TuSimple (TSPH) 8 Aug 212021 Q2 Earnings call transcript

Welcome to TuSimple Second Quarter 2021 Earnings Conference Call. My name is Silvia and I will be operator for today's call. At this time all participants in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn Mann. now will call James over I Mr. Mann begin. you may

Chief to Hello, today quarter and Cheng Cheng and James. operating Pat you, questions. review financial Financial our and our Officer Chief Lu everyone. President Pat us Thank take Dillon. With highlights Welcome second and Officer we'll President call. XXXX TuSimple's the will Executive and earnings then

the call over turn I Before Cheng. to

this website. housekeeping few and me as will reminder TuSimple's later a letter on page of is Let shareholder Investor a replay recorded. today a items call available The be Relations cover being the of call our

financial and of non-GAAP refer the Harbor including to for reconciliation not you Safe details object with forward-looking statements and measures - accordance TuSimple's this events that non-GAAP to I presented the release to materially principles. call in Cheng? uncertainties. or disclaimer accepted begin. more If prepared Note accounting to comparable the may and due only future change are factors. actual may financial our differ any or subject We'll in a generally call may GAAP over all shareholder disconnect Please measures our in results statements now predictions letter which to measures. will the to non-GAAP risks now. measures letter, also are of discuss from turn forward-looking and press to please These shareholder contain - way, are Cheng variety that

our quarter call. everyone. to Welcome Thank Hello, second you, James. earnings

recognition go-to-market low-cost most to scale the two, trucks; our and our OEM the which these the market. focused, the autonomous Pat our at the discuss and lastly, financial across to people our and development we an X our with turn first capital raised results. across four-pronged one, is I our production derisk the over world a Autonomous The will bring to for strategy, progress in ability position of represented quarter from hire areas the capacity trucks To TuSimple investment business. in and It of to expansion commercial and have safest, Network; elevated acceleration the areas goal, then impressive system partners; second to we of three, the strategy, Freight operations. reliable all purpose-built autonomous IPO at the to received autonomous mission and execution to a most advanced Our achieve Tier we with as further includes: discuss this trucking. accelerated and freight our Overall, class our leader helped autonomous of market talents. call TuSimple's driving

as the Rossi core people, the Engineering. we of X,XXX driving the Thompson are heavily hired commerce experience and from in technical the and ecosystem July, brings the key lead with our Robert HD increased of miles existing we that still continues chains to to Vice our June. for a and infrastructure part played R&D prior at Overall, miles us represent and as by far Adrian of X quarter to his roles extensive the onboard X,XXX from Systems responsible HD of team In industries. investments end compute we in driving autonomous vehicles miles in team in And is capabilities, our enables two first-to-market. operations. President for technical believe freight process, maps as total as the enable workforce. development The units. mature. Adrian terms seen aerospace maps is steering braking, Tier system. In team. map X driving experts as our to our to continue processes such We supply exceptional our quarter. production supply components, OEM be ensure integrate hired of complement reliability proprietary to we out further built and team critical XX% We've to invest The and ADS approximately from leadership, our further tools team systems chain, alongside Robert's also we unique and Adrian's operational This during for build invest autonomous our including team our developing early engineering building returns partnerships purpose our is continue of Level that critical performance autonomous a in partners. already of

that's new TuSimple to This talent R&D the foreseeable the employees to over quarter, expect the similar XX. a just to future. quality hire pleased personnel of with to XXX R&D we X,XXX join and teams We're bring we as continue pace choosing had of headcount June to for

which driving of virtual the the quarter-over-quarter is over autonomous of to Total X.X XXX,XXX development In most we're quarter, system, have at million, our virtual confident second growth. industry. driver XX% driven now fleet autonomous the we in stands miles Moving a miles. the fitness drove XX vehicles road advanced

in via mode fully data conducted human collection miles driving roll drivers refine mode autonomous to data valuable provide Our system. and autonomous

patents awarded XXX quarter, our as at granted terms total XX portfolio, patents In IP a in quarter, XX% of second of for increase the new we from quarter-end. last

Our newly distinguish and advancements to our scale. ability in trucks awarded perception patents automatic further sensor rear-facing TuSimple's weighing systems at technology include systems, automate that

management We're to second four-phase and our proprietary trucks new of our systems, autonomous autonomy plan, and to update our quarter. designed management of our Connect, of significant to an on pilot trucks. third the TuSimple program, transportation and progress Driver-Out test pilot oversight phase system simply launch refine continue continue we of includes the manage make XX risk through the reliability which our upfit substance the As

to at the a our the of last in month. safety to of plan on very we the case driving and performance the runs to routes close verification move in before hub-to-hub is The fourth Tucson program. TuSimple. final pilot phase the of important risks Phoenix as our for work autonomous aim is of development acceptance. systems hardware social to Safety proper is the in system, feel the have multifaceted, coming engineering, covering our internal phase particularly well the pilot a Driver-Out the significant mitigate includes safety test this from increased else miles. this the in And And It lane, to inherent XXX is We The verification, modules. We process process. frequency verification case software includes comes various which reviews, confident safety of all testing, as audits validation and of system.

is have the of at to program the to all pilot this system, to the execute complexity truck perform mission, are understand performs it's the plan Given safely. And our the clearly truck intended we on driving times. systems what the ways autonomous and that designed operational

reacts our In any including to or degradation software addition, includes of will management that validations identify from Ensure both it stopping system, over the signs system risk issues hardware. pulling appropriately, and and of we the lanes safety enter validation final the on-road a safety case board. course, pilot what safely, drivers Minimal into Risk call of on includes or with lastly, Condition And the MRC.

