Self-driving truck startup Aurora Innovation to sell up to $420M in shares ahead of commercial launch

Capital Raising and Financial Position - Aurora Innovation is seeking to raise hundreds of millions in additional capital to support its driverless commercial launch by the end of 2024 [1] - The company has arranged to sell up to $420 million worth of Class A common stock to underwriters Goldman Sachs, Allen & Company, and Morgan Stanley at $3.4830 per share, with a public offering price of $3.60 per share [2] - Aurora's stock price increased by almost 29% to $4.50 following the filing [2] - As of June 30, 2024, Aurora had $402 million in cash and cash equivalents and $618 million in short-term investments, which is expected to fund operations into Q4 2025 [3] - In Q2 2024, Aurora spent $198 million, resulting in a direct loss as the company is not yet generating revenue [3] Business Model and Market Strategy - Aurora is pursuing a driver-as-a-service model, where carriers purchase trucks equipped with Aurora Driver technology and offer services to shippers [1] - The company plans to enter the market as a carrier, offering up to 20 autonomous Paccar and Volvo trucks to shippers by the end of this year [1] - Aurora is set to start its commercial service on the Uber Freight network later this year, following a multi-year collaboration announced in June that will extend through 2030 [4] Use of Proceeds and Future Plans - Aurora intends to use the net proceeds from the stock offering for "working capital and other general corporate purposes" and will initially invest in short and long-term investment-grade instruments, certificates of deposit, or guaranteed obligations [3] - The company may need to significantly reduce its cash burn to extend its $402 million cash reserves over the next six quarters unless it garners significant returns from its short-term investments [4]