Today, shares of self-driving truck startup TuSimple (NASDAQ:TSP) began trading. At the time of writing, investors in TSP stock have seen declines of around 5% from the stock’s opening price of $40 per share.
TuSimple is a company focused on developing the world’s most advanced self-driving technologies for long-haul and heavy-duty trucking. The company utilizes the Navistar and TRATON OEMs in its autonomous driving system, hoping to capitalize on a key pain-point for trucking companies today.
Currently, truck drivers are in high demand, and companies are experiencing higher costs in attracting and retaining drivers. By shifting to autonomous self-driving technologies, TuSimple is betting on regulatory shifts that would fundamentally change the long-haul trucking industry. Such a shift would mean more consistent (and higher) operating markings for trucking companies. Thus, it’s a win-win, as long as regulators approve these systems.
Accordingly, this stock is one which is likely to see long-term investor interest. Here are a few things to know about the company’s recent IPO.
7 Things to Know About TSP Stock As It Begins Trading
- TuSimple raised more than $1 billion via its IPO, pricing shares above its estimated range.
- Morgan Stanley (NYSE:MS), Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) were all involved in the underwriting process.
- Accordingly, today’s drop of more than 5% appears to have brought these shares in line with what was previously expected.
- It also follows a broader struggle with EV stocks today. Top names like Nio (NYSE:NIO) and Churchill Capital IV (NYSE:CCIV) are down.
- The company reportedly has 5,700 reservations for its self-driving trucks.
- Accordingly, it’s a pre-revenue company targeting a $4 trillion global freight market.
- TuSimple does have competition on the horizon. Both Tesla (NASDAQ:TSLA) and Xpeng (NYSE:XPEV) are developing their own long-haul truck options.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.