Today has proven to be quite the head-scratcher for investors in TuSimple (NASDAQ:TSP). Currently, TSP stock is down approximately 10%, a rather significant move for a company that hasn’t been particularly volatile lately.
TuSimple is an autonomous trucking company, focused on bringing Level 4 autonomous driving technology to class 8 trucks. Class 8 trucks refer to the semis we see making long-haul trips all the time on the highway.
Today has marked a big day for TuSimple, as the company announced the first ever fully autonomous drive for a semi truck. Without a driver present, a TuSimple-powered semi successfully drove 80 miles. This trip spanned from Tucson to Phoenix, Arizona. The company posted a YouTube video of this trip, and issued a press release as well today.
Despite this news, TSP stock has failed to gain any momentum whatsoever today, continuing lower throughout the trading session. Let’s dive into what’s going on with this stock right now.
What’s the Deal With TSP Stock Today?
It’s hard to find a definitive answer as to why TuSimple has underperformed so significantly today. Indeed, this trip marks a milestone for the long-haul trucking industry. For those intrigued by the growth potential of autonomous level 4 driving technology, this is a sector worth watching.
One of the issues some investors appear to have with this drive is how it was carried out. Reportedly, spotters were placed ahead on the road, with police staying a half-mile behind the truck. Yes, the truck made the entire trip without interventions. However, the trip took place after dark, when traffic was light and under strict monitoring conditions.
On the one hand, these safety measures should be viewed positively. Other semi-autonomous driver assist programs, such as Tesla’s (NASDAQ:TSLA) full self driving (FSD) technology have been tested on public roads. However, the conditions under which TuSimple chose to test its vehicle may invite some criticism with respect to how this system would handle heavy traffic. Fair enough.
On the other hand, these safety measures ought to be applauded by the market. Those looking for true, lasting innovation in the autonomous driving space should like the direction TuSimple is headed.
Personally, I think today’s dip in TSP stock provides an intriguing buying opportunity. This is a stock I’m considering at these levels, following this announcement.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
