TuSimple Holdings has announced its voluntary decision to delist from the Nasdaq and terminate registration with the U.S. securities regulator, resulting in a 40% drop in premarket trading for the autonomous driving technology company.
In a statement on Wednesday, the company attributed the downturn in its fortunes to a rise in interest rates and heightened market caution prompted by macroeconomic uncertainties. TuSimple anticipates its final trading day on the U.S. stock exchange to be around February 7.
The San Diego-based firm had previously disclosed restructuring plans in May, which included layoffs and asset impairments as measures to balance its cost structure amid sector-wide funding challenges.
TuSimple justified its decision to delist by expressing the belief that navigating its ongoing transformation is better suited as a private entity rather than a publicly traded one.
According to TuSimple, the perceived benefits of remaining a publicly traded company no longer outweigh the associated costs.
In its financial report for the nine months ending September 30, the company reported a loss from operations amounting to $248.6 million, reflecting a narrowing from $341.7 million during the corresponding period in 2022. This improvement was attributed to cost-cutting measures in research and development, as well as reductions in stock-based compensation for employees.