Xiaodi Hou, co-founder and former CEO of autonomous trucking firm TuSimple, has intensified his campaign to overhaul the company’s leadership ahead of a critical shareholder meeting on Friday. The meeting will determine the composition of TuSimple’s board of directors, but Hou is already signaling he may take the fight beyond the event.
In recent weeks, Hou has filed legal actions against TuSimple, seeking control of his voting rights, urging the company to liquidate its assets and return cash to shareholders, and attempting to block the transfer of funds to China. His latest move involves a written consent solicitation to remove current board members and install directors who support liquidation.
“Shareholders deserve a board that prioritizes their interests,” Hou wrote in an open letter to stakeholders on Monday, outlining his plans to replace the board even if the incumbents are re-elected during the meeting.
TuSimple has urged shareholders to support its current directors and approve a proposal to stagger the board. If passed, this measure would prevent all directors from being removed simultaneously, a move seemingly aimed at countering Hou’s efforts.
Tensions Rise Over Company’s Direction
The conflict comes amid significant upheaval for TuSimple. After delisting from the U.S. stock market earlier this year, the company shut down its American operations and announced plans to focus on autonomous vehicle testing in China. However, it later shifted its strategy, cutting ties with much of its self-driving team and reportedly reallocating U.S. investor funds to develop a new business unit focused on AI animation and gaming.
Hou and other shareholders have expressed outrage over the company’s pivot, arguing that it misuses funds intended for autonomous vehicle development. Hou’s push for liquidation reflects broader concerns about TuSimple’s financial stewardship and strategic direction.
The shareholder meeting and potential written consent process will likely determine whether Hou’s vision for the company prevails or if the current board maintains its position.
