TuSimple Holdings Inc. on Thursday said it was replacing its CEO in a decision it called part of a “planned executive succession,” but which took Wall Street by surprise and caused its shares to plummet more than 20 percent.
The self-driving trucking company said Xiaodi Hou, up until now TuSimple’s chief technology officer, will replace Cheng Lu as chief executive and president effective immediately.
Shares slid 22 percent following the announcement to close at $13.25 — significantly below their $40 initial public offering price in April 2021.
Lu had been at the helm of the self-driving company since 2018 and led TuSimple during its IPO. He will serve as an adviser to the new CEO until March 2023 to ensure an effective transition, a time during which he will receive an annual salary of $450,000, the company said in a regulatory filing.
Lu appeared on an Automotive News podcast on Feb. 13. TuSimple’s executive team had not mentioned plans for an executive succession during any of the company’s last four public earnings calls.