As autonomous safety and case you ensure programs this correctly holistic have risk. see, process driving we we can has in Furthermore, mitigated identified verification have truck process a and first-to-market. that advancing our production been critical to is

the the year. Driver-Out target for of missions end still Our start is timing with

overall updates into and autonomous study safety performance As off is advancement of years a several and our believe are importance We kicked we'll on tracking we unsafe trucks analyze kind that technology. will verification vehicle driving risk we safety is industry in pilot to first our be program, Driver-out of Level leader indication study will ahead we telematics. industry, continue will program case of comparative provide move that the confident data recently our its competitors indicators certainly for timeline to believe This of status. fully safety, maturity performance in the pilot of the Further, we versus The our fall, the various fleet progress, the this highlighting can trucks. increase any X our in a conditions standard and Geotab, with of accidents. be an of the manually driven and measure sourced the safety

to study technology to to add list driving illustrating data our expect growing benefits. TuSimple's We autonomous of

our is to first which at strategy, pillar autonomous market moving to to being bring the Now trucks scale. purpose reliable on of built next

advance. Our production with Navistar continues to program

important progress for only next move the over with for systems autonomous Downselect, series as we quarter, we our we're components with components To long company production, milestone. this items, Downselect of as the trucking such and During supplier months, it's research critical the where knowledge, key suppliers especially setting specifications units. for time development required lead made approaching final the and braking list towards and several Navistar LiDAR onboard compute for those process. well steering from as the our we milestone down narrow as

TRATON's programs. of to continues Navistar, teams In Scania concept of partnership Technical addition one work and doing scope brands TRATON to with from our our the progress well. expand the TuSimple we're with truck

development investing there our we'll We to the in expect in increase to In focus Yangshan team our as well. activities deepwater and continues China, Donghai Europe. continue port on And on expanding testing Shanghai. near Bridge team to our be

busiest in strategic comes bridge size We we terminal AFN, for As the commercial advantage. efficiency the and XX-mile this from term density container the long-term autonomous and coverage last The is to with of market the a the believe ending development China. believe and the of our mainland The past, pillar Terminals locations. that map of TuSimple's most this are The water connects go we the routes starting point strategy in Network. high-definition is near of operations. Autonomous AFN and of deep to shared project Freight you viability world's and port. our competitive is the coverage has

will to vehicle and with including freight The ourselves, Dallas AFM as and Triangle Alliance revenue opening capital runs support services intermodal San enabling announced our trucks, Ryder our to potential years continue potential AFM of leases solutions. integration for strategy roadside terminal relationship assistance There's network our our also transportation to with in leverage leasing expanding our customers freight with by Ryder We the customers, new accelerate premier excited with near We're with financial agreement lanes, is technology while the better Our Texas existing facility best-in-class new partners. we to that June come. strong providing efficient. ecosystem being prime ability Ryder. will to better with new into space a very Houston, its Dallas, strategic collaboration existing central will us and The supplement the logistics hub Fort more coverage, to once and from partners, we'll July, its Texas needs. autonomous Worth growth. to dedicated lease System Ryder's will terminal to expand access and entered leverage terminal and Austin. offer access opportunities, And that terminals a Ryder serve resources autonomous our underwrite Texas our that Antonio In in and can management located asset customer's for service our area. Ryder for we support maintenance, capacity, between to thus

before to heading on review off I status. a want provide brief to the Lastly, CFIUS Pat, update

filing like shareholders for companies is if be filing of Ltd. In that transaction And to terms incur recently additional in assets engage not of our new of into and technology of by reviewed is U.S. currently that in phase. We're XXXX for the that day a CFIUS Sina move not areas TuSimple intelligence. of Cayman the to review signal timing, artificial second definite outcome TuSimple these It Tusimple An the a the phase, committee. LLC submitted informed acquisition the uncommon XX reviews particularly voluntary Corp by joint the phase, the is being process. will ultimate works

information through the outcome vetting in stage, We is transparent, transaction, ownership ourselves this but our we're in information as XXXX speaks and raises that. the of included and we At of process, participating private sharing well our part and being at the capital some cannot this gone of regarding a factual on review our CFIUS process to the IPO as CFIUS pride predict in traditional level time. with the that and Additional fully as X-K. information,

the that, I'll We regular updates, will resolution results this hand to over process. of call the and look discuss now financial provide to With we Pat to continue and forward guidance. to

reservations Cheng. quarter-over-quarter. you, Thank our start We with reservation the XXXX ended reservations, quarter I'll an of X,XXX with program. increase

our in on We Navistar make we our This way to the production reservation we potential first of as the of program design also and our bill beyond valuable us for more our extremely wave. other engage existing fulsome and group now set our have Also, with feedback next vehicle. our engagement holders. customers specifications This and operating vehicle allows customer for started program holders critical decisions started reservations voice two materials requirements. is communication reservation of regarding with

verbal truck have hauling responses and this agreement reservation, discussions by including in a for We're We tier significant customer globally. XXX a logistics are the with from beginning received operator domestically one a the also in both today, fall. encouraged regarding freight we

