Former TuSimple CEO Seeks Court Order to Halt Asset Transfer to China
Xiaodi Hou asks a California court to block TuSimple from moving tens of millions of dollars overseas, accusing the company of secretly funding a Chinese AI gaming business. This legal move escalates an ongoing battle with shareholders over the self-driving trucking firm's sudden business pivot.
Former TuSimple CEO and co-founder Xiaodi Hou urges a California district court to issue a temporary restraining order that stops the self-driving trucking company from transferring its remaining U.S. assets to China. Hou, who plans to formally request the order at a December hearing, wants to prevent TuSimple from moving tens of millions of dollars out of the country. He also asks the court for expedited discovery to support his legal claims against the company.
This filing represents the latest escalation in an ongoing battle between TuSimple and its shareholders over the company's unexpected shift away from autonomous trucking. Hou publicly accuses TuSimple and its leadership of funneling investor capital into AI-generated animation and video game businesses in China that have direct ties to co-founder and board chairman Mo Chen. Furthermore, Hou argues that the company violates SEC regulations by changing its business direction and transferring funds without informing or gaining approval from shareholders.
TuSimple, which once boasts an $8.5 billion valuation after its 2021 IPO, shuts down its U.S. operations and faces delisting in early 2024 before pivoting to this new AI entertainment focus. Hou takes action this week after spotting Chinese public filings that show two TuSimple subsidiaries recently registering a suspicious $150 million increase in assets. The former CEO now leads Bot Auto, a new autonomous trucking startup based in Texas, as he fights to hold his former company accountable.