San Diego's smaller Tesla-rival TuSimple valued at $8.5 billion in Nasdaq debut

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San Diego's smaller Tesla-rival TuSimple valued at $8.5 billion in Nasdaq debut

TuSimple Holdings Inc., a San Diego, California-based self-driving truck manufacturer founded back in the 2015s, had made a decent Nasdaq debut on Thursday, valuing the autonomous truck maker a market capitalization of $8.5 billion.

In point of fact, TuSimple, the San Diego-headquartered self-driving start-up had sold off roughly 27 million ADSs (American Depository Shares) at its IPO (Initial Public Offerings), while some of its existing stakeholders were reportedly selling off as many as 6.8 million shares.

Nevertheless, TuSimple Holdings Inc. had generated about $1.1 billion at its IPO proceedings, which has not been sub-standard given wide-ranging industry speculations about the feasibility of a self-driving truck, suggested industry analysts.

Apart from that, Nasdaq-listed TuSimple shares opened up the day at $40.25 apiece, slightly higher than its IPO tag of $40 per share, and winded down the sessions almost flatlined.

Smaller Tesla rival TuSimple valued at $8.5 billion in Nasdaq debut

In point of fact, latest move from TuSimple Holdings Inc.

to go public came forth at a time, while a high-flying US IPO market has been at its strongest level in more than half a decade with indices hovering at record highs, mostly driven by a meteoric upsurge in so-called tech-related growth stocks.

On top of that, TuSimple’s recent ruse to getting listed in Nasdaq, which many analysts were contemplating as a gambit to capitalize on a sky-scrapping US IPO market this year, comes over the heels of fierce competitions from Google’s Waymo alongside China’s Xpeng Inc., both of which have been stepping up their works on autonomous driving technology over recent months.

Nevertheless, Volkswagen’s commercial trucking unit TRATON SE-backed TuSimple, has been manufacturing autonomous trucks along with Navistar International Corp., while the combined entity is expected to start production by 2024.