Now gears for quarter-over-quarter. the in to five shifting revenue of period quarter, increase the is results and second we the a million year, times increase our financial versus XX% quarter, $X.X reported same a which last

we year. fleet, of in continue to once new million $XX on trucks asset million $XX the in last of We million our on Navistar of While spending AFM TuSimple stock receive half period including million trucks total R&D, increase the in do same spent R&D total from compensation. fleet during have a second in in maintained we the add number we year. million partner year. quarter, million our to utilization compares same We based This flat period total expenses fleet to compares based expect $X capacity. the $XX including G&A and on to expand our In $XX we in last G&A compensation. to period, spent $XX the stock of the This

previously quarter April, vesting. compensation but million $XX $XX million, had Upon the an of for triggering includes was stock-based which satisfied liquidity completion the for to instruments equity ideal awards successful related charge. requirements, expense condition full vested Our in testing our employee had time the were IPO million based $XX that

which complementary began our performance helpful is GAAP we disclosing quarter, to a business results. is This we that EBITDA, metric also adjusted believe

of ended quarter, a our $X in facility with This million. expenditures invested last increase capital EBITDA same by year We This and quarter of the compares the during period negative in technology accelerating our The negative was We million. billion. commercial $XX cash equipment to $X.X purchases development. million quarter $XX costs. adjusted balance reflects investments driven the and

update to to Now for the guidance provide XXXX an our year. full

Driver-Out updated our have areas and accordingly. towards accelerate our development. As and investment pilot of we full commercialization, commercial have we and to technology move incremental we identified key de-risk guidance And

of Rossi First, as out The enhance as to are as definition Cheng systems Adrian class investments well efforts. technical experts maps, managers Thompson, mentioned, leaders large we're these engineering and our strategic and world high making two to Robert accelerate and selected teams. build experienced our of groups

such algorithm, software integration will our core flexibility hardware identified to teams These areas within also some led increase selected driving OEMs million, our to CTO. and will us have today, our we And excluding to enhance and Secondly, are we items, core groups autonomous are system. increasing vertical Co-founder the most our work $XX Beginning incremental to critical guidance including Navistar our which scale these million, that IT functions adjusted as quarter, range our $XXX compensation $XXX guidance also $XXX the million full driven business. expenses in compensation. we million to to is the of in this stock-based compensation. HR The negative increase the broader are introducing We're for stock-based EBITDA range by with million increasing We're also guidance for $XX year. excluding for year. $XXX million in investment the to G&A by and of allow our with of $XXX expense Based senior $XXX are on to executives, multiple stock-based the we as the R&D million guidance for and Scania. incremental for of doing introducing investment with million

guidance year. are large by to items. is our million two increasing $XX million in for expenditure $XX We increase comprised This capital the part to

communicated guidance year. and two, million as $X to new of outs, AFM expand in rather revenue our our million $X facility terminal to previously Navistar There's ahead decision trucks XX our to incremental of no for we than change schedule. the First, purchase lease investments build

position the Cheng We of for last end to few with now year. expect remarks. a XXXX a hand I'll to cash in excess $X.XX back billion for it

capacity reliable Thank To the a to you, autonomous the and we to clear strategy be summarize, most Pat. focused have bring market. the to freight first

Level to on ramps Since and our prove on autonomy. have partnerships capabilities X our go-to-market. surface operate hardware highways and XXXX we demonstrated on We capabilities streets and technology, continue to leadership

believe tend position. to developments. advancements, our continue we driving of extend to ahead years leadership significant make systems We we And are autonomous we

we and our have Our globally. business do operations. terminals, we We know amazing our accomplish. still major our built and deliver support more we network employees every milestones highway a partnerships to autonomous And it to with solutions. at Navistar and and future lot scalable expanding day. enabled lanes checking of TRATON hard to current without We're And work can't very partners it certainly purpose

to With thank big that, them. Q&A session. our start to we're ready So you

question question-and-answer from [Operator Shanker will we first Our from the Instructions] begin session. you, Thank Ravi Stanley. comes Morgan now

that before execute So technology year? Cheng a and simultaneously like full-line prep there. you It the for the, will at Are sight and with finished when side, the test. t's detail couple is state Thanks I you. to done? cross i's technology to dot you permission do still sounds you the operational which that And of to of you authorities side to police have you'll test, Pan. confident that you're of Thank do done on have Driver-Out end of are few and kind - do get on the the things the or you for the Hi, you that on get know a you the you the get need be from the a questions to second, working done? ready the and the side to

