Ex-TuSimple CEO Hou Re-Enters Autonomous Trucking Fray
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TuSimple co-founder and ex-CEO Xiaodi Hou broke cover with a fresh autonomous trucking venture Sept. 26 after raising $20 million in capital.
The venture — Bot Auto — will operate its own autonomous truck fleet and offer Transportation-as-a-Service to freight customers.
Houston-based Bot Auto will offer Level 4 autonomous vehicles. Autonomous vehicles are classified in levels 1 to 5. Level 4 does not require human interaction in most circumstances, but a driver can still manually override systems.
“As true believers in autonomous trucking, we’re thankful for our investors’ shared vision. Our strong commitment, combined with recent AI advancements and a sharpened focus on operational efficiency, has created a clear path to commercialization,” Hou said.
“Our prospects for success have never been more promising. We march forward, committed to bringing this transformative technology to humanity for a brighter future,” he added.
Houston-based Bot Auto will offer Level 4 autonomous vehicles, or those that do not require human interaction for most operations but can still be overridden manually. (Bot Auto)
Hou, who twice departed the now China-based TuSimple amid controversy, is joined at Bot Auto by several former TuSimple colleagues.
Lei Wang will be Bot Auto’s chief technology officer. Wang formerly headed TuSimple’s technology operations.
Paul Lam will be chief strategy officer. Work on the venture began in November 2023, according to Lam, whose LinkedIn profile lists him as chief strategy officer for a “Stealth Startup.”
Robert Brown is to be vice president of marketing. Brown was formerly chief marketing officer at collision warning software developer Spartan and before that senior director of external affairs at TuSimple.
Brian Moore joins Bot Auto as vice president of government affairs and held the same role at TuSimple. Moore previously worked for the Department of the Treasury’s Committee on Foreign Investment in the United States operations.
Hou departed TuSimple in a flurry of accusation and counteraccusation. Initially fired in October 2022 by the board, he then became the sole board member, a position he resigned in March 2023. The resignation sparked a heated back-and-forth with TuSimple executive chairman and co-founder Mo Chen.
The initial October 2022 departure resulted from what the then-board termed a lack of trust and confidence in Hou.
Hou’s ouster was triggered by an audit committee investigation into allegations of approaching fellow employees about leaving the company and forming a new venture, TuSimple said in a March 2023 U.S. Securities and Exchange Commission filing.
The Bot Auto founder hit back, arguing on social media and in a letter to TuSimple he was stepping away “given my continuing concerns about current leadership at the company, and my fundamental disagreement with TuSimple’s new business strategy and future direction.” He also said he refused to approve a “lucrative” compensation package for Chen.
Hou said he wanted TuSimple to focus on Level 4 autonomous products rather than Level 2 autonomous products.
“There have just been too many moments of frustration, agony, and disappointment over the past year. Many TuSimple employees have lost all sense of the mission we originally had to transform the transportation industry through autonomous trucking. Without a mission and good leadership, it appears that TuSimple has now resorted to threats and intimidation,” he concluded.
Chen, in turn, accused Hou of evading the investigation, adding that: “Your letter is riddled with post-hoc excuses for your resignation, which are pretextual and false.”
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Many more U.S. employees would follow Hou’s departure.
In December 2022, TuSimple laid off 25% of its staff, with the “majority” being U.S.-based employees. In May 2023, the company cut its global head count by 30%, with all the positions American.
A month later, TuSimple began exploring strategic alternatives for its U.S. operations, including a sale, saying it planned to focus on Asia-Pacific activities.
Then in December 2023, TuSimple announced plans to wind down its U.S. operations after failing to find a buyer. A further 150 employees were laid off immediately, or 75% of the company’s U.S. workforce.
Hou and his colleagues see Bot Auto as an opportunity to “start an AV trucking company with a clean slate with the ability to leverage the cutting-edge AI technology,” they said.
Investors providing the $20 million in Pre-A funding include Brightway Future Venture, Cherubic Venture, EnvisionX Venture, First Star Venture, Linear Capital, M31 Capital, Taihill Venture and Uphonest Venture.
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