Former TuSimple co-founder urges courts to block asset transfer to China
Xiaodi Hou, the co-founder and former CEO of self-driving trucking startup TuSimple, has urged a California district court to issue a temporary restraining order to stop the company from transferring its remaining U.S. assets to China, according to a recent court filing.
Hou, who plans to apply for a temporary restraining order in December during the next scheduled court hearing, is hoping to keep TuSimple from moving tens of millions of dollars in cash to China. As of September, TuSimple had roughly $450 million in capital. Hou is also requesting expedited discovery of evidence to aid his requests for the motion.
Hou’s declaration to the court, filed on Monday, is the latest escalation in the battle between TuSimple and some of its shareholders, over the company’s attempts to use investor capital to fund a new AI-generated animation and video game business in China.
This is the first time Hou — who was ousted from his role as CEO in 2022 — has publicly accused TuSimple and its leaders of funneling assets toward animation and gaming businesses owned by or with direct ties to Mo Chen, TuSimple co-founder and chairman of the board, under the guise of a business pivot. Hou also argued the company violated SEC regulations by neither informing nor gaining approval from shareholders before changing its business direction or transferring funds to China.
Hou now heads a new autonomous trucking startup in Texas
TuSimple, once valued at $8.5 billion after its 2021 IPO, faced setbacks that led to its U.S. shutdown and delisting in January 2024. The company’s stated goal was to commercialize its AV technology in China. But as the year progressed, TuSimple slashed its workforce, ceased self-driving operations, and began hiring staff to handle jobs related to AI gaming and animation.
Shareholders sent a letter to the board in August after learning TuSimple was putting resources toward AI gaming and animation. The board responded a couple weeks later by publicly announcing the new business unit.
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