Hi, Ravi. is right. That Yes.

in very technology. end targeting still of are we So We're year. our the confident

or to and certainly take a of remarks, lot we the rocket, risks we're we in key mentioned new to order I launching what identify mitigate the system. have about doing in aerospace prepared steps the satellite, now, effectively to a it's There's the prototype. in think a As a like

that. towards side we are we not the yes, in working as with do a believe as constant of Arizona Safety. Department Public in of terms a be And robot. we're so of And operational DOT dialogue to And things, well that

Great bringing of the envisioned can stuff it maybe forward Is thanks accurate? us Pat, kind on that of kind we and costs, of next rather Thanks. you do if that seeing a how higher about color, like maybe quicker? relative exactly the R&D give IPO? during what is a kind of you're driving follow-up question And to costs to you sounds like forward? that level And one than just as you kind mean, or will think two for Or you does over months? are get work catalysts of bringing that, your what of kind XX destination higher six of the

say always teams, to I particularly to - building we opportunistic, would Certainly where I build areas like categorize intended level, as key on to that we've some systems Ravi, the out engineering, and opportunity think and acceleration out are build some accurate them. of had an bring it's maps, degree, the to of as out. it's leadership costs. us top teams the that the being think the I talent, at we're beyond

our but think functions. The out also both that, see So net don't as full we bring to a expanded but or indicator of costs opportunity three we next approach years to team result to an launch, commercialization, some accelerating these of these some this more build of I critical two prior question, as we time an members. have forward rather the broader technology, to or the over acceleration de-risking because an being of

some that do. ability asking customers our our you've to acceleration, coast, which areas to been obviously miles have some map unique of east the us build our seen expand to out it are And in to

these So of the we're investments. seeing already some of fruits

next the from question Wetherbee Chris comes Citigroup. And from

sits just Chris, any in actually your location for and advantages, to you're wanted geographically. like Lutz about U.S., cost sort just they're getting hires making maybe the there are the about of James guys, of sort in of what the actually them, is where development essentially ask and if geographical Hey, the the sort headcount of thinking not

of to building teams the I in what guess, are I U.S., XX%. U.S. think we the and more hires having Europe, learned remote technical course, out teams in then expansion as in are work. probably having to vast of China I also now, our But with well. primarily say close of COVID, geographically, majority our and open the And in from pandemic, we we with are, would

bit time, expanded, So of at that terms to as year. also so talent. this contribute size on that helpful the in recruiting all has our has fact tracking we're these talent a of team been same your so, adding And things the quite

numbers you the it And already were that as you plan think the increment is for on for I Got well, on roughly. true bringing it. company those gave broadly, they

That's right. That's right. Yes.

Got it. you. All Thank right.

question JP next from Morgan. Brian Our Ossenbeck comes from

about color for is from a these of to cargo with the sort to partnership, do well. and you function if CapEx, there's from scale good can and be bit around like taking bunch network. can just I to do for areas. could on Hey, possibility the the excuse as going of a that bolts this lower ask guys. maintenance Thanks possibly as And sort give And can the what to - me what opportunities the the wanted of that Penske side a similar give evening, question. well, that Ryder with maybe kind We'd is to nuts sounds of more you like you finance and able to launch maybe sense little fueling. us just in as

I you're Hi, Yes. hope well. Brian,

mentioned in in As the prepared remarks.

honestly, as to ecosystem strategy as And, a real with is best. network to offering relates certainly logistics an expand Ryder is among Our to solutions, to best-in-class estate, the partners. of leasing customized to maintenance,

point estate from spend connect us our the is beneficial covers This our them. strategy, will - just money answer should to than it's given think to to that really, of to autonomous make we It more the freight on a all all bolts, locations. for real expenditures. it And as surface-streets lot launching capital both In the our existing technology of your and on question, believe, ability nuts B, and point side A about be try to has can't an only we go, drive operations so sense we doesn't our more technology highways to things.

provide the are capacity customers the access autonomous to low long reliable in and at going to run most easy We freight cost.

that a lot this certainly is so potential. a And has partnership of

working cooperation having we're are Ryder, business and the And terminals. a the also to use services. We with identify collaboration go can other as to the the we that or of places through maintenance parts

Okay, great. Cheng. that, Thanks for

one availability? testing As environment? and commercial for can what normal more about see about a that more just follow give you. the few the couple size maybe for bit adding timing, up, And or if on A regulatory with back a just you a talk for you side regulatory more? us developing I Thank rest and the talk there with for update can full in more guess states terms the can else the an how little more seats any deck, of So, board testing? you your you year. of those on might slide of then Are getting or in that, in area restrictions

more Yes, vehicles. mean, our pointed letter autonomous states operations positive have to regulatory allow two a shareholder Level I of commercial Thanks. had out, as for X regulation

vehicles. brings a today commercial reminder, just no autonomous the that there testing XX any that of total and have are to that regulation states So prohibits states, currently

we general, the to the and in think I regulators work federal both closely on different with continue states.

to very them. continue We be with transparent

as positive supply very drivers bring, what is times and as that on the shortage, seeing. and kind mean, the is can the we're well safety a chain all the in based today I familiar. and environment benefits today the I regarding course, lot autonomy probably think that think of hearing of is one of tightness the you're of regulatory I

these hopefully that to And regulation. could impact the will be has I So, continue. positive drivers a think

Hi Cheng, thanks you. for Thank the time. Appreciate it.

