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IPO TuSimple

Autonomous technology company
IPO
Medium risk

Revenues in 2019-2020

Invest in IPO TuSimple

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
The Company

TuSimple is an innovative technology company devoted to the development and application of artificial intelligence and computer vision technologies in the trucking industry. With a foundation in computer vision, algorithms, mapping, and AI, TuSimple is working to create a commercially viable autonomous truck driving platform with L4 (SAE) levels of safety.

TuSimple’s autonomous driving platform uses an array of cameras to scan the surrounding environment. The company elaborated original deep learning detection algorithms, high-​precision visual positioning and multi-sensor integration technology, and started testing autonomous trucks on public roads in California. The company was founded in 2015 in the US.

Market Opportunity

The global truck freight market is estimated to generate approximately $4 trillion in annual revenue. Truck freight comprises approximately 80% of the $1 trillion total U.S. freight market. The U.S. truck freight market was the third highest contributor to the U.S. GDP growth in 2017. The U.S. truck freight market has been characterized by strong economic cycle resiliency with consistent long term increases in miles driven per year.

In July 2020, TuSimple announced formal partnership with Navistar, one of the world’s largest commercial truck OEMs. Through this partnership, TuSimple intends to produce a line of purpose-built L4 autonomous semi-trucks for the North American market at scale by 2024 in Navistar’s manufacturing facilities. TuSimple has accepted over 5,700 reservations from ten customers, each of whom has significant freight operations.

In September 2020, TuSimple announced a global partnership with TRATON to develop purpose-built L4 autonomous semi-trucks. TRATON, a publicly listed subsidiary of Volkswagen, is one of the world’s largest commercial truck OEMs. Scania, MAN Truck & Bus, and Volkswagen are the truck brands of the TRATON GROUP.

Risks

Autonomous driving is an emerging technology and involves significant risks and uncertainties. The company has a limited operating history in a new market and faces significant challenges as industry is rapidly evolving.

Since the market for autonomous solutions is relatively new and disruptive, if the company’s autonomous driving technology fails to gain acceptance from users and other stakeholders in the freight transportation industry, its business, prospects, operating results, and financial condition could be materially harmed.

Financials

TuSimple has raised a total of $650M in funding over 12 rounds from 22 venture capital investors, including Sequoia Capital China, UPS Ventures, NVIDIA, Volkswagen and others.

TuSimple (TSP) plans to sell 33.8 million shares (20% insider) at a price range of $35 to $39. The company intends to raise as much as $1.3B in an IPO of its common stock at about $8.2B valuation. Perry Creek Capital Partners will purchase from TuSimple in a private placement a total of up to $35 million of shares at a price per share equal to the initial public offering price.

The company is still at the early stage of development and booked $1.8M in revenue in 2020, up from $710K in 2019. Due to relative high IPO valuation and volatility in the technology sector, this investment idea has a medium potential return of up to 40%.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
09 Apr
Threshold amount
$50
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
13 Apr
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
15 Apr
Return forecast
Medium (up to 40%)
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
19 Jul
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO TuSimple

This investment idea is no longer available. New applications are not accepted

View more ideas