TuSimple, once valued at $8.5 billion, faced setbacks leading to its U.S. shutdown and delisting in January 2024. The company had shifted its focus to commercializing its AV technology in China, and began hiring staff for AI gaming and animation, leading to shareholder complaints. Hou has urged the court to issue a temporary restraining order after noticing a filing by TuSimple China indicating a possible transfer of money out of the U.S. If the money goes to China, U.S. shareholders will have no recourse to recover funds from their original investment.
Key takeaways:
- Xiaodi Hou, co-founder and former CEO of TuSimple, has requested a California district court to issue a temporary restraining order to prevent the company from transferring its remaining U.S. assets to China.
- Hou accuses TuSimple and its leaders of diverting assets towards animation and gaming businesses in China, owned by or with direct ties to Mo Chen, TuSimple co-founder and chairman of the board.
- He also alleges that the company violated SEC regulations by not informing or gaining approval from shareholders before changing its business direction or transferring funds to China.
- TuSimple, once valued at $8.5 billion, faced setbacks leading to its U.S. shutdown and delisting in January 2024, and has since shifted focus to AI gaming and animation, causing concern among shareholders.