Ken Our of next America. question Bank from comes Hoexter from

see did Drive-Out and a others is good what earlier the tech to understand be from or what the perspective in deployment, recently I guess seems to difference plans commercial differences in just autonomous market? maybe operational Plus, it a some Just noted competitive your in be pressing year are Hey, of afternoon. test, we capabilities ahead? to pressing there an that of their just want ahead out

saw China some already I kind mean, reports. you this we what Okay. the of media especially at open - the media for of of was some a a came about thing. a and same morning, is there's also out the video, the two where recently, that Yes, to report closed hasn't short RSN, it highway, it's media yet. saw ago, RSN public month confirmed highway or reports also

I our Driver-Out which I I if of on commercial highways, it's road, test, on in think streets type from pilot on and will, So highways, think this U.S. both different a is long very stretches is of you program, mean, open clear, on the operations surface

of Plus commercialization, about that an what not quite my I'm really not And is sure, that comparison, least of terms think they're level a Driver-Out solution. talking solution. I at understanding apples-to-apples So, from two we basically see. It's can in a not I think

can So, can it's assistance. busy, a retrofitted make make kit, that the that driver

different, what tell, we as, can it's So a from far different as again category. actually playing

saying. that So, that's helpful. But exactly you're how I think and that's what

follow-up, my the about talked you of some Yes, R&D, you about for where you're talked helpful. then on focused And the Thanks. capital.

in working we that, there's I somebody for? there that You also should specific R&D that look a on, scaling mentioned, that, the think project Zaudy on saw you're is something is there that

development driving the our the driver. it's overall all hand system. autonomous on virtual the system, is, of part itself, of software mean, course, one our of I It's

lot into off streams more that work engineering there's more later a the kicked have gates, Navistar As gets gets our together. work when process, of and and, more production to come

more that resources. requires So - there's more significantly resources

vehicle. are unit, the that we can course, capital. production and investment our that timeline some the computer supply on do too, to invest continue And sure more that includes the in are about same That controller, the Tier talked steering, more is that we with braking, can of chain. continued we sensors. partnerships capital, IPO make we'll X about investments components So talked of the domain that's as our at autonomous there something and And something

But project have. we to I point that point. se uses the wouldn't are those wouldn't, mean, this at specific I out So per one I

orders Okay, said can, said what just there but the just more you to said. you last I forward. quarter, if I were you clarify there were want Pat, to the quarter no in Right? than booked that XXXX clarify there had more coming, going right are

Ken. Yes,

are X,XXX the quarter previously And had our for a It's we on which we verbal actually reservations, optimistic nicely. reservation added as not is we signed disclosed another as the But indication verbal well in several then first indication been quarter, for trucks. yet. have we what made But the progressing XXX had the the that that So agreement has with customer call. others.

So by group expanded we're outreach more the to potential early of customers. this encouraged

On on mean we a three out certainly it number of came that conducting way I as depth the Pat think progress, hopefully I I of of on maybe, the that's voice reservations, think, collaboration, of the but point, customers. also in measure noted, terms

driving use in We autonomy. get reservation how that also customers a have that and is all sessions build the right? to this use that And reality strategic is multiple everyone's it's can to in we've supply adoption customers, little the really to, - involved different, majority people to and this. autonomous given autonomous autonomous people chain, We the of to of need along large system development how with how to TuSimple will understand is bit our be something Assuming said systems.

about unless behind So existing we're the there's of level the have. work very scenes, seeing customers we happy collaboration the of a you're across and that lot

Pat. Cheng. Thanks Thanks

from JP is Morgan. Ossenbeck question from Brian Next

the year half you disruptive, many Hi, know, the seeing of you're those about what your trucks some mentioned mentioned thanks critical update how on right well issues, from if yet? the I be for the as sourcing of supply And would getting in can you they're chain that's Cheng, in assembly and quite in just us clearly supply and the last back many, we Navistar, or just now. taking follow-up. how some from development chain components? affected, of call

Yes.

an for trucks purchases, are Navistar we trucks. the XX to related Just have we - order new

I in original for July delivered be of is the timeline think the it all timeframe.

in or year-ends. first sometime before we're And to right think think coming our the receive two, I we're the weeks. I one, hoping now rest the to week, receive expecting next first

makers. the great again, a chain level behind special, of this, with affecting it's great, is mean, to service regard giving but all I schedule. supply the So OEMs Navistar and is really certainly really equipment

the have. engineers the key where should are the reliability. answer an chain. the time lack booked they when one, same critical we some have program have of now to as will little also be sourcing Right that We there able supplier. for risk they of and the in of timing portion a of debugging. took of have now work one There had have terms the pilot I to actually, seeing components guess, sort to section, time. of engineers And components, to the work, components out performance component But with supplier, with example. addition Ravi's is being question some we're on We we're our this thought resources giving In a to of supply it, section about assist with the do dealing and so bit not here. And level Driver-Out of

so are the through is problem. putting the And all But But, in know, so seeing. to we're that problems hope things I like I the those down everyone supply we of chain. this - kind work

just But we to across don't even a we that do across a real that the facing equipment procure need that want we're to company. basic as for is it problem So outfit sure.

