TuSimple Fires CEO for Improper Connections to Chinese Firm By Investing.com

©Health & Fitness Journal. TuSimple (TSP) fires CEO over improper ties to Chinese company

By Michael Elkin

Electric vehicle company Tusimple (NASDAQ:) announced today that the company’s board of directors, Dr. Xiaodi Hou, the company’s chief executive officer, president and chief technology officer, and Dr. Hou has been relieved of his position as Chairman of the Company’s Board of Directors and as a member of the Government Security Committee effective October 30, 2022.

The board also announced that Dr. Ersin Yumer, TuSimple’s executive vice president of operations, has agreed to serve as interim CEO and president of the company while TuSimple begins its executive search. Brad Buss, TSP’s Lead Independent Director, will become Chairman of the Board. The Board is also actively engaged in seeking new independent members for the Board.

These actions came after an internal investigation that found improper dealings and a possible technology transfer to a Chinese company headed by the late TuSimple co-founder. The ongoing investigation, conducted by the Board’s Audit Committee, led the Board to the conclusion that a change in Chief Executive Officer was required.

TuSimple said in a regulatory filing filed Monday that it believes, based on an investigation by its board of directors, that some of its employees worked paid hours for Hydron, a Chinese startup developing autonomous hydrogen-powered trucks, in 2021. Those employees shared confidential information with Hydron before a non-disclosure agreement was signed, TuSimple said.

“I would like to thank Xiaodi for his many contributions to TuSimple. His knowledge and vision have been invaluable in developing TuSimple’s industry-leading technology and growing the company. Looking ahead, I am pleased that Ersin has agreed to help us guide the company through the next stages of its evolution.” said Brad Buss. “Transparency, good judgment and accountability are core values ​​for our company. We take those values ​​very seriously.”

“I look forward to working with the board and the talented TuSimple team to continue to advance the company.” Yumer. He added, “The leadership team has a strong belief in the benefits of our technology and is committed to the company’s commercialization roadmap.”

The Company’s relationship with Hydron is currently under investigation by the Federal Bureau of Investigation and the Securities and Exchange Commission.

TuSimple will report its third quarter 2022 financial results on Monday, October 31, 2022 after market close.

Shares of TSP are down 42.31% in midday trade on Monday.