According to people familiar with the matter, tuSimple Holdings Inc, a driverless truck startup, is planning to sell its operations in China to focus on the U.S. market.
Last April, Tucson Future raised more than $1 billion through an initial public offering (IPO) on the NASDAQ.
The company said in its annual report that it operates about 100 Level 4 self-driving semi-trailer trucks: 75 of them in the United States and 25 in China, capable of driving without human drivers on certain routes.
Image source: Tucson Future
Three people familiar with the matter confirmed Tucson's future plans to sell its Chinese business, but declined to be named because it had not been authorized to inform the media.
According to one of them, the company, which wants to sell its China business for up to $1 billion, has approached several Chinese investors, including private equity firm Boyu Capital, to identify potential buyers.
The person said the decision to sell the China business was attributed to "strict regulation" in China and the United States, adding that Tucson's future business is expected to "grow independently" after the safety issues are addressed.
Founded by two veteran Chinese entrepreneurs, Tucson Future employs about 500 people and holds multiple patents in China.
Tucson, which lost $732.7 million last year, said it had not "recognized a lot of revenue" so far. It works with large parcel delivery companies such as DHL Global Express and United Parcel Delivery (UPS) in the United States.
In recent years, regulators in both China and the United States have conducted stricter data security scrutiny of companies operating in both countries.
Last month, Tucson Future said it had reached an agreement with the U.S. government to "restrict access to certain data and adopt a technical control scheme."
Last December, Tucson Future announced the completion of the world's first 80-mile journey on arizona's public roads by a fully autonomous semi-trailer truck.