TuSimple co-founder Xiaodi Hou has disputed allegations from senior executives that he was poaching staff for the new company. In a LinkedIn post, Hou said he resigned from TuSimple’s board last week. This is due to disagreements over CEO Cheng Lu’s compensation package and disagreements over the company’s transition from Level 4 autonomy to Level 2 autonomy.
“I believe the so-called investigation was retaliation instigated by TuSimple’s chairman and CEO in response to my disagreement on some decisions,” Hou wrote in a LinkedIn post.
Hou told TechCrunch that he didn’t start another venture, hinting that it would be illogical to accuse him of poaching staff.
“I regularly hear from current TuSimple employees who are disappointed with the company’s current leadership and direction,” Hou said in a statement. Because we were family, and we still are Over the past few months, many employees have asked me for advice about careers and changes at the company Many have asked me about my own plans In all my involvement, I have remained true to my responsibilities and duties as a director.”
Hou continued to accuse TuSimple management of hunting down, harassing and intimidating certain employees during the course of the investigation.
Hou said refusing current CEO Cheng Lu’s “lucrative” compensation package was one of the reasons for his resignation.
According to filings, Lu is receiving an annual base salary of $450,000, a target annual bonus of $400,000, and a monthly housing allowance of $9,000. If Lu is fired without cause or if there is a change of control of the company (such as if the company is sold), Lu will receive her $15 million.
According to the documents, Lu’s compensation and severance package was agreed on December 14, 2022. Lu, Hou, and Chen were the only remaining board members at the time after having previously fired everyone else. A source familiar with the matter claimed that Lu and Chen changed the company’s governance to avoid his Hou voting against Lu’s compensation package. The company’s new directors, Wendy Hayes and Michael Mosier, joined the board the next day. We have reached out to TuSimple for comment on the source’s allegations.
Hou also said he was openly critical of TuSimple’s “decision to shift focus from Level 4 autonomous driving to Level 2 autonomous driving.”
Level 4 autonomy means that the system can drive itself within a specific set of circumstances, such as geofenced areas, without the need for human takeover. Level 2, or Advanced Driver Assistance Systems (ADAS), can perform automated tasks such as lane assist, cruise control, and emergency braking, but require the human driver to maintain most control of the vehicle. I have.
TuSimple has not publicly announced their intention to move from Level 4 to Level 2, but doing so would completely change the company’s business model.
In December, a deal between TuSimple and Navistar to jointly develop and produce a dedicated self-driving semi-truck by 2024 fell through, leaving TuSimple without a clear commercial direction.
Lu denied to TechCrunch that TuSimple plans to shift focus away from L4. The company will soon announce the progress of its autonomous domain controllers with the ability to support L2 solutions, he said. Lu also noted that in his May 2022 Analyst Day presentation for TuSimple, in partnership with Nvidia he outlined the company’s goal of producing L2+ ADAS. He reiterated that TuSimple is still very focused on his L4.
