TuSimple Co-Founder Demands Liquidation in Legal Battle Over Shareholder Rights
Founder Seeks Immediate Payout Amid Boardroom Power Struggle
Xiaodi Hou, co-founder and former CEO of autonomous trucking company TuSimple, has escalated his fight for control by demanding the company’s immediate liquidation. In a letter obtained by TechCrunch, Hou insists the board distribute approximately $450 million in remaining funds to shareholders “on a pure pro-rata basis.”
Key Developments in the TuSimple Saga
- Hou has filed a lawsuit against TuSimple and co-founder Mo Chen to reclaim voting rights over his shares
- Created SaveTuSimple.com to rally shareholder support for liquidation
- Claims shareholders could realize a 700%+ premium through liquidation (current share price: \(0.24 vs. \)1.93 cash per share)
- Major shareholders include Traton Group, BlackRock, and Vanguard
The Core Legal Dispute
Hou contends that a 2022 voting agreement granting Chen control over his shares expired in November 2024. However, Chen maintains control through a separate voting arrangement filed with the SEC on November 9, 2024, claiming 57.9% of voting power.
Background of the Conflict
The dispute stems from:
- TuSimple’s failed U.S. operations and subsequent delisting
- Allegations of asset diversion to Chen-linked animation/gaming ventures
- Ongoing concerns about potential transfers of U.S. assets to China
Shareholder Meeting Showdown Looms
Hou has requested the Delaware Chancery Court to:
- Postpone the December 20 annual shareholder meeting
- Block proposed governance changes that could cement Chen’s control
- Expedite review of his complaint (hearing set for December 2)
Company’s Troubled Timeline
| Year | Key Event |
|---|---|
| 2022 | Hou ousted after CFIUS probe into China ties |
| 2023 | U.S. operations shuttered |
| 2024 | Delisted from NASDAQ, pivoted to AI animation |
Major Shareholders at a Glance
- Sun Dream (Sina affiliate): 11.8%
- Traton: 7.6%
- Vanguard: 6.1%
- BlackRock: 5.6%
- Camac Partners: 5.5%
What’s Next for TuSimple?
The December court hearing could determine whether:
- Hou regains control of his shares
- The shareholder meeting proceeds as scheduled
- The company’s remaining assets stay in the U.S.
TuSimple declined to comment on the ongoing legal proceedings.
Image Credits: TuSimple (via TechCrunch)
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