maybe I fleets Okay, still have forward or point more and and to of of their to OEMs just your future. pulling thanks think it selling And a work OEMs it's competitors, to preference. work fragmented for truck that Obviously, market a the earlier Cheng. one in go about is said you then, back with what some

But you're that anyway. with? you're talk just So going begin forward can maybe to you why roadmap and what you're this about what pulling the was route, part of assuming and if

chain general having Sure, what on I helping mature, I the more as seeing think as we're more is well platform. mean, supply a

if we more investments, the so OEMs. solution things an can collaborative OEM, those that miles, have, the provides support, trucks compute say, because forward. care I partnerships will about, there differently, mean, has process, the provides to and we're aftermarket chain And customers requirements. integrated, And seen we of that certified by think is, I as change? to can you requirements, move are OEM way fit just these all have the closely a have industry everybody in the of Who very saying placement saying on knit these because supply additional warranty, drive don't different still work what the very very be and this right? what that's the sensors, power to so trucks has trucks we The course, I who contrast aftermarket we with are have be

maybe it's isn't maybe developing an not mature, the certifies industry think wherever Well, Today, engine, for of engine can you reality solution a that protocols, until sort viable that industry in right? that soon. a aftermarket instance, Cummins if where supply Because a this, engines chain, choose, the a like ask but the proprietary OEM they ask kit. practical. be truck. still don't very there common that wouldn't And, technology customer stages, idea, may for both in idea, anytime being is becomes we the they case is a put I - that so for the see driving that today, or autonomous

very helpful. very you Thank much. Great,

Colin Oppenheimer. from Rusch question next Our comes from

is All right, for on yes, Colin. this Brandon

delineate one, the quarter the of were First miles guys just in can many you Europe? in conducted how

Scania. there actually Europe. by actually that's we Sure, That actually because don't owned the trucks is count in are miles the

sensitive we're miles so amount. NDAs So there's involved, given the Europe, decent a and obviously but - some not in disclosing it's

sense. that makes So

by we only, will trucks So that by run TuSimple. only disclose owned miles we are the

follow-up, ahead of terms a us sensors, functionality, mind ahead design Great. XXXX just in would company just vehicle update launch? and the And of sensor as the of giving any then you then qualifying

as I Again, might to I think ensure to that about to again, we we're can lot you some back position choices we're one. on get information But perhaps of this we back that and designs, But afterwards, we certainly that publicly disclose. you information. a that make this can to making - we that we sure design making come speak. talk at is this a to is public had

much. so Thanks

you. Thank

Denis Our next question comes Pyatchanin Company. from and Needham from

on I wanted had question Raji to a Dennis about Driver-Out programs. - tonight. your for Hi, I guys. ask

detail? mentioned of a more guys now? year? out third little you'd you before in kind right were end phase think are maybe the talk done of that Driver-Out What demo you And for comfortable the a you be that at of out bit I going ironing what you're four. the on Could needs to

to But - keep keep concise. It to answer. try I'll be it a it Sure. will try long

there is. So

the that's a being have mean a we design So we the Because Because trucks remove to trucks, - right? driver, basically have able from redundant new and I have to with line we and that defense, have just with order because need to last risk than is one that mitigate validate trucks we these more enough to or miles, of And it. safety able the we to hardware the computers. standpoint, important for built sensors these outfitted don't with driver. the ensure in associated be redundant

trucks, of acceptance of parts these And but so autonomous that, this trucks. part sort Phase performance to also only onto the a of not is mechanical ensure is the simply to the put this large X, to

things visibilities these so outs. had retrofits, are are tweak iron where so to And some the we there

need. some one as performance components, components also that that we them work because and for we we're way five have X with speak working and of seen they we XX have prototype might components, not five We instance, mentioned across Tier we today might

a to the last wanted all the that it mean, running safe, - So this about PR, the checklists risk these we our think more this launching, event, prepared a truck sort complex to again, this we system not very functional we'll with the few to have that to one a space. a highly a there's are engineering can short, system, the be and from the know we reputation. or we work understand a system, not remarks, not and in the, build from we of the confident is and oversimplify, safety, thing, of to performs be what's the of this simply is talk have we is, and in sure, a but very standpoint, the test. we is phase, very to And Right, all perform say out you this things associated it's but a safely times. In nuts this the miles. let's actual the or this by aerospace these have with the driver wheel. a to this to a is the all environments functions need But have with just dive And, about safety still we prototype, performs operations lastly, the be be a validate way third a deep having And process it's I and operational very about, validation have right? bunch at successful, to I meant not behind thing conduct driving, design marketing with bolts we safety on want to around case right the

you sure a with complex color, enough but it's problem. that not I'm So, industry engineering providing

think and I mitigate added to for at We If scale. to that's driver evidence, that's, make that those safe really as autonomous very mentioned, I think with the liability. it really need driving the to system. where are risk mean, but out of that functionality the and take I confident have Tucson, been you

to I of follow please? Got delays have about the shortage up, Is Navistar some that, quick alluded it? kind Could and something just have to like might bit as the a currently then, to And this. you might trucks kind you think procure from mentioned you chip ability speak or of a that? impacting you your little debugging think

there procure shortage impacting to Yes, our from the ability Navistar. trucks more chip is are different but two things,

Yes. Thanks.

