samples between two hospitals in London.
United’s chief customer officer, Linda Jojo, explained to TechCrunch why the airline picked SpaceX’s Starlink to power its free Wi-Fi.
Remember that apparent cyberattack at the Port of Seattle, which also operates the Seattle-Tacoma International Airport? We now have official confirmation that it was targeted by a ransomware attack.
This week’s wheels will return next week with insights into the GMC Sierra EV. Future vehicles include the Mazda CX-90 PHEV and e-bikes.
What is “This week’s wheels”? It’s a chance to learn about the different transportation products we’re testing, whether it’s an electric or hybrid car, an e-bike, or even a ride in an autonomous vehicle.
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Bankrupt EV startup Fisker is reversing course just a few days after telling owners that they would have to pay labor costs for recall repairs. The company edited the FAQ page on its website to say “Fisker will provide the necessary parts (including the labor) at no cost to you.”
Fisker originally broke the bad news to thousands of Ocean SUV owners on Sunday night when it published the FAQ. The company said three of the five recalls — one for sudden loss of power, one for incorrectly displayed warning lights, and one for reduction in regenerative breaking — can be resolved with over-the-air software updates at no cost.
The other two recalls require parts and labor, though. Some of the Oceans have faulty door handles. And all of the SUVs need an electric water pump replaced, which was causing some vehicles to lose power. Fisker originally told owners that it would cover the cost of the parts, but that they’d have to pay for the inspection and repair process at an authorized service provider. (The company says it will send owners a list of these providers by “the end of September 2024.”)
The reversal comes as EV startup Fisker prepares to enter the fourth month of its Chapter 11 bankruptcy process. Fisker recently reached a settlement plan with its biggest secured lender, the committee of unsecured creditors, contract manufacturer Magna, and other parties involved in the bankruptcy. After a few months of back-and-forth, which occasionally got heated, the parties agreed on how to split up the proceeds of a liquidation of Fisker’s assets. The judge in the case has set a hearing for early October where that settlement plan might be approved.
The company already inked a sale of virtually all of its remaining vehicle inventory to New York vehicle leasing company American Lease for up to $46.25 million. Now it has to liquidate its remaining assets — allegedly more than $1 billion worth, largely consisting of manufacturing equipment that was used at Magna’s factory in Austria — in order to pay back its many creditors.
Update: This story was originally published on September 16 and was updated on September 18 to reflect Fisker’s pivot.
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