Yes.

question next comes Kallo Baird. the from from And Ben

question. my Hey, thanks taking for

from the is deeper just that it? into go how Maybe Geotab you about regulators, more compare and is your First there? the both? or that to a do just of Is And talk it And some show could bit? you of customers Is benefits that detail our tasty you allowing relationship all, that? it? or technology

great the question. I a everyone that's is ecosystem. involved in it's It's both, for mean, It for

driving. telematics with the the manual Geotab, the data versus that have data have the So device truck, from on truck they that's they

think And Of the a driving events basically harsh definition for acceleration, there. testing braking, are I events. harsh harsh course, lot and We're data industry cornering. harsh harsh they driving have of

roll. of hits it's basically, truck, of easy height given G the where the gravity, to the where kind of So truck, the truck kind of for force it's center

of accidents. considered three it's impact of things the driving harsh events. these kind frequency that And are common, events those do So, pretty

be, would so the look data Geotab. we And in with conjunction that at where

autonomous preliminary system. that study year-long - So, a UCSD driving it's study. data harders, of is the in-line simple independent tire with with And our, a the Empirical early we on done have promising. goes the our fuel our this two savings it very study, we've we seen data

it's in about much, I $XXX you and if cash right but Pat too and that? about is contracting the is then the want that So to of data empirical highlight that that. you looks give burn you. gains. Thank quantify have half, part XX that And when second can we thing course, of million benefits autonomy, on system comment that, safety CFIUS, provide. a is And biggest can't to this But on the efficiency days, the then some and like we know the the is this information mean number? the our a just And

while review so filing the - the can't the that's exact kind the Sure. we we date. we're not submitted of But CFIUS, giving timing. in On June,

a of we I sensitive try X-K. we in think in resolution to to transparent, I look facts out think And to very continued to but be - word, think think it's I I lay relating time. Obviously, this the kind forward we've due CFIUS.

burn it's cash Ben, Hey, Pat. question. From the

it's $XXX our CapEx. sold million at cost the R&D, our in million of cash on year, goods G&A, somewhere I looking think, and $XXX just between to our some our burn of

guidance $X.XX between target the is interpolates process what the which And comfortably the evolved, few for a first for that and billion. have, our half that year. achieved Just we we've

if a helpful. So that. in than But through I we're session, providing not specific if that's and more can go detail in smaller we anything more think,

question Piper next comes Potter Alex your And from from Sandler.

thanks, Great, guys.

be I or too you appreciate would bill do the sensors you of stone? But things that will think materials talk more First when for guess, around this maybe question, you truck can nature. less in be, maybe can't of estimating the brakes, production specifically suppliers, and set

the And as targeting by stages. alongside year. are have different production But part that's of that course, early Navistar next there's target We the program. states we of

regarding more you in Okay, to deep you capacity to do that order necessarily the up then serve to order you appreciate high to a entertain that book, think fleet, do that also closed, relationships customers. for quality your to trucks and the sign perfect. and or Thanks. on you're demand. focus really, I more extent customers wasn't order book capacity between was have being order And XXXX? and because impression selective outstrips To basically, can but my really less was very now orders? looking it demand the But what many incremental historical you anticipate that to you're closed, adding those trying more book many So

stair a bit book. a step this are In of do on be little the of the it'll year, I it's initial approach. really focused the we rest highest reservation quality a for think the of think I No, good period, question.

to able So an dedicate it because dedication a have technology networks. able capacity is that folks our to those the put be mutual customers, into around of to be resources, to resources is it intent L-X really of carrier-owned seriousness

investment for either So that selective. is have a financial from a indicated expect our we've a but involved that perspective, will we or as do important that There made to those additional partners, into and to restoration standards pre-IPO be goes customers, remain reservation note And add the the of one each it's in company. with we before, commitment the that cash escrow same. it's

But say do we certainly how to about expect do selective specific that it. being we too So I being without would we're expand it.

ahead to As with confidence of to trucks. firm from to orders of in of XXXX, of production reservations the to far we and move placing actual would start take then do We lightly start we for are I a customers don't and see that vote this engage them make this the that to only natural. as book, that's expand. this folks commitment an eventually the that closer financial delivery see expect And our us will extraordinary

can make them. to seriously the service very that's level we great have engagement to try be selective, take of required that we relationship sure and that and So provide a with very and

Perfect.

Thanks Okay. good. much very

next Our question comes Markets. Spak Joseph RBC from Capital from

Thanks, afternoon, good. everyone. Good

so as expand be sort of that and you're landscapes they now? environments? is what it first Just Does met Or that you map, some and to the the doing minimum across trucks mean, travel just and the as I geographies by has expands ODD country? standard time, operate these would fairly can only over like there the seamlessly mean of region? lot I differ to question, different a

with Good a we certainly And ODD. viable question. product start minimal will

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Of be course, these can updated things OTA.

there have deeper, So areas and some different even more I sort of ODD think, I the are things if the very may driving areas, similar. behaviors you can't highway, some do and is a to on urban between quite down go in one city not. though, level specific is say, compare New I York, different the experience think than, be a there United Generally Very drivers. that LA States in mean, it's our the speaking,

of what was see. if I'm sort that's what sure you're… we So that kind of not

that's that's, that. No, perfect. Appreciate

again, just, relations. a just up I China sensitive U.S. second with is of one guess, consummation that comes a, I lot government lot, The clearly question in a somewhat is think more investors but a which topic,

both with China. both U.S. and regions. dealing you're have you AI, obviously, in in centers operate both to You for R&D plans There's

there's Now, over been control. export and forth back

comfortable one do of that, geopolitics? be the by just investors how might get not So, opportunities hampered

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European China is focused that's well our U.S. the in primarily core China happens the So about innovation with the center on as the helping the us. as markets, majority, R&D as for we market. IP talked

So, I think a quite bifurcation there's there is as actually today. bit speak we

get But do in So, do sort I day, one either I very geopolitics. big the is we massive, of a think that honestly export investors to processes we a a controls sort if think place, markets see I of we do comfortable? think how serve of are big, - I one. to a worsening ability mean, both our is, or internal have in

think So we're mean, I playing sensitive certainly, optionality. changing is navigate. the that's think, so course, able more very word, environments. just have But we the of this say I been mostly far, the we're to markets two think, I it, biggest and right but maybe to not I

Thanks it's helpful.

levy Our next Suisse. Dan from question comes Credit from

for Hi, good evening. you questions. Thank the taking

more others. versus to more accelerate give can of much fared you helpful. arms said expansion one, of maybe can the First how task I a how help in of sense and constraint driver importantly, for Obviously, is is differently, on how this headcount keep How maybe, of you path race constraint we a maybe accelerating talent about guess the talent color the hearing has scaling on - how talent, much aggressive you the your is much to the Or get. acquisition operations. headcount achieving just commercialization? removing your on a us And

about, sense talked I at artificial operations effectively I we and minimum We're I company. In company. look TuSimple, it's scale, we're logistics company, of number as counts. at company, yes. think if software automotive mean, there that there's an intelligence commercial is, we're to get a mean, you I the Again, a head to we're mean,

we way the of or I acceleration years. let's it's, the with, I this headcount not to be number of things would think, time, I this, and linear. especially we're is prioritize certainly why that don't I the able given of post-IPO X,XXXs, with of is good that this, XXX order a pleased Certainly think of, I get I that talent, lot and that, the do anybody people, I'm it most proud to our over think one we'll be next that, higher because a us say, are to complexity clear tech, understand the a to the technology you only market and can't have there's in very engineers, think whether and, even So a technology, even will entry deep barriers strategy. several very have leadership, this focused that few higher, accomplish not to this again, that we point. it's folks that, we rollouts, appreciate right. in mean, a minimum deep, commercial else, mean, It's but is, this, track

mean, focus. no there's But I certainly right I yes, question. talent, have, so, sort your answer of and think terms to of to you scale And have in

then, that But seat And to really you these of factor second exclusivity talk there want you talk them, it in difficult your I for or deeper per the another none of your is more up, it? that to in that have, Got to scale partnerships. relationships partners ecosystem question, - stickiness to puts commercial And I you provider? tech out that know just se. the any commercial partnerships front tack them? you've listed of to all switch agreements As makes for you with

and the now, supply things mean, handoff the you of where technology so things, of into their network different system, have what on market these change, on right? they kind chain. into maps for do natural of and are the designed of most the that and systems switching with customized starting different of sort and voice some barrier, fits help today, carriers dispatch instance, of being how because plug I right like these truck, how trucks, the of their shippers, play can sort the that old is I coverage of the management it? - small then, there works. of right barriers, mean, current able transition if carrier network, they over course, we way switching they have if them are with How the very top That our for time. system, don't - provides There's on right TMS our fleets switch are. Because to kind the customers to think I do they to probably like kind customers customer of assume chain, And our everything that's for systems today all TMS operating, kind to carrier into to ways of plug the of been quite things and customized, equipment supply

a process. so And long actually integration it's

barriers, do the look have end customers that most we to day, but are I have capacity we to I So efficient, natural to a deliver, those of switching enable the it. the most think accessible, use mean, things have autonomous and deliver freight

in us I think, the customers they and our with we're leadership think I is technology So today see are what going. because

thank you. All right

time. We for this disconnect. further you participating, may questions concludes today's this Thank you conference. gentlemen, you now have no ladies Thank at and

Thank you everyone.